Common use of Indemnification; Contribution Clause in Contracts

Indemnification; Contribution. (a) The Company shall indemnify and hold harmless each Holder of Registrable Securities and each Person, if any, who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) against all losses, claims, damages, liabilities and expenses (including reasonable attorneys' fees, disbursements and expenses, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened 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 or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, 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 (i) 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 such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary 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 on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. (c) 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 10 except to the extent the indemnifying party shall have been actually 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, 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 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, unless in the reasonable judgment of any indemnified party, based on the written 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 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 10 is unavailable to an indemnified party hereunder in respect to any Losses, then the indemnifying 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 Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether 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, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. 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 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 2 contracts

Samples: Registration Rights Agreement (Itc Holding Co Inc), Registration Rights Agreement (Itc Deltacom Inc)

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Indemnification; Contribution. (a) The Company shall and the Guarantors, jointly and severally, agree to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an “Underwriter”) and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company and the Guarantors; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company and the Guarantors by such Holder the Holder, Participating Broker-Dealer or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Guarantors, the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Guarantors, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers each on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers each on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company and the Guarantors, such indemnifying party the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Guarantors, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to For purposes of this Section 10(d) were determined by pro rata allocation 4, each Person, if any, who controls an Initial Purchaser or by any other method Holder within the meaning of allocation that does not take into account Section 15 of the consideration referred 1933 Act or Section 20 of the 1934 Act shall have the same rights to in this Section 10(d). If indemnification is available under this Section 10contribution as such Initial Purchaser or Holder, and each director of the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 10(b)Company and such Guarantor, as the case may be, without regard and each Person, if any, who controls the Company and such Guarantor, as the case may be, within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Initial Purchasers’ respective obligations to contribute pursuant to this Section 4 are several in proportion to the relative fault principal amount of such indemnifying parties or indemnified party or any other equitable consideration provided for Securities set forth opposite their respective names in this Section 10(d)Schedule B to the Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 2 contracts

Samples: Registration Rights Agreement (Sonic Automotive Clearwater Inc), Registration Rights Agreement (Sre Maryland 2 LLC)

Indemnification; Contribution. (a) The If any Registrable Securities are included in a registration statement under this Agreement: 6.1. To the extent permitted by applicable law, the Company shall indemnify and hold harmless each Holder of Registrable Securities and Selling Holder, each underwriter or Agent in any underwritten or agented offering, each Person, if any, who controls such Selling Holder, underwriter or Agent within the meaning of the Securities Act, and each officer, director, partner and employee, of such Selling Holder, underwriter, Agent and such controlling Persons, against any and all losses, claims, damages, liabilities and expenses (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 any of the foregoing Persons may 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 of the following statements, omissions or violations (collectively, a “Violation”): (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement or prospectus, including any preliminary prospectus or final prospectus or any “issuer free writing prospectus” as such term is defined in Rule 433 under the Securities Act, or any amendments or supplements thereto; or (ii) the omission or alleged omission to state in any such registration statement or prospectus, including any preliminary prospectus or final prospectus or “issuer free writing prospectus”, or any amendments or supplements thereto, a material fact required or allegedly required to be stated therein, or necessary or allegedly necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, however, that the indemnification required by this Section 6.1 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, conditioned or delayed), nor shall the Company be liable in any such case for any such loss, claim, damage, liability, or expense solely to the extent that it arises out of or is based upon (x) a Violation which occurs in reliance upon and in conformity with written information furnished to the Company by the indemnified party 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 the Company shall have timely 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 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 who controls the Company within the meaning of the Securities Act, each underwriter or Agent in any underwritten or agented offering and each Person who controls such underwriter or Agent within the meaning of the Securities Act, and each officer, director, partner and employee of such underwriter or Agent or such controlling Person, against any and all losses, claims, damages, liabilities and expenses (joint and several), including reasonable attorneys' fees, ’ fees and disbursements and expensesexpenses of investigation, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened 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 or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, 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 (i) 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 such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained ininvestigation, 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 which any of the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or necessary to make the statements therein (in case other federal or state laws, insofar as such losses, claims, damages, liabilities and expenses arise out of a Prospectus or preliminary Prospectusare based upon any Violation, in the light of the circumstances then existing) not misleading, but only each case solely to the extent that any such untrue statement or omission is made Violation occurs in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Selling Holder or its counsel specifically Representatives or controlling persons expressly for use thereinin connection with such registration; provided, however, that (x) the liability of each Holder hereunder indemnification required by this Section 6.2 shall be limited not apply to the proportion amounts paid in settlement of any such Losses that loss, claim, damage, liability or expense if settlement is equal to effected without the proportion that consent of the net relevant Selling Holder of Registrable Securities, which consent shall not be unreasonably withheld, conditioned or delayed, and (y) in no event shall the amount of any indemnity under this Section 6.2 exceed the gross proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds applicable offering received by such Holder from the sale of Registrable Securities covered by such Registration StatementSelling Holder. (c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party 6.3. Promptly after the receipt by such an indemnified party under this Section 6 of any written notice of the commencement of any action, suit, proceeding or proceeding, investigation or threat thereof made in writing for which such indemnified party may make a claim indemnification or contribution pursuant under this Section 6, such indemnified party shall deliver to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant a written notice of the commencement thereof and the indemnifying party shall have the right to this Section 10 except participate in, and, to the extent the indemnifying party shall have been actually 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 wishso desires, jointly with any other indemnifying party similarly notifiedgiven notice, to assume the defense thereof, thereof with counsel reasonably satisfactory to such indemnified partythe parties; provided, and after notice from the indemnifying party to such however, that an indemnified party of its election so shall have the right to assume retain separate counsel in any such action, claim or proceeding and to participate in the defense thereof, provided, that the indemnified party shall be responsible for its own fees and disbursements and expenses unless representation of such indemnified party by the counsel retained by the indemnifying party shall not would be liable inappropriate due to such indemnified party for any legal expenses of other counsel actual 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, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist potential differing interests between the indemnifying party and such indemnified party and any other of party represented by such indemnified parties with respect to counsel in such claim, proceeding (in which event case the indemnifying party shall not be liable for the pay such fees and disbursements and expenses of (i) more than one counsel for all Holders of Registrable Securities who are the indemnified parties, selected by party and shall not have the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory right to the Company), (ii) more than one counsel for the underwriters 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 such action, claim or proceeding on behalf of such indemnified party). The failure to deliver written notice to the indemnifying party within a claim reasonable time following the commencement of any such action, if and only to the extent prejudicial to the indemnifying party, shall not be obligated relieve such indemnifying party of any liability to pay the indemnified party under this Section 6 to the extent of such prejudice. Notwithstanding the foregoing, the indemnified party will have the absolute right to conduct and control, through counsel of its choosing (with the fees and disbursements and expenses to be paid by the indemnifying party) the defense, compromise and settlement of more than one counsel for all parties indemnified by any such action, claim or proceeding if the indemnifying party with respect does not elect to such claimassume control of the defense within thirty (30) days after receiving notice thereof; provided, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event that the indemnifying party shall be obligated permitted to pay participate in the fees defense thereof with its own counsel and expenses of such additional counsel, provided that the at its own expense. 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 liable for the fees and expenses of (i) more than one counsel for all Holders of Registrable Securities who are indemnified partiesunreasonably withheld, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters conditioned or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsdelayed. No indemnifying party, in defense party shall consent to any settlement of any such action, suit, proceeding or investigation, shall, except with claim without the written consent of each indemnified the indemnifying party, which consent to the entry of any judgment shall not be unreasonably withheld, conditioned or entry into any settlement which delayed, that does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a an unconditional release from all liability in respect to of such action, suit, proceeding or investigation to the extent such liability is covered claim or that requires an admission of wrongdoing by the indemnity obligations set forth in this Section 10. No any indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party. (d) 6.4. If the indemnification required by this Section 6 from the indemnifying party provided for in this Section 10 is unavailable to an indemnified party hereunder in respect of any losses, claims, damages, liabilities or expenses referred to any Losses, then the in this Section 6: (i) The indemnifying 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 Losses losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party parties in connection with the actions which that resulted in such Losseslosses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and indemnified party parties shall be determined by reference to, among other things, whether 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, Violation has been made committed by, or relates to information supplied by, such indemnifying party or indemnified partyparties, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionViolation. The amount paid or payable by a party as a result of the Losses losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 10(c)6.1 and Section 6.2, any legal or other fees and or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. (ii) The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 6.4 were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in Section 6.4(i). No Person that is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). 6.5. If indemnification is available under this Section 106, the indemnifying parties shall indemnify each indemnified party to the full extent provided in this Section 10(a) or 10(b), as the case may be, 6 without regard to the relative fault of such indemnifying parties party or indemnified party or any other equitable consideration provided for referred to in Section 6.4. 6.6. The obligations of the Company and the Selling Holders of Registrable Securities under this Section 10(d). (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and 6 shall survive the termination completion of any offering of Registrable Securities pursuant to a registration statement under this Agreement, and otherwise until the expiration of the applicable statute of limitations.

Appears in 2 contracts

Samples: Registration Rights Agreement (Entercom Communications Corp), Stock Purchase Agreement (Entercom Communications Corp)

Indemnification; Contribution. (a) The Company shall Co-Issuers and the Guarantors agree jointly and severally to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an “Underwriter”) and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Co-Issuers; and (iii) against any and all expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by any indemnified party and, including, without limitation, any stamp taxes in Argentina), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company Co-Issuers by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the CompanyCo-Issuers, its the Guarantors, the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Co-Issuers, a Guarantor, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company Co-Issuers by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or parties with respect to such claim, in which event the indemnifying party shall not be liable for the reasonable fees and expenses of (i) more than one counsel (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for reasonable fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 60 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 45 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Co-Issuers and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Co-Issuers and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Co-Issuers and/or the Guarantors, such indemnifying party the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Co-Issuers, the Guarantors, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Holders and/or Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total discount received by it in connection with its purchase of the Securities exceeds the amount of any damages which such Initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Co-Issuers or any Guarantor, and each Person, if any, who controls the Co-Issuers or any Guarantor within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Co-Issuers or such Guarantor, as applicable. The parties agree that it would not be just and equitable if contribution Initial Purchasers’ respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 4 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 2 contracts

Samples: Registration Rights Agreement (Petrolera San Antonio S.A.), Registration Rights Agreement (Navios Maritime Holdings Inc.)

Indemnification; Contribution. (a) The Company shall shall, to the fullest extent permitted by law, indemnify and hold harmless each Holder of Registrable Securities and each PersonSecurities, if any, any Person who controls is a “controlling person” of such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange ActAct (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against all any losses, claims, actions, damages, liabilities and expenses (including reasonable attorneys' fees, disbursements and expenses, joint or several, to which such Covered Person 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 incurred) (collectivelysuch losses, "Losses") incurred by such party pursuant to any actual claims, actions, damages, liabilities or ------ threatened action, suit, proceeding or investigation arising expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained inin or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule thereto) or any amendment thereof or supplement thereto or any document incorporated by reference therein, (ii) 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 therein or necessary to make the statements therein not misleading or (in iii) any violation or alleged violation by the case of a Prospectus or a preliminary Prospectus, in the light Company of the circumstances then existing) Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated thereunder applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities, and the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability; provided, that the Company shall not misleadingbe so liable in any such case to the extent that any loss, except in each case insofar as such statements claim, action, damage, liability or omissions arise expense arises out of or are is based upon (i) any such untrue statement or alleged untrue statement statement, or omission or alleged omission omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule thereto) or any amendment thereof or supplement thereto or any document incorporated by reference therein in reliance on upon, and in conformity with with, written information with respect to such Holder prepared and furnished in writing to the Company by such Holder or its counsel Covered Person expressly for use therein, (ii) the use of . This indemnity shall be in addition to any Prospectus after such time as the obligation of liability the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arisemay otherwise have. (b) In connection with any Registration Statement filed pursuant hereto, each registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to be covered thereby the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus and shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders)to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents, Affiliates and each Person, if any, shareholders and any Person who controls is a Controlling Person with respect to the Company (within the meaning against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of Section 15 of them may become subject under the Securities Act or Section 20 of Act, the Exchange Act) and all other Holders against all Losses incurred by , any state blue-sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such party pursuant to any actual losses, claims, actions, damages, liabilities or threatened action, suit, proceeding or investigation arising expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained inin the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule thereto) or any amendment thereof or supplement thereto or (ii) 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 therein or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectustherein, in the case of any Prospectus, preliminary prospectus, free writing prospectus or any supplement thereto, in light of the circumstances then existing) under which made, not misleading, but but, in the case of each of clauses (i) and (ii), only to the extent that any such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule thereto) or any amendment thereof or supplement thereto in reliance on upon, and in conformity with with, written information with respect to such Holder prepared and furnished in writing to the Company by such Holder or its counsel specifically expressly for use therein, and such Holder shall reimburse the Company, its directors and officers, employees, agents, Affiliates and shareholders and any Person who is a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability; provided, however, that the liability of each Holder hereunder obligation to indemnify pursuant to this Section 13(b) shall be limited to the proportion of any such Losses that is individual and several, not joint and several, for each participating Holder and shall not exceed an amount equal to the proportion that the net proceeds from (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities sold to which such Registration Statement or Prospectus relates. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such 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 Equity Securities by such Holder under and its Affiliates, (b) the name and address of such Registration Statement bears Holder and any other beneficial owner of such Holder’s Registrable Securities and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to the total net proceeds from the sale of all securities sold thereunder, but not be disclosed in any event such document. This indemnity shall be in addition to exceed the net proceeds received by any liability which such Holder from the sale of Registrable Securities covered by such Registration Statementmay otherwise have. (c) Any Person entitled to indemnification hereunder agrees to shall give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of claim with respect to which it seeks indemnification; provided, that any action, suit, proceeding failure or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant delay to this Agreement, provided that failure to give such notification shall not affect the obligations of so notify the indemnifying party pursuant to this Section 10 shall not relieve the indemnifying party of its obligations hereunder, except to the extent that the indemnifying party shall have been is actually and materially prejudiced as a result by reason of such failurefailure or delay. In case any such a claim or an action shall be that is subject or potentially subject to indemnification hereunder is brought against any an indemnified party and it shall notify the indemnifying party of the commencement thereofparty, the indemnifying party shall be entitled to participate therein andin 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 extent that it shall wishindemnifying party’s expense, jointly with any other indemnifying party similarly notified, to assume the defense thereofof any such claim or action, with counsel reasonably satisfactory acceptable to such the indemnified party; provided, and after notice from the indemnifying party to such that any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its election so to assume the defense thereofown choice, but the indemnifying party shall not be liable obligated to such reimburse the indemnified party for any legal fees, costs and expenses of other counsel or any other expenses, in each case 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, in connection (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely or (E) the indemnified party has reasonably concluded upon the advice of counsel that there may be one or more legal or equitable defenses available to exist between it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party and such indemnified party and any other of such indemnified parties with respect party. Subject to such claimthe foregoing sentence, in which event the no indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders of Registrable Securities who are indemnified partiesshall, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one claim or action or separate but substantially similar or related actions. An indemnifying party who is not entitled toactions in the same jurisdiction arising out of the same general circumstances or allegations, or elects not tobe liable for the fees, assume the defense of a claim shall not be obligated to pay the fees costs and expenses of more than one counsel (1) firm of attorneys (in addition to any local counsel) for all parties indemnified by such parties. The indemnifying party with respect shall not have the right to such claim, unless in settle a claim or action for which any indemnified party is entitled to indemnification hereunder without the reasonable judgment consent of any the indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 enter into or agree to any settlement which relating to such claim or action, unless such judgment or settlement does not include impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term thereof the giving by the claimant or plaintiff therein to such indemnified party party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect to of such claim or action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 10. No indemnified The indemnifying party shall consent not be liable hereunder for any amount paid or payable or incurred pursuant to entry of or in connection with any judgment entered or entry into any settlement without effected with the consent of each an indemnified party unless the indemnifying partyparty has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification from the indemnifying party provided for in this Section 10 13 is held by a court of competent jurisdiction to be unavailable to to, or unenforceable by, an indemnified party hereunder in respect of any loss, claim, action, damage, liability or expense referred to any Lossesherein, then the applicable indemnifying party, in lieu of indemnifying such indemnified partyparty hereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses loss, claim, action, damage, liability or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party party, on the one hand, and of the indemnified party party, on the other hand, in connection with the actions statements, omissions or violations which resulted in such Lossesloss, claim, action, damage, liability or expense as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such the indemnifying party party, on the one hand, and of the indemnified party party, on the other hand, shall be determined by reference to, among other things, whether any action in question, including any the untrue statement or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied by, such by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated thereunder applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities was perpetrated by the indemnifying party or the indemnified party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement, omission or violation. The amount paid parties agree that it would not be just and equitable if contribution pursuant hereto were determined by pro rata allocation or payable by a party as a result of any other method or allocation that does not take into account the Losses equitable considerations referred to above in this Section 13(d). In no event shall the amount which a Holder of Registrable Securities may be deemed obligated to include, subject contribute pursuant to this Section 13(d) exceed an amount equal to the limitations set forth in Section 10(c), any legal or other fees and expenses reasonably incurred net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party in connection with any investigation guilty or proceeding. No Person guilty liable of fraudulent misrepresentation (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. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions of this Section 10 13 shall be remain in addition to full force and effect regardless of any liability which investigation made by or on behalf of any indemnifying indemnified party may have to or any officer, director or Controlling Person of such indemnified party and shall survive the termination Transfer of this Agreementany Registrable Securities by any Holder.

Appears in 2 contracts

Samples: Shareholder Agreement (Riot Blockchain, Inc.), Stock Purchase Agreement (Riot Blockchain, Inc.)

Indemnification; Contribution. (a) The With respect to the Securities, the Company shall agrees to indemnify and hold harmless each Holder of Registrable Securities the Dealer Managers, each Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an “Underwriter”) and each Person, if any, who controls any such Holder (Person within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act with respect to the Securities as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Notes or Transfer Restricted Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its each of the Dealer Managers, each Underwriter, each Participating Broker-Dealer and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, each of the Dealer Managers, any Underwriter, any Participating Broker-Dealer or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Transfer Restricted Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 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, unless in the reasonable judgment of any indemnified party, based on the written 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 the indemnified party) also be counsel to the indemnified party. No indemnifying party shall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company on the one hand and indemnified party the Holders, Underwriters, Participating Broker-Dealers and the Dealer Managers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders, Underwriters, Participating Broker-Dealers and the Dealer Managers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Holders, Underwriters, Participating Broker-Dealers or indemnified party, the Dealer Managers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Holders, Underwriters, Participating Broker-Dealers and the Dealer Managers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Dealer Managers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Dealer Manager, Holder, Participating Broker-Dealer or Underwriter shall be required to contribute any amount in excess of the amount by which the net proceeds received by such Holder from the sale of the Securities exceeds the amount of any damages which such Dealer Manager, Holder, Participating Broker-Dealer or Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission with respect to the Securities from the sale of the Securities. 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 4, each Person, if any, who controls a Dealer Manager, Holder, Participating Broker-Dealer or Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Dealer Manager, Holder, Participating Broker-Dealer or Underwriter and each director of the Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The parties agree that it would not be just and equitable if contribution Dealer Managers’ respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does 4 are several and not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d)joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 2 contracts

Samples: Registration Rights Agreement (Norfolk Southern Corp), Registration Rights Agreement (Norfolk Southern Corp)

Indemnification; Contribution. If any Registrable Securities are included in a registration statement under this Agreement: (ai) The To the extent permitted by applicable law, the Company shall indemnify and hold harmless each Holder Holder, and the partners, members, officers, directors, employees, and stockholders of Registrable 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, who controls such Holder (or underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) , against any and all losses, claims, damages, liabilities and expenses (joint or several), including reasonable attorneys' fees, attorney’s fees and disbursements and expenses, as incurred) reasonable expenses of investigation (collectively, "Losses") ”), incurred by such party pursuant to any actual or ------ threatened 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 or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, 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 (i) 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 such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising 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, but only insofar as such Losses arise out of or are based upon any of the following statements or omissions (collectively, a “Violation”): (1) any untrue statement or alleged untrue statement of a material fact contained inin the registration statement, including any preliminary Prospectus or final Prospectus contained therein, or any amendments or supplements thereto; or (2) the omission or alleged omission of to state therein a material fact required to be stated intherein, the Registration Statement, Prospectus or preliminary Prospectus or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectustherein, in the light of the circumstances then existing) under which they were made, not misleading; provided, but only however, that the indemnification required by this Section 2(f)(i) 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 in any such case for any such Loss to the extent that any such untrue statement it arises out of or omission is made based upon a Violation which occurs in reliance on upon and in conformity with information with respect to such Holder furnished in writing to the Company by such or on behalf of a Holder or its counsel specifically any underwriter expressly for use thereinin connection with such registration; and provided, further, that any indemnification required by this Section 2(f)(i) shall not apply to the extent that any such Loss is based on or arises out of an untrue statement or alleged untrue statement of a material fact, or an omission or alleged omission to state a material fact, included 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 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(b), Section 2(c)(ii) or Section 2(c)(v) . (ii) 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 of the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or other federal or state laws, but only insofar as such Losses arise out of or are based upon any Violation, in each case to the extent that such Violation arises out of or is based upon information furnished in writing by or on behalf of a Holder expressly for use in connection with such registration, or upon the 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 “official” Prospectus; provided, however, that the liability of each Holder hereunder any indemnification required by this Section 2(f)(ii) shall be limited not apply to the proportion amounts paid in settlement of any such Losses that Loss if such settlement is equal to effected without the proportion that consent of the net Holders (which consent shall not be unreasonably withheld) and in no event shall the amount of any indemnity obligation under this Section 2(f)(ii) exceed the gross proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds applicable offering received by such Holder from the sale of Registrable Securities covered by such Registration StatementHolders. (ciii) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party Promptly after the receipt by such an indemnified party under this Section 2(f) of any written notice of the commencement of any action, suit, proceeding or proceeding, investigation or threat thereof made in writing for which such indemnified party may make a claim indemnification or contribution pursuant under this Section 2(f), such indemnified party shall deliver to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant a written notice thereof and the indemnifying party shall have the right to this Section 10 except participate in, and, to the extent the indemnifying party shall have been actually 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 wishso desires, jointly with any other indemnifying party similarly notifiednoticed, to assume the defense thereof, 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 2(f) to the extent, but only 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 2(f). 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 after notice 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 to 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 its election so to assume the defense thereofindemnifying party, the indemnifying party shall not be liable have the right to assume the defense of such indemnified party for any legal expenses action, claim or proceeding on behalf of other counsel or any other expenses, in each case subsequently incurred by 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 defense thereof other same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of more than reasonable costs one separate firm of investigationattorneys (together with appropriate local counsel) at any time for all such indemnified parties, unless in the reasonable judgment of any such indemnified party, based on the written opinion of counsel, party a conflict of interest is likely to may exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claimaction, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters claim 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claimproceeding, in which event the indemnifying party shall be obligated to pay the reasonable 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Companyor counsels), (ii) more than one counsel for the underwriters 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 10. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party. (div) If the indemnification required by this Section 2(f) from the indemnifying party provided for in this Section 10 is unavailable to an indemnified party hereunder in respect of any Losses referred to any Losses, then in this Section 2(f) : (1) the indemnifying 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 Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party parties in connection with the actions which that resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and indemnified party parties shall be determined by reference to, among other things, whether 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, Violation has been made committed by, or relates to information supplied by, such indemnifying party or indemnified partyparties, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionViolation. 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 10(c2(f)(i), 2(f)(ii) and 2(f)(iii), any legal or other fees and or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding; (2) the parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 2(f)(iv) were determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in Section 2(f)(iv)(1). No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f11(e) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. . (v) The parties agree that it would not be just obligations of the Company and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available Holders under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a2(f) or 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 10(d). (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination completion of any offering of Registrable Securities pursuant to the registration statement under this Agreement, and otherwise.

Appears in 2 contracts

Samples: Registration Rights Agreement (Akorn Inc), Registration Rights Agreement (Akorn Inc)

Indemnification; Contribution. (a) The Company shall indemnify and hold harmless indemnify, to the fullest extent permitted by applicable Law, each Holder holder of Registrable Securities Securities, its officers, directors, partners, employees and agents, if any, and each Person, if any, who controls such Holder holder within the meaning of Section 15 of the Securities Act, against all losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (under the Securities Act or common law or otherwise), joint or several, resulting from any violation by the Company of the provisions of the Securities Act or any untrue statement or alleged untrue statement of a material fact contained in any registration statement or prospectus (and as amended or supplemented if amended or supplemented) or any preliminary prospectus or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of any prospectus, in light of the circumstances under which they were made) not misleading, except to the extent that such losses, claims, damages, liabilities (or proceedings in respect thereof) or expenses are caused by any untrue statement or alleged untrue statement contained in or by any omission or alleged omission from information concerning any holder of Registrable Securities furnished in writing to the Company by such holder expressly for use therein. No action or failure to act on the part of the underwriters (whether or not such underwriter is an Affiliate of any holder of Registrable Securities) shall affect the obligations of the Company to indemnify any holder of Registrable Securities or any other Person pursuant to the preceding sentence. In connection with any underwritten offering pursuant to Section 3.2, the Company agrees to enter into an underwriting agreement in customary form with the applicable underwriters, and the Company agrees to indemnify such underwriters, their 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 or Section 20 to the same extent as herein before provided with respect to the indemnification of the Exchange 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 alleged 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 connection with an offering in which a holder of Registrable Securities is participating, each such holder, severally and not jointly, shall indemnify, to the fullest extent permitted by applicable Law, the Company, each underwriter and their respective officers, directors, employees and agents, if any, and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act, against all any losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (including reasonable attorneys' fees, disbursements and expenses, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon resulting from any untrue statement or alleged untrue statement of a material fact contained infact, or any omission or alleged omission of a material fact required to be stated in, in the Registration Statement, Prospectus registration statement or prospectus or preliminary Prospectus prospectus or any amendment thereof or supplement to any of the foregoing thereto or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectusany prospectus, 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 (i) 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 such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of under which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthey were made) not misleading, but only to the extent that any such untrue statement is contained in or such omission is made in reliance on and in conformity with from information with respect to such Holder so concerning a holder furnished in writing to the Company by such Holder or its counsel specifically holder expressly for use therein; provided, however, provided that the liability of each Holder such holder’s obligations hereunder shall be limited to the proportion of any such Losses that is an amount equal to the proportion that the net proceeds from to such holder of the sale of Registrable Securities sold by pursuant to such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statementregistration statement. (c) Any Person entitled to indemnification hereunder agrees to under the provisions of this Section 3.5 shall (i) 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 claim with respect to which it seeks indemnification and (ii) permit 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 10 except to the extent the indemnifying party shall have been actually 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 thereofof such claim, with counsel reasonably satisfactory to such the indemnified party; and if such defense is so assumed, and after notice from the such indemnifying party to such shall not enter into any settlement without the consent of the indemnified party of its election so if such settlement attributes liability to assume the defense thereof, the indemnified party and such indemnifying party shall not be liable subject to such indemnified party any liability 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, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party settlement made without its consent (which shall not be unreasonably withheld); and any other of such indemnified parties underwriting agreement entered into with respect to such claim, in which any registration statement provided for under this Article III shall so provide. In the event the an indemnifying party shall elect not be liable for the fees and expenses of (i) more than one counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 claim, such indemnifying party shall not be obligated to pay the fees and expenses of more than one counsel or firm of counsel for all parties indemnified by such indemnifying party with in respect to of such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 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 for any reason the indemnification from the indemnifying party provided for in this Section 10 foregoing indemnity is unavailable to an indemnified party hereunder in respect to any Lossesunavailable, then the indemnifying party, in lieu of indemnifying such indemnified party, party shall contribute to the amount paid or payable by such the indemnified party as a result of such Losses losses, claims, damages, liabilities or expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party on the one hand and the indemnified party on the other or (ii) if the allocation provided by clause (i) above is not permitted by applicable Law or provides a lesser sum to the indemnified party than the amount hereinafter calculated, 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 and the indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided. Notwithstanding the foregoing, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale no holder of Registrable Securities sold by shall be required to contribute any amount in excess of the amount such Holder under a Registration Statement bears holder would have been required to the total net proceeds from the sale of all securities sold thereunder, but not in any event pay to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and an indemnified party shall be determined by reference to, among other things, whether 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, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and if the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. 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 indemnity under Section 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding3.5(b) were available. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution obligation of any Person to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does 3.5 shall be several and not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d)joint. (e) The An indemnifying party shall make payments of all amounts required to be made pursuant to the foregoing provisions of this Section 10 shall be in addition 3.5 to any liability which any indemnifying party may have to any or for the account of the indemnified party from time to time promptly upon receipt of bills or invoices relating thereto or when otherwise due or payable. (f) The indemnity and contribution agreements contained in this Section 3.5 shall remain in full force and effect regardless of any investigation made by or on behalf of a participating holder of Registrable Securities, its officers, directors, agents or any Person, if any, who controls such holder as aforesaid, and shall survive the Transfer of Equity Securities by such holder and the termination of this AgreementAgreement for any reason.

Appears in 2 contracts

Samples: Merger Agreement (Mobile Mini Inc), Stockholders Agreement (Mobile Mini Inc)

Indemnification; Contribution. (a) The Company shall Indemnification by Wyndham. Wyndham agrees, jointly and -------------------------- severally, to indemnify and hold harmless each Person who participates as an underwriter (any such Person being an "Underwriter"), each Holder of Registrable Securities and their respective partners, directors, officers and employees and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange ActAct as follows: (i) against any and all losses, liabilities, claims, damages, liabilities judgments and expenses (including reasonable attorneys' fees, disbursements and expenseswhatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened 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 or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, 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 (i) 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 such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary 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 on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. (c) 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 10 except to the extent the indemnifying party shall have been actually 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, 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 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, unless in the reasonable judgment of any indemnified party, based on the written 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 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 10 is unavailable to an indemnified party hereunder in respect to any Losses, then the indemnifying 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 Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether any action in question, including any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement pursuant to which Registrable Securities were registered under the Securities Act, including all documents incorporated therein by reference, or the omission or alleged omission to state therefrom of a material factfact required to be stated therein or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus, has been made byincluding all documents incorporated therein by reference, or relates the omission or alleged omission therefrom of a material fact necessary in order to information supplied bymake the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all losses, liabilities, claims, damages, judgments and expenses whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of any litigation, investigation or proceeding by any governmental agency or body, commenced or threatened, or of any other claim whatsoever based upon any such indemnifying party untrue statement or indemnified omission, or any such alleged untrue statement or omission, if such settlement is effected with the written consent of Wyndham; and (iii) against any and all expense whatsoever, as incurred (including fees and disbursements of counsel), incurred in investigating, preparing or defending against any litigation, investigation or proceeding by any governmental agency or body, commenced or threatened, in each case whether or not such Person is a party, and or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the parties' relative intentextent that any such expense is not paid under subparagraph (i) or (ii) above; provided, knowledgehowever, access that this indemnity agreement does not apply to information and opportunity any Holder or Underwriter with respect to correct any loss, liability, claim, damage, judgment or prevent such action. The amount paid expense to the extent arising out of any untrue statement or payable by alleged untrue statement of a party as material fact contained in any Prospectus, or the omission or alleged omission therefrom of a result material fact necessary to make the statements therein, in the light of the Losses referred circumstances under which they were made, not misleading, in any such case made in reliance upon and in conformity with written information furnished to above shall be deemed to include, subject to the limitations set forth in Section 10(c), any legal or other fees and expenses reasonably incurred Wyndham by such indemnified party Holder or Underwriter expressly for use in connection with a Registration Statement (or any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(aamendment thereto) or 10(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party any Prospectus (or any other equitable consideration provided for in this Section 10(damendment or supplement thereto). (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 2 contracts

Samples: Registration Rights Agreement (Wyndham International Inc), Registration Rights Agreement (Guayacan Private Equity Fund Lp)

Indemnification; Contribution. (a) The Company shall indemnify and hold harmless indemnify, to the fullest extent permitted by law, each Holder holder of Registrable Securities Securities, its officers, directors, partners, employees and agents, if any, and each Person, if any, who controls such Holder holder within the meaning of Section 15 of the Securities Act, against all losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (under the Securities Act or common law or otherwise), joint or several, resulting from any violation by the Company of the provisions of the Securities Act or any untrue statement or alleged untrue statement of a material fact contained in any registration statement or prospectus (and as amended or supplemented if amended or supplemented) or any preliminary prospectus or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of any prospectus, in light of the circumstances under which they were made) not misleading, except to the extent that such losses, claims, damages, liabilities (or proceedings in respect thereof) or expenses are caused by any untrue statement or alleged untrue statement contained in or by any omission or alleged omission from information concerning any holder furnished in writing to the Company by such holder expressly for use therein. If the Public Offering pursuant to any registration statement provided for under this Article III 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 Company 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 III is made through underwriters, the Company agrees to enter into an underwriting agreement in customary form with such underwriters and the Company agrees to indemnify such underwriters, their 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 or Section 20 to the same extent as herein before provided with respect to the indemnification of the Exchange 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 alleged 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, each such holder, severally and not jointly, shall indemnify, to the fullest extent permitted by law, the Company, each underwriter and their respective officers, directors, employees and agents, if any, and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act, against all any losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (including reasonable attorneys' fees, disbursements and expenses, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon resulting from any untrue statement or alleged untrue statement of a material fact contained infact, or any omission or alleged omission of a material fact required to be stated in, in the Registration Statement, Prospectus registration statement or prospectus or preliminary Prospectus prospectus or any amendment thereof or supplement to any of the foregoing thereto or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectusany prospectus, 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 (i) 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 such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of under which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthey were made) not misleading, but only to the extent that any such untrue statement is contained in or such omission is made in reliance on and in conformity with from information with respect to such Holder so concerning a holder furnished in writing to the Company by such Holder or its counsel specifically holder expressly for use therein; provided, however, provided that the liability of each Holder such holder's obligations hereunder shall be limited to the proportion of any such Losses that is an amount equal to the proportion that the net proceeds from to such holder of the sale of Registrable Securities sold by pursuant to such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statementregistration statement. (c) Any Person entitled to indemnification hereunder agrees to under the provisions of this Section 3.7 shall (i) give prompt written notice to the indemnifying party after the receipt by of any claim with respect to which it seeks indemnification and (ii) unless in such indemnified party party's reasonable judgment a conflict of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which interest between such indemnified party and indemnifying parties may claim indemnification or contribution pursuant to this Agreementexist in respect of such claim, provided that failure to give permit such notification shall not affect the obligations of the indemnifying party pursuant to this Section 10 except to the extent the indemnifying party shall have been actually 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 thereofof such claim, with counsel reasonably satisfactory to such the indemnified party; and if such defense is so assumed, and after notice from the such indemnifying party to such shall not enter into any settlement without the consent of the indemnified party of its election so if such settlement attributes liability to assume the defense thereof, the indemnified party and such indemnifying party shall not be liable subject to such indemnified party any liability 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, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party settlement made without its consent (which shall not be unreasonably withheld); and any other of such indemnified parties underwriting agreement entered into with respect to such claim, in which any registration statement provided for under this Article III shall so provide. In the event the an indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 toentitled, or elects not tonot, to assume the defense of a claim claim, such indemnifying party shall not be obligated to pay the fees and expenses of more than one counsel or firm of counsel for all parties indemnified by such indemnifying party with in respect to of such claim, unless in the reasonable judgment of any such indemnified party, based on the written opinion of counsel, party a conflict of interest is likely to may exist between an such indemnified party and any other of such indemnified parties with in 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 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 for any reason the indemnification from the indemnifying party provided for in this Section 10 foregoing indemnity is unavailable to an indemnified party hereunder in respect to any Lossesunavailable, then the indemnifying party, in lieu of indemnifying such indemnified party, party shall contribute to the amount paid or payable by such the indemnified party as a result of such Losses losses, claims, damages, liabilities or expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party on the one hand and the indemnified party on the other or (ii) if the allocation provided by clause (i) above is not permitted by Applicable Law or provides a lesser sum to the indemnified party than the amount hereinafter calculated, 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 and the indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided. Notwithstanding the foregoing, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale no holder of Registrable Securities sold by shall be required to contribute any amount in excess of the amount such Holder under a Registration Statement bears holder would have been required to the total net proceeds from the sale of all securities sold thereunder, but not in any event pay to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and an indemnified party shall be determined by reference to, among other things, whether 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, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and if the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. 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 indemnity under Section 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding3.7(b) was available. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution obligation of any Person to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does 3.7 shall be several and not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d)joint. (e) The An indemnifying party shall make payments of all amounts required to be made pursuant to the foregoing provisions of this Section 10 shall be in addition 3.7 to any liability which any indemnifying party may have to any or for the account of the indemnified party from time to time promptly upon receipt of bills or invoices relating thereto or when otherwise due or payable. (f) The indemnity and contribution agreements contained in this Section 3.7 shall remain in full force and effect regardless of any investigation made by or on behalf of a participating holder of Registrable Securities, its officers, directors, agents or any Person, if any, who controls such holder as aforesaid, and shall survive the Transfer of Equity Securities by such holder and the termination of this AgreementAgreement for any reason.

Appears in 2 contracts

Samples: Stockholders Agreement (Associated Materials Inc), Stockholders Agreement (AMH Holdings, Inc.)

Indemnification; Contribution. (a) The Company shall agrees to indemnify and hold harmless harmless, to the extent permitted by law, each (i) Eligible Holder of Registrable Securities and Securities, (ii) each Person, if any, who Person that controls such Holder (within the meaning of Section 15 of the Securities Act or and Section 20 of the Exchange Act) such Eligible Holder and (iii) the respective directors, officers, partners, employees, legal counsel, accountants and agents of such Eligible Holder and controlling Person (collectively, “Holder Indemnified Parties”) from and against any and all losses, claims, damages, liabilities and expenses (expenses, including reasonable attorneys' fees, attorney’s fees and disbursements and expenses, as incurred) reasonable expenses of investigation (collectively, "Losses"”), caused by any (A) incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained inin any Registration Statement, Prospectus or preliminary Prospectus or any amendment thereof or supplement thereto or any Free Writing Prospectus or any omission or alleged omission of a material fact required to be stated intherein or necessary to make the statements therein not misleading, or (B) violation or alleged violation by the Company of the Securities Act, the Exchange Act, any applicable state securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act or any applicable state securities law; provided, however, that the Company shall not be liable to any Holder Indemnified Party for any Losses that are (x) caused by or contained in any information furnished in writing to the Company by or on behalf of a Holder Indemnified Party or any underwriter expressly for use in any Registration Statement, Prospectus or preliminary Prospectus or amendment or supplement thereto or any Free Writing Prospectus or (y) caused by such Holder Indemnified Party’s or any underwriter’s failure to deliver a copy of the Registration Statement, Prospectus or preliminary Prospectus or amendment or supplement thereto or any Free Writing Prospectus after the Company has furnished such Holder Indemnified Party or such underwriter in a timely manner with a sufficient number of copies of the same. In connection with an Underwritten Offering, the Company shall indemnify such underwriters, each Person who controls such underwriters (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act) and each of their respective directors, officers, partners and employees to the same extent as provided above with respect to the indemnification of the Eligible Holders of Registrable Securities. (b) In connection with any Registration Statement in which a holder of Registrable Securities is participating, each such holder shall furnish to the Company in writing such information and affidavits as the Company reasonably requests for use in connection with any such Registration Statement, Prospectus or preliminary Prospectus or amendment or supplement thereto or any Free Writing Prospectus and shall indemnify and hold harmless, to the extent permitted by law, (i) the Company, (ii) each Person who controls (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act) the Company, (iii) each other holder of Registrable Securities participating in any such offering and (iv) the respective directors, officers, partners, employees, legal counsel, accountants and agents of each of the Persons specified in the foregoing clauses (i) through (iii), from and against any and all Losses caused by any untrue or alleged untrue statement of material fact contained in the Registration Statement, Prospectus or preliminary Prospectus or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, 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 (i) 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 such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment thereof or supplement thereto is required, except such or any Free Writing Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 therein or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue or alleged untrue statement or omission or alleged omission is made contained in reliance on and in conformity with any information with respect to such Holder or affidavit so furnished in writing to the Company by or on behalf of such Holder or its counsel specifically holder expressly for use thereinin such Registration Statement, Prospectus, preliminary Prospectus or amendment or supplement thereto or such Free Writing Prospectus; provided, however, provided that the liability of obligation to indemnify shall be individual, not joint and several, for each Holder hereunder holder and shall be limited to the proportion net amount of any proceeds received by such Losses that is equal to the proportion that the net proceeds holder from the sale of Registrable Securities sold by such Holder under pursuant to such Registration Statement bears to Statement. In connection with an Underwritten Offering by the total net proceeds from Company or any holder of the sale of all Company’s securities sold thereunderother than an Eligible Holder, but not in any event to exceed the net proceeds received by such Holder from the sale a holder of Registrable Securities covered by participating therein shall indemnify such Registration Statementunderwriters, each Person who controls such underwriters (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act) and each of their respective directors, officers, partners and employees to the same extent as provided above with respect to the indemnification of the Company and the other holders. (c) Any Person entitled to indemnification hereunder agrees to shall (i) 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 claim with respect to which such indemnified party may claim Person seeks indemnification or contribution pursuant to this Agreement, (provided that the failure to give such notification prompt notice shall not affect the obligations of the indemnifying party pursuant impair any Person’s right to this Section 10 except indemnification hereunder to the extent such failure has not prejudiced the indemnifying party shall have been actually prejudiced as party) and (ii) unless in such indemnified party’s reasonable judgment a result conflict of interest between such failure. In case any indemnified and indemnifying parties may exist with respect to such action shall be brought against any indemnified party and it shall notify the claim, permit such 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, of such claim with counsel reasonably satisfactory to such the indemnified party, and after notice from the indemnifying party to . If such indemnified party of its election so to assume the defense thereofis assumed, the indemnifying party shall not be liable subject to such any liability for any settlement made by the indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by without its consent (but such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written 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 consent shall not be liable for the fees and expenses of (i) more than one counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Companyunreasonably withheld), (ii) more than one counsel for the underwriters 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 (1) counsel (plus one (1) local counsel in each applicable jurisdiction) for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, party a conflict of interest is likely to may exist between an such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying . (d) The indemnified party shall be obligated have the right to pay employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such additional counselcounsel shall be paid by the indemnified party unless (x) the indemnifying party agrees to pay the same, provided (y) the indemnifying party fails to assume the defense of such action with counsel reasonably satisfactory to the indemnified party or (z) the indemnified party reasonably believes that the joint representation of the indemnified party and any other party in such proceeding (including the indemnifying party) would be inappropriate under applicable standards of professional conduct. In the case of clause (y) above and (z) above, the indemnifying party shall not be liable for have the fees and expenses right to assume the defense of (i) more than one counsel for all Holders such action on behalf of Registrable Securities who are such indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsparty. No indemnifying party, in defense of any such action, suit, proceeding or investigation, party shall, except with without the written consent of each the indemnified party, effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or entry into any settlement 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 (1) includes an unconditional release of the indemnified party from all liability arising out of such action or claim and (2) does not include a statement as to, or an unconditional term thereof the giving admission of, fault, culpability or a failure to act by the claimant or plaintiff on behalf of any indemnified party. The rights afforded to any indemnified party hereunder shall be in addition to any rights that such indemnified party of a release from all liability in respect to such actionmay have at common law, suit, proceeding by separate agreement or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 10. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyotherwise. (de) The indemnification provided for under this Agreement shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any Person that controls (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act) such indemnified party and the respective directors, officers, partners, employees, legal counsel, accountants and agents of such indemnified party and controlling Person and shall survive the transfer of Registrable Securities. (f) If the indemnification required by this Section 7 from the indemnifying party provided for in this Section 10 is unavailable or insufficient to hold harmless an indemnified party hereunder in respect to of any Losses, then the referred to in this Section 7: (i) The indemnifying 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 Losses Losses, in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party parties in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and indemnified party parties shall be determined by reference to, among other things, whether 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, question has been made committed by, or relates to information supplied by, such indemnifying party or indemnified partyparties, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionaction in question. 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 10(c7(a) and Section 7(b), any legal or other fees and or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. (ii) The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 7(f) were determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in Section 7(f)(i). No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 2 contracts

Samples: Registration Rights Agreement (DEX ONE Corp), Registration Rights Agreement (R H Donnelley Corp)

Indemnification; Contribution. (a) The Company shall indemnify and hold harmless harmless, to the fullest extent permitted by law, each Holder Stockholder in any offering or sale of Registrable Securities Common Shares pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Common Shares, and each Person, if any, who controls such Holder Stockholder 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, claims, damages, liabilities and expenses (including reasonable attorneys’ 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, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon: (i) 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 Issuer Free Writing Prospectus or any “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 the case of a Prospectus, a preliminary Prospectus, an Issuer 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 such Stockholder furnished in writing to the Company by such Stockholder or its counsel expressly for use therein, (B) the use of any Prospectus, Issuer Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (C) the use of any Prospectus, Issuer Free Writing Prospectus or “issuer information” after such time as the Company has advised the Stockholders that the filing of an amendment or supplement thereto is required, except such Prospectus, Issuer 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 relating to action required of or inaction by the Company in connection with any such registration. Notwithstanding the foregoing provisions of this Section 8(a), the Company shall not be liable to any such Stockholder or underwriter or to any other indemnified party under the indemnity agreement in this Section 8(a) for any Losses that 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) such Stockholder or underwriter failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Common Shares by such Stockholder or underwriter to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission; or (ii) (A) such untrue statement or alleged untrue statement or omission or alleged omission 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, such Stockholder or underwriter thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Common Shares by such Stockholder 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 Common Shares by such indemnified party. (b) In connection with any Registration Statement filed pursuant to this Agreement, each Stockholder holding Registrable Common Shares to be covered thereby shall, severally and not jointly with any other Stockholders, 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 Common Shares 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, claims, damages, liabilities and expenses (including reasonable attorneys' fees, disbursements and expenses, as incurred) (collectively, "Losses") Losses incurred by such party pursuant to any actual or ------ threatened 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 or necessary to make the statements therein (in the case of a foregoing, any Issuer Free Writing Prospectus or a preliminary Prospectus, in the light of the circumstances then existing) not misleading, except in each case insofar as such statements “issuer information” filed or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect required to such Holder furnished in writing be filed pursuant to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange ActRule 433(d) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omissionAct, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus, preliminary Prospectus or preliminary Issuer 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 on and in conformity with information with respect to such Holder Stockholder furnished in writing to the Company by such Holder Stockholder or its counsel specifically for use therein; provided, however, that the liability of each Holder hereunder no Stockholder shall be limited required to indemnify the proportion Company or any other indemnified party under this Section 11(b) with respect to any amount in excess of any such Losses that is equal to the proportion that the net proceeds from the sale amount of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder Stockholder from sales of the sale Registrable Common Shares of Registrable Securities covered by such Stockholder under such Registration Statement. (c) 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 10 11 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 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, 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 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, unless in the reasonable judgment of any indemnified party, based on the written 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 all Holders of Stockholders holding Registrable Securities Common Shares who are indemnified parties, selected by the Holders of Stockholders holding a Majority of the Registrable Securities Common Shares held by all Stockholders who are indemnified parties (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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Stockholders holding Registrable Securities Common Shares who are indemnified parties, selected by the Holders of Stockholders holding a Majority of the Registrable Securities Common Shares who are indemnified parties (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 1011. 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 10 11 is unavailable to an indemnified party hereunder in respect to of any Losses, then the indemnifying 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 Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder no Stockholder shall be limited required to contribute any amount in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder Stockholder from sales of the sale Registrable Common Shares of Registrable Securities covered by such the Stockholder under the applicable Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether 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, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. 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 10(c11(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d11(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d11(d). If indemnification is available under this Section 1011, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a11(a) or 10(b11(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 10(d11(d). (e) The provisions of this Section 10 11 shall be in addition to any 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 11 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.

Appears in 2 contracts

Samples: Registration Rights Agreement (PAETEC Holding Corp.), Registration Rights Agreement (PAETEC Holding Corp.)

Indemnification; Contribution. (a) The Company shall indemnify Guarantor and the Issuer agree to indemnify, defend and hold harmless each Holder of Registrable Securities and Initial Purchaser, each Holder, each person (a “Controlling Person”), if any, who controls such any Initial Purchaser or Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) Act and the respective officers, directors, partners, employees, representatives and agents of any Initial Purchaser, the Holders or any Controlling Person (each, an “Indemnified Party”), from and against all lossesany loss, claimsdamage, damagesexpense, liabilities and expenses liability, claim or any actions in respect thereof (including the reasonable attorneys' feescost of investigation) which such Indemnified Party may incur or become subject to under the Securities Act, disbursements and expensesthe Exchange Act or otherwise, insofar as incurred) (collectivelysuch loss, "Losses") incurred by such party pursuant to any actual damage, expense, liability, claim or ------ threatened action, suit, proceeding or investigation arising action arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained inin any Shelf Registration Statement or Prospectus, including any document incorporated by reference therein, or in any amendment or supplement thereto or in any preliminary prospectus, or arises out of or is based upon any omission or alleged omission of to state a material fact required to be stated in, the in any Shelf Registration Statement, Prospectus Statement or preliminary Prospectus or in any amendment or supplement to any of the foregoing thereto or necessary to make the statements therein (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 case of a statements made in any Prospectus or a in any amendment or supplement thereto or in any preliminary Prospectusprospectus, in the light of the circumstances then existing) under which such statements were made, not misleading, except and the Guarantor and the Issuer shall reimburse, as incurred, the Indemnified Parties for any legal or other expenses reasonably incurred by them in each connection with investigating or defending any such loss, damage, expense, liability, claim or action in respect thereof; provided, however, that the Guarantor and the Issuer shall not be required to provide any indemnification pursuant to this Section 6(a) in any such case insofar as any such statements loss, damage, expense, liability, claim or omissions arise action arises out of or are is based upon (i) any such untrue statement or omission or alleged untrue statement or omission of a material fact contained in, or alleged omission made in reliance on omitted from, and in conformity with information furnished in writing by or on behalf of an Initial Purchaser or a Holder to the Guarantor expressly for use in, any Shelf Registration Statement or any Prospectus or (ii) a disposition, pursuant to a Shelf Registration Statement, of Registrable Securities by an Indemnified Party during a Suspension Period, provided such Indemnified Party received, prior to such disposition, a Suspension Notice with respect to such Holder furnished Suspension Period; provided further, however, that this indemnity agreement will be in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable addition to any Holder or liability which the Guarantor and the Issuer may otherwise have to such Indemnified Party. (b) Each Holder, severally and not jointly, agrees to indemnify, defend and hold harmless the Guarantor and the Issuer, each of its directors, officers, employees, representatives, agents and any Person person who controls such Holder (the Guarantor and the Issuer within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange ActAct (each, a “Guarantor Indemnified Party”) from and against any loss, damage, expense, liability, claim or any actions in respect thereof (including the reasonable cost of investigation) which such Guarantor Indemnified Party may incur or become subject to under the indemnity agreement in this Section 10(a) for any Losses that arise Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or are is based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such any untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue 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 Guarantor expressly for use in, any Shelf Registration Statement or Prospectus, or arises out of or is based upon any omission or alleged omission of to state 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 in, the in any Shelf Registration Statement, Statement or Prospectus or preliminary Prospectus or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existing) such Holder Information not misleading, but only (B) a sale, by such Holder pursuant to the extent that any such untrue statement a Shelf Registration Statement in or omission is made in reliance on and in conformity with information with respect to which such Holder furnished is named as a selling securityholder, of Registrable Securities during a Suspension Period, provided that the Guarantor shall have theretofore provided such Holder a Suspension Notice in writing to the Company 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 Guarantor pursuant to Section 3(i) or Section 2(d)(i)(C), provided the Guarantor 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 Guarantor and the Issuer for any legal or other expenses reasonably incurred by the Guarantor 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 Holder may otherwise have to the Guarantor and the Issuer or any of its counsel specifically for use thereincontrolling 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 of the institution 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 Holder hereunder such counsel shall be limited to at the proportion expense of any such Losses that is equal to Indemnified Party unless the proportion that the net proceeds from the sale employment of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. (c) 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 10 except to the extent the indemnifying party counsel shall have been actually 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, 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 legal expenses of other counsel or any other expenses, authorized in each case subsequently incurred writing by such indemnified party, 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 other than reasonable costs or such Indemnified Party shall have reasonably concluded upon the written advice of investigationcounsel that there may be one or more defenses available to it that are different from, unless 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 reasonable judgment of any indemnified party, based on defense thereof but the written opinion of counsel, a conflict of interest is likely to exist between the indemnifying party fees and such indemnified party and any other expenses of such indemnified parties with respect to counsel shall be at the expense of such claimIndemnifying Party), in any of which event the indemnifying party 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 fees and expenses of (i) more than one counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 separate counsel for all in any one Proceeding or series of related Proceedings together with reasonably necessary local counsel representing the Indemnified Parties who are parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 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 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 one counsel for all Holders of Registrable Securities who are indemnified parties, selected sixty (60) Business Days after receipt by the Holders of a Majority such Indemnifying Party of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company)aforesaid request, (ii) more than one counsel for such Indemnifying Party shall not have fully reimbursed such Indemnified Party in accordance with such request prior to the underwriters or date of such settlement and (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionssuch Indemnified Party shall have given such Indemnifying Party at least thirty (30) days’ prior notice of its intention to settle. No indemnifying partyIndemnifying Party shall, in defense without the prior written consent of any such actionIndemnified Party, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry effect any settlement of any judgment pending or entry into any 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 Indemnified Party, unless such settlement which includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding and does not include as an unconditional term thereof the giving admission of fault or culpability or a failure to act by the claimant or plaintiff to on behalf of 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 10. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyIndemnified Party. (d) If the indemnification from the indemnifying party provided for in this Section 10 6 is unavailable to an indemnified party hereunder Indemnified Party under Section 6(a) or Section 6(b), or insufficient to hold such Indemnified Party harmless, in respect of any losses, damages, expenses, liabilities, claims or actions referred to any Lossestherein, then the indemnifying partyeach applicable Indemnifying Party, in lieu of indemnifying such indemnified partyIndemnified Party, shall contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Losses losses, damages, expenses, liabilities, claims or actions (i) in such proportion as is appropriate to reflect the relative benefits received by the Guarantor and the Issuer, on the one hand, and by the Holders or the Initial Purchasers, on the other hand, 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 party Guarantor and indemnified party the Issuer, on the one hand, and of the Holders or the Initial Purchasers, on the other hand, in connection with the actions statements or omissions which resulted in such Losseslosses, damages, expenses, liabilities, claims or actions, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Guarantor and indemnified party the Issuer, on the one hand, and of the Holders or the Initial Purchasers, on the other hand, shall be determined by reference to, among other things, whether any action in question, including any the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party by the Guarantor and the Issuer or indemnified party, by the Holders or the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid or payable by a party as a result of the Losses losses, damages, expenses, liabilities, claims and actions referred to above shall be deemed to include, subject to the limitations set forth in Section 10(c), include any reasonable legal or other fees and or expenses reasonably incurred by such indemnified party in connection with investigating or defending any investigation Proceeding. (e) The Guarantor, the Issuer, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 6 were determined by pro rata allocation or proceedingby any other method of allocation which does not take account of the equitable considerations referred to in Section 6(d) above. Notwithstanding the provisions of this Section 6, no Holder shall be required to contribute any amount in excess of the amount by which the total price at which the Registrable Securities giving rise to such contribution obligation and sold by such Holder were offered to the public exceeds the amount of any damages which it 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. The parties agree that it would not be just and equitable if contribution Holders’ respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 6 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided in Section 10(a) or 10(b)respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration and not joint. The remedies provided for in this Section 10(d). (e) The provisions of this Section 10 6 are not exclusive and shall not limit any rights or remedies which may otherwise be in addition to any liability which any indemnifying party may have available to any indemnified party at law or in equity. (f) The indemnity and contribution provisions contained in this Section 6 shall survive the remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of any Holder or the Initial Purchasers or any person controlling any Holder or Initial Purchaser, or the Guarantor, or the Issuer, or the Guarantor’s or the Issuer’s officers or directors or any person controlling the Guarantor or the Issuer and (iii) the sale of any Registrable Security by any Holder.

Appears in 2 contracts

Samples: Registration Rights Agreement (Medical Properties Trust Inc), Registration Rights Agreement (Medical Properties Trust Inc)

Indemnification; Contribution. (a) The Company shall agrees to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder, each Holder of Registrable Securities severally, but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); providedPROVIDED, howeverHOWEVER, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The parties agree that it would not be just and equitable if contribution Initial Purchasers' respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 7 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 2 contracts

Samples: Registration Rights Agreement (Park Place Entertainment Corp), Registration Rights Agreement (Park Place Entertainment Corp)

Indemnification; Contribution. (a) The Company shall agrees to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an “Underwriter”) and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement, or alleged untrue statement statement, of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement, or alleged untrue statement, of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder, Participating Broker-Dealer, Underwriter or Person controlling such Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for reasonable fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in questionsuch, including any untrue statement or alleged untrue untrue, statement of a material fact or omission omission, or alleged omission omission, to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The parties agree that it would not be just and equitable if contribution Initial Purchasers’ respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 7 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 2 contracts

Samples: Registration Rights Agreement (EPL Intermediate, Inc.), Registration Rights Agreement (EPL Intermediate, Inc.)

Indemnification; Contribution. (a) The Company shall agrees to indemnify and hold harmless the Initial Purchasers, each Holder Holder, each Participating Broker-Dealer, each Person who participates as an underwriter, each of Registrable Securities their respective affiliates, directors, officers, employees and agents (any such Person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors each of the other Initial Purchasers, each other Underwriter and the other selling Holders, and each of their respective affiliates, directors, officers, employees and agents, and each Person, if any, who controls the Company (Company, any of the other Initial Purchasers, any other Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company on the one hand and indemnified party the Holders, the Underwriters and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders, the Underwriters and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Holders, the Underwriters or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser or Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser or Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser, Underwriter or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser, Underwriter or Holder, and each member of the board of managers of the Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The parties agree that it would not be just and equitable if contribution Initial Purchasers' respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 4 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 2 contracts

Samples: Registration Rights Agreement (Panhandle Eastern Pipe Line Co LLC), Registration Rights Agreement (Panhandle Eastern Pipe Line Co)

Indemnification; Contribution. (a) The Company shall indemnify Dealer Manager will indemnify, defend (subject to Section 4 of the Dealer Manager Agreement) and hold harmless each Holder the Wholesaler, its affiliates and their respective officers, directors, shareholders, members, partners, other equity-holders and control persons (collectively, the “Other Indemnified Parties”), from and against any losses, claims (including the reasonable costs of Registrable Securities investigation and each Personlegal fees), if anydamages or liabilities (or actions in respect thereof), who controls such Holder (within to which the meaning of Section 15 of Wholesaler, its affiliates or their respective Other Indemnified Parties may become subject under the Securities Act or Section 20 of the Exchange Act) against all , or otherwise, insofar as such losses, claims, damages, damages or liabilities and expenses (including reasonable attorneys' fees, disbursements and expenses, as incurredor actions in respect thereof) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising arise out of or are based upon upon: (i) any inaccuracy in or breach of a representation or warranty contained herein by the Dealer Manager, any breach of a covenant or agreement contained herein of the Dealer Manager, or any failure by the Dealer Manager to comply with state or federal securities law applicable to the Offering; (ii) any untrue statement or alleged untrue statement of a material fact contained inin the information relating to the Dealer Manager that appears in the Dealer Manager Sections of the Prospectus or any amendment thereof, or any arise out of or are based upon the omission or alleged omission of to state in the Dealer Manager Sections 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 therein or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectustherein, in the light of the circumstances then existing) under which they were made, not misleading; and (iii) any unauthorized use of sales materials or use of unauthorized verbal representations concerning the Offered Shares by the Dealer Manager. The Dealer Manager will reimburse the Wholesaler and its Other Indemnified Parties for any legal or other expenses reasonably incurred by such Wholesaler, except its affiliates and their respective Other Indemnified Parties in each case connection with investigating or defending such loss, claim, damage, liability or action. (b) The Wholesaler will indemnify, defend and hold harmless the Dealer Manager, the Company and their respective Other Indemnified Parties, from and against any losses, claims (including the reasonable costs of investigation and legal fees), damages or liabilities (or actions in respect thereof), to which the Dealer Manager, the Company and any of their respective Other Indemnified Parties may become subject under the Securities Act or the Exchange Act, or otherwise, insofar as such statements losses, claims (including the reasonable costs of investigation and legal fees), damages or omissions liabilities (or actions in respect thereof) arise out of or are based upon upon: (i) any such untrue statement inaccuracy in or alleged untrue statement breach of a representation or omission warranty contained herein by the Wholesaler, any breach of a covenant or alleged omission made in reliance on and in conformity agreement contained herein of the Wholesaler, or any failure by the Wholesaler to comply with information with respect to such Holder furnished in writing state or federal securities laws applicable to the Company by such Holder or its counsel expressly for use therein, Offering; and (ii) the any unauthorized use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired sales materials or (iii) the use of any Prospectus after such time as unauthorized verbal representations concerning the Company has advised Shares by the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary 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 on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration StatementWholesaler. (c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party Promptly after the receipt by such an 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 will, if a claim indemnification or contribution pursuant in respect thereof is to this Agreement, provided that failure to give such notification shall not affect the obligations of be made against the indemnifying party pursuant to this Section 10 except to the extent the indemnifying party shall have been actually prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall party, 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 this Section 8 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 this Agreement. 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 appoint counsel reasonably satisfactory to such indemnified party, and after notice from of the indemnifying party party’s choice at the indemnifying party’s expense to such represent the indemnified party of its election so to assume the defense thereof, in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be liable to such indemnified party 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, unless in the reasonable judgment of any indemnified party, based on the written 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 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 subject to approval by the indemnified party, not to be unreasonably withheld or delayed. 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 and select separate counsel (including local counsel), subject to approval by the indemnifying party not to be unreasonably withheld or delayed, and the indemnifying party shall bear the reasonable fees, costs and expenses of such separate counsel if (i) more than one the use of counsel for all Holders of Registrable Securities who are indemnified parties, selected chosen by the Holders indemnifying party to represent the indemnified party would present such counsel with a conflict of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company)interest, (ii) more than one counsel for the underwriters 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) 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one have employed counsel for the underwriters indemnified party (subject to approval by the indemnified party not to be unreasonably withheld or delayed) to represent the indemnified party within a reasonable time after notice of the institution of such action or (iiiiv) more than one the indemnifying party shall authorize the indemnified party to employ separate counsel for at the Company, in each case in connection with any one action or separate but similar or related actions. No expense of the indemnifying party, in defense of any such action, suit, proceeding . An indemnifying party may settle or investigation, shall, except with the consent of each indemnified party, compromise or consent to the entry of any judgment with respect to any pending or entry into any settlement threatened claim, action, suit or proceeding in respect of which does indemnification or contribution may be sought hereunder but may not include as do so without the prior written consent of the indemnified parties, unless such settlement, compromise or consent includes an unconditional term thereof the giving by the claimant or plaintiff to such release of each indemnified party of a release from all liability in respect to arising out of such claim, action, suit, proceeding suit or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 10. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyproceeding. (d) If the right to indemnification from the indemnifying party provided for in this Section 10 8 would by its terms be available to a person hereunder, but is held to be unavailable to an indemnified party hereunder in respect to by a court of competent jurisdiction for any Lossesreason, then the each indemnifying party, in lieu of indemnifying such indemnified party, party shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such Losses and expenses in respect thereof, as incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Dealer Manager and indemnified party the Wholesaler, as applicable, in connection with the actions statements, omissions or other circumstances which resulted in such LossesLosses or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Dealer Manager and indemnified party the Wholesaler, as applicable, shall be determined by reference to, among other things, whether 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, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties' relative intent, knowledge, and access to information information. It is understood that it would not be just and opportunity equitable if contribution pursuant to correct this Section 8(d) were determined by pro rata allocation or prevent such action. The amount paid or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above shall be deemed to include, subject to in this Section 8(d). Notwithstanding the limitations set forth in provisions of this Section 10(c8(d), the Dealer Manager shall not be required to contribute any legal or other fees and expenses reasonably incurred amount in excess of the total price of the Offering Shares sold by such indemnified party in connection with any investigation or proceedingit. No Person person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions For purposes of this Section 10 8(d), each Other Indemnified Party affiliate of the Dealer Manager shall be in addition have the same rights to any liability which any indemnifying party may contribution as the Dealer Manager and each Other Indemnified Party of the Wholesaler shall have the same rights to any indemnified party and shall survive contribution as the termination of this AgreementWholesaler.

Appears in 2 contracts

Samples: Equity Purchase Agreement (ARC Properties Operating Partnership, L.P.), Equity Purchase Agreement (RCS Capital Corp)

Indemnification; Contribution. (a) The Company shall will indemnify and hold harmless each Holder holder of Registrable Securities and each PersonWarrant Stock registered pursuant to this Agreement with the Commission, if anyor under any blue sky law or regulation, who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) against all any losses, claims, damagesdamages or liabilities, joint or several, to which such holder may become subject under the Act or otherwise, but only to the extent that such losses, claims, damages or liabilities and expenses (including reasonable attorneys' fees, disbursements and expenses, as incurredor actions in respect thereof) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising arise out of or are based upon any an untrue statement or alleged untrue statement of a material fact contained inin any preliminary prospectus, registration statement, prospectus or any amendment or supplement thereto, or any arise out of or are based upon the omission or alleged omission of to state therein 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 therein or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, in the light of the circumstances then existing) not misleading, except and will reimburse each such holder for any legal or other expenses reasonably incurred by such holder in each case insofar as such statements connection with investigating or omissions arise out of or are based upon (i) defending any such untrue statement action or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use thereinclaim; provided, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders however, that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable in any such case to the extent that any Holder such loss, claim, damage or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise liability arises out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that arise out of or are is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any Prospectus if either (i) (A) such Holder failed to send or deliver a copy of the Prospectus document, in reliance upon and in conformity with or prior written information furnished to the delivery Company by any holder expressly for use therein (b) Each holder of written confirmation Common Stock registered pursuant to this Agreement will indemnify and hold harmless the Company against any and all 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 the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such or are based upon an untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, registration statement or such prospectus, or any amendment or supplement thereto, or arise out of or are based upon the omission or alleged omissionomission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or (ii) (x) in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission is corrected was made in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, any such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectusdocument, 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 on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically holder expressly for use therein; provided, however, that or in a document to be filed with the liability of each Holder hereunder shall be limited to the proportion of Commission or any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all state securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statementcommission. (c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party Promptly after the receipt by such an indemnified party under subsections (a) or (b) of any written this Section 16 of notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may shall, if a claim indemnification or contribution pursuant in respect thereof is to this Agreement, provided that failure to give such notification shall not affect the obligations of be made against the indemnifying party pursuant under either such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to this Section 10 except to the extent notify the indemnifying party shall not relieve it from any liability which it may have been actually prejudiced as a result to any indemnified party otherwise than under either of such failuresubsections. 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 thereof by notice in writing to such the indemnified party, and after . After receipt of written 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 either of such subsections 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, unless in investigation incurred prior to the reasonable judgment of any indemnified party, based on the written 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 all Holders of Registrable Securities who are indemnified parties, selected assumption by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 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 10 16 is unavailable or insufficient to hold harmless an indemnified party hereunder under subsection (a) or (b) above in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to any Lossestherein, then the each indemnifying party, in lieu of indemnifying such indemnified party, party shall contribute to the amount paid or payable by such indemnified party as a result of such Losses 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 Warrant Stock. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the indemnified party failed to give the notice required under subsection (c) above, then each indemnifying party shall contribute to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the indemnifying party Company and indemnified party the holders in connection with the actions statements or omissions which resulted in such Losseslosses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether any action in question, including any the untrue statement or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied by, such indemnifying party by the Company or indemnified party, the holder and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The Company and the holders agree that it would not be just and equitable if contribution pursuant to this subparagraph (d) were 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 above in this subparagraph (d). Except as provided in subparagraph (c) of this Section 16, the amount paid or payable by a an indemnified party as a result of the Losses losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subparagraph (d) shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating or defending any investigation such action or proceedingclaim. No Person person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by Notwithstanding any other method of allocation that does not take into account the consideration referred to provision in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party subparagraph (d) to the full extent provided contrary, no holder shall be liable for any amount, in Section 10(a) or 10(b)the aggregate, as in excess of the case may be, without regard net proceeds to such holder from the relative fault sale of such indemnifying parties holder's shares (obtained upon exercise of Warrants) giving rise to such losses, claims, damages or indemnified party or any other equitable consideration provided for in this Section 10(d)liabilities. (e) The provisions obligations of the Company under this Section 10 16 shall be in addition to any liability which any indemnifying party the Company may otherwise have to any indemnified party and shall survive the termination of this Agreementat law or in equity.

Appears in 2 contracts

Samples: Warrant Purchase Agreement (Parallel Petroleum Corp), Warrant Purchase Agreement (Parallel Petroleum Corp)

Indemnification; Contribution. (a) The Company shall Operating Partnership agrees to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Operating Partnership; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 subparagraph (ii) above; PROVIDED, HOWEVER, that this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company Operating Partnership by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the CompanyOperating Partnership, its the Initial Purchasers, each underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Operating Partnership, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company Operating Partnership by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); providedPROVIDED, howeverHOWEVER, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, 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 but failure to give such notification so notify an indemnifying party shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof, and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; PROVIDED, the indemnifying party shall be entitled HOWEVER, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim, and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Operating Partnership on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Operating Partnership on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Operating Partnership, such indemnifying party the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Operating Partnership, the Holders and the Initial Purchasers agree that it would not be just and equitable if contributions pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Holder or Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Holder or Initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Operating Partnership, and each Person, if any, who controls the Operating Partnership within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Operating Partnership. The parties agree that it would not be just and equitable if contribution Initial Purchasers' respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 4 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 2 contracts

Samples: Registration Rights Agreement (Simon Property Group L P /De/), Registration Rights Agreement (Simon Property Group L P /De/)

Indemnification; Contribution. (a) The Company shall indemnify and hold harmless indemnify, to the fullest extent permitted by law, each Holder holder of Registrable Securities Securities, its officers, directors, partners, employees and agents, if any, and each Person, if any, who controls such Holder holder within the meaning of Section 15 of the Securities Act, against all losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (under the Securities Act or common law or otherwise), joint or several, resulting from any violation by the Company of the provisions of the Securities Act or any untrue statement or alleged untrue statement of a material fact contained in any registration statement or prospectus (and as amended or supplemented if amended or supplemented) or any preliminary prospectus or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of any prospectus, in light of the circumstances under which they were made) not misleading, except to the extent that such losses, claims, damages, liabilities (or proceedings in respect thereof) or expenses are caused by any untrue statement or alleged untrue statement contained in or by any omission or alleged omission from information concerning any holder furnished in writing to the Company by such holder expressly for use therein. If the Public Offering pursuant to any registration statement provided for under this Article II 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 Company 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 II is made through underwriters, the Company agrees to enter into an underwriting agreement in customary form with such underwriters and the Company agrees to indemnify such underwriters, their 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 or Section 20 to the same extent as herein before provided with respect to the indemnification of the Exchange 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 alleged 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 a reasonable time prior to such written confirmation. (b) In connection with any registration statement in which a holder of Registrable Securities is participating, each such holder, severally and not jointly, shall indemnify, to the fullest extent permitted by law, the Company, each underwriter and their respective officers, directors, employees and agents, if any, and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act, against all any losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (including reasonable attorneys' fees, disbursements and expenses, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon resulting from any untrue statement or alleged untrue statement of a material fact contained infact, or any omission or alleged omission of a material fact required to be stated in, in the Registration Statement, Prospectus registration statement or prospectus or preliminary Prospectus prospectus or any amendment thereof or supplement to any of the foregoing thereto or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectusany prospectus, 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 (i) 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 such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of under which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthey were made) not misleading, but only to the extent that any such untrue statement is contained in or such omission is made in reliance on and in conformity with from information with respect to such Holder so concerning a holder furnished in writing to the Company by such Holder or its counsel specifically holder expressly for use therein; provided, however, provided that the liability of each Holder such holder's obligations hereunder shall be limited to the proportion of any such Losses that is an amount equal to the proportion that the net proceeds from to such holder of the sale of Registrable Securities sold by pursuant to such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statementregistration statement. (c) Any Person entitled to indemnification hereunder agrees to under the provisions of this Section 2.7 shall (i) give prompt written notice to the indemnifying party after the receipt by of any claim with respect to which it seeks indemnification and (ii) unless in such indemnified party party's reasonable judgment a conflict of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which interest between such indemnified party and indemnifying parties may claim indemnification or contribution pursuant to this Agreementexist in respect of such claim, provided that failure to give permit such notification shall not affect the obligations of the indemnifying party pursuant to this Section 10 except to the extent the indemnifying party shall have been actually 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 thereofof such claim, with counsel reasonably satisfactory to such the indemnified party; and if such defense is so assumed, and after notice from the such indemnifying party to such shall not enter into any settlement without the consent of the indemnified party of its election so if such settlement attributes liability to assume the defense thereof, the indemnified party and such indemnifying party shall not be liable subject to such indemnified party any liability 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, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party settlement made without its consent (which shall not be unreasonably withheld); and any other of such indemnified parties underwriting agreement entered into with respect to such claim, in which any registration statement provided for under this Article II shall so provide. In the event the an indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 toentitled, or elects not tonot, to assume the defense of a claim claim, such indemnifying party shall not be obligated to pay the fees and expenses of more than one counsel or firm of counsel for all parties indemnified by such indemnifying party with in respect to of such claim, unless in the reasonable judgment of any such indemnified party, based on the written opinion of counsel, party a conflict of interest is likely to may exist between an such indemnified party and any other of such indemnified parties with in 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 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 for any reason the indemnification from the indemnifying party provided for in this Section 10 foregoing indemnity is unavailable to an indemnified party hereunder in respect to any Lossesunavailable, then the indemnifying party, in lieu of indemnifying such indemnified party, party shall contribute to the amount paid or payable by such the indemnified party as a result of such Losses losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the such indemnifying party on the one hand and the indemnified party in connection with on the actions which resulted in such Lossesother. Notwithstanding the foregoing, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale no holder of Registrable Securities sold by shall be required to contribute any amount in excess of the amount such Holder under a Registration Statement bears holder would have been required to the total net proceeds from the sale of all securities sold thereunder, but not in any event pay to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and an indemnified party shall be determined by reference to, among other things, whether 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, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and if the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. 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 indemnity under Section 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding2.7(b) was available. No Person guilty of fraudulent misrepresentation (within the meaning of Section section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution obligation of any Person to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does 2.7 shall be several and not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d)joint. (e) The An indemnifying party shall make payments of all amounts required to be made pursuant to the foregoing provisions of this Section 10 shall be in addition 2.7 to any liability which any indemnifying party may have to any or for the account of the indemnified party from time to time promptly upon receipt of bills or invoices relating thereto or when otherwise due or payable. (f) The indemnity and contribution agreements contained in this Section 2.7 shall remain in full force and effect regardless of any investigation made by or on behalf of a participating holder of Registrable Securities, its officers, directors, agents or any Person, if any, who controls such holder as aforesaid, and shall survive the Transfer of Registrable Securities by such holder and the termination of this AgreementAgreement for any reason.

Appears in 2 contracts

Samples: Registration Rights Agreement (Global Power Equipment Group Inc/), Registration Rights Agreement (Global Power Equipment Group Inc/)

Indemnification; Contribution. (a) The Company shall Issuers agree to indemnify and hold harmless each Holder of Registrable Securities Initial Purchaser, each Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 15 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Transfer Restricted Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (therein, in light of the case circumstances under which they were made, not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Issuers; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information furnished to the Issuers by the Holder, Initial Purchaser, Participating Broker-Dealer or Underwriter expressly for use in a Registration Statement (or any amendment thereto) or any Prospectus (or any amendment or supplement thereto). The foregoing indemnity with respect to such Holder furnished any untrue statement contained in writing or any omission from any preliminary Prospectus shall not inure to the Company by benefit of any Holder, Initial Purchaser, Participating Broker-Dealer or Underwriter (or any person controlling any such Holder person) from whom the person asserting such loss, liability, claim, damage or its counsel expressly for use therein, expense purchased Securities that are the subject thereof if (iii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made contained in any such preliminary Prospectus if either (iexcluding documents incorporated by reference) was corrected; (Aii) such Holder failed to send person was not sent or deliver given a copy of the final Prospectus with (excluding documents incorporated by reference) which corrected the untrue statement or omission at or prior to the delivery of written confirmation of the sale of Registrable such Securities by to such Holder to the Person asserting the claim from which such Losses arise person; and (Biii) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement Issuers satisfied their obligation pursuant to the Prospectus and (y) having previously been furnished by or on behalf Section 3 of the Company with this Agreement to provide a sufficient number of copies of the final Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses ariseHolder, Initial Purchaser, Participating Broker-Dealer or Underwriter. (b) In connection with any Registration Statement filed pursuant heretoEach Holder, each Holder of Registrable Securities Initial Purchaser, Participating Broker-Dealer and Underwriter severally, but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the CompanyIssuers, its the Initial Purchasers, the Participating Broker-Dealers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Issuers, the Participating Broker-Dealers, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder Holder, Initial Purchaser, Participating Broker-Dealer or Underwriter furnished in writing to the Company Issuers by such Holder Holder, Initial Purchaser, Participating Broker-Dealer or its counsel specifically Underwriter expressly for use thereinin the Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each Holder hereunder no such Holder, Initial Purchaser, Participating Broker-Dealer or Underwriter shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder Holder, Initial Purchaser, Participating Broker-Dealer or Underwriter from the sale of Registrable Transfer Restricted Securities covered by pursuant to such Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or elects any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not tothe indemnified parties are actual or potential parties thereto), assume unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding 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 at any time an indemnified party shall have requested an indemnifying party to reimburse the defense of a claim shall not be obligated to pay the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than one counsel for all parties indemnified 45 days after receipt by such indemnifying party with respect of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such claimsettlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. Notwithstanding the immediately preceding sentence, unless in the reasonable judgment of if at any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between time an indemnified party and any other of such indemnified parties with respect to such claim, in which event the shall have requested an indemnifying party shall be obligated to pay reimburse the indemnified party for fees and expenses of such additional counsel, provided that the an indemnifying party shall not be liable for any settlement of the fees and expenses of nature contemplated by Section 4(a)(ii) effected without its consent if such indemnifying party (i) more than one counsel for all Holders of Registrable Securities who are reimburses such indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory party in accordance with such request to the Company), extent that it considers such request to be reasonable and (ii) more than one counsel for provides written notice to the underwriters or (iii) more than one counsel for indemnified party substantiating the Companyunpaid balance as unreasonable, 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 prior to the entry date 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 10. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partysettlement. (di) If the indemnification from the indemnifying party provided for in this Section 10 4(a) is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Issuers on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided. (ii) If the indemnification provided for in this Section 4(b) is for any reason unavailable to or insufficient to hold harmless an indemnified party in respect of any losses, howeverliabilities, that the liability of claims, damages or expenses referred to therein, then each Holder hereunder indemnifying party shall be limited contribute to the proportion aggregate amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold losses, liabilities, claims, damages and expenses incurred by such Holder under a Registration Statement bears indemnified party, as incurred, in such proportion as is appropriate to reflect the total net proceeds from relative fault of the sale such indemnifying party on the one hand and each of all securities sold thereunderthe other Holders, but not Participating Broker-Dealers, Underwriters and the Initial Purchasers and the Issuers on the other hand in connection with the statements or omissions which resulted in such losses, liabilities, claims, damages or expenses, as well as any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statementother relevant equitable considerations. The relative fault of such indemnifying party the Issuers, the Holders, Participating Broker-Dealers, Underwriters and indemnified party the Initial Purchasers, as applicable, shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Issuers, such indemnifying party or indemnified partythe Holders, Participating Broker-Dealers, Underwriters and the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Issuers, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each manager or director of the Issuers, and each Person, if any, who controls the Issuers within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Issuers. The parties agree that it would not be just and equitable if contribution Initial Purchasers' respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 7 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 2 contracts

Samples: Note Registration Rights Agreement (Aladdin Gaming Enterprises Inc), Note Registration Rights Agreement (Aladdin Gaming Enterprises Inc)

Indemnification; Contribution. (a) The Company shall Operating Partnership agrees to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an “Underwriter”) and each Person, if any, who controls such Holder (any Initial Purchaser, Holder, Participating Broker-Dealer or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Operating Partnership; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 subparagraph (ii) above; provided, however, that this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company Operating Partnership by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the CompanyOperating Partnership, its the Initial Purchasers, each underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Operating Partnership, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company Operating Partnership by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, 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 but failure to give such notification so notify an indemnifying party shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof, and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim, and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Operating Partnership on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Operating Partnership on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Operating Partnership, such indemnifying party the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Operating Partnership, the Holders and the Initial Purchasers agree that it would not be just and equitable if contributions pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Holder or Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Holder or Initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Operating Partnership, and each Person, if any, who controls the Operating Partnership within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Operating Partnership. The parties agree that it would not be just and equitable if contribution Initial Purchasers’ respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 4 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 2 contracts

Samples: Registration Rights Agreement (Simon Property Group L P /De/), Registration Rights Agreement (Simon Property Group L P /De/)

Indemnification; Contribution. (a) The In connection with any Registration Statement, the Company shall agrees to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each person who participates as an underwriter (any such person being an “Underwriter”) and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided, that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 agreement of this Section 4 shall not apply 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 made in reliance upon and in conformity with written information furnished to the Company by the Holder or Underwriter expressly for use in a Registration Statement (or any amendment thereto) or any Prospectus (or any amendment or supplement thereto); provided, further, that the Company shall not be liable to any such Holder, Participating Broker-Dealer or controlling person, with respect to any untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect any preliminary Prospectus to the extent that any such loss, liability, claim, damage or expense of any Holder, Participating Broker-Dealer or controlling person results from the fact that such Holder or Participating Broker-Dealer 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 final Prospectus as then amended or supplemented if the Company had previously furnished copies thereof to such Holder furnished in writing to or Participating Broker-Dealer and the Company by loss, liability, claim, damage or expense of such Holder Holder, Participating Broker-Dealer or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that arise out of or are based upon controlling person results from an untrue statement or alleged untrue statement or omission or alleged omission made of a material fact contained in any the preliminary Prospectus if either (i) (A) which was corrected in the final Prospectus. Any amounts advanced by the Company to an indemnified party pursuant to this Section 4 as a result of such Holder failed to send or deliver a copy of the Prospectus with or prior losses shall be returned to the delivery of written confirmation of the sale of Registrable Securities Company if it shall be finally determined by such Holder a court in a judgment not subject to appeal or final review that such indemnified party was not entitled to indemnification by the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses ariseCompany. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Initial Purchasers, each Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of the indemnity agreement of this Section 4. An indemnifying party may participate at its own expense in the defense of such failureaction. In case any such action shall be brought against any indemnified party and it shall notify the If an indemnifying party so elects within a reasonable time after receipt of the commencement thereofsuch notice, the an indemnifying party shall be entitled to participate therein andparty, to the extent that it shall wish, severally or jointly with any other indemnifying parties receiving such notice, may assume the defense of such action with counsel chosen by it and reasonably acceptable to the indemnified parties defendant (or target of) in such action, provided, however, that if (i) representation of such indemnified party similarly notifiedby the same counsel would present a conflict of interest or (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and any such indemnified party reasonably determines that there may be legal defenses available to such indemnified party which are different from or in addition to those available to such indemnifying party, then in the case of clauses (i) or (ii) of this Section 4(c) such indemnifying party and counsel for each indemnifying party or parties shall not be entitled to assume such defense. If an indemnifying party is not entitled to assume the defense thereofof such action as a result of the proviso to the preceding sentence, with counsel reasonably satisfactory for each indemnified party or parties shall be entitled to such indemnified party, and after notice from conduct the indemnifying party to defense of such indemnified party of its election so to assume or parties. If an indemnifying party assumes the defense thereofof such action, in accordance with and as permitted by the provisions of this paragraph, such indemnifying party parties shall not be liable to such indemnified party for any legal fees and expenses of other counsel or any other expenses, in each case subsequently for the indemnified parties incurred by such indemnified party, thereafter in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between such action. In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or elects any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not tothe indemnified parties are actual or potential parties thereto), assume unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding 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 at any time an indemnified party shall have requested an indemnifying party to reimburse the defense of a claim shall not be obligated to pay the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than one counsel for all parties indemnified 45 days after receipt by such indemnifying party with respect of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such claimsettlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. Notwithstanding the immediately preceding sentence, unless in the reasonable judgment of if at any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between time an indemnified party and any other of such indemnified parties with respect to such claim, in which event the shall have requested an indemnifying party shall be obligated to pay reimburse the indemnified party for fees and expenses of such additional counsel, provided that the an indemnifying party shall not be liable for any settlement of the fees and expenses of nature contemplated by Section 4(a)(ii) effected without its consent if such indemnifying party (i) more than one counsel for all Holders of Registrable Securities who are reimburses such indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory party in accordance with such request to the Company), extent it considers such request to be reasonable and (ii) more than one counsel for provides written notice to the underwriters or (iii) more than one counsel for indemnified party substantiating the Companyunpaid balance as unreasonable, 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 prior to the entry date 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 10. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partysettlement. (de) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of benefits received by the indemnifying party Company on the one hand, and indemnified party the Holders and the Initial Purchasers on the other hand, in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid or payable by a party as a result of Company, the Losses referred to above shall be deemed to include, subject to Holders and the limitations set forth in Section 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 10(d) 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or by any other method of allocation that which does not take into account of the consideration equitable considerations referred to above in this Section 10(d4(e). If indemnification is available under this Section 10The aggregate amount of losses, the indemnifying parties shall indemnify each liabilities, claims, damages and expenses incurred by an indemnified party and referred to the full extent provided in Section 10(a) or 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 above in this Section 10(d). (e4(e) The shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in 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 untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 10 4(e), no Initial Purchaser shall be required to contribute any amount in addition excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 1000 Xxx) shall be entitled to contribution from any liability which any indemnifying party may have to any indemnified party and shall survive the termination person who was not guilty of such fraudulent misrepresentation. For purposes of this AgreementSection 4(e), each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Company and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company.

Appears in 1 contract

Samples: Registration Rights Agreement (Fisher Scientific International Inc)

Indemnification; Contribution. (a) The In connection with any Registration Statement, the Company shall agrees to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each person who participates as an underwriter (any such person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided, that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 agreement of this Section 4 shall not apply 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 made in reliance upon and in conformity with written information furnished to the Company by the Holder or Underwriter expressly for use in a Registration Statement (or any amendment thereto) or any Prospectus (or any amendment or supplement thereto); provided, further, that the Company shall not be liable to any such Holder, Participating Broker-Dealer or controlling person, with respect to any untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect any preliminary Prospectus to the extent that any such loss, liability, claim, damage or expense of any Holder, Participating Broker-Dealer or controlling person results from the fact that such Holder or Participating Broker-Dealer 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 final Prospectus as then amended or supplemented if the Company had previously furnished copies thereof to such Holder furnished in writing to or Participating Broker-Dealer and the Company by loss, liability, claim, damage or expense of such Holder Holder, Participating Broker-Dealer or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that arise out of or are based upon controlling person results from an untrue statement or alleged untrue statement or omission or alleged omission made of a material fact contained in any the preliminary Prospectus if either (i) (A) which was corrected in the final Prospectus. Any amounts advanced by the Company to an indemnified party pursuant to this Section 4 as a result of such Holder failed to send or deliver a copy of the Prospectus with or prior losses shall be returned to the delivery of written confirmation of the sale of Registrable Securities Company if it shall be finally determined by such Holder a court in a judgment not subject to appeal or final review that such indemnified party was not entitled to indemnification by the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses ariseCompany. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Initial Purchasers, each Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of the indemnity agreement of this Section 4. An indemnifying party may participate at its own expense in the defense of such failureaction. In case any such action shall be brought against any indemnified party and it shall notify the If an indemnifying party so elects within a reasonable time after receipt of the commencement thereofsuch notice, the an indemnifying party shall be entitled to participate therein andparty, to the extent that it shall wish, severally or jointly with any other indemnifying parties receiving such notice, may assume the defense of such action with counsel chosen by it and reasonably acceptable to the indemnified parties defendant (or target of) in such action, provided, however, that if (i) representation of such indemnified party similarly notifiedby the same counsel would present a conflict of interest or (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and any such indemnified party reasonably determines that there may be legal defenses available to such indemnified party which are different from or in addition to those available to such indemnifying party, then in the case of clauses (i) or (ii) of this Section 4(c) such indemnifying party and counsel for each indemnifying party or parties shall not be entitled to assume such defense. If an indemnifying party is not entitled to assume the defense thereofof such action as a result of the proviso to the preceding sentence, with counsel reasonably satisfactory for each indemnified party or parties shall be entitled to such indemnified party, and after notice from conduct the indemnifying party to defense of such indemnified party of its election so to assume or parties. If an indemnifying party assumes the defense thereofof such action, in accordance with and as permitted by the provisions of this paragraph, such indemnifying party parties shall not be liable to such indemnified party for any legal fees and expenses of other counsel or any other expenses, in each case subsequently for the indemnified parties incurred by such indemnified party, thereafter in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between such action. In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or elects any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not tothe indemnified parties are actual or potential parties thereto), assume unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding 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 at any time an indemnified party shall have requested an indemnifying party to reimburse the defense of a claim shall not be obligated to pay the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than one counsel for all parties indemnified 45 days after receipt by such indemnifying party with respect of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such claimsettlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. Notwithstanding the immediately preceding sentence, unless in the reasonable judgment of if at any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between time an indemnified party and any other of such indemnified parties with respect to such claim, in which event the shall have requested an indemnifying party shall be obligated to pay reimburse the indemnified party for fees and expenses of such additional counsel, provided that the an indemnifying party shall not be liable for any settlement of the fees and expenses of nature contemplated by Section 4(a)(ii) effected without its consent if such indemnifying party (i) more than one counsel for all Holders of Registrable Securities who are reimburses such indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory party in accordance with such request to the Company), extent it considers such request to be reasonable and (ii) more than one counsel for provides written notice to the underwriters or (iii) more than one counsel for indemnified party substantiating the Companyunpaid balance as unreasonable, 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 prior to the entry date 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 10. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partysettlement. (de) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of benefits received by the indemnifying party Company on the one hand, and indemnified party the Holders and the Initial Purchasers on the other hand, in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid or payable by a party as a result of Company, the Losses referred to above shall be deemed to include, subject to Holders and the limitations set forth in Section 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 10(d) 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or by any other method of allocation that which does not take into account of the consideration equitable considerations referred to above in this Section 10(d4(e). If indemnification is available under this Section 10The aggregate amount of losses, the indemnifying parties shall indemnify each liabilities, claims, damages and expenses incurred by an indemnified party and referred to the full extent provided in Section 10(a) or 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 above in this Section 10(d). (e4(e) The shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in 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 untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 10 4(e), no Initial Purchaser shall be required to contribute any amount in addition excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 1933 Act) shall be entitled to contribution from any liability which any indemnifying party may have to any indemnified party and shall survive the termination person who wax xxx xxilty of such fraudulent misrepresentation. For purposes of this AgreementSection 4(e), each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Company and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company.

Appears in 1 contract

Samples: Registration Rights Agreement (Fisher Scientific International Inc)

Indemnification; Contribution. (a) The Company shall Operating Partnership agrees to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities their directors and officers, each Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Operating Partnership; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 subparagraph (ii) above; provided, however, that this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company Operating Partnership by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the CompanyOperating Partnership, its the Initial Purchasers, each underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Operating Partnership, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company Operating Partnership by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, 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 but failure to give such notification so notify an indemnifying party shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof, and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim, and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Operating Partnership on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Operating Partnership on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Operating Partnership, such indemnifying party the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Operating Partnership, the Holders and the Initial Purchasers agree that it would not be just and equitable if contributions pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Holder or Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Holder or Initial Purchaser 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 1933 Act) shall be entitled to contribution from any Person who was not xxx xxx guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Operating Partnership, and each Person, if any, who controls the Operating Partnership within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Operating Partnership. The parties agree that it would not be just and equitable if contribution Initial Purchasers' respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 4 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (First Industrial Lp)

Indemnification; Contribution. (a) Indemnification by the Company. The Company shall agrees to indemnify ------------------------------ and hold harmless each Holder of Registrable Securities Person who participates as an underwriter (any such Person being an "Underwriter"), each Stockholder and their respective partners, ----------- directors, officers and employees and each Person, if any, who controls such Holder (any Stockholder or any Underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) Act against any and all losses, liabilities, claims, damages, liabilities judgments and reasonable expenses (including reasonable attorneys' fees, disbursements and expenses, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment thereto) pursuant to which Registrable Securities were registered under the Securities Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case of a Prospectus not misleading or a preliminary Prospectus, in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise arising out of or are based upon (i) any 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 made therefrom of a material fact necessary in reliance on and in conformity with information with respect order to such Holder furnished in writing to make the Company by such Holder or its counsel expressly for use statements therein, (ii) the use of any Prospectus after such time as the obligation in light of the Company to keep effective the Registration Statement of circumstances under which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders they were made, not misleading; provided, however, that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall indemnity agreement does not be liable apply to any Holder -------- ------- Stockholder or to any Person Underwriter or their respective partners, directors, officers and employees and each Person, if any, who controls such Holder (any Stockholder or any Underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under Act with respect to any loss, liability, claim, damage, judgment or expense to the indemnity agreement in this Section 10(a) for any Losses that arise extent arising out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that arise out of or are based upon an untrue statement or omission or alleged untrue statement or omission or alleged omission made in any Prospectus if either (i) (A) such Holder failed to send or deliver a copy of the Prospectus made in reliance upon and in conformity with or prior written information furnished to the delivery of written confirmation of the sale of Registrable Securities Company by such Holder to the Person asserting the claim from which Stockholder or such Losses arise and Underwriter expressly for use in a Registration Statement (or any amendment thereto) or any Prospectus (or any amendment or supplement thereto) or (B) the Prospectus would have corrected if such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is was corrected in an amendment amended or supplement supplemented Registration Statement or Prospectus and the Company had furnished copies thereof to the Prospectus and (y) having previously been furnished by selling Underwriter or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or selling Stockholder prior to the delivery relevant date of written confirmation of the sale of Registrable Securities by such Holder Underwriter or such Stockholder to the Person asserting the claim from which such Losses arise. loss, liability, claim, damage, judgment or expense (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectusprovided, in the light case of an Underwritten Offering, the circumstances then existing-------- limitation in this clause (B) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. (c) 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 apply to this Section 10 except to the extent the indemnifying party shall have been actually 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, 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 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, unless in the reasonable judgment of any indemnified party, based on the written 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 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 10 is unavailable to an indemnified party hereunder in respect to any Losses, then the indemnifying 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 Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether 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, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. 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 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(dParticipating Stockholder). (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Hilfiger Tommy Corp)

Indemnification; Contribution. (a) The Company shall and the Guarantors agree, jointly and severally, to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by Merrill Lynch), reasonably incurred in investigatixx, xxxpxxxxx 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company or the Guarantors by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Guarantors, the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, any of the Guarantors, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company or the Guarantors by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 may assume the defense thereof, thereof with counsel reasonably satisfactory to such indemnified party, and after notice from shall pay the fees and expenses of such counsel; provided, however, (i) if the indemnifying party fails to assume such defense in a timely manner or (ii) if there exists or is reasonably likely to exist in the opinion of the indemnified party a conflict of its election so to assume interest or different defenses that would make it inappropriate in the defense thereof, the indemnifying party shall not be liable to judgment of such indemnified party for any legal expenses of other the same counsel or any other expensesto represent both the indemnified party and the indemnifying party, in each case subsequently incurred by then such indemnified party shall be entitled to retain its own counsel at the expense of the indemnifying party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Guarantors, the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Guarantors, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 1933 Act) shall be entitled to contribution from any Person under this Section 4 frox xxx Xxrson who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Company or any Guarantor, and each Person, if any, who controls the Company or any Guarantor within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company or such Guarantor. The parties agree that it would not be just and equitable if contribution Initial Purchasers' respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 7 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Oxford Industries Inc)

Indemnification; Contribution. (a) The Company shall agrees to indemnify and hold harmless each Holder of Registrable Securities and its directors, officers, employees, members, representatives and agents and each Personperson, if any, who controls such any Holder (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act) Act (each, a “Holder Indemnified Party”), from and against all lossesany loss, claimsdamage, damagesexpense, liabilities and expenses liability or claim (including the reasonable attorneys' feescost of investigation) which such Holder Indemnified Party may incur under the Securities Act, disbursements and expensesExchange Act, or any other law, including any state securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities pursuant to a Registration Statement, or otherwise, as incurred) (collectively, "Losses") incurred by insofar as such party pursuant to any actual loss, damage, expense, liability or ------ threatened action, suit, proceeding or investigation arising claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained inin the Shelf Registration Statement, or in any Prospectus, or any amendment thereof or supplement thereto, or arises out of or is based upon the omission or alleged omission of to state therein 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 or necessary to make the statements therein (in the case of a any Prospectus or a in any amendment or supplement thereto or in any preliminary Prospectusprospectus, in the light of the circumstances then existingunder which they were made) not misleading; provided, except however, that: (i) the Company shall not be liable in each any such case insofar as to the extent that any such statements loss, damage, expense, liability or omissions arise claim arises out of or are is based upon (i) any such untrue statement or omission or alleged untrue statement or omission of a material fact contained in, or alleged omission made in reliance on omitted from, and in conformity with information with respect required to such Holder be used in any Shelf Registration Statement, related prospectus or any amendments or supplements thereto pursuant to the Securities Act furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the applicable Holder Indemnified Party to the Company expressly for use in a Shelf Registration Statement or Prospectus or any amendment thereof or supplement thereto; and (ii) with copies respect to any untrue statement or omission of material fact made in the Prospectus Shelf Registration Statement, or in any Prospectus, the indemnity agreement contained in this Section 6(a) shall not inure to the benefit of a Holder Indemnified Party if the untrue statement or omission of material fact was corrected in amendments or supplements to the Prospectus, as so then amended or supplemented, if such corrected Prospectus was timely made available by the Company pursuant to Section 3(g) hereof, and the Holder thereafter fails Indemnified Party was promptly advised in writing not to deliver such Prospectus, as so amended or supplemented, with or use the incorrect prospectus prior to the delivery of written confirmation of use giving rise to any such loss, damage, expense, liability or claim and such Holder Indemnified Party, notwithstanding such advice, used it. This indemnity agreement will be in addition to any liability that the sale Company may otherwise have. This indemnity agreement will not apply to any loss, damage, expense, liability or claim arising from an offer or sale, occurring during a Suspension Period, of Registrable Securities by such a Notice Holder who has previously received notice from the Company of the commencement of the Suspension Period pursuant to the Person asserting the claim from which such Losses ariseSection 3(i). (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwiseEach Holder, severally and not jointly with any other Holders)jointly, agrees to indemnify and hold harmless the CompanyCompany and its directors, its directors and officers, employees, members, representatives and agents and each Personperson, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary 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 on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. (c) 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 10 except to the extent the indemnifying party shall have been actually 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, 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 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, unless in the reasonable judgment of any indemnified party, based on the written 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 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 10 is unavailable to an indemnified party hereunder in respect to any Losses, then the indemnifying 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 Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether 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, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. 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 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.either

Appears in 1 contract

Samples: Registration Rights Agreement (I2 Technologies Inc)

Indemnification; Contribution. (a) The Incident to any registration of any Registrable Securities under the Securities Act pursuant to this Agreement, the Company shall will indemnify and hold harmless each underwriter, each Holder of 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 (a "Selling Holder"), and each Person, if any, 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 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 arise out of or are based on (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement (including any related preliminary or definitive prospectus, or any amendment or supplement to such registration statement or prospectus) or (ii) any omission or alleged omission to state in such document a material fact required to be stated in it or necessary to make the statements in it not misleading; provided, however, that the Company will not be liable to the extent that such loss, claim, damage, expense or liability arises from and is based 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 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 underwriter, the 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 Securities Act or Section 20 of the Exchange Act) ), from and against any and all losses, claims, damages, liabilities expenses and expenses (including reasonable attorneys' feesliabilities, disbursements and expensesjoint or several, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained inwhich they, or any omission of them, may become subject under the Securities Act, the Exchange Act or alleged omission 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 material fact required to be stated in, Selling Holder for indemnification under this Section 5(a) exceed the Registration Statement, Prospectus or preliminary Prospectus or any amendment or supplement to any lesser of the foregoing or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, 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 (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on selling Holder's pro rata share for such losses, claims, damages, expenses and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, liabilities or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary 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 on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Selling Holder from the its sale of Registrable Securities covered by under such Registration Statementregistration statement. (c) 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 10 except to the extent the indemnifying party shall have been actually 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, 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 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, unless in the reasonable judgment of any indemnified party, based on the written 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 10. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party. (db) If the indemnification from the indemnifying party provided for in this Section 10 5(a) above for any reason is held by a court of competent jurisdiction to be unavailable to an indemnified party hereunder in respect of any losses, claims, damages, expenses or liabilities referred to any Lossestherein, then the each indemnifying partyparty under this Section 5, in lieu of indemnifying such indemnified partyparty thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses 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 party Company, the other Selling Holders and indemnified party the underwriters in connection with the actions statements or omissions which resulted in such Losseslosses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations; provided, however, that in the liability event of each Holder hereunder shall be limited a registration statement filed in response to a demand under Section 3(a) and in which the Company does not register any shares of capital stock, the proportion of any such Losses that is equal 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 proportion same respective proportions that the net proceeds from the sale 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 cover page of Registrable Securities sold by such Holder under a Registration Statement bears the applicable prospectus, bear to the total net proceeds from aggregate public offering price of the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration StatementSecurities. 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 any action in question, including any the untrue statement or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Selling Holders or indemnified party, the underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Selling Holders, and the underwriters agree that it would not be just and equitable if contribution pursuant to this Section 5(b) were determined by pro rata or payable per capita allocation or by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in the immediately preceding paragraph. In no event, however, shall a Selling Holder be deemed required to includecontribute any amount under this Section 5(b) in excess of the lesser of (i) such selling Holder's pro rata share for such losses, subject to claims, damages, expenses and liabilities or (ii) the limitations set forth in Section 10(c), any legal or other fees and expenses reasonably incurred net proceeds received by such indemnified party in connection with any investigation or proceedingSelling 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 parties agree that it would not be just amount paid by an indemnifying party or payable to an indemnified party as a result of the losses, claims, damages and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration liabilities referred to in this Section 10(d). If indemnification is available under this Section 105 shall be deemed to include, subject to the indemnifying parties shall indemnify each limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party to the full extent provided in Section 10(a) connection with investigating or 10(b)defending any such action or claim, payable as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration same are incurred. The indemnification and contribution provided for in this Section 10(d)5 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. 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. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Unica Corp)

Indemnification; Contribution. (a) The Company shall agrees to indemnify and hold harmless each Holder of Registrable Securities Initial Purchaser, each Holder, each Person who participates as an underwriter, if any (any such Person being an “Underwriter”) and each Person, if any, who controls any such Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Shelf Registration Statement (or any amendment or supplement thereto) pursuant to which Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; Houston 3198111v.1 (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided, that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the any Holder or Underwriter, if any, expressly for use in a Shelf Registration Statement (or any amendment thereto), any Prospectus as so amended (or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended any amendment or supplemented, with supplement thereto) or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses ariseany Issuer Free Writing Prospectus (or any amendment or supplement thereto). (b) In connection with any Registration Statement filed pursuant heretoEach Holder, each Holder of Registrable Securities severally, but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its each Initial Purchaser, each Underwriter, if any, and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, any of the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a), as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in any Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by or on behalf of such Holder or its counsel specifically expressly for use thereinin such Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, 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 but failure to give such notification so notify an indemnifying party shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be Houston 3198111v.1 counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (A) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (B) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party or indemnified party, by the Holders or the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid or payable by a party as a result of Company, the Losses referred to above shall be deemed to include, subject to Holders and the limitations set forth in Section 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 10(d) 4 were determined by pro rata allocation or by any other method of allocation that (even if the Initial Purchasers were treated as one entity for such purposes) which does not take into account of the consideration equitable considerations referred to above in this Section 10(d)4. If indemnification is available under this Section 10The aggregate amount of losses, the indemnifying parties shall indemnify each liabilities, claims, damages and expenses incurred by an indemnified party and referred to the full extent provided in Section 10(a) or 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 above in this Section 10(d). (e) The provisions of this Section 10 4 shall be in addition deemed to include any liability which any indemnifying party may have to any legal or other expenses reasonably incurred by such indemnified party and shall survive the termination of this Agreement.in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency

Appears in 1 contract

Samples: Registration Rights Agreement (St Mary Land & Exploration Co)

Indemnification; Contribution. (a) The Company shall and the Guarantors jointly and severally agree to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Guarantors, the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, any Guarantor, any Initial Purchaser, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or elects any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not tothe indemnified parties are actual or potential parties thereto), assume unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding 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 at any time an indemnified party shall have requested an indemnifying party to reimburse the defense of a claim shall not be obligated to pay the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than one counsel for all parties indemnified 45 days after receipt by such indemnifying party with respect to of the aforesaid request, (ii) such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 have received notice of the fees and expenses terms of such additional counselsettlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement; provided, provided however, that the an indemnifying party shall not be liable for any such settlement effected without its consent if such indemnifying party, prior to the date of such settlement, (1) reimburses such indemnified party in accordance with such request for the amount of such fees and expenses of counsel as the indemnifying party believes in good faith to be reasonable, and (i2) more than one counsel for all Holders of Registrable Securities who are provides written notice to the indemnified parties, selected by party that the Holders of a Majority indemnifying party disputes in good faith the reasonableness of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 unpaid balance 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 10. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyfees and expenses. (de) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Guarantors, the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Guarantors, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 Act1933 Xxx) shall xxall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Company or any Guarantor, and each Person, if any, who controls the Company or any Guarantor within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company and the Guarantors. The parties agree that it would not be just and equitable if contribution Initial Purchasers' respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 4 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Miller Mechanical Contractors Inc)

Indemnification; Contribution. (a) The Company shall agrees to indemnify and hold harmless the Initial Purchaser, each Holder of Registrable Securities who has provided information to the Company in accordance with Section 2.1(d) hereof, each Person who participates as an underwriter, if any (any such Person being an “Underwriter”) and each Person, if any, who controls any such Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Shelf Registration Statement (or any amendment or supplement thereto) pursuant to which Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise arising out of or are based upon (i) any such untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission made therefrom of a material fact necessary in reliance on and in conformity with information with respect order to such Holder furnished in writing to make the Company by such Holder or its counsel expressly for use statements therein, in 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 use extent of the aggregate amount paid in settlement of any Prospectus after litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such time as untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the obligation written consent of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or Company; and (iii) against any and all expenses whatsoever, as incurred (including the use reasonable and documented fees and disbursements of counsel chosen by any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(aindemnified party), the Company shall not be liable to reasonably incurred and documented in investigating, preparing or defending against any Holder litigation, or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act investigation or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for proceeding by any Losses that arise out of governmental agency or are body, commenced or threatened, or any claim whatsoever based upon any of such untrue statement or omission, or any such alleged untrue statement or omission, to the matters specified in clause extent that any such expense is not paid under subparagraph (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or (iii) of expense to the immediately preceding sentence or that arise extent arising out of or are based upon an (A) any untrue statement or omission or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity with written information furnished to the Company by or on behalf of any Holder or Underwriter expressly for use in a Shelf Registration Statement (or any amendment thereto) or any Prospectus if either (ior any amendment or supplement thereto) or (AB) the use of a Prospectus during a Suspension Period, provided that such Holder failed has received prior notice of such suspension; provided, further, that this indemnity provision shall not apply to send any loss, liability, claim, damage or expense if the Holder fails to deliver a copy of the Prospectus with at or prior to the delivery of written confirmation of sale the sale of Registrable Securities by most recent Prospectus furnished to such Holder to by the Person asserting Company and such Prospectus, as amended or supplemented as of the claim from which time of such Losses arise and (B) confirmation of sale, including any amendment or supplement filed with the Prospectus SEC that is incorporated by reference in the Prospectus, would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus of a material fact and (y) having previously been furnished delivery thereof was required by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses ariselaw. (b) In connection Each Holder who has provided information to the Company in accordance with any Registration Statement filed pursuant heretoSection 2.1(d) hereof, each Holder of Registrable Securities severally, but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Initial Purchaser, each Underwriter, if any, and the other selling Holders who have provided information to the Company in accordance with Section 2.1(d) hereof, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Initial Purchaser, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by or on behalf of such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, 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 but failure to give such notification so notify an indemnifying party shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless actions in the reasonable judgment same jurisdiction arising out of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the same general allegations or circumstances. No 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 all Holders of Registrable Securities who are indemnified parties, selected by without the Holders of a Majority prior written consent of the Registrable Securities who are indemnified parties (which selection consent shall not be reasonably satisfactory to the Companyunreasonably withheld), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (A) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (B) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act by the claimant or plaintiff to such on behalf of any 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 10. No indemnified party shall consent to entry (ii) be liable for any settlement of any judgment or entry into any settlement such action effected without the its prior written consent of each indemnifying party(which consent shall not be unreasonably withheld). (d) Notwithstanding clause (ii) of Section 4(c), if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into, and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company on the one hand and indemnified party the Holders and the Initial Purchaser on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders and the Initial Purchaser on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party or indemnified party, by the Holders or the Initial Purchaser and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Holders and the Initial Purchaser agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred and documented by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, the Initial Purchaser shall not be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which 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 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. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions For purposes of this Section 10 4, each Person, if any, who controls the Initial Purchaser or a Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall be in addition have the same rights to any liability which any indemnifying party may contribution as the Initial Purchaser or such Holder, and each director of the Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to any indemnified party and shall survive contribution as the termination of this AgreementCompany.

Appears in 1 contract

Samples: Registration Rights Agreement (Raser Technologies Inc)

Indemnification; Contribution. (a) The Company shall and the Guarantor, jointly and severally, agree to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened 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 or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, 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 (i) 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 such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary 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 on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. (c) 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 10 except to the extent the indemnifying party shall have been actually 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, 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 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, unless in the reasonable judgment of any indemnified party, based on the written 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 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 10 is unavailable to an indemnified party hereunder in respect to any Losses, then the indemnifying 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 Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether any action in question, including any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or the omission or alleged omission to state therefrom of a material fact, has been made byfact required to be stated therein or necessary to make the statements therein not misleading, or relates arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a material fact necessary in order to information supplied bymake the statements therein, such indemnifying party or indemnified partyin 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 parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. The extent of the aggregate amount paid in settlement of any litigation, 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 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or proceeding by any other method governmental agency or body, commenced or threatened, or of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10any claim whatsoever based upon any such untrue statement or omission, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.such alleged untrue statement or omission;

Appears in 1 contract

Samples: Registration Rights Agreement (Zale Delaware Inc)

Indemnification; Contribution. (a) The Company shall and the Guarantors agree to indemnify and hold harmless the Purchaser, each Holder of Registrable Securities Holder, each Person who participates as an underwriter, if any (any such Person being an “Underwriter”) and each Person, if any, who controls any such Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Shelf Registration Statement (or any amendment or supplement thereto) pursuant to which Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the indemnifying party; and (iii) against any and all expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply to (A) any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) and the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished Guarantors by or on behalf of any Holder or Underwriter, if any, expressly for use in a Shelf Registration Statement (or any amendment thereto), any Prospectus (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement thereto) or (B) any loss liability, claim, damage or expense which, in the Company with copies case of this clause (B), is finally judicially determined to have resulted from the Prospectus as so amended gross negligence, willful misconduct or supplemented, bad faith of any such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery party of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses ariseseeking indemnification. (b) In connection with any Registration Statement filed pursuant heretoEach Holder, each Holder of Registrable Securities severally, but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Guarantors, the Purchaser, each Underwriter, if any, and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (or any Guarantor, the Purchaser, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a)(i)-(iii) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to thereto) or any of the foregoing or necessary to make the statements therein (in case of a Issuer Free Writing Prospectus or preliminary 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 on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by or on behalf of such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus; provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, 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 but failure to give such notification so notify an indemnifying party shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of such failurethis indemnity agreement. In case any such action action, claim, suit, investigation or proceeding 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, and to assume the defense thereof; provided, with counsel reasonably satisfactory to however, that in the event that any such action, claim, suit, investigation or proceeding includes both an indemnified party and the indemnifying party, and after notice such indemnified party reasonably concludes that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, or if the indemnifying party to such indemnified party of its election so fails to assume the defense thereofof the action, claim, suit, investigation or proceeding, in either case in a timely manner, then such indemnified party may employ separate counsel to represent or defend it in any such action, claim, suit, investigation or proceeding and the indemnifying party shall not be liable to such indemnified party 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, unless in will pay the reasonable judgment fees and disbursements of any indemnified partysuch counsel; provided, based on the written opinion of counselfurther, a conflict of interest is likely to exist between that 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 will not be liable for the fees and expenses of (i) more than one counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 required to pay the fees and expenses disbursements of more than one counsel for all indemnified parties indemnified by such indemnifying party with respect to such (and one separate local counsel). In any action, claim, unless in suit, investigation or proceeding the reasonable judgment defense of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 assumes, the indemnified party will have the right to pay the fees participate in such litigation and expenses of to retain its own counsel at such additional counsel, provided that the indemnified party’s own expense. No indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders of Registrable Securities who are indemnified parties, selected by without the Holders of a Majority prior written consent of the Registrable Securities who are indemnified parties (which selection consent shall not be reasonably satisfactory to the Companyunreasonably withheld), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (A) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (B) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act by the claimant or plaintiff to such on behalf of any 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 10. No indemnified party shall consent to entry (ii) be liable for any settlement of any judgment or entry into any settlement such action effected without the its prior written consent of each indemnifying party(which consent shall not be unreasonably withheld). (d) Notwithstanding clause (ii) of Section 4(c), if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that, subject to the proviso in the last paragraph of Section 4.1(a), it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 60 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company and indemnified party the Guarantors on the one hand and the Holders and the Purchaser on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders and the Purchaser on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company and the Guarantors, such indemnifying party or indemnified party, by the Holders and the Purchaser and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Guarantors, the Holders and the Purchaser agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, the Purchaser shall not be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which the Purchaser 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 Act1000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls the Purchaser or any Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Purchaser or the Holder, and each director of the Company, and each Person, if any, who controls the Company or any Guarantor within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The parties agree that it would not be just obligations of the Company, the Purchaser and equitable if contribution the Holders pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions of this Section 10 4 shall be in addition to any liability which any indemnifying that such party may have to any indemnified party and shall survive the termination of this Agreementotherwise have.

Appears in 1 contract

Samples: Registration Rights Agreement (General Cable Corp /De/)

Indemnification; Contribution. (a) The Company shall and the Guarantors, jointly and severally, agree to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company and the Guarantors; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 made in reliance upon and in conformity with written information furnished to the Company and the Guarantors by the Initial Purchasers, such Holder, such Participating Broker-Dealer or Underwriter expressly for use in a Registration Statement (or any amendment thereto) or any Prospectus (or any amendment or supplement thereto); provided, further, that the Company will not be liable to any Initial Purchaser, Holder (in its capacity as Holder), Participating Broker-Dealer or Underwriter (or any person who controls such party within the meaning of Section 15 of the 1933 Act or Section 20 of the 0000 Xxx) with respect to 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 such Holder furnished in writing any preliminary Prospectus to the extent that the Company by shall sustain the burden of proving that any such loss, liability, claim, damage or expense resulted from the fact that such Initial Purchaser, Holder (in its capacity as Holder), Participating Broker- Dealer or its counsel expressly for use thereinUnderwriter, (ii) the use of any Prospectus after such time as the obligation case may be, sold Securities to a Person to whom such Initial Purchaser, Holder (in its capacity as Holder), Participating Broker-Dealer or Underwriter, as the case may be, failed to send or give, at or prior to the written confirmation of the Company to keep effective sale of such Securities a copy of the Registration Statement of which such final Prospectus forms a part has expired (as amended or (iiisupplemented) the use of any Prospectus after such time as if the Company has advised previously furnished copies thereof (sufficiently in advance of the Holders that closing of such sale to allow for distribution of the filing of an amendment or supplement thereto is requiredfinal Prospectus in a timely manner) to such Initial Purchaser, except such Prospectus Holder (in its capacity as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(aHolder), Participating Broker-Dealer or Underwriter, as the Company shall not be liable to any Holder case may be, and the loss, liability, claim, damage or to any Person who controls expense of such Initial Purchaser, Holder (within in its capacity as a Holder), Participating Broker-Dealer or Underwriter, as the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that arise out of or are based upon case may be, resulted solely from an untrue statement or omission or alleged untrue statement or omission of a material fact contained in or alleged omission made in any omitted from such preliminary Prospectus if either (i) (A) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is was corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such final Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Guarantors, the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Guarantors, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically and the Guarantors expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers each on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers each on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company and the Guarantors, such indemnifying party the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Guarantors, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity and the Holders were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to For purposes of this Section 10(d) were determined by pro rata allocation 4, each Person, if any, who controls an Initial Purchaser or by any other method Holder within the meaning of allocation that does not take into account Section 15 of the consideration referred 1933 Act or Section 20 of the 1934 Act shall have the same rights to in this Section 10(d). If indemnification is available under this Section 10contribution as such Initial Purchaser or Holder, and each director of the indemnifying parties shall indemnify Company, and each indemnified party to Person, if any, who controls the full extent provided in Section 10(a) or 10(b)Company and each Guarantor, as the case may be, without regard within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company and such Guarantor, as the case may be. The Initial Purchasers' respective obligations to contribute pursuant to this Section 4 are several in proportion to the relative fault principal amount of such indemnifying parties or indemnified party or any other equitable consideration provided for Securities set forth opposite their respective names in this Section 10(d)Schedule A to the Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Tri R of Orlando Inc)

Indemnification; Contribution. (a) Indemnification by the Company. The Company shall agrees to indemnify --------------------------------- and hold harmless each Holder of Registrable Securities Securities, its officers, directors, shareholders, partners, trustees, beneficiaries and agents, and each Personperson or entity, if any, who controls such Holder (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, liabilities and expenses (including reasonable attorneys' fees, disbursements and expenses, as incurredcosts of investigation) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened 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 or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, 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 (i) 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 such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary 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 on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. (c) 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 10 except to the extent the indemnifying party shall have been actually 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, 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 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, unless in the reasonable judgment of any indemnified party, based on the written 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 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 10 is unavailable to an indemnified party hereunder in respect to any Losses, then the indemnifying 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 Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether any action in question, including any untrue statement or alleged untrue statement of a material fact contained in any registration statement or prospectus relating to the Registrable Securities or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or based upon any omission or alleged omission to state therein a material factfact required to be stated therein or necessary to make the statements therein not misleading, has been made byexcept insofar as such losses, claims, damages, liabilities, or relates expenses arise out of, or are based upon, any such untrue statement or omission or allegation thereof based upon information furnished in writing to information supplied bythe Company by such Holder or on such Holder's behalf expressly for use therein; provided, that with respect to any untrue statement or omission or alleged untrue statement or omission made in any preliminary prospectus, the indemnity agreement contained in this subsection shall not apply to the extent that any such indemnifying party loss, claim, damage, liability, or indemnified partyexpense results from the fact that a current copy of the prospectus was not sent or given to the person asserting any such loss, claim, damage, liability, or expense at or prior to the written confirmation of the sale of the Registrable Securities to such person and such current copy of the prospectus would have cured the defect giving rise to such loss, claim, damage, liability or expense. The Company also agrees to indemnify any Underwriters of the Registrable Securities, their officers and directors, and each person who controls such Underwriters on substantially the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party same basis as a result that of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) indemnification of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to Holders provided in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d6(a). (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Safeguard Health Enterprises Inc)

Indemnification; Contribution. (a) The Company shall Co-Issuers and the Guarantors agree jointly and severally to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an “Underwriter”) and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Co-Issuers; and (iii) against any and all expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company Co-Issuers by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the CompanyCo-Issuers, its the Guarantors, the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Co-Issuers, a Guarantor, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company Co-Issuers by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or parties with respect to such claim, in which event the indemnifying party shall not be liable for the reasonable fees and expenses of (i) more than one counsel (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for reasonable fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 60 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 45 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Co-Issuers and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Co-Issuers and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Co-Issuers and/or the Guarantors, such indemnifying party the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Co-Issuers, the Guarantors, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Holders and/or Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total discount received by it in connection with its purchase of the Securities exceeds the amount of any damages which such Initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Co-Issuers or any Guarantor, and each Person, if any, who controls the Co-Issuers or any Guarantor within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Co-Issuers or such Guarantor, as applicable. The parties agree that it would not be just and equitable if contribution Ini- tial Purchasers’ respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 4 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Navios Maritime Acquisition CORP)

Indemnification; Contribution. (a) The Company shall agrees to indemnify and hold harmless each Holder of Registrable Securities Initial Purchaser, each Holder, each Person who participates as an underwriter, if any (any such Person being an “Underwriter”) and each Person, if any, who controls any such Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Shelf Registration Statement (or any amendment or supplement thereto) pursuant to which Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the reasonable and documented fees and disbursements of counsel chosen by any indemnified party), reasonably incurred and documented in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of any Initial Purchaser, any Holder or Underwriter, if any, expressly for use in a Shelf Registration Statement (or any amendment thereto), any Prospectus (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement thereto) or the Company with copies gross negligence, willful misconduct or bad faith of the Prospectus as so amended or supplemented, any such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses ariseparty seeking indemnification. (b) In connection with any Registration Statement filed pursuant heretoEach Holder, each Holder of Registrable Securities severally, but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its each Initial Purchaser, each Underwriter, if any, and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, each Initial Purchaser, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred by such party pursuant and documented, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to thereto) or any of the foregoing Issuer Free Writing Prospectus (or necessary to make the statements therein (in case of a Prospectus any amendment or preliminary Prospectus, in the light of the circumstances then existingsupplement thereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by or on behalf of such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, 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 but failure to give such notification so notify an indemnifying party shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of such failurethis indemnity agreement. In case any such action action, claim, suit, investigation or proceeding shall be brought against any indemnified party and it shall notify the indemnifying party Company of the commencement thereof, the indemnifying party Company shall be entitled to participate therein and, to the extent that it shall wish, jointly with any other indemnifying party similarly notified, and to assume the defense thereof; provided, with counsel reasonably satisfactory to however, that in the event that any such action, claim, suit, investigation or proceeding includes both an indemnified partyparty and the Company, and after notice from the indemnifying party to such indemnified party of its election so reasonably concludes that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the Company, or if the Company fails to assume the defense thereofof the action, claim, suit, investigation or proceeding within 30 days of being notified of the indemnifying party shall not be liable to commencement of any such action, claim, suit, investigation or proceeding, then such indemnified party for may employ separate counsel to represent or defend it in any legal expenses of other counsel such action, claim, suit, investigation or any other expenses, in each case subsequently incurred by such indemnified party, in connection with proceeding and the defense thereof other than reasonable costs of investigation, unless in Company will pay the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between the indemnifying party fees and such indemnified party and any other disbursements of such indemnified parties with respect to such claimcounsel; provided, in which event further, that the indemnifying party shall Company will not be liable for the fees and expenses of (i) more than one counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 required to pay the fees and expenses disbursements of more than one counsel for all indemnified parties indemnified by such indemnifying party with respect to such (and one separate local counsel). In any action, claim, unless suit, investigation or proceeding the defense of which the Company assumes, the indemnified party will have the right to participate in the reasonable judgment of any such litigation and to retain its own counsel at such indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the ’s own expense. No 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 all Holders of Registrable Securities who are indemnified parties, selected by without the Holders of a Majority prior written consent of the Registrable Securities who are indemnified parties (which selection consent shall not be reasonably satisfactory to the Companyunreasonably withheld), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (A) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (B) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act by the claimant or plaintiff to such on behalf of any 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 10. No indemnified party shall consent to entry (ii) be liable for any settlement of any judgment or entry into any settlement such action effected without the its prior written consent of each indemnifying party(which consent shall not be unreasonably withheld). (d) Notwithstanding clause (ii) of Section 4(c), if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 60 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company on the one hand and indemnified party the Holders, the Initial Purchasers and Underwriters on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders, Initial Purchasers and Underwriters on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party or indemnified partyby the Holders, Initial Purchasers and Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Holders, the Initial Purchasers and Underwriters, if any, agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred and documented by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the discount or commission payable to such Initial Purchaser with respect to securities underwritten by it and distributed to the public. 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 4, each Person, if any, who controls an Initial Purchaser, Holder or Underwriter, if any, within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser, Holder or Underwriter, if any, and each director and officer of the Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The parties agree that it would not be just obligations of the Company, the Initial Purchasers and equitable if contribution the Holders pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions of this Section 10 4 shall be in addition to any liability which any indemnifying that such party may have otherwise have. The Initial Purchasers’ respective obligations to any indemnified party contribute pursuant to this Section 4 are several in proportion to the principal amount of Debentures set forth opposite their respective names in Schedule A of the Purchase Agreement and shall survive the termination of this Agreementnot joint.

Appears in 1 contract

Samples: Registration Rights Agreement (Lincare Holdings Inc)

Indemnification; Contribution. (a) The Company shall agrees to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which the offer or sale of Exchange Notes or Registrable Notes were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Each Holder by participating in the Exchange Offer or a Shelf Registration Statement filed pursuant heretoseverally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, any Initial Purchaser, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by Notes pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Notes sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The parties agree that it would not be just and equitable if contribution Initial Purchasers' respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 4 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Wam Net Inc)

Indemnification; Contribution. (a) The In connection with any Registration Statement, the Company shall agrees to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each person who participates as an underwriter (any such person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 made in reliance upon and in conformity with written information furnished to the Company by the Holder or Underwriter expressly for use in a Registration Statement (or any amendment thereto) or any Prospectus (or any amendment or supplement thereto) provided, further, that the Company shall not be liable to any such Holder, Participating Broker-Dealer or controlling person, with respect to any untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect any preliminary Prospectus to the extent that any such loss, liability, claim, damage or expense of any Holder, Participating Broker-Dealer or controlling person results from the fact that such Holder or Participating Broker-Dealer 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 final Prospectus as then amended or supplemented if the Company had previously furnished copies thereof to such Holder furnished in writing to or Participating Broker-Dealer and the Company by loss, liability, claim, damage or expense of such Holder Holder, Participating Broker-Dealer or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that arise out of or are based upon controlling person results from an untrue statement or alleged untrue statement or omission or alleged omission made of a material fact contained in any the preliminary Prospectus if either (i) (A) which was corrected in the final Prospectus. Any amounts advanced by the Company to an indemnified party pursuant to this Section 4 as a result of such Holder failed to send or deliver a copy of the Prospectus with or prior losses shall be returned to the delivery of written confirmation of the sale of Registrable Securities Company if it shall be finally determined by such Holder a court in a judgment not subject to appeal or final review that such indemnified party was not entitled to indemnification by the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses ariseCompany. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Initial Purchasers, each Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense of such failureaction. In case any such action shall be brought against any indemnified party and it shall notify the If an indemnifying party so elects within a reasonable time after receipt of the commencement thereofsuch notice, the an indemnifying party shall be entitled to participate therein andparty, to the extent that it shall wish, severally or jointly with any other indemnifying parties receiving such notice, may assume the defense of such action with counsel chosen by it and reasonably acceptable to the indemnified parties defendant (or target of) in such action, provided, however, that if (i) representation of such indemnified party similarly notifiedby the same counsel would present a conflict of interest or (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and any such indemnified party reasonably determines that there may be legal defenses available to such indemnified party which are different from or in addition to those available to such indemnifying party, then in the case of clauses (i) or (ii) of this Section 4(c) such indemnifying party and counsel for each indemnifying party or parties shall not be entitled to assume such defense. If an indemnifying party is not entitled to assume the defense thereofof such action as a result of the proviso to the preceding sentence, with counsel reasonably satisfactory for each indemnified party or parties shall be entitled to such indemnified party, and after notice from conduct the indemnifying party to defense of such indemnified party of its election so to assume or parties. If an indemnifying party assumes the defense thereofof such action, in accordance with and as permitted by the provisions of this paragraph, such indemnifying party parties shall not be liable to such indemnified party for any legal fees and expenses of other counsel or any other expenses, in each case subsequently for the indemnified parties incurred by such indemnified party, thereafter in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between such action. In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or elects any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not tothe indemnified parties are actual or potential parties thereto), assume unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding 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 at any time an indemnified party shall have requested an indemnifying party to reimburse the defense of a claim shall not be obligated to pay the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than one counsel for all parties indemnified 45 days after receipt by such indemnifying party with respect of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such claimsettlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. Notwithstanding the immediately preceding sentence, unless in the reasonable judgment of if at any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between time an indemnified party and any other of such indemnified parties with respect to such claim, in which event the shall have requested an indemnifying party shall be obligated to pay reimburse the indemnified party for fees and expenses of such additional for counsel, provided that the an indemnifying party shall not be liable for any settlement of the fees and expenses of nature contemplated by Section 4(a)(ii) effected without its consent if such indemnifying party (i) more than one counsel for all Holders of Registrable Securities who are reimburses such indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory party in accordance with such request to the Company), extent it considers such request to be reasonable and (ii) more than one counsel for provides written notice to the underwriters or (iii) more than one counsel for indemnified party substantiating the Companyunpaid balance as unreasonable, 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 prior to the entry date 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 10. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partysettlement. (de) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of benefits received by the indemnifying party Company on the one hand, and indemnified party the Holders and the Initial Purchasers on the other hand, in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid or payable by a party as a result of Company, the Losses referred to above shall be deemed to include, subject to Holders and the limitations set forth in Section 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 10(d) 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or by any other method of allocation that which does not take into account of the consideration equitable considerations referred to above in this Section 10(d)4. If indemnification is available under this Section 10The aggregate amount of losses, the indemnifying parties shall indemnify each liabilities, claims, damages and expenses incurred by an indemnified party and referred to the full extent provided in Section 10(a) or 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 above in this Section 10(d). (e) The 4 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in 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 untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 10 4, no Initial Purchaser shall be required to contribute any amount in addition excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 0000 Xxx) shall be entitled to contribution from any liability which any indemnifying party may have to any indemnified party and shall survive the termination person who was not guilty of such fraudulent misrepresentation. For purposes of this AgreementSection 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Company and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Initial Purchasers' respective obligations to contribute pursuant to this Section 7 are several in proportion to the principal amount of Securities set forth opposite their respective names in Schedule A to the Purchase Agreement and not joint.

Appears in 1 contract

Samples: Registration Rights Agreement (Fisher Scientific International Inc)

Indemnification; Contribution. (a) The In connection with any Registration Statement, the Company shall agrees to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each person who participates as an underwriter (any such person being an “Underwriter”) and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided, that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 agreement of this Section 4 shall not apply 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 made in reliance upon and in conformity with written information furnished to the Company by the Holder or Underwriter expressly for use in a Registration Statement (or any amendment thereto) or any Prospectus (or any amendment or supplement thereto); provided, further, that the Company shall not be liable to any such Holder, Participating Broker-Dealer or controlling person, with respect to any untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect any preliminary Prospectus to the extent that any such loss, liability, claim, damage or expense of any Holder, Participating Broker-Dealer or controlling person results from the fact that such Holder or Participating Broker-Dealer 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 final Prospectus as then amended or supplemented if the Company had previously furnished copies thereof to such Holder furnished in writing to or Participating Broker-Dealer and the Company by loss, liability, claim, damage or expense of such Holder Holder, Participating Broker-Dealer or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that arise out of or are based upon controlling person results from an untrue statement or alleged untrue statement or omission or alleged omission made of a material fact contained in any the preliminary Prospectus if either (i) (A) which was corrected in the final Prospectus. Any amounts advanced by the Company to an indemnified party pursuant to this Section 4 as a result of such Holder failed to send or deliver a copy of the Prospectus with or prior losses shall be returned to the delivery of written confirmation of the sale of Registrable Securities Company if it shall be finally determined by such Holder a court in a judgment not subject to appeal or final review that such indemnified party was not entitled to indemnification by the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses ariseCompany. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Initial Purchasers, each Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of the indemnity agreement of this Section 4. An indemnifying party may participate at its own expense in the defense of such failureaction. In case any such action shall be brought against any indemnified party and it shall notify the If an indemnifying party so elects within a reasonable time after receipt of the commencement thereofsuch notice, the an indemnifying party shall be entitled to participate therein andparty, to the extent that it shall wish, severally or jointly with any other indemnifying parties receiving such notice, may assume the defense of such action with counsel chosen by it and reasonably acceptable to the indemnified parties defendant (or target of) in such action, provided, however, that if (i) representation of such indemnified party similarly notifiedby the same counsel would present a conflict of interest or (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and any such indemnified party reasonably determines that there may be legal defenses available to such indemnified party which are different from or in addition to those available to such indemnifying party, then in the case of clauses (i) or (ii) of this Section 4(c) such indemnifying party and counsel for each indemnifying party or parties shall not be entitled to assume such defense. If an indemnifying party is not entitled to assume the defense thereofof such action as a result of the proviso to the preceding sentence, with counsel reasonably satisfactory for each indemnified party or parties shall be entitled to such indemnified party, and after notice from conduct the indemnifying party to defense of such indemnified party of its election so to assume or parties. If an indemnifying party assumes the defense thereofof such action, in accordance with and as permitted by the provisions of this paragraph, such indemnifying party parties shall not be liable to such indemnified party for any legal fees and expenses of other counsel or any other expenses, in each case subsequently for the indemnified parties incurred by such indemnified party, thereafter in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between such action. In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or elects any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not tothe indemnified parties are actual or potential parties thereto), assume unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding 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 at any time an indemnified party shall have requested an indemnifying party to reimburse the defense of a claim shall not be obligated to pay the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than one counsel for all parties indemnified 45 days after receipt by such indemnifying party with respect of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such claimsettlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. Notwithstanding the immediately preceding sentence, unless in the reasonable judgment of if at any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between time an indemnified party and any other of such indemnified parties with respect to such claim, in which event the shall have requested an indemnifying party shall be obligated to pay reimburse the indemnified party for fees and expenses of such additional counsel, provided that the an indemnifying party shall not be liable for any settlement of the fees and expenses of nature contemplated by Section 4(a)(ii) effected without its consent if such indemnifying party (i) more than one counsel for all Holders of Registrable Securities who are reimburses such indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory party in accordance with such request to the Company), extent it considers such request to be reasonable and (ii) more than one counsel for provides written notice to the underwriters or (iii) more than one counsel for indemnified party substantiating the Companyunpaid balance as unreasonable, 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 prior to the entry date 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 10. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partysettlement. (de) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, dam- ages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of benefits received by the indemnifying party Company on the one hand, and indemnified party the Holders and the Initial Purchasers on the other hand, in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid or payable by a party as a result of Company, the Losses referred to above shall be deemed to include, subject to Holders and the limitations set forth in Section 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 10(d) 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or by any other method of allocation that which does not take into account of the consideration equitable considerations referred to above in this Section 10(d4(e). If indemnification is available under this Section 10The aggregate amount of losses, the indemnifying parties shall indemnify each liabilities, claims, damages and expenses incurred by an indemnified party and referred to the full extent provided in Section 10(a) or 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 above in this Section 10(d). (e4(e) The shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in 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 untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 10 4(e), no Initial Purchaser shall be required to contribute any amount in addition excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 1000 Xxx) shall be entitled to contribution from any liability which any indemnifying party may have to any indemnified party and shall survive the termination person who was not guilty of such fraudulent misrepresentation. For purposes of this AgreementSection 4(e), each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Company and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company.

Appears in 1 contract

Samples: Registration Rights Agreement (Fisher Scientific International Inc)

Indemnification; Contribution. (a) The Company shall agrees to indemnify and hold harmless each Holder of Registrable Securities Initial Purchaser, each Holder, each Person who participates as an underwriter, if any (any such Person being an “Underwriter”) and each Person, if any, who controls any such Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Shelf Registration Statement (or any amendment or supplement thereto) pursuant to which Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided, that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the any Holder or Underwriter, if any, expressly for use in a Shelf Registration Statement (or any amendment thereto), any Prospectus as so amended (or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended any amendment or supplemented, with supplement thereto) or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses ariseany Issuer Free Writing Prospectus (or any amendment or supplement thereto). (b) In connection with any Registration Statement filed pursuant heretoEach Holder, each Holder of Registrable Securities severally, but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its each Initial Purchaser, each Underwriter, if any, and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, any of the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a), as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in any Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by or on behalf of such Holder or its counsel specifically expressly for use thereinin such Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, 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 but failure to give such notification so notify an indemnifying party shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (A) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (B) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party or indemnified party, by the Holders or the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid or payable by a party as a result of Company, the Losses referred to above shall be deemed to include, subject to Holders and the limitations set forth in Section 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 10(d) 4 were determined by pro rata allocation or by any other method of allocation that (even if the Initial Purchasers were treated as one entity for such purposes) which does not take into account of the consideration equitable considerations referred to above in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.this

Appears in 1 contract

Samples: Registration Rights Agreement (Anixter International Inc)

Indemnification; Contribution. (a) The Company shall indemnify and hold harmless each Holder of Registrable Securities the Selling Stockholders, and each Person, person (if any, ) who controls such Holder (Selling Stockholder within the meaning of Section 15 of the Securities Act of 1933, as amended (the "Act"), against all losses, claims, damages and liabilities and expense (including all reasonable fees and disbursements of counsel incurred in defending against any such claim, damage or Section 20 liability) caused by any untrue statement or alleged untrue statement of a material fact contained in the registration statement filed or to be filed with the Securities and Exchange Commission (the "Commission"), in connection with the Public Offering, as the same may be amended or supplemented from time to time (the "Registration Statement") or in any prospectus filed with, or delivered to, the Commission in connection with the Public Offering, or caused by any omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein, in the light of the Exchange Actcircumstances in which they were made, not misleading; provided, however, insofar as such losses, claims, damages, or liabilities are caused by an untrue statement of a material fact contained in, or any material fact omitted from, information relating to a Selling Stockholder furnished in writing to the Company by such Selling Stockholder for use in the Registration Statement or any amendment or supplement thereto, or any such prospectus, then the Company shall have no obligation hereunder to indemnify the Selling Stockholder furnishing such information. (b) Each Selling Stockholder shall indemnify each of the Company and the other Selling Stockholders, and each person (if any) who controls the Company or such other Selling Stockholder within the meaning of Section 15 of the Act against all losses, claims, damages and liabilities and expense (including all reasonable fees and disbursements of counsel incurred in defending against any such claim, damage or liability) caused by any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or in any prospectus filed with, or delivered to, the Commission in connection with the Public Offering, or caused by any omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading, but only with respect to information relating to such Selling Stockholder furnished in writing by or on behalf of such Selling Stockholder expressly for use in the Registration Statement or any amendment or supplement thereto, or any such prospectus, PROVIDED, HOWEVER, no Selling Stockholder shall be liable in an amount that exceeds the aggregate public offering price of the Stockholder Shares sold by the Selling Stockholder, net of the underwriting discount. (c) The indemnity agreements of the Company and the Selling Stockholders contained in this Section 2 shall remain operative and in full force and effect regardless of any investigation made by or on behalf of any indemnified party and shall survive delivery of shares of Common Stock pursuant to the Public Offering. (d) In order to provide for just and equitable contribution in circumstances in which indemnification provided for in paragraphs (a) or (of this Section 2 is unavailable, the Company and each of the Selling Stockholders shall contribute to the aggregate losses, claims, damages, liabilities and expenses (including all reasonable attorneys' feesfees and disbursements of counsel incurred in defending against any claim, disbursements and expenses, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained indamage, or any omission liability), to which one 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 more of the foregoing or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, 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 (i) 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 such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not Selling Stockholders may be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary 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 on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. (c) 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 10 except to the extent the indemnifying party shall have been actually 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, 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 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, unless in the reasonable judgment of any indemnified party, based on the written 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 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 10 is unavailable to an indemnified party hereunder in respect to any Losses, then the indemnifying 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 Losses subject in such proportion as is appropriate to reflect the relative relevant fault of the indemnifying party Company and indemnified party the respective Selling Stockholders in connection with the actions which statements or omissions that resulted in such Losseslosses, claims, damages, liabilities and expenses as well as any other relevant equitable considerations; providedPROVIDED, howeverHOWEVER, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not that: (i) in any event to exceed the net proceeds received by case where any Selling Stockholder is seeking contribution hereunder such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether 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, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. 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 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) Selling Stockholder shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution the remaining Selling Stockholders pursuant to this Section 10(dAgreement only after first seeking contribution from the Company; (ii) were determined by no Selling Stockholder shall in any case be required to contribute or make any payments under this paragraph (d) which in the aggregate exceed his pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 10(b), as the case may be, without regard to the relative fault share of such indemnifying parties or indemnified losses, claims, damages, liabilities and expenses determined in accordance with the total number of Company Shares and Stockholder Shares sold by each respective party or any other equitable consideration provided for in this Section 10(d).hereto PROVIDED, HOWEVER, that no Selling Stockholder shall be liable to contribute an amount that exceeds the aggregate public offering price of the Stockholder Shares sold by the Selling Stockholder, net of the underwriting discount; and (eiii) The provisions neither the Company nor any Selling Stockholder will be required to make any contribution to another Selling Stockholder with respect to matters for which the other Selling Stockholder would not otherwise be entitled to be indemnified under paragraph (a) of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement2 had such indemnification been available.

Appears in 1 contract

Samples: Selling Stockholder Agreement (Brooks Automation Inc)

Indemnification; Contribution. (a) The Company shall agrees to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities who has provided information to the Company in accordance with Section 2.1(d) hereof, each Person who participates as an underwriter (any such Person being an “Underwriter”) and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Shelf Registration Statement (or any amendment or supplement thereto) pursuant to which Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all reasonable out-of-pocket expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such or on behalf of any Holder or its counsel Underwriter expressly for use therein, in a Shelf Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is requiredthereto); provided, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of further, that this Section 10(a), the Company indemnity provision shall not be liable apply to any loss, liability, claim, damage or expense if the Holder or fails to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with at or prior to the delivery of written confirmation of sale the sale of Registrable Securities by most recent Prospectus furnished to such Holder to by the Person asserting Company and such Prospectus, as amended or supplemented as of the claim from which time of such Losses arise and (B) confirmation of sale, including any amendment or supplement filed with the Prospectus SEC that is incorporated by reference in the Prospectus), would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus of a material fact and (y) having previously been furnished delivery thereof was required by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses ariselaw. (b) In connection Each Holder who has provided information to the Company in accordance with any Registration Statement filed pursuant heretoSection 2.1(d) hereof, each Holder of Registrable Securities severally, but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Initial Purchasers, each Underwriter and the other selling Holders who have provided information to the Company in accordance with Section 2.1(d) hereof, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by or on behalf of such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party or indemnified party, by the Holders or the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any reasonable out-of-pocket legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The parties agree that it would not be just and equitable if contribution Initial Purchasers’ respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 4 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (PMC Sierra Inc)

Indemnification; Contribution. (a) The With respect to the Securities, the Company shall agrees to indemnify and hold harmless each Holder of Registrable Securities the Dealer Managers, each Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an “Underwriter”) and each Person, if any, who controls any such Holder (Person within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act with respect to the Securities as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Notes or Transfer Restricted Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its each of the Dealer Managers, each Underwriter, each Participating Broker-Dealer and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, each of the Dealer Managers, any Underwriter, any Participating Broker-Dealer or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Transfer Restricted Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 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, unless in the reasonable judgment of any indemnified party, based on the written 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 the indemnified party) also be counsel to the indemnified party. No indemnifying party shall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company on the one hand and indemnified party the Holders, Underwriters, Participating Broker-Dealers and the Dealer Managers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders, Underwriters, Participating Broker-Dealers and the Dealer Managers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Holders. Underwriters, Participating Broker-Dealers or indemnified party, the Dealer Managers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Holders, Underwriters, Participating Broker-Dealers and the Dealer Managers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Dealer Managers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Dealer Manager, Holder, Participating Broker-Dealer or Underwriter shall be required to contribute any amount in excess of the amount by which the net proceeds received by such Holder from the sale of the Securities exceeds the amount of any damages which such Dealer Manager, Holder, Participating Broker-Dealer or Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission with respect to the Securities from the sale of the Securities. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act1000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls a Dealer Manager, Holder, Participating Broker-Dealer or Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Dealer Manager, Holder, Participating Broker-Dealer or Underwriter and each director of the Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The parties agree that it would not be just and equitable if contribution Dealer Managers’ respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does 7 are several and not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d)joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Norfolk Southern Corp)

Indemnification; Contribution. (a) The In the case of any offering registered pursuant to this Article 5, the Company shall indemnify hereby indemnifies and agrees to hold harmless each selling Holder (and its officers and directors), any underwriter (as defined in the Securities Act) of Registrable Securities offered by such Holders, and each Person, if any, who controls such Holder (or any such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) against all any losses, claims, damagesdamages or liabilities, liabilities joint or several, to which any such Persons may be subject, under the Securities Act or otherwise, and to reimburse any of such Persons for any legal or other expenses (including reasonable attorneys' fees, disbursements and expenses, as incurred) (collectively, "Losses") reasonably incurred by them in connection with investigating any claims or defending against any actions, insofar as such party pursuant to any actual losses, claims, damages or ------ threatened action, suit, proceeding or investigation arising liabilities arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained inin the registration statement under which such Registrable Securities were registered under the Securities Act pursuant to this Article 5, the prospectus contained therein (during the period that the Company is required to keep such prospectus current), or any amendment or supplement thereto, or the omission or alleged omission of to state therein (if so used) 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 therein or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectustherein, in the light of the circumstances then existing) in which they were made, not misleading, except in each case insofar as such statements losses, claims, damages or omissions arise out of or are based upon (i) 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 such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that liabilities arise out of or are based upon any such untrue statement or omission or alleged untrue statement or omission made in reliance upon information furnished to the Company in writing by any Holder or any underwriter for such Holder specifically for use therein. (b) By requesting registration under this Article 5, each Holder agrees, if Registrable Securities held by such Holder are included in the securities as to which such registration is being effected, and each underwriter shall agree, in the same manner and to the same extent as set forth in the preceding paragraph, to indemnify and to hold harmless the Company and its directors and officers and each Person, if any, who controls the Company within the meaning of the matters specified Securities Act against any losses, claims, damages or liabilities, joint or several, to which any of such Persons may be subject under the Securities Act or otherwise, and to reimburse any of such Persons for any legal or other expenses incurred in clause (ii) connection with investigating or (iii) of defending against any such losses, claims, damages or liabilities, but only to the immediately preceding sentence or that arise extent it arises out of or are is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any Prospectus if either (i) (A) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact in any registration statement under which the Registrable Securities were registered under the Securities Act pursuant to this Article 5, any prospectus contained intherein, 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 or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectusthereto, in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is which was based upon and made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company in writing by such Holder or its counsel specifically such underwriter expressly for use therein; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. (c) Any Person Each party entitled to indemnification hereunder agrees to under this Section 5.4 (the “Indemnified Party”) shall give prompt written notice to the indemnifying party required to provide indemnification (the “Indemnifying Party”) promptly after the receipt by such indemnified party Indemnified Party has actual knowledge of any written notice of claim as to which indemnity may be sought, and shall permit 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 10 except to the extent the indemnifying party shall have been actually 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, Indemnifying Party to assume the defense thereofof any such claim or any litigation resulting therefrom, with provided that counsel reasonably satisfactory to such indemnified partyfor the Indemnifying Party, and after notice from the indemnifying party to such indemnified party of its election so to assume who shall conduct the defense thereofof such claim or litigation, shall be approved by the indemnifying party Indemnified Party (whose approval shall not be liable to unreasonably withheld), and the Indemnified Party may participate in such indemnified party for any legal expenses of other counsel or any other expensesdefense at its own expense, in each case subsequently incurred by such indemnified partyand provided, in connection with further that the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment failure of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely Indemnified Party 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 give notice as provided herein shall not be liable for relieve the fees and expenses Indemnifying Party of its obligations under this Article 5 unless such failure resulted in actual detriment to the Indemnifying Party. No Indemnifying Party, (i) more than one counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 claim or investigationlitigation, shall, except with the consent of each indemnified partyIndemnified Party, which consent shall not be unreasonably withheld, consent to the entry of any judgment or entry enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party Indemnified Party of a release from all liability in respect to such actionclaim or litigation, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth (ii) shall be liable for amounts paid in this Section 10. No indemnified party shall consent to entry of any judgment or entry into any settlement if such settlement is effected without the consent of each indemnifying party. (d) If the indemnification from the indemnifying party provided for in this Section 10 is unavailable to an indemnified party hereunder in respect to any LossesIndemnifying Party, then the indemnifying party, in lieu of indemnifying such indemnified party, which consent shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether 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, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. 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 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d)unreasonably withheld. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Investor Rights and Restrictions Agreement (Greenbrier Companies Inc)

Indemnification; Contribution. (a) The Company shall indemnify and hold harmless indemnify, to the fullest extent permitted by law, each Holder holder of Registrable Securities Securities, its officers, directors, partners, employees and agents, if any, and each Person, if any, who controls such Holder holder within the meaning of Section 15 of the Securities Act, against all losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (under the Securities Act or common law or otherwise), joint or several, resulting from any violation by the Company of the provisions of the Securities Act or any untrue statement or alleged untrue statement of a material fact contained in any registration statement or prospectus (and as amended or supplemented if amended or supplemented) or any preliminary prospectus or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of any prospectus, in light of the circumstances under which they were made) not misleading, except to the extent that such losses, claims, damages, liabilities (or proceedings in respect thereof) or expenses are caused by any untrue statement or alleged untrue statement contained in or by any omission or alleged omission from information concerning any holder of Registrable Securities furnished in writing to the Company by such holder expressly for use therein. If the Public Offering pursuant to any registration statement provided for under this Article III 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 Company 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 III is made through underwriters, the Company agrees to enter into an underwriting agreement in customary form with such underwriters and the Company agrees to indemnify such underwriters, their 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 or Section 20 to the same extent as herein before provided with respect to the indemnification of the Exchange 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 alleged 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, each such holder, severally and not jointly, shall indemnify, to the fullest extent permitted by law, the Company, each underwriter and their respective officers, directors, employees and agents, if any, and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act, against all any losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (including reasonable attorneys' fees, disbursements and expenses, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon resulting from any untrue statement or alleged untrue statement of a material fact contained infact, or any omission or alleged omission of a material fact required to be stated in, in the Registration Statement, Prospectus registration statement or prospectus or preliminary Prospectus prospectus or any amendment thereof or supplement to any of the foregoing thereto or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectusany prospectus, 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 (i) 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 such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of under which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthey were made) not misleading, but only to the extent that any such untrue statement is contained in or such omission is made in reliance on and in conformity with from information with respect to such Holder so concerning a holder furnished in writing to the Company by such Holder or its counsel specifically holder expressly for use therein; provided, however, provided that the liability of each Holder such holder's obligations hereunder shall be limited to the proportion of any such Losses that is an amount equal to the proportion that the net proceeds from to such holder of the sale of Registrable Securities sold by pursuant to such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statementregistration statement. (c) Any Person entitled to indemnification hereunder agrees to under the provisions of this Section 3.7 shall (i) give prompt written notice to the indemnifying party after the receipt by of any claim with respect to which it seeks indemnification and (ii) unless in such indemnified party party's reasonable judgment a conflict of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which interest between such indemnified party and indemnifying parties may claim indemnification or contribution pursuant to this Agreementexist in respect of such claim, provided that failure to give permit such notification shall not affect the obligations of the indemnifying party pursuant to this Section 10 except to the extent the indemnifying party shall have been actually 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 thereofof such claim, with counsel reasonably satisfactory to such the indemnified party; and if such defense is so assumed, and after notice from the such indemnifying party to such shall not enter into any settlement without the consent of the indemnified party of its election so if such settlement attributes liability to assume the defense thereof, the indemnified party and such indemnifying party shall not be liable subject to such indemnified party any liability 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, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party settlement made without its consent (which shall not be unreasonably withheld); and any other of such indemnified parties underwriting agreement entered into with respect to such claim, in which any registration statement provided for under this Article III shall so provide. In the event the an indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 toentitled, or elects not tonot, to assume the defense of a claim claim, such indemnifying party shall not be obligated to pay the fees and expenses of more than one counsel or firm of counsel for all parties indemnified by such indemnifying party with in respect to of such claim, unless in the reasonable judgment of any such indemnified party, based on the written opinion of counsel, party a conflict of interest is likely to may exist between an such indemnified party and any other of such indemnified parties with in 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 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 for any reason the indemnification from the indemnifying party provided for in this Section 10 foregoing indemnity is unavailable to an indemnified party hereunder in respect to any Lossesunavailable, then the indemnifying party, in lieu of indemnifying such indemnified party, party shall contribute to the amount paid or payable by such the indemnified party as a result of such Losses losses, claims, damages, liabilities or expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party on the one hand and the indemnified party on the other or (ii) if the allocation provided by clause (i) above is not permitted by Applicable Law or provides a lesser sum to the indemnified party than the amount hereinafter calculated, 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 and the indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided. Notwithstanding the foregoing, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale no holder of Registrable Securities sold by shall be required to contribute any amount in excess of the amount such Holder under a Registration Statement bears holder would have been required to the total net proceeds from the sale of all securities sold thereunder, but not in any event pay to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and an indemnified party shall be determined by reference to, among other things, whether 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, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and if the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. 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 indemnity under Section 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding3.7(b) was available. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution obligation of any Person to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does 3.8 shall be several and not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d)joint. (e) The An indemnifying party shall make payments of all amounts required to be made pursuant to the foregoing provisions of this Section 10 shall be in addition 3.7 to any liability which any indemnifying party may have to any or for the account of the indemnified party from time to time promptly upon receipt of bills or invoices relating thereto or when otherwise due or payable. (f) The indemnity and contribution agreements contained in this Section 3.7 shall remain in full force and effect regardless of any investigation made by or on behalf of a participating holder of Registrable Securities, its officers, directors, agents or any Person, if any, who controls such holder as aforesaid, and shall survive the Transfer of Equity Securities by such holder and the termination of this AgreementAgreement for any reason.

Appears in 1 contract

Samples: Shareholder Agreement (Celerity Group Inc)

Indemnification; Contribution. (a) The Company shall agrees to indemnify and hold harmless the Dealer Manager, each Holder Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an “Underwriter”) and the affiliates, directors, officers, agents, representatives and employees of Registrable Securities the Dealer Manager, any Holder, Participating Broker-Dealer or Underwriter and each Person, if any, who controls such Holder the Dealer Manager, any Holder, Participating Broker-Dealer or Underwriter (within the meaning of Section 15 of each an “Indemnified Person”) with respect to the Securities Act or Section 20 of the and Exchange ActNotes as follows: (i) from and against any and all losses, actions, claims, damagesdamages or liabilities, liabilities and will reimburse any Indemnified Person for all costs and expenses (including including, but not limited to, reasonable attorneys' counsel fees, disbursements and expenses, ) as incurred) (collectively, "Losses") they are incurred by such party pursuant Indemnified Person in connection with investigating, preparing to defend or defending any actual such action or ------ threatened 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 or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, in the light of the circumstances then existing) not misleading, except in each case claim insofar as such statements losses, actions, claims, damages or omissions liabilities arise out of or are based upon (i) any such untrue statement or alleged untrue statement of a material fact contained in any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Notes or Transfer Restricted Securities were registered under the 1933 Act, or the omission or alleged omission made in reliance on and in conformity with information with respect therefrom of a material fact required to such Holder furnished in writing be stated therein or necessary to make the Company by such Holder statements therein not misleading, or its counsel expressly for use therein, (ii) the use any untrue statement or alleged untrue statement of a material fact contained in any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto thereto) pursuant to which Exchange Notes or Transfer Restricted Securities were registered under the 1933 Act, or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; and (ii) from and against any and all actions, claims, damages, liabilities or expenses whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(c) below) any such settlement is requiredeffected with the written consent of the Company; provided, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a)however, that the Company shall will not be liable to any Holder Indemnified Person to the extent that any claims, liabilities, losses, damages, costs or expenses (A) are finally determined by a court of competent jurisdiction to any have resulted primarily from the gross negligence, bad faith or willful misconduct of such Indemnified Person who controls such Holder or (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange ActB) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon (x) any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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 Prospectus, (y) any omission or alleged omission made to state in any Prospectus if either (i) (A) such Holder failed Registration Statement a material fact required to send be stated therein or deliver a copy of necessary to make the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omissionstatements therein not misleading, or (iiz) (x) such untrue statement or alleged untrue statement or any omission or alleged omission is corrected to state in an amendment any Prospectus a material fact in any Prospectus necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading, if in either such case such statement or supplement omission relates solely to a Holder, Participating Broker-Dealer, Underwriter or the Dealer Manager and was made in reliance upon and in conformity with information furnished in writing by such Holder, Participating Broker-Dealer, Underwriter or the Dealer Manager to the Prospectus and (y) having previously been furnished by Company expressly for use therein. The Company shall not be liable under this Section 4 for any settlement of any claim or on behalf of the Company with copies of the Prospectus as so amended or supplementedaction effected without its prior written consent, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses ariseshall not be unreasonably withheld. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors each Underwriter and the other selling Holders, and each of their affiliates, directors, officers, agents, representatives and employees and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act Company, any Underwriter or Section 20 of the Exchange Act) any other selling Holder, against any and all other Holders against all Losses incurred by such party pursuant losses, actions, claims, damages, liabilities and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Transfer Restricted Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled to indemnification hereunder agrees to give prompt The Company will not, without the prior written notice consent of a Holder, Participating Broker-Dealer, Underwriter or the Dealer Manager, as the case may be, settle or compromise or consent to the indemnifying entry of any judgment in any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought by an Indemnified Person hereunder (when an Indemnified Person is or could have been a party to such claim, action, suit or proceeding), unless such settlement, compromise or consent (i) includes an unconditional written release (in form and substance reasonably satisfactory to the Indemnified Persons) of the Indemnified Persons from all liability arising out of such claim, 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 an Indemnified Person. (d) Promptly after the receipt by such indemnified party an Indemnified Person under this Section 4 of any written notice of the commencement of any action, suitsuch Indemnified Person will, proceeding or investigation or threat if a claim in respect thereof is to be made against the Company under this Section 4, notify the Company 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 commencement thereof; but the omission so to notify the Company (i) will not relieve the Company from any liability which it may have to any Indemnified Person otherwise than under this Section 10 except 4 unless and to the extent such failure results in the indemnifying party shall have been actually prejudiced as a result forfeiture by the Company of such failuresubstantial rights and defenses and (ii) will not, in any event, relieve the Company from any obligations to any Indemnified Person other than the indemnification obligation provided in this Section 4. In case any such action shall be is brought against any indemnified party Indemnified Person, and it shall notify notifies the indemnifying party Company of the commencement thereof, the indemnifying party shall Company will be entitled to participate therein and, to the extent that it shall wishthey may wish to, jointly with any other indemnifying party similarly notified, to may assume the defense thereof, with counsel reasonably satisfactory to such indemnified partyIndemnified Person; provided, however, that if the defendants in any such action include both the Indemnified Person and after the Company and the Indemnified Person shall have concluded that there may be one or more legal defenses available to it and/or other Indemnified Persons that are different from or additional to those available to the Company, then the Company shall not have the right to direct the defense of such action on behalf of such Indemnified Person(s) and such Indemnified Person(s) shall have the right to select separate counsel to defend such action on behalf of such Indemnified Person(s). After notice from the indemnifying party Company to such indemnified party Indemnified Person of its election so to assume the defense thereof, approval by such Indemnified Person of counsel appointed to defend such action, which approval shall not be unreasonably withheld, the indemnifying party shall retention of such counsel by the Company in a timely manner, the Company will not be liable to such indemnified party Indemnified Person under this Section 4 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 investigationinvestigation subsequently incurred by such Indemnified Person in connection with the Company’s defense thereof, unless (i) the Indemnified Person shall have employed separate counsel in accordance with the reasonable judgment of any indemnified partyproviso to the immediately preceding sentence (it being understood, based on however, that in connection with such action the written 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 Company shall not be liable for the fees and expenses of (i) more than one separate counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory in addition to the Company), (iilocal counsel) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but substantially similar actions in the same jurisdiction arising out of the same general allegations or related circumstances representing the Indemnified Persons who are parties to such action or actions. An indemnifying party who is not entitled to, ) or elects not to, assume (ii) the defense Company has authorized the employment of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified the Indemnified Person at the expense of the Company. After such notice from the Company to such Indemnified Person, approved by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between an indemnified party Indemnified Person and any other retention of such indemnified parties with respect to such claimcounsel by the Company, 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 Company will not be liable for the fees losses, costs and expenses of (i) more than one counsel for all Holders any settlement of Registrable Securities who are indemnified parties, selected such action effected by such Indemnified Person without the Holders of a Majority consent of the Registrable Securities who are indemnified parties Company, unless such Indemnified Person waives all of its rights under this Section 4, in which case the Indemnified Person may effect such a settlement without such consent. (e) In circumstances in which selection shall be reasonably satisfactory the indemnity agreement provided for in the preceding paragraphs of this Section 4 is unavailable or insufficient to the Companyhold harmless an Indemnified Person in respect of any losses, claims, damages or liabilities (or actions in respect thereof), (ii) more than one counsel for the underwriters 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 order 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 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 provide for in this Section 10 is unavailable to an indemnified party hereunder in respect to any Losses, then the indemnifying party, in lieu of indemnifying such indemnified partyjust and equitable contribution, shall contribute to the amount paid or payable by such indemnified party Indemnified Person as a result of such Losses losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect (i) the relative benefits received by the Company on the one hand and the Indemnified Person(s) on the other hand or (ii) if the allocation provided by the foregoing clause (i) is not permitted by applicable law, not only such relative benefits but also the relative fault of the indemnifying party Company on the one hand and indemnified party the Indemnified Person(s) on the other hand in connection with such losses, claims, damages or liabilities (or actions in respect thereof). The relative benefits received by the actions which resulted in such Losses, as well as any Company on the one hand and the Indemnified Person(s) on the other relevant equitable considerations; provided, however, that the liability of each Holder hereunder hand shall be limited deemed to be in the same proportion of any such Losses that is equal to as (i) the proportion that relative benefits received by the net proceeds Company from the initial offering and sale of Registrable Securities sold by such Holder under a Registration Statement the Securities, on one hand, bears to (ii) the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds relative benefit received by such a Holder from receiving securities registered under the sale of Registrable Securities covered by such Registration Statement1933 Act, on the other. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party or indemnified party, the Holders and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid or payable by a party as a result indemnity, reimbursement and contribution obligations of the Losses referred to above Company under this Agreement shall be deemed in addition to includeany rights that a Holder or any other Indemnified Person may have at common law or otherwise, subject to including any other agreements by and among the limitations set forth in Section 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. 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 misrepresentationparties hereto. The parties Company and the Holders agree that it would not be just and equitable if the amount of such contribution pursuant to this Section 10(d) were determined by pro rata or per capita allocation (even if the Company on the one hand and the Indemnified Person(s) on the other hand were treated as one entity for such purpose) or by any other method of allocation that does not take into account the consideration equitable considerations referred to in this Section 10(d)4. If indemnification is available under this Section 10, Notwithstanding the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions of this Section 10 4, no Holder shall be required to contribute any amount in addition excess of the amount by which the net proceeds received by such Holder from the exchange of the Transfer Restricted Securities exceeds 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 with respect to the Securities or Exchange Notes from the exchange of the Transfer Restricted Securities, and no person guilty of fraudulent misrepresentation shall be entitled to contribution from any liability which any indemnifying party may have to any indemnified party and shall survive the termination person who was not guilty of such fraudulent misrepresentation. For purposes of this AgreementSection 4, each Person, if any, who controls the Dealer Manager, any Holder, each Participating Broker-Dealer or Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Dealer Manager, such Holder, each Participating Broker-Dealer or Underwriter and each director of the Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company.

Appears in 1 contract

Samples: Registration Rights Agreement (National Rural Utilities Cooperative Finance Corp /Dc/)

Indemnification; Contribution. (a) The Company shall indemnify and hold harmless each Holder of Registrable Securities the Selling Stockholders, and each Person, person (if any, ) who controls such Holder (Selling Stockholder within the meaning of Section 15 of the Securities Act of 1933, as amended (the "Act"), against all losses, claims, damages and liabilities and expense (including all reasonable fees and disbursements of counsel incurred in defending against any such claim, damage or Section 20 liability) caused by any untrue statement or alleged untrue statement of a material fact contained in the registration statement filed or to be filed with the Securities and Exchange Commission (the "Commission"), in connection with the Public Offering, as the same may be amended or supplemented from time to time (the "Registration Statement") or in any prospectus filed with, or delivered to, the Commission in connection with the Public Offering, or caused by any omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein, in the light of the Exchange circumstances in which they were made, not misleading; provided, however, -------- ------- insofar as such losses, claims, damages, or liabilities are caused by an untrue statement of a material fact contained in, or any material fact omitted from, information relating to a Selling Stockholder furnished in writing to the Company by such Selling Stockholder for use in the Registration Statement or any amendment or supplement thereto, or any such prospectus, then the Company shall have no obligation hereunder to indemnify the Selling Stockholder furnishing such information. (b) Each Selling Stockholder shall indemnify each of the Company and the other Selling Stockholders, and each person (if any) who controls the Company or such other Selling Stockholder within the meaning of Section 15 of the Act) , against all losses, claims, damages and liabilities and expense (including all reasonable fees and disbursements of counsel incurred in defending against any such claim, damage or liability) caused by any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or in any prospectus filed with, or delivered to, the Commission in connection with the Public Offering, or caused by any omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading, but only with respect to information relating to such Selling Stockholder furnished in writing by or on behalf of such Selling Stockholder expressly for use in the Registration Statement or any amendment or supplement thereto, or any such prospectus, provided, however, no -------- ------- Selling Stockholder shall be liable in an amount that exceeds the aggregate public offering price of the Stockholder Shares sold by the Selling Stockholder, net of the underwriting discount. (c) The indemnity agreements of the Company and the Selling Stockholders contained in this Section 2 shall remain in effect regardless of any investigation made by or on behalf of any indemnified party and shall survive delivery of the shares of Common Stock pursuant to the Public Offering. (d) In order to provide for just and equitable contribution in circumstances in which indemnification provided for in paragraph (a) of this Section 2 is unavailable, the Company and each of the Selling Stockholders shall contribute to the aggregate losses, claims, damages, liabilities and expenses (including all reasonable attorneys' feesfees and disbursements of counsel incurred in defending against any claim, disbursements and expenses, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained indamage, or any omission liability), to which one 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 more of the foregoing or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, 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 (i) 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 such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not Selling Stockholders may be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary 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 on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. (c) 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 10 except to the extent the indemnifying party shall have been actually 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, 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 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, unless in the reasonable judgment of any indemnified party, based on the written 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 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 10 is unavailable to an indemnified party hereunder in respect to any Losses, then the indemnifying 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 Losses subject in such proportion as is appropriate to reflect the relative relevant fault of the indemnifying party Company and indemnified party the respective Selling Stockholders in connection with the actions which statements or omissions that resulted in such Losseslosses, claims, damages, liabilities and expenses as well as any other relevant equitable considerations; : provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not that: -------- ------- (i) in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether case where 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, has been made by, or relates to information supplied bySelling Stockholder is seeking contribution hereunder, such indemnifying party or indemnified party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. 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 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) Selling Stockholder shall be entitled to contribution from the remaining Selling Stockholders pursuant to this Agreement, only after first seeking contribution from the Company; (ii) no Selling Stockholder shall in any Person who was not guilty case be required to contribute or make any payments under this paragraph (d) which in the aggregate exceed his pro rata share of such fraudulent misrepresentation. The parties agree losses, claims, damages, liabilities and expenses determined in accordance with the total number of Company Shares and Stockholder Shares sold by each respective party hereto provided, however, that, -------- ------- except as set forth in subparagraph (iii) of this paragraph (d), no Selling Stockholder shall be liable to contribute an amount that it would not be just and equitable if exceeds the aggregate public offering price of the Stockholder Shares sold by the Selling Stockholder, net of the underwriting discount; (iii) in the event the Company or any Selling Stockholder defaults on its obligation to make any contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(dparagraph (d). If indemnification is available under this Section 10, the indemnifying amount that each of the remaining parties is obligated to contribute hereunder shall indemnify be increased in accordance with the relation of the number of shares of Common Stock being sold by each indemnified such remaining party to the full extent provided in Section 10(a) or 10(b), as the case may be, without regard to the relative fault aggregate number of shares of Common Stock being sold by all such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d).remaining parties; (eiv) The provisions neither the Company nor any Selling Stockholder will be required to make any contribution to another Selling Stockholder with respect to matters for which the other Selling Stockholder would not otherwise be entitled to be indemnified under paragraph (a) of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination 2 had such indemnification been available; and (v) for purposes of this Agreementparagraph (d), each person, if any, who controls a Selling Stockholder within the meaning of Section 15 of the Act, and each director, officer or partner (if any) of such Selling Stockholder, shall have the same rights to contribution under this Agreement as such Selling Stockholder.

Appears in 1 contract

Samples: Selling Stockholder Agreement (Hologic Inc)

Indemnification; Contribution. (a) Indemnification by the Company. The Company shall agrees to indemnify and hold harmless each Person who participates as an underwriter (any such Person being an "Underwriter"), each Investor Group, Holder of Registrable Securities and their respective partners, managers, officers and employees and each Person, if any, who controls such any Investor Group, Holder (or Underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange ActAct as follows: (i) against any and all losses, liabilities, claims, damages, liabilities judgments and reasonable expenses (including reasonable attorneys' fees, disbursements and expenseswhatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened 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 or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, 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 (i) 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 such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary 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 on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. (c) 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 10 except to the extent the indemnifying party shall have been actually 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, 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 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, unless in the reasonable judgment of any indemnified party, based on the written 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 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 10 is unavailable to an indemnified party hereunder in respect to any Losses, then the indemnifying 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 Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether any action in question, including any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement pursuant to which Registrable Securities were registered under the Securities Act, including all documents incorporated therein by reference, or the omission or alleged omission to state therefrom of a material factfact required to be stated therein or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus, has been made byincluding all documents incorporated therein by reference, or relates the omission or alleged omission therefrom of a material fact necessary in order to information supplied bymake the statements therein, such indemnifying party or indemnified partyin the light of the circumstances under which they were made, not misleading; (ii) against any and all losses, liabilities, claims, damages, judgments and reasonable expenses whatsoever, as incurred, to the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. The extent of the aggregate amount paid in settlement of any litigation, investigation or payable proceeding by a party as a result any governmental agency or body, commenced or threatened, or of any other claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, if such settlement is effected with the written consent of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 10(c), Company; and (iii) against any legal or other and all reasonable expense whatsoever (including fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty disbursements of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 10(bcounsel), as the incurred in investigating, preparing or defending against any litigation, investigation or proceeding by any governmental agency or body, commenced or threatened, in each case may bewhether or not such Person is a party, without regard or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the relative fault extent that any such expense is not paid under sub-paragraph (i) or (ii) above; provided, however, that this indemnity agreement does not apply to any Investor Group, Holder or Underwriter with respect to any loss, liability, claim, damage, judgment or expense to the extent arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus, or the omission or alleged omission therefrom of a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, in any such case made in reliance upon and in conformity with written information furnished to the Company by such Investor Group, Holder or Underwriter expressly for use in a Registration Statement (or any amendment thereto) or any Prospectus (or any amendment or supplement thereto); provided, further, that the Company shall not be liable to any Holder with respect to any preliminary prospectus to the extent that any such loss, liability, claim, damage, cost or expense results from the fact that such Holder sold Registrable Securities to a Person to whom there was not sent or given, at or prior to the written confirmation of such indemnifying parties sale, a copy of the final prospectus if the Company has previously and timely furnished copies thereof to such Holder and if such final prospectus would have corrected such untrue statement or indemnified party omission. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any other equitable consideration provided for in this Section 10(d). (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party Holder Indemnified Party and shall survive the termination Transfer of this Agreementsuch securities by any Holder.

Appears in 1 contract

Samples: Registration Rights Agreement (Foundation Coal Holdings, Inc.)

Indemnification; Contribution. (a) The Company shall and the Guarantor, jointly and severally, agree to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company and the Guarantor; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information furnished to the Company and the Guarantor by the Holder, Participating Broker-Dealer or Underwriter expressly for use in a Registration Statement (or any amendment thereto) or any Prospectus (or any amendment or supplement thereto); and PROVIDED FURTHER that this indemnity agreement shall not, with respect to such Holder furnished in writing a Shelf Registration Statement, if applicable, with respect to any preliminary prospectus, inure to the Company by such Holder or its counsel expressly for use therein, (ii) the use benefit of any Prospectus after such time as Underwriter (or to the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use benefit of any Prospectus after Person controlling such time as Underwriter) from whom the Company has advised the Holders that the filing of an amendment Person asserting any such losses, liabilities, claims, damages or supplement thereto is required, except expenses purchased Registrable Securities if such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that arise out of or are based upon an untrue statement or omission or alleged untrue statement or omission or alleged omission made in any a preliminary prospectus is eliminated or remedies in the Prospectus (as amended or supplemented if either (ithe Company and the Guarantor shall have furnished amendments or supplements thereto) (A) such Holder failed to send or deliver and, if required by law, a copy of the Prospectus with (as so amended or supplemented) shall not have been furnished to such Person at or prior to the delivery of written confirmation of the sale of such Registrable Securities by to such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arisePerson. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Guarantor, the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Guarantor, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); providedPROVIDED, howeverHOWEVER, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of such failurethis indemnity agreement. In case any such action shall be brought against any indemnified party and it shall notify the The indemnifying party party, upon request of the commencement thereofindemnified party, 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 retain counsel reasonably satisfactory to such the indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume represent 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, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other the indemnifying party may designate in such action or proceeding and shall pay the fees and expenses of such counsel related to such proceeding. In any such proceeding, any indemnified party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such indemnified parties with respect to such claim, in which event party unless (i) the indemnifying party and the indemnified party shall not have mutually agreed to the contrary, (ii) the indemnifying party has failed within a reasonable time to retain counsel reasonably satisfactory to the indemnified party or (iii) the named parties in any such proceeding (including impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. In no event shall the indemnifying party or parties be liable for the fees and expenses of (i) more than one counsel (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnification from indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement unless the indemnifying party in good faith shall be contesting the reasonableness of such fees and expenses (but only to the extent so contested) or the entitlement of the indemnified party to indemnification under the terms of this Section. No indemnifying person shall, without the prior written consent of the indemnified person, effect any settlement of any pending or threatened proceeding in respect of which any indemnified person is or could have been a party and indemnity could have been sought hereunder by such indemnified person, unless such settlement includes an unconditional release of such indemnified person from all liability on claims that are the subject matter of such proceeding. (e) If the indemnification provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company and indemnified party the Guarantor on the one hand and the Initial Purchasers, the Holders, the Participating Broker-Dealers and/or the Underwriters each on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company and indemnified party the Guarantor on the one hand and the Initial Purchasers, the Holders, the Participating Broker-Dealers and/or the Underwriters each on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company and the Guarantor, such indemnifying party the Holders, the Participating Broker-Dealers and/or the Underwriters or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Guarantor, the Initial Purchasers, the Holders, the Participating Broker-Dealers and/or the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers, the Holders, the Participating Broker-Dealers and/or the Underwriters were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to For purposes of this Section 10(d) were determined by pro rata allocation 4, each Person, if any, who controls an Initial Purchaser, Holder Participating Broker-Dealer or by any other method Underwriter within the meaning of allocation that does not take into account Section 15 of the consideration referred 1933 Act or Section 20 of the 1934 Act shall have the same rights to in this Section 10(d). If indemnification is available under this Section 10contribution as such Initial Purchaser or Holder, and each director of the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 10(b)Company and such Guarantor, as the case may be, without regard and each Person, if any, who controls the Company and such Guarantor, as the case may be, within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Initial Purchasers' respective obligations to contribute pursuant to this Section 4 are several in proportion to the relative fault principal amount of such indemnifying parties or indemnified party or any other equitable consideration provided for Securities set forth opposite their respective names in this Section 10(d)Schedules I-A, I-B, I-C and I-D to the Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Tyco International LTD /Ber/)

Indemnification; Contribution. (a) The Company shall and each of the Guarantors jointly and severally agree to indemnify and hold harmless each Holder of Registrable Securities Initial Purchaser, each Holder, each Person who participates as an underwriter, if any (any such Person being an “Underwriter”) and each Person, if any, who controls any such Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Shelf Registration Statement (or any amendment or supplement thereto) pursuant to which Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided, that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the any Holder or Underwriter, if any, expressly for use in a Shelf Registration Statement (or any amendment thereto), any Prospectus as so amended (or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended any amendment or supplemented, with supplement thereto) or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses ariseany Issuer Free Writing Prospectus (or any amendment or supplement thereto). (b) In connection with any Registration Statement filed pursuant heretoEach Holder, each Holder of Registrable Securities severally, but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its each Guarantor, each Initial Purchaser, each Underwriter, if any, and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, any of the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a), as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in any Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by or on behalf of such Holder or its counsel specifically expressly for use thereinin such Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, 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 but failure to give such notification so notify an indemnifying party shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (A) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (B) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party or indemnified party, by the Holders or the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation or payable by a party any other method of allocation (even if the Initial Purchasers were treated as a result one entity for such purposes) which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Sxxxxxx 0, xxxx of the Initial Purchasers nor any Holder shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it exceeds the amount of any damages which such Initial Purchaser or such Holder have 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 Act1000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls any of the Initial Purchasers or any Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Initial Purchaser or Holder, and each director of the Company, and each Person, if any, who controls the Company or a Guarantor within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company or such Guarantor. The parties agree that it would not be just obligations of the Company, the Guarantors, the Initial Purchasers and equitable if contribution the Holders pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions of this Section 10 4 shall be in addition to any liability which any indemnifying that such party may have to any indemnified party and shall survive the termination of this Agreementotherwise have.

Appears in 1 contract

Samples: Registration Rights Agreement (Stewart Enterprises Inc)

Indemnification; Contribution. (a) The Company shall and the Guarantor, jointly and severally, agree to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company and the Guarantor; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information furnished to the Company and the Guarantor by the Holder, Participating Broker-Dealer or Underwriter expressly for use in a Registration Statement (or any amendment thereto) or any Prospectus (or any amendment or supplement thereto); and PROVIDED FURTHER that this indemnity agreement shall not, with respect to such Holder furnished in writing a Shelf Registration Statement, if applicable, with respect to any preliminary prospectus, inure to the Company by such Holder or its counsel expressly for use therein, (ii) the use benefit of any Prospectus after such time as Underwriter (or to the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use benefit of any Prospectus after Person controlling such time as Underwriter) from whom the Company has advised the Holders that the filing of an amendment Person asserting any such losses, liabilities, claims, damages or supplement thereto is required, except expenses purchased Registrable Securities if such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that arise out of or are based upon an untrue statement or omission or alleged untrue statement or omission or alleged omission made in any a preliminary prospectus is eliminated or remedies in the Prospectus (as amended or supplemented if either (ithe Company and the Guarantor shall have furnished amendments or supplements thereto) (A) such Holder failed to send or deliver and, if required by law, a copy of the Prospectus with (as so amended or supplemented) shall not have been furnished to such Person at or prior to the delivery of written confirmation of the sale of such Registrable Securities by to such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arisePerson. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Guarantor, the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Guarantor, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); providedPROVIDED, howeverHOWEVER, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of such failurethis indemnity agreement. In case any such action shall be brought against any indemnified party and it shall notify the The indemnifying party party, upon request of the commencement thereofindemnified party, 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 retain counsel reasonably satisfactory to such the indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume represent 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, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other the indemnifying party may designate in such action or proceeding and shall pay the fees and expenses of such counsel related to such proceeding. In any such proceeding, any indemnified party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such indemnified parties with respect to such claim, in which event party unless (i) the indemnifying party and the indemnified party shall not have mutually agreed to the contrary, (ii) the indemnifying party has failed within a reasonable time to retain counsel reasonably satisfactory to the indemnified party or (iii) the named parties in any such proceeding (including impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. In no event shall the indemnifying party or parties be liable for the fees and expenses of (i) more than one counsel (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnification from indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement unless the indemnifying party in good faith shall be contesting the reasonableness of such fees and expenses (but only to the extent so contested) or the entitlement of the indemnified party to indemnification under the terms of this Section. No indemnifying person shall, without the prior written consent of the indemnified person, effect any settlement of any pending or threatened proceeding in respect of which any indemnified person is or could have been a party and indemnity could have been sought hereunder by such indemnified person, unless such settlement includes an unconditional release of such indemnified person from all liability on claims that are the subject matter of such proceeding. (e) If the indemnification provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company and indemnified party the Guarantor on the one hand and the Initial Purchasers, the Holders, the Participating Broker-Dealers and/or the Underwriters each on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company and indemnified party the Guarantor on the one hand and the Initial Purchasers, the Holders, the Participating Broker-Dealers and/or the Underwriters each on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company and the Guarantor, such indemnifying party the Holders, the Participating Broker-Dealers and/or the Underwriters or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Guarantor, the Initial Purchasers, the Holders, the Participating Broker-Dealers and/or the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers, the Holders, the Participating Broker-Dealers and/or the Underwriters were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to For purposes of this Section 10(d) were determined by pro rata allocation 4, each Person, if any, who controls an Initial Purchaser, Holder Participating Broker-Dealer or by any other method Underwriter within the meaning of allocation that does not take into account Section 15 of the consideration referred 1933 Act or Section 20 of the 1934 Act shall have the same rights to in this Section 10(d). If indemnification is available under this Section 10contribution as such Initial Purchaser or Holder, and each director of the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 10(b)Company and such Guarantor, as the case may be, without regard and each Person, if any, who controls the Company and such Guarantor, as the case may be, within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Initial Purchasers' respective obligations to contribute pursuant to this Section 4 are several in proportion to the relative fault principal amount of such indemnifying parties or indemnified party or any other equitable consideration provided for Securities set forth opposite their respective names in this Section 10(d)Schedules I-A and I-B to the Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Tyco International LTD /Ber/)

Indemnification; Contribution. (a) The Company shall Co-Issuers and the Guarantors agree jointly and severally to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an “Underwriter”) and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Co-Issuers; and (iii) against any and all expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company Co-Issuers by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the CompanyCo-Issuers, its the Guarantors, the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Co-Issuers, a Guarantor, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company Co-Issuers by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or parties with respect to such claim, in which event the indemnifying party shall not be liable for the reasonable fees and expenses of (i) more than one counsel (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for reasonable fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 60 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 45 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Co-Issuers and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Co-Issuers and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Co-Issuers and/or the Guarantors, such indemnifying party the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Co-Issuers, the Guarantors, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Holders and/or Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total discount received by it in connection with its purchase of the Securities exceeds the amount of any damages which such Initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Co-Issuers or any Guarantor, and each Person, if any, who controls the Co-Issuers or any Guarantor within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Co-Issuers or such Guarantor, as applicable. The parties agree that it would not be just and equitable if contribution Initial Purchasers’ respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 4 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Navios Maritime Acquisition CORP)

Indemnification; Contribution. (a) The Company shall and the Guarantors, jointly and severally, agree to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d)) any such settlement is effected with the written consent of the Company and the Guarantors; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 made in reliance upon and in conformity with written information furnished to the Company and the Guarantors by the Initial Purchasers, such Holder, such Participating Broker-Dealer or Underwriter expressly for use in any Registration Statement (or any amendment thereto) or any Prospectus (or any amendment or supplement thereto); provided, further, that the Company will not be liable to any Initial Purchaser, Holder (in its capacity as Holder), Participating Broker-Dealer or Underwriter (or any person who controls such party within the meaning of Section 15 of the 1933 Act or Section 20 of the 0000 Xxx) with respect to 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 such Holder furnished in writing any preliminary Prospectus to the extent that the Company by shall sustain the burden of proving that any such loss, liability, claim, damage or expense resulted from the fact that such Initial Purchaser, Holder (in its capacity as Holder), Participating Broker-Dealer or its counsel expressly for use thereinUnderwriter, (ii) the use of any Prospectus after such time as the obligation case may be, sold Securities to a Person to whom such Initial Purchaser, Holder (in its capacity as Holder), Participating Broker-Dealer or Underwriter, as the case may be, failed to send or give, at or prior to the written confirmation of the Company to keep effective sale of such Securities a copy of the Registration Statement of which such final Prospectus forms a part has expired (as amended or (iiisupplemented) the use of any Prospectus after such time as if the Company has advised previously furnished copies thereof (sufficiently in advance of the Holders that closing of such sale to allow for distribution of the filing of an amendment or supplement thereto is requiredfinal Prospectus in a timely manner) to such Initial Purchaser, except such Prospectus Holder (in its capacity as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(aHolder), Participating Broker-Dealer or Underwriter, as the Company shall not be liable to any Holder case may be, and the loss, liability, claim, damage or to any Person who controls expense of such Initial Purchaser Holder (within in its capacity as a Holder), Participating Broker-Dealer or Underwriter, as the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that arise out of or are based upon case may be, resulted solely from an untrue statement or omission or alleged untrue statement or omission of a material fact contained in or alleged omission made in any omitted from such preliminary Prospectus if either (i) (A) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is was corrected in an amendment or supplement to the final Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise). (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Guarantors, the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Guarantors, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a), as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in any Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company and the Guarantors by such Holder or its counsel specifically expressly for use thereinin any Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of such failurethis indemnity agreement. In case any such action shall be is brought against any indemnified party party, and it shall notify notifies the indemnifying party of the commencement thereof, the indemnifying party shall will be entitled to participate therein and, to the extent that it shall may wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party; provided, however, that if the defendants in any such action include both the indemnified party and after the indemnifying party and the indemnified party shall have reasonably concluded that there may be one or more legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, the indemnifying party shall not have the right to direct the defense of such action on behalf of such indemnified party or parties and such indemnified party or parties shall have the right to select separate counsel to defend such action on behalf of such indemnified party or parties. After notice from the indemnifying party to such indemnified party of its election so to assume the defense thereofthereof and approval by such indemnified party of counsel appointed to defend such action, the indemnifying party shall will not be liable to such indemnified party under this Section 4 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, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and subsequently incurred by such indemnified party and any other of in connection with the defense thereof, unless (i) the indemnified party shall have employed separate counsel in accordance with the proviso to the next preceding sentence (it being understood, however, that in connection with such indemnified parties with respect to such claim, in which event action the indemnifying party shall not be liable for the fees and expenses of (i) more than one separate counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory in addition to the Company), (iilocal counsel) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but substantially similar actions in the same jurisdiction arising out of the same general allegations or related circumstances representing the indemnified parties under subsection (a) of this Section 4 who are parties to such action or actions. An ) or (ii) the indemnifying party who is does not entitled to, promptly retain counsel satisfactory to the indemnified party or elects not to, assume (iii) the defense indemnifying party has authorized the employment of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties the indemnified by party at the expense of the indemnifying party. After such notice from the indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 will not be liable for the fees costs and expenses of (i) more than one counsel for all Holders any settlement of Registrable Securities who are such action effected by such indemnified party without the consent of the indemnifying party. No indemnifying party shall, without the prior written consent of the indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers each on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers each on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company and the Guarantors, such indemnifying party the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Guarantors, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity and the Holders were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to For purposes of this Section 10(d) were determined by pro rata allocation 4, each Person, if any, who controls an Initial Purchaser or by any other method Holder within the meaning of allocation that does not take into account Section 15 of the consideration referred 1933 Act or Section 20 of the 1934 Act shall have the same rights to in this Section 10(d). If indemnification is available under this Section 10contribution as such Initial Purchaser or Holder, and each director of the indemnifying parties shall indemnify Company, and each indemnified party to Person, if any, who controls the full extent provided in Section 10(a) or 10(b)Company and each Guarantor, as the case may be, without regard within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company and such Guarantor, as the case may be. The Initial Purchasers' respective obligations to contribute pursuant to this Section 4 are several in proportion to the relative fault principal amount of such indemnifying parties or indemnified party or any other equitable consideration provided for Securities set forth opposite their respective names in this Section 10(d)Schedule A to the Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Mallard & Mallard of La Inc)

Indemnification; Contribution. (a) The Company shall Issuer and the Guarantors agree jointly and severally to indemnify and hold harmless the Initial Purchasers, each Holder Holder, each Participating Broker-Dealer, officers, directors, partners, employees, representatives and agents of Registrable Securities each Participating Broker Dealer and each Person, if any, who controls such any Holder (within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or any Free Writing Prospectus or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Issuer; and (iii) against any and all expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company Issuer by such Holder any Holder, or its counsel through any Initial Purchaser, expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the CompanyIssuer, its the Guarantors, the Initial Purchasers and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Issuer, a Guarantor, the Initial Purchasers or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to thereto) or any of the foregoing or necessary to make the statements therein (in case of a Free Writing Prospectus or preliminary 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 on upon and in conformity with written information with respect to such Holder furnished in writing to the Company Issuer by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto) or such Free Writing Prospectus; provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense of such failure. In case action; provided, however, that if named parties in such proceeding (including any such action shall be brought against any indemnified party and it shall notify impleaded parties) include both the indemnifying party of and 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, and after notice from the indemnifying party counsel 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or parties with respect to such claim, in which event the indemnifying party shall not be liable for the reasonable fees and expenses of (i) more than one counsel (in addition to any reasonably requested local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for reasonable fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 60 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 45 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to an indemnified party hereunder (other than by reason of exceptions provided in this Section 4) or insufficient to hold harmless an indemnified party in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Issuer and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Issuer and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Issuer and/or the Guarantors, such indemnifying party the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Issuer, the Guarantors, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Holders and/or Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total discount received by it in connection with its purchase of the Securities exceeds the amount of any damages which such Initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Issuer or any Guarantor, and each Person, if any, who controls the Issuer or any Guarantor within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Issuer or such Guarantor, as applicable. The parties agree that it would not be just and equitable if contribution Initial Purchasers’ respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 6 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Atlantic Power Corp)

Indemnification; Contribution. (a) The If any Registrable ----------------------------- Securities are included in a registration statement under this Agreement, including a Shelf Registration: 8.1. To the extent permitted by applicable law, the Company shall indemnify and hold harmless each Holder of Registrable Securities and Selling Holder, each Person, if any, who controls such Selling Holder within the meaning of the Securities Act, and each officer, director, partner, employee, agent and consultant of such Selling Holder and such controlling Person, against any and all losses, claims, damages, liabilities and expenses (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 any of the foregoing Persons may 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 of the following statements, omissions or violations (collectively a "Violation"): (i) Any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any preliminary prospectus or final prospectus contained therein, or any amendments or supplements thereto; (ii) The omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading; or (iii) Any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any applicable state securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act or any applicable state securities law; provided, however, that the indemnification required by this Section 8.1 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 in any such case for any such loss, claim, damage, liability or expense to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with written information furnished to the Company by the indemnified party expressly for use in connection with such registration; provided, further, that the indemnity -------- ------- agreement contained in this Section 8 shall not apply to any underwriter to the --------- extent that any such loss is based on or arises out of an untrue statement or alleged untrue statement of a material 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. 8.2. 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 reasonable attorneys' fees, fees and disbursements and expensesexpenses of investigation, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened 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 or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, 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 (i) 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 such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained ininvestigation, 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 which any of the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or necessary to make the statements therein (in case other federal or state laws, insofar as such losses, claims, damages, liabilities and expenses arise out of a Prospectus or preliminary Prospectusare based upon any Violation, in each case to the light of the circumstances then existing) not misleading, but extent (and only to the extent extent) that any such untrue statement or omission is made Violation occurs in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Selling Holder or its counsel specifically expressly for use thereinin connection with such registration; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold indemnification required by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. (c) 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 10 except to the extent the indemnifying party shall have been actually 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, 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 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, unless in the reasonable judgment of any indemnified party, based on the written 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 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 10 is unavailable to an indemnified party hereunder in respect to any Losses, then the indemnifying 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 Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether 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, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. 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 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.-------- -------

Appears in 1 contract

Samples: Registration and Put Rights Agreement (Western Micro Technology Inc /De)

Indemnification; Contribution. (a) The Company shall agrees to indemnify and hold harmless the Initial Purchaser, each Holder of Registrable Securities who has provided information to the Company and Parent in accordance with Section 2.1(d) hereof, each Person who participates as an underwriter (any such Person being an “Underwriter”) and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Shelf Registration Statement (or any amendment or supplement thereto) pursuant to which Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company and Parent; and (iii) against any and all out-of-pocket expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect furnished to the Company or Parent by or on behalf of any Holder or Underwriter expressly for use in a Shelf Registration Statement (or any amendment thereto) or any Prospectus (or any amendment or supplement thereto); provided, further, that this indemnity provision shall not apply to any loss, liability, claim, damage or expense if the Holder fails to deliver at or prior to the written confirmation of sale the most recent Prospectus furnished to such Holder furnished in writing to by the Company by or Parent and such Holder Prospectus, as amended or its counsel expressly for use therein, (ii) the use of any Prospectus after such time supplemented as the obligation of the Company to keep effective the Registration Statement time of which such Prospectus forms a part has expired or (iii) the use confirmation of sale, including any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto filed with the SEC that is required, except such Prospectus as so amended or supplemented. Notwithstanding incorporated by reference in the foregoing provisions of this Section 10(aProspectus), the Company shall not be liable to any Holder or to any Person who controls corrects such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that arise out of or are based upon an untrue statement or omission or alleged untrue statement or omission or alleged omission made in any Prospectus if either (i) (A) such Holder failed to send or deliver of a copy of the Prospectus with or prior to the material fact and delivery of written confirmation of the sale of Registrable Securities thereof was required by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses ariselaw. (b) In connection Each Holder who has provided information to the Company and Parent in accordance with any Registration Statement filed pursuant heretoSection 2.1(d) hereof, each Holder of Registrable Securities severally, but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its Parent the Initial Purchaser, each Underwriter and the other selling Holders who have provided information to the Company and Parent in accordance with Section 2.1(d) hereof, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, Parent, the Initial Purchaser, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company and Parent by or on behalf of such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, 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 but failure to give such notification so notify an indemnifying party shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of such failurethis indemnity agreement. In case any Counsel to defend such action shall be brought against any selected by the indemnifying party. An indemnified party and it may participate at its own expense in the defense of any such action; provided, however, that counsel to the indemnified party shall notify not (except with the consent of the indemnifying party of party) also be counsel to the commencement thereofindemnifying party. Except as set forth below, 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, 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 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, unless in the reasonable judgment of any indemnified party, based on the written 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless actions in the reasonable judgment same jurisdiction arising out of any indemnified the same general allegations or circumstances. Notwithstanding the indemnifying party, based on the written opinion of counsel, a conflict of interest is likely ’s election to exist between appoint counsel to represent an indemnified party in an action, the indemnified party shall have the right to employ separate counsel (including local counsel), and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay bear the fees 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 other indemnified parties which are different from or additional counselto those available to the indemnifying party, provided that (iii) the indemnifying party shall not be liable for have employed counsel satisfactory to the fees and expenses indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action or (iiv) more than one the indemnifying party shall authorize the indemnified party to employ separate counsel for all Holders at the expense of Registrable Securities who are the indemnifying party. No indemnifying party shall, without the prior written consent of the indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section or Section 8 hereof (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party or parties on one hand and the indemnified party or party on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party Company and indemnified party Parent, on the one hand and the Holders and the Initial Purchaser on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company and Parent, such indemnifying party or indemnified party, by the Holder or the Initial Purchaser and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, Parent, the Holders and the Initial Purchaser agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any out-of-pocket legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, the Initial Purchaser shall not be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions For purposes of this Section 10 4, each Person, if any, who controls the Initial Purchaser or a Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall be in addition have the same rights to any liability which any indemnifying party may contribution as the Initial Purchaser or such Holder, and each director of Parent, and each Person, if any, who controls the Company or Parent within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to any indemnified party contribution as the Company and shall survive the termination of this AgreementParent.

Appears in 1 contract

Samples: Registration Rights Agreement (Hilltop Holdings Inc.)

Indemnification; Contribution. (a) The Company Each Issuer shall jointly and severally indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply to any loss, liability, claim, damage or expense (i) to the extent arising out of any untrue statement or omission or alleged untrue statement or omission or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies Holder or Underwriter expressly for use in a Registration Statement (or any amendment thereto) or any Prospectus (or any amendment or supplement thereto), (ii) resulting from the use of the Prospectus during a period when the use of such Prospectus has been suspended; provided that the Holder received prior notice of such suspension in accordance with Section 3 hereof or (iii) resulting from the fact that the Holder sold Registrable Securities to a person as so amended to whom there was not sent or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or given prior to the delivery of written confirmation of such sale, a copy of the sale of Registrable Securities Prospectus, in any case where such delivery is required by such Holder to the Person asserting the claim from which such Losses arise1933 Act. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointlx, xxxxxs to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the CompanyIssuers, its the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls any Issuer, the Company (Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by or on behalf of such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party for such fees and expenses of counsel in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Issuers on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party any Issuer on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby such Issuer, such indemnifying party the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Issuers, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 1933 Act) shall be entitled to contribution from any Person who was not guilty nox xxxxxx of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of any Issuer, and each Person, if any, who controls such Issuer within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The parties agree that it would not be just and equitable if contribution Initial Purchasers' respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 7 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (General Cable Corp /De/)

Indemnification; Contribution. (a) The In connection with any registration of Registrable Securities pursuant to Section 3.01, Section 3.02 or Section 3.03 hereof, the Company shall agrees to indemnify and hold harmless each Holder of Registrable Securities harmless, to the fullest extent permitted by Law, Stockholder, its Affiliates, directors, officers and stockholders and each Person, if any, Person who controls such Holder (Stockholder within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange ActAct (collectively, the “Indemnified Persons”) from and against any and all losses, claims, damages, liabilities liabilities, judgments, actions and expenses (including reasonable attorneys' fees, disbursements and expenses, as incurred) (collectively, "Losses") incurred joint or several caused by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained inin any part of any Registration Statement or any preliminary or final prospectus used in connection with the Registrable Securities or any Issuer FWP, or any omission or alleged omission of to state therein 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 therein or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectusprospectus, in the light of the circumstances then existingunder which they were made) not misleading; provided that the Company will not be required to indemnify any Indemnified Person for any losses, except in each case insofar as such statements claims, damages, liabilities, judgments, actions or omissions arise out of or are based upon (i) 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 such Holder any Indemnified Person furnished in writing to the Company in writing by such Holder or its counsel Stockholder expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoStatement, each Holder of Registrable Securities preliminary or final prospectus, or Issuer FWP, Stockholder agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officersDirectors, 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) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 same extent as the foregoing or necessary indemnity from the Company to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existing) not misleadingStockholder, but only with respect to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder any Indemnified Person furnished in writing to the Company in writing by such Holder or its counsel specifically Stockholder expressly for use therein; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement, preliminary or final prospectus, or Issuer FWP. (c) Any In case any claim, action or proceeding (including any governmental investigation) is instituted involving any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party in respect 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 indemnity may claim indemnification or contribution be sought pursuant to this AgreementSection 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 that the failure to give such notification notice shall not affect the obligations of relieve the indemnifying party of its obligations pursuant to this Section 10 Agreement except to the extent such indemnifying party has been prejudiced in any material respect by such failure; (ii) permit the indemnifying party shall have been actually 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 thereofof such claim, action or proceeding with counsel reasonably satisfactory to such the indemnified party to represent the indemnified party, ; and after notice from (iii) pay 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 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, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between the indemnifying party fees and such indemnified party and any other disbursements of such indemnified parties with respect counsel related to such claim, in which event action or proceeding. In any such claim, action or proceeding, any indemnified party will have the indemnifying party shall not be liable for right to retain its own counsel, but the fees and expenses of such counsel will be at the expense of such indemnified party (iwithout prejudice to such indemnified party’s indemnity and other rights under the Charter, By-Laws and applicable Law, if any) more than one counsel for all Holders unless (A) the indemnifying party and the indemnified party have mutually agreed to the retention of Registrable Securities who are 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 partiesparty and the indemnified party has been advised in writing by counsel, selected with a copy provided to the Company, that representation of both parties by the Holders same counsel would be inappropriate due to actual or potential conflicting interests between them or (C) the indemnifying party has failed to assume the defense of a Majority of the Registrable Securities who are indemnified parties (which selection shall be such claim and employ counsel reasonably satisfactory to the Company)indemnified party. It is understood that the indemnifying party will not, (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one claim, action or separate but similar proceeding or related actions. An indemnifying party who is not entitled toclaims, actions or elects not toproceedings in the same jurisdiction, assume be liable for the defense of a claim shall not be obligated to pay the reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel at any time for all parties 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 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 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 indemnifying party of the aforesaid request and (ii) such indemnifying party will not have reimbursed the indemnified party in accordance with respect such request or reasonably objected in writing, on the basis of the standards set forth herein, to the propriety of such claimreimbursement prior to the date of such settlement. No indemnifying party will, unless in without the reasonable judgment prior written consent of any the indemnified party, based on the written opinion effect any settlement of counsel, a conflict any pending or threatened proceeding in respect of interest is likely to exist between an which any indemnified party is or could have been a party and any other indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an unconditional release 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 on claims that are the subject matter of such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 10. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyproceeding. (d) If the indemnification from the indemnifying party provided for in this Section 10 3.08 from the indemnifying party is unavailable to an indemnified party hereunder in respect of any losses, claims, damages, liabilities, judgments, actions or expenses referred to any Lossesin this Section 3.08, then the indemnifying party, in lieu of indemnifying such indemnified party, shall will contribute to the amount paid or payable by such indemnified party as a result of such Losses losses, claims, damages, liabilities, judgments, actions or expenses (i) in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which that resulted in such Losseslosses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations; provided, howeveror (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 Stockholder, on the other, in connection with the statements or omissions that the liability of each Holder hereunder shall be limited to the proportion of resulted in such losses, claims, damages, liabilities, judgments, actions or expenses, as well as any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statementother relevant equitable considerations. The relative fault of such indemnifying party and indemnified party shall will be determined by reference to, among other things, whether 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, has been made taken by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses losses, claims, damages, liabilities and expenses referred to above shall will be deemed to include, subject to the limitations set forth in Section 10(c3.08(c), any legal or other fees and or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation . (within the meaning of Section 11(fe) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d3.08(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration equitable considerations referred to in Section 3.08(d). No Person guilty of “fraudulent misrepresentation” (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. Notwithstanding the provisions of this Section 10(d3.08(e), Stockholder shall not be required to contribute, in the aggregate, any amount in excess of the amount by which the net proceeds received by Stockholder with respect to the Registrable Securities exceed the greater of (A) the amount paid by Stockholder for its Registrable Securities and (B) the amount of any damages which Stockholder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. Each Stockholder’s obligation to contribute pursuant to this Section 3.08 is several in proportion to the respective number of Registrable Securities held by such Stockholder hereunder and not joint. (f) For purposes of this Section 3.08, each controlling Person of a Stockholder shall have the same rights to contribution as such Stockholder, 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 omission to so notify such party or parties shall not relieve the party or parties from who 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 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 103.08, the indemnifying parties shall party will indemnify each indemnified party to the full extent provided in Section 10(aSections 3.08(a) or 10(b), as the case may be, and (b) without regard to the relative fault of such said indemnifying parties party or indemnified party or any other equitable consideration provided for in this Section 10(d3.08(d) or (e). (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Investment Agreement (Great Atlantic & Pacific Tea Co Inc)

Indemnification; Contribution. (a) The Company shall and the Guarantors agree, jointly and severally, to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company or the Guarantors by such Holder the Initial Purchaser, Holder, Participating Broker-Dealer or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Guarantors, the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, any of the Guarantors, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company or the Guarantors by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Guarantors, the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Guarantors, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities and Guarantees sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution under this Section 4 from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Company or any Guarantor, and each Person, if any, who controls the Company or any Guarantor within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company or such Guarantor. The parties agree that it would not be just and equitable if contribution Initial Purchasers' respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 4 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Jo-Ann Stores Inc)

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Indemnification; Contribution. (a) The Company shall indemnify and hold harmless indemnify, to the fullest extent permitted by Applicable Law, each Holder holder of Registrable Securities Securities, its officers, directors, partners, employees and agents, if any, and each Person, if any, who controls such Holder holder within the meaning of Section 15 of the Securities Act, against all losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (under the Securities Act or common law or otherwise), joint or several, resulting from any violation by the Company of the provisions of the Securities Act or any untrue statement or alleged untrue statement of a material fact contained in any registration statement or prospectus (and as amended or supplemented if amended or supplemented) or any preliminary prospectus or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of any prospectus, in light of the circumstances under which they were made) not misleading, except to the extent that such losses, claims, damages, liabilities (or proceedings in respect thereof) or expenses are caused by any untrue statement or alleged untrue statement contained in or by any omission or alleged omission from information concerning any holder of Registrable Securities furnished in writing to the Company by such holder expressly for use therein. If the Public Offering pursuant to any registration statement provided for under this Article III 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 Company 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 III is made through underwriters, the Company agrees to enter into an underwriting agreement in customary form with such underwriters and the Company agrees to indemnify such underwriters, their 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 or Section 20 to the same extent as herein before provided with respect to the indemnification of the Exchange 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 alleged 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, each such holder, severally and not jointly, shall indemnify, to the fullest extent permitted by Applicable Law, the Company, each underwriter and their respective officers, directors, employees and agents, if any, and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act, against all any losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (including reasonable attorneys' fees, disbursements and expenses, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon resulting from any untrue statement or alleged untrue statement of a material fact contained infact, or any omission or alleged omission of a material fact required to be stated in, in the Registration Statement, Prospectus registration statement or prospectus or preliminary Prospectus prospectus or any amendment thereof or supplement to any of the foregoing thereto or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectusany prospectus, 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 (i) 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 such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of under which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthey were made) not misleading, but only to the extent that any such untrue statement is contained in or such omission is made in reliance on and in conformity with from information with respect to such Holder so concerning a holder furnished in writing to the Company by such Holder or its counsel specifically holder expressly for use therein; provided, however, provided that the liability of each Holder such holder’s obligations hereunder shall be limited to the proportion of any such Losses that is an amount equal to the proportion that the net proceeds from to such holder of the sale of Registrable Securities sold by pursuant to such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statementregistration statement. (c) Any Person entitled to indemnification hereunder agrees to under the provisions of this Section 3.7 shall (i) give prompt written notice to the indemnifying party after the receipt by of any claim with respect to which it seeks indemnification and (ii) unless in such indemnified party party’s reasonable judgment a conflict of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which interest between such indemnified party and indemnifying parties may claim indemnification or contribution pursuant to this Agreementexist in respect of such claim, provided that failure to give permit such notification shall not affect the obligations of the indemnifying party pursuant to this Section 10 except to the extent the indemnifying party shall have been actually 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 thereofof such claim, with counsel reasonably satisfactory to such the indemnified party; and if such defense is so assumed, and after notice from the such indemnifying party to such shall not enter into any settlement without the consent of the indemnified party of its election so if such settlement attributes liability to assume the defense thereof, the indemnified party and such indemnifying party shall not be liable subject to such indemnified party any liability 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, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party settlement made without its consent (which shall not be unreasonably withheld); and any other of such indemnified parties underwriting agreement entered into with respect to such claim, in which any registration statement provided for under this Article III shall so provide. In the event the an indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 toentitled, or elects not tonot, to assume the defense of a claim claim, such indemnifying party shall not be obligated to pay the fees and expenses of more than one counsel or firm of counsel for all parties indemnified by such indemnifying party with in respect to of such claim, unless in the reasonable judgment of any such indemnified party, based on the written opinion of counsel, party a conflict of interest is likely to may exist between an such indemnified party and any other of such indemnified parties with in 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 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 for any reason the indemnification from the indemnifying party provided for in this Section 10 foregoing indemnity is unavailable to an indemnified party hereunder in respect to any Lossesunavailable, then the indemnifying party, in lieu of indemnifying such indemnified party, party shall contribute to the amount paid or payable by such the indemnified party as a result of such Losses losses, claims, damages, liabilities or expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party on the one hand and the indemnified party on the other or (ii) if the allocation provided by clause (i) above is not permitted by Applicable Law or provides a lesser sum to the indemnified party than the amount hereinafter calculated, 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 and the indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided. Notwithstanding the foregoing, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale no holder of Registrable Securities sold by shall be required to contribute any amount in excess of the amount such Holder under a Registration Statement bears holder would have been required to the total net proceeds from the sale of all securities sold thereunder, but not in any event pay to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and an indemnified party shall be determined by reference to, among other things, whether 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, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and if the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. 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 indemnity under Section 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding3.7(b) was available. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution obligation of any Person to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does 3.7 shall be several and not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d)joint. (e) The An indemnifying party shall make payments of all amounts required to be made pursuant to the foregoing provisions of this Section 10 shall be in addition 3.7 to any liability which any indemnifying party may have to any or for the account of the indemnified party from time to time promptly upon receipt of bills or invoices relating thereto or when otherwise due or payable. (f) The indemnity and contribution agreements contained in this Section 3.7 shall remain in full force and effect regardless of any investigation made by or on behalf of a participating holder of Registrable Securities, its officers, directors, agents or any Person, if any, who controls such holder as aforesaid, and shall survive the Transfer of Equity Securities by such holder and the termination of this AgreementAgreement for any reason.

Appears in 1 contract

Samples: Stockholders Agreement (Eye Care Centers of America Inc)

Indemnification; Contribution. (a) The Company shall agrees to indemnify and hold harmless the Initial Purchaser, each Holder Holder, each Participating Broker-Dealer, each Person who participates as an underwriter in connection with a Shelf Registration (any such Person for all purposes of Registrable Securities this Section 8 being an "Underwriter") and each Person, if any, who controls any of such parties within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act as follows: (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the Securities Act, including all documents incorporated therein by reference, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any untrue statement or omission, or any such alleged statement or omission, in either case of the nature described in clause (i) above; provided that any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 untrue statement or omission, or any alleged untrue statement or omission, in either case of the nature described in clause (i) above, to the extent that any such expense is not paid under clause (i) or (ii) above; provided, however, that this indemnity agreement as to any indemnified party shall not apply 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 made in reliance upon and in conformity with written information furnished to the Company by such indemnified party expressly for use in a Registration Statement (or any amendment thereto) or any Prospectus (or any amendment or supplement thereto). (b) Each Holder (severally, but not jointly, agrees to indemnify and hold harmless the Company, the Initial Purchaser, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company, the Initial Purchaser, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, against any and all loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) against all losses, claims, damages, liabilities and expenses (including reasonable attorneys' fees, disbursements and expenseshereof, as incurred) (collectively, "Losses") incurred by such party pursuant but only with respect to any actual untrue statements or ------ threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, or any omission or alleged omission of a material fact required to be stated in, made in the Shelf Registration Statement, Prospectus or preliminary Prospectus Statement (or any amendment or supplement to thereto) or any of the foregoing or necessary to make the statements Prospectus included therein (in the case of a Prospectus or a preliminary Prospectus, in the light of the circumstances then existingany amendment or supplement thereto) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) in the use of any Prospectus after such time as the obligation of the Company to keep effective the Shelf Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 thereto) or such Prospectus (or any of the foregoing amendment or necessary to make the statements therein (in case of a Prospectus or preliminary 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 on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use thereinsupplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, 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 but failure to give such notification so notice an indemnifying party shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of such failurethis indemnity agreement. In case An indemnifying party may participate at its own expense in the defense of any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 8 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If the indemnification from the indemnifying to which a party provided for in is entitled under this Section 10 8 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then the each indemnifying party, in lieu of indemnifying such indemnified party, party shall contribute to the aggregate amount paid or payable of such losses, liabilities, claims, damages and expenses incurred by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the each indemnifying party on the one hand and the Holders and the indemnified party on the other hand in connection with the actions statements or omissions which resulted resulted, in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative Relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied by, such by the indemnifying party or the indemnified party, and the parties' each such party's relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Holders and the Initial Purchaser agree that it would not be just and equitable if contribution pursuant to this Section 8 were determined by pro rata allocation or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 8. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 8 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 8, (i) the Initial Purchaser shall not be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it pursuant to a registration effected hereunder exceeds the amount of any damages which the Initial Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission and (ii) no Holder shall be required to contribute in excess of the amount by which the net proceeds received by such Holder from the sale of Registrable Securities by it pursuant to a registration effected hereunder exceeds 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(f1l(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, if any, who controls the Initial Purchaser, or an Underwriter or Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act shall have the same rights to contribution as the Initial Purchaser, or such Underwriter or Holder, and each director of the Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act shall have the same rights to contribution as the Company. The parties agree that it would not be just and equitable if contribution obligations of each Holder to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method 8 are several and not joint and in the same proportion of allocation that does not take into account all contributions of Holders required hereunder as such Holder's Registrable Securities sold pursuant to the consideration referred Registration Statement is of the total amount of Registrable Securities sold pursuant to in the Registration Statement. Any Underwriters' respective obligations to contribute pursuant to this Section 10(d). If indemnification is available under this Section 10, 8 are several in the indemnifying parties shall indemnify each indemnified party to proportions specified in the full extent provided in Section 10(a) or 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 10(d)relevant underwriting agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Bank Bradesco)

Indemnification; Contribution. (a) Indemnification by the Company. The Company shall indemnify and hold harmless indemnify, to ------------------------------ the fullest extent permitted by law, each Holder holder of Registrable Securities Securities, its officers, directors and agents, if any, and each Person, if any, who controls such Holder (holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) , against all losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (including reasonable attorneys' feesunder the Securities Act or common law or otherwise), disbursements and expensesjoint or several, as incurred) (collectively, "Losses") incurred resulting from any violation by such party pursuant to any actual the Company of the provisions of the Securities Act or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in, in any registration statement or prospectus (and as amended or supplemented if amended or supplemented) or any preliminary prospectus or caused by any omission or alleged omission of to state therein 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 therein or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectusany prospectus, in the light of the circumstances then existingunder which they were made) not misleading, except to the extent that such losses, claims, damages, liabilities (or proceedings in each case insofar as such statements respect thereof) or omissions arise out of or expenses are based upon (i) caused by any such untrue statement or alleged untrue statement contained in or by any omission or alleged omission made in reliance on and in conformity with from information with respect to such Holder concerning any holder furnished in writing to the Company by such Holder or its counsel holder expressly for use therein. If the offering pursuant to any registration statement provided for under this Section 2 is made through underwriters, no action or failure to act on the part of such underwriters (ii) the use whether or not such underwriter is an affiliate of any Prospectus after such time as holder of Registrable Securities) shall affect the obligation obligations of the Company to keep effective indemnify any holder of Registrable Securities or any other Person pursuant to the Registration Statement of which such Prospectus forms a part has expired or (iii) preceding sentence. If the use of offering pursuant to any Prospectus after such time as registration statement provided for under this Section 2 is made through underwriters, the Company has advised agrees, to the Holders extent required by such underwriters, to enter into an underwriting agreement in customary form with such underwriters and to indemnify such underwriters, their officers, directors and agents, if any, and each Person, if any, who controls such underwriters within the meaning 12 of Section 15 of the Securities Act to the same extent as hereinbefore provided with respect to the indemnification of the holders of Registrable Securities; provided that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable required to indemnify any Holder such underwriter, or to any officer or director of such underwriter or any Person who controls such Holder (underwriter within the meaning of Section 15 of the Securities Act Act, to the extent that the loss, claim, damage, liability (or Section 20 of the Exchange Act) under the indemnity agreement proceedings in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (iirespect thereof) or (iii) 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 immediately preceding sentence or that arise out of or are based upon Person asserting an untrue statement or alleged untrue statement or omission or alleged omission made in any Prospectus if either (i) (A) such Holder failed to send or deliver a copy of the Prospectus with at or prior to the delivery of written confirmation of the sale of Registrable Securities by to such Holder to the Person asserting the claim from which if such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is was corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so such amended or supplemented, supplemented final prospectus prior to such Holder thereafter fails to deliver written confirmation and the underwriter was provided with such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arisesupplemented final prospectus. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary 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 on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. (c) 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 10 except to the extent the indemnifying party shall have been actually 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, 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 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, unless in the reasonable judgment of any indemnified party, based on the written 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 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 10 is unavailable to an indemnified party hereunder in respect to any Losses, then the indemnifying 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 Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether 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, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. 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 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Trex Co Inc)

Indemnification; Contribution. (a) The Company shall agrees to indemnify and hold harmless the Dealer Manager, each Holder Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an “Underwriter”) and the affiliates, directors, officers, agents, representatives and employees of Registrable Securities the Dealer Manager, any Holder, Participating Broker-Dealer or Underwriter and each Person, if any, who controls such Holder the Dealer Manager, any Holder, Participating Broker-Dealer or Underwriter (within the meaning of Section 15 of each an “Indemnified Person”) with respect to the Securities Act or Section 20 of the and Exchange ActNotes as follows: (i) from and against any and all losses, actions, claims, damagesdamages or liabilities, liabilities and will reimburse any Indemnified Person for all costs and expenses (including including, but not limited to, reasonable attorneys' counsel fees, disbursements and expenses, ) as incurred) (collectively, "Losses") they are incurred by such party pursuant Indemnified Person in connection with investigating, preparing to defend or defending any actual such action or ------ threatened 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 or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, in the light of the circumstances then existing) not misleading, except in each case claim insofar as such statements losses, actions, claims, damages or omissions liabilities arise out of or are based upon (i) any such untrue statement or alleged untrue statement of a material fact contained in any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Notes or Transfer Restricted Securities were registered under the 1933 Act, or the omission or alleged omission made in reliance on and in conformity with information with respect therefrom of a material fact required to such Holder furnished in writing be stated therein or necessary to make the Company by such Holder statements therein not misleading, or its counsel expressly for use therein, (ii) the use any untrue statement or alleged untrue statement of a material fact contained in any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto thereto) pursuant to which Exchange Notes or Transfer Restricted Securities were registered under the 1933 Act, or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; and (ii) from and against any and all actions, claims, damages, liabilities or expenses whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(c) below) any such settlement is requiredeffected with the written consent of the Company; provided, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a)however, that the Company shall will not be liable to any Holder Indemnified Person to the extent that any claims, liabilities, losses, damages, costs or expenses (A) are finally determined by a court of competent jurisdiction to any have resulted primarily from the gross negligence, bad faith or willful misconduct of such Indemnified Person who controls such Holder or (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange ActB) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon (x) any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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 Prospectus, (y) any omission or alleged omission made to state in any Prospectus if either (i) (A) such Holder failed Registration Statement a material fact required to send be stated therein or deliver a copy of necessary to make the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omissionstatements therein not misleading, or (iiz) (x) such untrue statement or alleged untrue statement or any omission or alleged omission is corrected to state in an amendment any Prospectus a material fact in any Prospectus necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading, if in either such case such statement or supplement omission relates solely to a Holder, Participating Broker-Dealer, Underwriter or the Dealer Manager and was made in reliance upon and in conformity with information furnished in writing by such Holder, Participating Broker-Dealer, Underwriter or the Dealer Manager to the Prospectus and (y) having previously been furnished by Company expressly for use therein. The Company shall not be liable under this Section 4 for any settlement of any claim or on behalf of the Company with copies of the Prospectus as so amended or supplementedaction effected without its prior written consent, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses ariseshall not be unreasonably withheld. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors each Underwriter and the other selling Holders, and each of their affiliates, directors, officers, agents, representatives and employees and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act Company, any Underwriter or Section 20 of the Exchange Act) any other selling Holder, against any and all other Holders against all Losses incurred by such party pursuant losses, actions, claims, damages, liabilities and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by or on behalf of such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Transfer Restricted Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled to indemnification hereunder agrees to give prompt The Company will not, without the prior written notice consent of a Holder, Participating Broker-Dealer, Underwriter or the Dealer Manager, as the case may be, settle or compromise or consent to the indemnifying entry of any judgment in any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought by an Indemnified Person hereunder (when an Indemnified Person is or could have been a party to such claim, action, suit or proceeding), unless such settlement, compromise or consent (i) includes an unconditional written release (in form and substance reasonably satisfactory to the Indemnified Persons) of the Indemnified Persons from all liability arising out of such claim, 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 an Indemnified Person. (d) Promptly after the receipt by such indemnified party an Indemnified Person under this Section 4 of any written notice of the commencement of any action, suitsuch Indemnified Person will, proceeding or investigation or threat if a claim in respect thereof is to be made against the Company under this Section 4, notify the Company 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 commencement thereof; but the omission so to notify the Company (i) will not relieve the Company from any liability which it may have to any Indemnified Person otherwise than under this Section 10 except 4 unless and to the extent such failure results in the indemnifying party shall have been actually prejudiced as a result forfeiture by the Company of such failuresubstantial rights and defenses and (ii) will not, in any event, relieve the Company from any obligations to any Indemnified Person other than the indemnification obligation provided in this Section 4. In case any such action shall be is brought against any indemnified party Indemnified Person, and it shall notify notifies the indemnifying party Company of the commencement thereof, the indemnifying party shall Company will be entitled to participate therein and, to the extent that it shall wishthey may wish to, jointly with any other indemnifying party similarly notified, to may assume the defense thereof, with counsel reasonably satisfactory to such indemnified partyIndemnified Person; provided, however, that if the defendants in any such action include both the Indemnified Person and after the Company and the Indemnified Person shall have concluded that there may be one or more legal defenses available to it and/or other Indemnified Persons that are different from or additional to those available to the Company, then the Company shall not have the right to direct the defense of such action on behalf of such Indemnified Person(s) and such Indemnified Person(s) shall have the right to select separate counsel to defend such action on behalf of such Indemnified Person(s). After notice from the indemnifying party Company to such indemnified party Indemnified Person of its election so to assume the defense thereof, approval by such Indemnified Person of counsel appointed to defend such action, which approval shall not be unreasonably withheld, the indemnifying party shall retention of such counsel by the Company in a timely manner, the Company will not be liable to such indemnified party Indemnified Person under this Section 4 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 investigationinvestigation subsequently incurred by such Indemnified Person in connection with the Company’s defense thereof, unless (i) the Indemnified Person shall have employed separate counsel in accordance with the reasonable judgment of any indemnified partyproviso to the immediately preceding sentence (it being understood, based on however, that in connection with such action the written 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 Company shall not be liable for the fees and expenses of (i) more than one separate counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory in addition to the Company), (iilocal counsel) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but substantially similar actions in the same jurisdiction arising out of the same general allegations or related circumstances representing the Indemnified Persons who are parties to such action or actions. An indemnifying party who is not entitled to, ) or elects not to, assume (ii) the defense Company has authorized the employment of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified the Indemnified Person at the expense of the Company. After such notice from the Company to such Indemnified Person, approved by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between an indemnified party Indemnified Person and any other retention of such indemnified parties with respect to such claimcounsel by the Company, 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 Company will not be liable for the fees losses, costs and expenses of (i) more than one counsel for all Holders any settlement of Registrable Securities who are indemnified parties, selected such action effected by such Indemnified Person without the Holders of a Majority consent of the Registrable Securities who are indemnified parties Company, unless such Indemnified Person waives all of its rights under this Section 4, in which case the Indemnified Person may effect such a settlement without such consent. (e) In circumstances in which selection shall be reasonably satisfactory the indemnity agreement provided for in the preceding paragraphs of this Section 4 is unavailable or insufficient to the Companyhold harmless an Indemnified Person in respect of any losses, claims, damages or liabilities (or actions in respect thereof), (ii) more than one counsel for the underwriters 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 order 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 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 provide for in this Section 10 is unavailable to an indemnified party hereunder in respect to any Losses, then the indemnifying party, in lieu of indemnifying such indemnified partyjust and equitable contribution, shall contribute to the amount paid or payable by such indemnified party Indemnified Person as a result of such Losses losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect (i) the relative benefits received by the Company on the one hand and the Indemnified Person(s) on the other hand or (ii) if the allocation provided by the foregoing clause (i) is not permitted by applicable law, not only such relative benefits but also the relative fault of the indemnifying party Company on the one hand and indemnified party the Indemnified Person(s) on the other hand in connection with such losses, claims, damages or liabilities (or actions in respect thereof). The relative benefits received by the actions which resulted in such Losses, as well as any Company on the one hand and the Indemnified Person(s) on the other relevant equitable considerations; provided, however, that the liability of each Holder hereunder hand shall be limited deemed to be in the same proportion of any such Losses that is equal to as (i) the proportion that relative benefits received by the net proceeds Company from the initial offering and sale of Registrable Securities sold by such Holder under a Registration Statement the Securities, on one hand, bears to (ii) the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds relative benefit received by such a Holder from receiving securities registered under the sale of Registrable Securities covered by such Registration Statement1933 Act, on the other. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party or indemnified party, the Holders and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid or payable by a party as a result indemnity, reimbursement and contribution obligations of the Losses referred to above Company under this Agreement shall be deemed in addition to includeany rights that a Holder or any other Indemnified Person may have at common law or otherwise, subject to including any other agreements by and among the limitations set forth in Section 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. 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 misrepresentationparties hereto. The parties Company and the Holders agree that it would not be just and equitable if the amount of such contribution pursuant to this Section 10(d) were determined by pro rata or per capita allocation (even if the Company on the one hand and the Indemnified Person(s) on the other hand were treated as one entity for such purpose) or by any other method of allocation that does not take into account the consideration equitable considerations referred to in this Section 10(d)4. If indemnification is available under this Section 10, Notwithstanding the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions of this Section 10 4, no Holder shall be required to contribute any amount in addition excess of the amount by which the net proceeds received by such Holder from the exchange of the Transfer Restricted Securities exceeds 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 with respect to the Securities or Exchange Notes from the exchange of the Transfer Restricted Securities, and no person guilty of fraudulent misrepresentation shall be entitled to contribution from any liability which any indemnifying party may have to any indemnified party and shall survive the termination person who was not guilty of such fraudulent misrepresentation. For purposes of this AgreementSection 4, each Person, if any, who controls the Dealer Manager, any Holder, each Participating Broker-Dealer or Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Dealer Manager, such Holder, each Participating Broker-Dealer or Underwriter and each director of the Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company.

Appears in 1 contract

Samples: Registration Rights Agreement (National Rural Utilities Cooperative Finance Corp /Dc/)

Indemnification; Contribution. (a) The Company shall Issuer agrees to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "UNDERWRITER") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all losses, liabilities, claims, damages, liabilities damages and expenses (including reasonable attorneys' fees, disbursements and expenseswhatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all losses, except liabilities, claims, damages and expenses whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; PROVIDED that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Issuer; and (iii) against any and all expenses whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply to any loss, liability, claim, damage or expense (A) to the extent arising out of any untrue statement or omission or alleged untrue statement or omission or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company Issuer by such the Holder or its counsel Underwriter expressly for use thereinin a Registration Statement (or any amendment thereto) or any Prospectus (or any amendment or supplement thereto), (iiB) result from the use of any the Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms during a part has expired or (iii) period when the use of any the Prospectus after has been suspended in accordance with Section 2.4(c); provided, in each case, that Holders received reasonable prior notice of such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) suspension or (iiic) of result from the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy use of the Prospectus with or prior to the delivery of written confirmation in violation of the sale third to last paragraph of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses ariseSection 3. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the CompanyIssuer, its the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Issuer, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company Issuer by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); providedPROVIDED, howeverHOWEVER, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice in writing as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; PROVIDED, the indemnifying party shall be entitled HOWEVER, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Issuer on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Issuer on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Issuer, such indemnifying party the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Issuer, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Issuer, and each Person, if any, who controls the Issuer within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Issuer. The parties agree that it would not be just and equitable if contribution Initial Purchasers' respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 4 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Caprock Communications Corp)

Indemnification; Contribution. (a) The Company KSI shall indemnify indemnify, to the fullest extent permitted by law, each holder of KSI Registrable Securities, its officers, directors, partners, employees and hold harmless each Holder of Registrable Securities agents, if any, and each Person, if any, who controls such Holder holder within the meaning of Section 15 of the Securities Act, against all losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (under the Securities Act or common law or otherwise), joint or several, resulting from any violation by KSI of the provisions of the Securities Act or any untrue statement or alleged untrue statement of a material fact contained in any registration statement or prospectus (and as amended or supplemented if amended or supplemented) or any preliminary prospectus or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of any prospectus, in light of the circumstances under which they were made) not misleading, except to the extent that such losses, claims, damages, liabilities (or proceedings in respect thereof) or expenses are caused by any untrue statement or alleged untrue statement contained in or by any omission or alleged omission from information concerning any holder of KSI Registrable Securities furnished in writing to KSI by such holder expressly for use therein. If the Public Offering pursuant to any registration statement provided for under this Article III 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 KSI Registrable Securities) shall affect the obligations of KSI to indemnify any holder of KSI 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 III is made through underwriters, KSI agrees to enter into an underwriting agreement in customary form with such underwriters and KSI agrees to indemnify such underwriters, their 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 or Section 20 to the same extent as herein before provided with respect to the indemnification of the Exchange holders of KSI Registrable Securities; provided that KSI 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 alleged untrue statement or omission or alleged omission at or prior to the written confirmation of the sale of KSI 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 KSI Registrable Securities is participating, each such holder, severally and not jointly, shall indemnify, to the fullest extent permitted by law, KSI, each underwriter and their respective officers, directors, employees and agents, if any, and each Person, if any, who controls KSI or such underwriter within the meaning of Section 15 of the Securities Act, against all any losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (including reasonable attorneys' fees, disbursements and expenses, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon resulting from any untrue statement or alleged untrue statement of a material fact contained infact, or any omission or alleged omission of a material fact required to be stated in, in the Registration Statement, Prospectus registration statement or prospectus or preliminary Prospectus prospectus or any amendment thereof or supplement to any of the foregoing thereto or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectusany prospectus, in the light of the circumstances then existingunder which they were made) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any but only to the extent that such untrue statement is contained in or alleged untrue statement or such omission or alleged omission made in reliance on and in conformity with is from information with respect to such Holder so concerning a holder furnished in writing to the Company by such Holder or its counsel holder expressly for use therein, (ii) ; provided that such holder's obligations hereunder shall be limited to an amount equal to the use of any Prospectus after net proceeds to such time as the obligation holder of the Company KSI Registrable Securities sold pursuant to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after registration statement; and provided further that, without such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is requiredholder's consent, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company holder shall not be liable required to indemnify KSI, any Holder such underwriter, or to any of their officers, directors or employees or any Person who controls KSI or such Holder (underwriter within the meaning of Section 15 of the Securities Act Act, to the extent that the loss, claim, damage, liability (or Section 20 of the Exchange Act) under the indemnity agreement proceedings in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (iirespect thereof) or (iii) 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 immediately preceding sentence or that arise out of or are based upon Person asserting an untrue statement or alleged untrue statement or omission or alleged omission made in any Prospectus if either (i) (A) such Holder failed to send or deliver a copy of the Prospectus with at or prior to the delivery of written confirmation of the sale of KSI Registrable Securities by to such Holder to the Person asserting the claim from which if such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is was corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so such amended or supplemented, supplemented final prospectus prior to such Holder thereafter fails to deliver written confirmation and the underwriter was provided with such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary 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 on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statementsupplemented final prospectus. (c) Any Person entitled to indemnification hereunder agrees to under the provisions of this Section 3.7 shall (i) give prompt written notice to the indemnifying party after the receipt by of any claim with respect to which it seeks indemnification and (ii) unless in such indemnified party party's reasonable judgment a conflict of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which interest between such indemnified party and indemnifying parties may claim indemnification or contribution pursuant to this Agreementexist in respect of such claim, provided that failure to give permit such notification shall not affect the obligations of the indemnifying party pursuant to this Section 10 except to the extent the indemnifying party shall have been actually 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 thereofof such claim, with counsel reasonably satisfactory to such the indemnified party; and if such defense is so assumed, and after notice from the such indemnifying party to such shall not enter into any settlement without the consent of the indemnified party of its election so if such settlement attributes liability to assume the defense thereof, the indemnified party and such indemnifying party shall not be liable subject to such indemnified party any liability 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, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party settlement made without its consent (which shall not be unreasonably withheld); and any other of such indemnified parties underwriting agreement entered into with respect to such claim, in which any registration statement provided for under this Article III shall so provide. In the event the an indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 toentitled, or elects not tonot, to assume the defense of a claim claim, such indemnifying party shall not be obligated to pay the fees and expenses of more than one counsel or firm of counsel for all parties indemnified by such indemnifying party with in respect to of such claim, unless in the reasonable judgment of any such indemnified party, based on the written opinion of counsel, party a conflict of interest is likely to may exist between an such indemnified party and any other of such indemnified parties with in 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 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 for any reason the indemnification from the indemnifying party provided for in this Section 10 foregoing indemnity is unavailable to an indemnified party hereunder in respect to any Lossesunavailable, then the indemnifying party, in lieu of indemnifying such indemnified party, party shall contribute to the amount paid or payable by such the indemnified party as a result of such Losses losses, claims, damages, liabilities or expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party on the one hand and the indemnified party on the other or (ii) if the allocation provided by clause (i) above is not permitted by Applicable Law or provides a lesser sum to the indemnified party than the amount hereinafter calculated, 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 and the indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided. Notwithstanding the foregoing, however, that the liability no holder of each Holder hereunder KSI Registrable Securities shall be limited required to contribute any amount in excess of the proportion of any amount such Losses that is equal holder would have been required to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears pay to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and an indemnified party shall be determined by reference to, among other things, whether 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, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and if the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. 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 indemnity under Section 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding3.7(b) was available. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution obligation of any Person to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does 3.7 shall be several and not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d)joint. (e) The An indemnifying party shall make payments of all amounts required to be made pursuant to the foregoing provisions of this Section 10 shall be in addition 3.7 to any liability which any indemnifying party may have to any or for the account of the indemnified party from time to time promptly upon receipt of bills or invoices relating thereto or when otherwise due or payable. (f) The indemnity and contribution agreements contained in this Section 3.7 shall remain in full force and effect regardless of any investigation made by or on behalf of a participating holder of KSI Registrable Securities, its officers, directors, members, agents or any Person, if any, who controls such holder as aforesaid, and shall survive the Transfer of Equity Securities by such holder and the termination of this Agreement.

Appears in 1 contract

Samples: Unitholders Agreement (Celerity Group Inc)

Indemnification; Contribution. (a) The Company shall Issuer and the Guarantors agree jointly and severally to indemnify and hold harmless the Initial Purchasers, each Holder Holder, each Participating Broker-Dealer, officers, directors, partners, employees, representatives and agents of Registrable Securities each Participating Broker Dealer and each Person, if any, who controls such any Holder (within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or any Free Writing Prospectus or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Issuer; and (iii) against any and all expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company Issuer by such the Holder or its counsel expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the CompanyIssuer, its the Guarantors, the Initial Purchasers and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Issuer, a Guarantor, the Initial Purchasers or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to thereto) or any of the foregoing or necessary to make the statements therein (in case of a Free Writing Prospectus or preliminary 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 on upon and in conformity with written information with respect to such Holder furnished in writing to the Company Issuer by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto) or such Free Writing Prospectus; provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or parties with respect to such claim, in which event the indemnifying party shall not be liable for the reasonable fees and expenses of (i) more than one counsel (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for reasonable fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 60 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 45 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Issuer and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Issuer and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Issuer and/or the Guarantors, such indemnifying party the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Issuer, the Guarantors, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Holders and/or Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total discount received by it in connection with its purchase of the Securities exceeds the amount of any damages which such Initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Issuer or any Guarantor, and each Person, if any, who controls the Issuer or any Guarantor within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Issuer or such Guarantor, as applicable. The parties agree that it would not be just and equitable if contribution Initial Purchasers’ respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 6 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (NeoSpine Surgery, LLC)

Indemnification; Contribution. (a) The Company shall agrees to indemnify and hold harmless each Dealer Manager, each Holder of Registrable Securities (including each Dealer Manager, if applicable, and each Participating Broker-Dealer), each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such any Dealer Manager, Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided, that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Dealer Managers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Dealer Managers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of benefit received by the indemnified party, on the one hand, and the indemnifying party and indemnified party party, on the other hand, in connection with the actions Exchange Offer and the Shelf Registration and the relative fault of the Company on the one hand and the Holders and the Dealer Managers on the other hand in connection with the statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders and the Dealer Managers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Holders or indemnified party, the Dealer Managers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Holders and the Dealer Managers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Dealer Managers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Dealer Manager shall be required to contribute any amount in excess of the fees received by such Dealer Manager in connection with the transactions contemplated by the Dealer Manager Agreement. 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 4, each Person, if any, who controls a Dealer Manager or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Dealer Managers or Holder, and each director of the Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The parties agree that it would not be just and equitable if contribution Dealer Managers' respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 7 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided in Section 10(a) or 10(b), as the case may be, without regard total amount of fees payable to each Dealer Manager pursuant to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Dealer Manager Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Marriott International Inc /Md/)

Indemnification; Contribution. (a) The Company shall and the Parent jointly and severally agree to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company and the Parent; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Parent, the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Parent, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any -------- ------- claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification each indemnifying party of any action or proceeding commenced against it in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder agrees to give prompt written notice the extent it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense of such action; provided, however, that counsel to the indemnifying party after shall not -------- ------- (except with the receipt by such indemnified party of any written notice consent 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 party) also be counsel to this Agreement, provided that failure to give such notification the indemnified party. In no event shall not affect the obligations of the indemnifying party pursuant or parties be liable for the fees and expenses of more than one counsel (in addition to this Section 10 except to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or related actions in the extent same jurisdiction arising out of the indemnifying party shall have been actually prejudiced as a result of such failuresame general allegations or circumstances. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereofaddition, the indemnifying party shall be entitled to participate therein andto, to the extent that it shall wishwishes, jointly with any other similarly notified indemnifying party similarly notifiedparty, to assume the defense thereof, of any claim or action brought against an indemnified party with counsel reasonably satisfactory to such the indemnified party, and after . After notice from the indemnifying party to such the indemnified party of its election so to assume the defense thereofof such claim or action, the indemnifying party shall not be liable to such the indemnified party under this Section 4 for any legal or other expenses of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, party in connection with the defense thereof other than reasonable costs of investigation; provided, unless however, that the Representative shall have -------- ------- the right to employ one counsel to represent jointly it and those other Initial Purchasers and their respective officers, employees and controlling persons who may be subject to liability arising out of any claim in respect of which indemnity may be sought by the Initial Purchasers against the Company and the Parent under this Section 4 if, in the reasonable judgment of any indemnified partythe Representative, based either (i) there is an actual or potential conflict between the position of the Company and the Parent on the written opinion one hand and the Initial Purchasers on the other hand or (ii) there may be defenses available to it or them that are different from or additional to those available to the Company and Parent (in any of counsel, a conflict of interest is likely which events the Company shall not have the right to exist between direct the indemnifying party and such indemnified party and any other defense of such indemnified parties action on behalf of the Representative with respect to such claimdifferent defenses), in any of which event the indemnifying party shall not be liable for the events such reasonable fees and expenses shall be borne by the Company and Parent. No indemnifying party shall, without the prior written consent of (i) more than one counsel for all Holders of Registrable Securities who are the indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company and indemnified party the Parent on the one hand and the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company and indemnified party the Parent on the one hand and the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Parent, the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Parent, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 1933 Act) shall be entitled to contribution from any Person who was not guilty wxx xxx xuilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Company, the Parent and each Person, if any, who controls the Company or the Parent within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company and the Parent. The parties agree that it would not be just and equitable if contribution Initial Purchasers' respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 4 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Alliant Energy Corp)

Indemnification; Contribution. (a) The Company shall and the Subsidiary Guarantors agree to indemnify and hold harmless the Initial Purchasers and each Holder of Registrable Securities their affiliates and any other Person under common control with the Initial Purchasers, each Holder, each Participating Broker- Dealer, each Person who participates as an underwriter (any such Person being an "UNDERWRITER") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Notes or Transfer Restricted Notes were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company and the Subsidiary Guarantors; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such concerning any Holder or Underwriter furnished in writing to the Company by the Holder or Underwriter expressly for use in a Registration Statement (or any amendment thereto) or any Prospectus (or any amendment or supplement thereto); and provided, further, that the indemnity agreement contained in this subsection (a) shall not inure to the benefit of any Holder or Participating Broker-Dealer from whom the person asserting any such losses, claims, damages or liabilities purchased the Notes concerned, to the extent that a prospectus relating to such Notes was required to be delivered by such Holder or its counsel expressly for use thereinParticipating Broker-Dealer under the 1933 Act in connection with such purchase and any such loss, (ii) the use claim, damage or liability of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or Participating Broker-Dealer results from the fact that there was not sent or given to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with person, at or prior to the delivery of written confirmation of the sale of Registrable Securities by such Notes to such person, a copy of such prospectus if the Company had previously furnished copies thereof to such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses ariseParticipating Broker-Dealer. (b) In connection with any Registration Statement filed pursuant heretoEach Initial Purchaser severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Subsidiary Guarantors, the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, any Subsidiary Guarantor, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company and the Subsidiary Guarantors by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by Transfer Restricted Notes pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company and indemnified party the Subsidiary Guarantors, on the one hand, and the Holders and the Initial Purchasers, on the other hand, in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company and indemnified party the Subsidiary Guarantors on the one hand and the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Subsidiary Guarantors, the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Subsidiary Guarantors, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any 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 1933 Act) shall be entitled to contribution from any Person who was not guilty nox xxxxxx of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Company or any Subsidiary Guarantor, and each Person, if any, who controls the Company or any Subsidiary Guarantor within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company and the Subsidiary Guarantors. The parties agree that it would not be just and equitable if contribution Initial Purchasers' respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 4 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Notes set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (MGM Mirage)

Indemnification; Contribution. (a) The Company shall indemnify and hold harmless each Holder of Registrable Securities Holder, their respective officers and directors, and each Person, if any, who controls such Holder (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act) Act and any agents, representatives or advisers thereof against all losses, claims, damages, liabilities and expenses (including reasonable attorneys' fees, disbursements fees and expenses, as incurredexpenses and reasonable costs of investigation) (collectively, "LossesDamages") incurred by such party pursuant to any actual or ------ threatened 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 or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, 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 (i) 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 such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon (i) any untrue or alleged untrue statement of a material fact contained in, or in any omission or alleged omission of a material fact required to be stated in, the Registration Statement, Prospectus or preliminary Prospectus any Prospectus, or any amendment or supplement to any of the foregoing foregoing, (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 the case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existing) not misleading, but only or (iii) any violation or alleged violation by the Company of any United States federal, state or common law rule or regulation applicable to the extent that Company and relating to action required of or inaction by the Company in connection with any such registration except in each case insofar as the same arise out of or are based upon any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder the Holders furnished in writing to the Company by such Holder the Holders or its their counsel specifically expressly for use therein; provided, however, that the liability of each Holder hereunder shall be limited . Notwithstanding anything in this Agreement to the proportion contrary, the Company shall not be required to indemnify any Person whose conduct has been determined by a final non-appealable judgment of any a court of competent jurisdiction to constitute bad faith, gross negligence or willful misconduct. Subject to Section 11(b) hereof, the Company shall not be responsible hereunder for the fees and expenses of more than one counsel (together with local counsel, if any) for the indemnified parties. In connection with an Underwritten Offering, the Company shall indemnify the underwriters thereof, their officers, directors and agents and each Person who controls such Losses that is equal underwriters (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears same extent as provided above with respect to the total net proceeds from indemnification of the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration StatementHolders. (cb) 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, Section 11 (provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 10 11 except to the extent the indemnifying party shall have been actually 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 any 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, unless in the reasonable judgment of any indemnified party, based on the written 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 if (i) the indemnifying party shall not be liable for the fees and expenses of (i) more than one have employed counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnified party who is not entitled to, or elects not to, assume to take charge of the defense of such action within a claim shall reasonable time after notice of commencement of such action (so long as such failure to employ counsel is not be obligated to pay the fees and expenses result of more than one counsel for all parties indemnified an unreasonable determination by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect that counsel selected pursuant to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that immediately preceding sentence is unsatisfactory) or if the indemnifying party shall not be liable for have demonstrated to the fees and expenses of (i) more than one counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority reasonable satisfaction of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory party its ability to the Company)finance such defense, or (ii) more than one the indemnified party shall have reasonably concluded or been advised by counsel for the underwriters 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 that there may be legal defenses available to such indemnified party which could result in a conflict of a release from all liability in respect interest for such counsel or prejudice the prosecution of the defenses available to such actionindemnified party, suitthen such indemnified party shall have the right to employ separate counsel of its choosing, proceeding or investigation to at the extent such liability is covered by expense of the indemnity obligations set forth in this Section 10indemnifying party. No indemnified indemnifying party shall consent to entry of any judgment or entry enter into any settlement without the consent (which consent, in the case of each indemnifying an action, suit, claim or proceeding exclusively seeking monetary relief, shall not be unreasonably withheld) of the applicable indemnified party. (dc) If the indemnification from the indemnifying party provided for in this Section 10 11 is unavailable to an indemnified party hereunder in respect of any Damages referred to any Lossestherein, then the indemnifying 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 Losses Damages in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions or omissions which resulted in such LossesDamages, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether 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, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionaction or omission. The amount paid or payable by a party as a result of the Losses Damages referred to above shall be deemed to include, subject to the limitations set forth in Section 10(c)11(b) hereof, any legal or and other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 11(c) were determined by pro rata allocation or by any other method of allocation which does not take 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 number of Registrable Securities underwritten by them and not joint. Notwithstanding the provisions of this Section 11(c), no underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Registrable Securities underwritten by it and distributed to the public were offered to the public exceeds the amount of any Damages which such underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 1011, the indemnifying parties shall indemnify each indemnified party to the full fullest extent provided in Section 10(a11(a) or 10(b), as the case may be, hereof without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d11(c). (ed) The provisions of this Section 10 11 shall be in addition to any liability which any indemnifying party may have to any indemnified other party and shall survive the any termination of this Agreement. The indemnification provided by this Section 11 shall survive the Transfer of such Registrable Securities by the Holders and shall remain in full force and effect irrespective of any investigation made by or on behalf of an indemnified party.

Appears in 1 contract

Samples: Registration Rights Agreement (Milacron Inc)

Indemnification; Contribution. (a) The Company shall and the Guarantors agree, jointly and severally, to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; PROVIDED that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply to any such loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to the Company or the Guarantors by the Initial Purchasers, Holder or Underwriter expressly for use in a Registration Statement (or any amendment thereto) or any Prospectus (or any amendment or supplement thereto); PROVIDED, FURTHER, that, as to any preliminary prospectus used in connection with an underwritten transaction under a Shelf Registration Statement, as the same may be amended or supplemented (a "Preliminary Shelf Prospectus"), this indemnity agreement shall not inure to the benefit of the Underwriter on account of any loss, claim, damage, liability or action arising from the sale of Registrable Securities to any person by the Underwriter if the Underwriter failed to send or give a copy of the final prospectus, as the same may be amended or supplemented (a "Final Shelf Prospectus"), to that person and the untrue statement or alleged untrue statement or omission or alleged omission made to state a material fact in reliance on such Preliminary Shelf Prospectus was corrected in said Final Shelf Prospectus and in conformity with information with respect to such Holder furnished in writing the delivery thereof was required by law and would have constituted a complete defense to the Company by such Holder or its counsel expressly for use therein, (ii) the use claim of any Prospectus after such time as the obligation that person in respect of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) unless such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished failure resulted from non-compliance by or on behalf of the Company with copies the provisions of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery Section 3 of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arisethis Agreement. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Guarantors, the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, any of the Guarantors, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company or the Guarantors by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); providedPROVIDED, howeverHOWEVER, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. In the case of parties indemnified pursuant to Section 4(a) above, counsel to all indemnified parties shall be selected by the Initial Purchasers, and, in the case of parties indemnified pursuant to Section 4(b) above, counsel to all indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in the defense 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 the indemnifying party may wish, jointly with any other indemnifying party similarly notified, to assume the defense thereofof any such action, with counsel reasonably satisfactory to such the indemnified party, and after notice from unless the indemnified party has differing defenses in the action than the indemnifying party party; PROVIDED, HOWEVER, that counsel 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 60 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 45 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Guarantors, the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Guarantors, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Company or any Guarantor, and each Person, if any, who controls the Company or any Guarantor within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company or such Guarantor. The parties agree that it would not be just and equitable if contribution Initial Purchasers' respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 7 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule B to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Brooks Pharmacy, Inc.)

Indemnification; Contribution. (a) The Company shall agrees to indemnify and hold harmless the Initial Purchaser, each Holder of Registrable Securities beneficial owner named as a selling security holder in the Prospectus, each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such Holder (any beneficial owner named as a selling security holder in the Prospectus or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened 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 or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, 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 (i) 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 such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary 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 on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. (c) 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 10 except to the extent the indemnifying party shall have been actually 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, 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 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, unless in the reasonable judgment of any indemnified party, based on the written 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 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 10 is unavailable to an indemnified party hereunder in respect to any Losses, then the indemnifying 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 Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether any action in question, including any untrue statement or alleged untrue statement of a material fact contained in the Shelf Registration Statement (or any amendment or supplement thereto) pursuant to which Debentures were registered under the 1933 Act, including all documents incorporated therein by reference, or the omission or alleged omission to state therefrom of a material fact, has been made byfact required to be stated therein or necessary to make the statements therein not misleading, or relates arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a material fact necessary in order to information supplied bymake the statements therein, such indemnifying party or indemnified partyin the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense, as incurred, to the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. The extent of the aggregate amount paid in settlement of any litigation, 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 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty proceeding by any governmental agency or body, commenced or threatened, or of fraudulent misrepresentation any claim based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (within subject to Section 4(d) below) any such settlement is effected with the meaning of Section 11(f) written consent of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.Company; and

Appears in 1 contract

Samples: Registration Rights Agreement (Liberty Media Corp /De/)

Indemnification; Contribution. (a) The Company shall indemnify and hold harmless indemnify, to the fullest extent permitted by Applicable Law, each Holder holder of Registrable Securities Securities, its officers, directors, partners, employees and agents, if any, and each Person, if any, who controls such Holder holder within the meaning of Section 15 of the Securities Act, against all losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (under the Securities Act or common law or otherwise), joint or several, resulting from any violation by the Company of the provisions of the Securities Act or any untrue statement or alleged untrue statement of a material fact contained in any registration statement or prospectus (and as amended or supplemented if amended or supplemented) or any preliminary prospectus or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of any prospectus, in light of the circumstances under which they were made) not misleading, except to the extent that such losses, claims, damages, liabilities (or proceedings in respect thereof) or expenses are caused by any untrue statement or alleged untrue statement contained in or by any omission or alleged omission from information concerning any holder furnished in writing to the Company by such holder expressly for use therein. If the Public Offering pursuant to any registration statement provided for under this Article III 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 Company 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 III is made through underwriters, the Company agrees to enter into an underwriting agreement in customary form with such underwriters and the Company agrees to indemnify such underwriters, their 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 or Section 20 to the same extent as herein before provided with respect to the indemnification of the Exchange 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 alleged 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, each such holder, severally and not jointly, shall indemnify, to the fullest extent permitted by Applicable Law, the Company, each underwriter and their respective officers, directors, employees and agents, if any, and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act, against all any losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (including reasonable attorneys' fees, disbursements and expenses, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon resulting from any untrue statement or alleged untrue statement of a material fact contained infact, or any omission or alleged omission of a material fact required to be stated in, in the Registration Statement, Prospectus registration statement or prospectus or preliminary Prospectus prospectus or any amendment thereof or supplement to any of the foregoing thereto or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectusany prospectus, 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 (i) 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 such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of under which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthey were made) not misleading, but only to the extent that any such untrue statement is contained in or such omission is made in reliance on and in conformity with from information with respect to such Holder so concerning a holder furnished in writing to the Company by such Holder or its counsel specifically holder expressly for use therein; provided, however, provided that the liability of each Holder such holder’s obligations hereunder shall be limited to the proportion of any such Losses that is an amount equal to the proportion net proceeds to such holder of the Registrable Securities sold pursuant to such registration statement. It is understood and agreed that the net proceeds from the sale indemnification obligations of each holder of Registrable Securities sold by pursuant to any underwriting agreement entered into in connection with any such Holder under such Registration Statement bears registration statement shall be limited to the total net proceeds from the sale of all securities sold thereunder, but not obligations contained in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statementthis Section 3.7(b). (c) Any Person entitled to indemnification hereunder agrees to under the provisions of this Section 3.7 shall (i) give prompt written notice to the indemnifying party after the receipt by of any claim with respect to which it seeks indemnification and (ii) unless in such indemnified party party’s reasonable judgment a conflict of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which interest between such indemnified party and indemnifying parties may claim indemnification or contribution pursuant to this Agreementexist in respect of such claim, provided that failure to give permit such notification shall not affect the obligations of the indemnifying party pursuant to this Section 10 except to the extent the indemnifying party shall have been actually 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 thereofof such claim, with counsel reasonably satisfactory to such the indemnified party; and if such defense is so assumed, and after notice from the such indemnifying party to such shall not enter into any settlement without the consent of the indemnified party of its election so if such settlement attributes liability to assume the defense thereof, the indemnified party and such indemnifying party shall not be liable subject to such indemnified party any liability 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, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party settlement made without its consent (which shall not be unreasonably withheld); and any other of such indemnified parties underwriting agreement entered into with respect to such claim, in which any registration statement provided for under this Article III shall so provide. In the event the an indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 toentitled, or elects not tonot, to assume the defense of a claim claim, such indemnifying party shall not be obligated to pay the fees and expenses of more than one counsel or firm of counsel for all parties indemnified by such indemnifying party with in respect to of such claim, unless in the reasonable judgment of any such indemnified party, based on the written opinion of counsel, party a conflict of interest is likely to may exist between an such indemnified party and any other of such indemnified parties with in 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 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 for any reason the indemnification from the indemnifying party provided for in this Section 10 foregoing indemnity is unavailable to an indemnified party hereunder in respect to any Lossesunavailable, then the indemnifying party, in lieu of indemnifying such indemnified party, party shall contribute to the amount paid or payable by such the indemnified party as a result of such Losses losses, claims, damages, liabilities or expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party on the one hand and the indemnified party on the other or (ii) if the allocation provided by clause (i) above is not permitted by Applicable Law or provides a lesser sum to the indemnified party than the amount hereinafter calculated, 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 and the indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided. Notwithstanding the foregoing, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale no holder of Registrable Securities sold by shall be required to contribute any amount in excess of the amount such Holder under a Registration Statement bears holder would have been required to the total net proceeds from the sale of all securities sold thereunder, but not in any event pay to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and an indemnified party shall be determined by reference to, among other things, whether 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, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and if the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. 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 indemnity under Section 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding3.7(b) was available. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution obligation of any Person to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does 3.7 shall be several and not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d)joint. (e) The An indemnifying party shall make payments of all amounts required to be made pursuant to the foregoing provisions of this Section 10 shall be in addition 3.7 to any liability which any indemnifying party may have to any or for the account of the indemnified party from time to time promptly upon receipt of bills or invoices relating thereto or when otherwise due or payable. (f) The indemnity and contribution agreements contained in this Section 3.7 shall remain in full force and effect regardless of any investigation made by or on behalf of a participating holder of Registrable Securities, its officers, directors, agents or any Person, if any, who controls such holder as aforesaid, and shall survive the Transfer of Equity Securities by such holder and the termination of this AgreementAgreement for any reason.

Appears in 1 contract

Samples: Stockholders Agreement (Associated Materials, LLC)

Indemnification; Contribution. (ai) The Company shall shall, without limitation as to time, indemnify and hold harmless harmless, to the full extent permitted by law, each Holder Stockholder, the officers, directors, members, agents and employees of Registrable Securities and each Personof them, if any, each Person who controls each such Holder Person (within the meaning of Section 15 of the Securities 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, liabilities liabilities, actions or proceedings (whether commenced or threatened) reasonable costs (including, without limitation, reasonable costs of preparation and reasonable attorneys' fees) and reasonable expenses (including reasonable attorneys' fees, disbursements and expenses, as incurredexpenses of investigation) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action), suitas incurred, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained inin any Registration Statement, prospectus or form of prospectus or in any amendment or supplements thereto or in any preliminary prospectus, or arising out of or based upon 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 therein or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, 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 (i) any to the extent, but only to the extent, that such untrue statement or alleged untrue statement is contained in, or such omission or alleged omission made is required to be contained in, any information so furnished in reliance on and in conformity with information with respect writing by the Company to such Holder 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, prospectus or form of prospectus; provided, however, that the Company shall not be liable in any such case to the extent that the Company has furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use Stockholder within a reasonable period of any Prospectus after such time as the obligation of the Company prior to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an any such Registration Statement or prospectus or amendment or supplement thereto is requiredinformation expressly for use in such Registration Statement or prospectus or any amendment or supplement thereto which corrected or made not misleading, except information previously furnished to such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a)Stockholder, and such Stockholder failed to include such information therein; provided, further, however, that the Company shall not be liable to any Holder Person who participates as an underwriter in the offering or to sale of Registrable Securities or any Person other Person, if any, who controls such Holder (underwriter(s) within the meaning of Section 15 of the Securities Act or Section 20 of to the Exchange Act) under the indemnity agreement in this Section 10(a) for extent that any such Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any Prospectus preliminary prospectus if either (i) (A) such Holder Person failed to send or deliver a copy of the Prospectus prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder Person to the Person asserting the claim from which such Losses arise and arise, (B) the Prospectus prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (yC) having previously been furnished 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 the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses ariseIndemnified Stockholder. (bii) In connection with any Registration Statement filed pursuant heretoin which a Stockholder is participating, each Holder of Registrable Securities to be covered thereby shallsuch Stockholder, jointly and severally with all other Holders that are Affiliates or an authorized officer of such Holder (andStockholder, otherwiseshall 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 with any other Holders)jointly, indemnify and hold harmless to indemnify, to the full extent permitted by law, the Company, its directors and directors, officers, agents and employees, each Person, if any, Person who controls the Company (within the meaning of Section 15 of the Securities Act or and Section 20 of the Exchange Act) ), and all other Holders the directors, officers, agents or employees of such controlling persons (each, an "Indemnified Company", and together with the Indemnified Stockholders, the "Indemnified Parties"), from and against all Losses incurred by such party pursuant to any actual or threatened actionLosses, suitas incurred, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained inin any Registration Statement, prospectus or form of prospectus or in any amendment or supplements thereto or in any preliminary prospectus, or arising out of or based upon 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 therein or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existing) not misleading, except to the extent, but only to the extent extent, that any 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 use in such Registration Statement or prospectus and that such statement or omission is made was reasonably relied upon by the Company in reliance on and preparation of such Registration Statement, prospectus or form of prospectus; provided, however, that such Stockholder shall not be liable in conformity with information with respect any such case to the extent that such Holder Stockholder has furnished in writing to the Company by within a reasonable period of time prior to the filing of any such Holder Registration Statement or its counsel specifically 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 the Company, and the Company failed to include such information therein; provided, however, that . In no event shall the liability of each Holder any selling Stockholder hereunder shall be limited to greater in amount than the proportion after-tax dollar amount of any the proceeds (net of payment of all expenses) received by such Losses that is equal to the proportion that the net proceeds from Stockholder upon the sale of the Registrable Securities sold giving rise to such indemnification obligation. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration StatementIndemnified Company. (ciii) Any Person entitled to indemnification hereunder agrees to Indemnified Party shall give prompt written notice to the indemnifying party after or parties from which such indemnity is sought (the receipt by such indemnified party of any written notice "Indemnifying Parties") of the commencement of any action, suit, proceeding or investigation or written threat thereof made in writing for (a "Proceeding") with respect to which such indemnified party may claim Indemnified Party seeks indemnification or contribution pursuant to this Agreementhereto; provided, provided however, that the failure to give such notification so notify the Indemnifying Parties shall not affect relieve the obligations of the indemnifying party pursuant to this Section 10 Indemnifying Parties from any obligation or liability except to the extent that the indemnifying party shall Indemnifying Parties have been actually prejudiced as a result of by such failure. In case 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 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 thereofProceeding, with counsel reasonably satisfactory to such indemnified partyIndemnified 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 after notice from to participate in the indemnifying party defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Indemnified Parties unless: (x) the Indemnifying Parties agree to pay such indemnified party of its election so fees and expenses; (y) the Indemnifying Parties fail promptly to assume the defense thereofof 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 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 Indemnifying Parties, the indemnifying party Indemnifying Parties shall not have the right to assume the defense thereof and such counsel shall be liable to such indemnified party for any legal expenses at the expense of other counsel or any other expensesthe Indemnifying Parties, in each case subsequently incurred by such indemnified partyit being understood, however, that, unless there exists a conflict among Indemnified Parties, the Indemnifying Parties shall not, in connection with the defense thereof other than reasonable costs of investigation, unless any one such Proceeding or separate but substantially similar or related Proceedings in the reasonable judgment same jurisdiction, arising out of any indemnified partythe same general allegations or circumstances, based on the written 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 separate firm of attorneys (together with appropriate local counsel) at any time for all Holders of Registrable Securities who are indemnified parties, selected such Indemnified Party or Indemnified Parties. Whether or not such defense is assumed by the Holders of a Majority of the Registrable Securities who are indemnified parties Indemnifying Parties, such Indemnifying Parties or Indemnified Party or Indemnified Parties will not be subject to any liability for any settlement made without its or their consent (which selection shall but such consent will not be reasonably satisfactory to the Companyunreasonably withheld), (ii) more than one counsel for the underwriters 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 The Indemnifying Parties shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 enter into any settlement which (A) provides for other than monetary damages without the consent of 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 the claimant or plaintiff to such indemnified party Indemnified Party or Indemnified Parties of a release 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 such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 10. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyindemnification hereunder. (div) If the indemnification from the indemnifying party provided for in this Section 10 4(g) is unavailable to an indemnified party hereunder Indemnified Party or is insufficient to hold such Indemnified Party harmless for any Losses in respect to any Lossesof which this Section 4(g) would otherwise apply by its terms, then the indemnifying partyeach applicable Indemnifying Party, in lieu of indemnifying such indemnified partyIndemnified Party, shall have a joint and several obligation to contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Losses Losses, in such proportion as is appropriate to reflect the relative fault of and relative benefit to the indemnifying party Indemnifying Party, on the one hand, and indemnified party such Indemnified Party, on the other hand, in connection with the actions which actions, statements or omissions that resulted in such Losses, Losses as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. 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 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, has been made taken by, or relates to information supplied by, such indemnifying party Indemnifying Party or indemnified partyIndemnified Party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent any such action, statement or omission. The amount paid or payable by a party as a result of the any Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and or expenses reasonably incurred by such indemnified party in connection with any investigation Proceeding, to the extent such party would have been indemnified for such expenses if the indemnification provided for in Section 4(g)(i) or proceeding4(g)(ii) was available to such party. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 4(g)(iv) were determined by pro-rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in this Section 4(g)(iv). Notwithstanding the provisions of this Section 4(g)(iv), an Indemnifying Party that is a selling Stockholder shall not be required to contribute any amount in excess of the amount by which the net after-tax proceeds received by such Indemnifying Party exceeds the amount of any damages that such Indemnifying Party has otherwise been required to pay by reasons 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 who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Amendment (Eplus Inc)

Indemnification; Contribution. (a) The Company shall agrees to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); providedPROVIDED, howeverHOWEVER, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The parties agree that it would not be just and equitable if contribution Initial Purchasers' respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 7 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Park Place Entertainment Corp)

Indemnification; Contribution. (a) The Company shall and the Parent jointly and severally agree to indemnify and hold harmless the Initial Purchaser, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company and the Parent; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Parent, the Initial Purchaser, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Parent, the Initial Purchaser, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification each indemnifying party of any action or proceeding commenced against it in respect of which indemnity may be sought hereunder, but failure so to notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder agrees to give prompt written notice the extent it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense of such action; provided, however, that counsel to the indemnifying party after shall not (except with the receipt by such indemnified party of any written notice consent 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 party) also be counsel to this Agreement, provided that failure to give such notification the indemnified party. In no event shall not affect the obligations of the indemnifying party pursuant or parties be liable for the fees and expenses of more than one counsel (in addition to this Section 10 except to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or related actions in the extent same jurisdiction arising out of the indemnifying party shall have been actually prejudiced as a result of such failuresame general allegations or circumstances. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereofaddition, the indemnifying party shall be entitled to participate therein andto, to the extent that it shall wishwishes, jointly with any other similarly notified indemnifying party similarly notifiedparty, to assume the defense thereof, of any claim or action brought against an indemnified party with counsel reasonably satisfactory to such the indemnified party, and after . After notice from the indemnifying party to such the indemnified party of its election so to assume the defense thereofof such claim or action, the indemnifying party shall not be liable to such the indemnified party under this Section 7 for any legal or other expenses of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, party in connection with the defense thereof other than reasonable costs of investigation; provided, unless however, that the Initial Purchaser shall have the right to employ one counsel to represent it and its officers, employees and controlling persons who may be subject to liability arising out of any claim in respect of which indemnity may be sought by the Initial Purchaser against the Company and the Parent under this Section 4 if, in the reasonable judgment of any indemnified partythe Initial Purchaser, based either (i) there is an actual or potential conflict between the position of the Company and the Parent on the written opinion one hand and the Initial Purchaser on the other hand or (ii) there may be defenses available to it or them that are different from or additional to those available to the Company and Parent (in any of counsel, a conflict of interest is likely which events the Company shall not have the right to exist between direct the indemnifying party and such indemnified party and any other defense of such indemnified parties action on behalf of the Initial Purchaser with respect to such claimdifferent defenses), in any of which event the indemnifying party shall not be liable for the events such reasonable fees and expenses shall be borne by the Company and Parent. No indemnifying party shall, without the prior written consent of (i) more than one counsel for all Holders of Registrable Securities who are the indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company and indemnified party the Parent on the one hand and the Holders and the Initial Purchaser on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company and indemnified party the Parent on the one hand and the Holders and the Initial Purchaser on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Parent, the Holders or indemnified party, the Initial Purchaser and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Parent, the Holders and the Initial Purchaser agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, the Initial Purchaser shall not be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which 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 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. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions For purposes of this Section 10 4, each Person, if any, who controls the Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall be in addition have the same rights to any liability which any indemnifying party may contribution as the Initial Purchaser or Holder, and each director of the Company, the Parent and each Person, if any, who controls the Company or the Parent within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to any indemnified party contribution as the Company and shall survive the termination of this AgreementParent.

Appears in 1 contract

Samples: Registration Rights Agreement (Alliant Energy Corp)

Indemnification; Contribution. (a) The Company shall and the Guarantors jointly and severally agree to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Guarantors, the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, any Guarantor, any Initial Purchaser, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in any Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin such Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or elects any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not tothe indemnified parties are actual or potential parties thereto), assume unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding 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 at any time an indemnified party shall have requested an indemnifying party to reimburse the defense of a claim shall not be obligated to pay the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than one counsel for all parties indemnified 45 days after receipt by such indemnifying party with respect to of the aforesaid request, (ii) such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 have received notice of the fees and expenses terms of such additional counselsettlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement; provided, provided that the an indemnifying party shall not be liable for any such settlement effected without its consent if such indemnifying party, prior to the date of such settlement, (1) reimburses such indemnified party in accordance with such request for the amount of such fees and expenses of counsel as the indemnifying party believes in good faith to be reasonable, and (i2) more than one counsel for all Holders of Registrable Securities who are provides written notice to the indemnified parties, selected by party that the Holders of a Majority indemnifying party disputes in good faith the reasonableness of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 unpaid balance 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 10. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyfees and expenses. (de) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Guarantors, the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Guarantors, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 Act1933 Xxx) shall xxall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Company or any Guarantor, and each Person, if any, who controls the Company or any Guarantor within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company and the Guarantors. The parties agree that it would not be just and equitable if contribution Initial Purchasers' respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 4 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Houston Stafford Electric Inc)

Indemnification; Contribution. (a) The Company shall Issuer agrees to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an “Underwriter”) and their respective affiliates, directors and officers and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Transfer Restricted Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Issuer; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of not more than one counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company Issuer by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the CompanyIssuer, its the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective affiliates, directors and officers, and each Person, if any, who controls the Company (Issuer, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company Issuer by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Transfer Restricted Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or parties with respect to such claim, in which event the indemnifying party shall not be liable for the reasonable fees and expenses of (i) more than one counsel (in addition to one local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection consent shall not be reasonably satisfactory to the Company), (iiunreasonably withheld) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement, unless such request is being disputed in good faith. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Issuer on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Issuer on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Issuer, such indemnifying party the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Issuer, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Issuer, and each Person, if any, who controls the Issuer within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Issuer. The parties agree that it would not be just and equitable if contribution Initial Purchasers’ respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 7 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Universal Hospital Services Inc)

Indemnification; Contribution. (a) The In connection with any Registration Statement, the Company shall agrees to indemnify and hold harmless the Initial Purchaser, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each person who participates as an underwriter (any such person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided, that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 agreement of this Section 4 shall not apply 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 made in reliance upon and in conformity with written information furnished to the Company by the Holder or Underwriter expressly for use in a Registration Statement (or any amendment thereto) or any Prospectus (or any amendment or supplement thereto); provided, further, that the Company shall not be liable to any such Holder, Participating Broker-Dealer or controlling person, with re- spect to any untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect any preliminary Prospectus to the extent that any such loss, liability, claim, damage or expense of any Holder, Participating Broker-Dealer or controlling person results from the fact that such Holder or Participating Broker-Dealer 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 final Prospectus as then amended or supplemented if the Company had previously furnished copies thereof to such Holder furnished in writing to or Participating Broker-Dealer and the Company by loss, liability, claim, damage or expense of such Holder Holder, Participating Broker-Dealer or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that arise out of or are based upon controlling person results from an untrue statement or alleged untrue statement or omission or alleged omission made of a material fact contained in any the preliminary Prospectus if either (i) (A) which was corrected in the final Prospectus. Any amounts advanced by the Company to an indemnified party pursuant to this Section 4 as a result of such Holder failed to send or deliver a copy of the Prospectus with or prior losses shall be returned to the delivery of written confirmation of the sale of Registrable Securities Company if it shall be finally determined by such Holder a court in a judgment not subject to appeal or final review that such indemnified party was not entitled to indemnification by the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses ariseCompany. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Initial Purchaser, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Initial Purchaser, each Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of the indemnity agreement of this Section 4. An indemnifying party may participate at its own expense in the defense of such failureaction. In case any such action shall be brought against any indemnified party and it shall notify the If an indemnifying party so elects within a reasonable time after receipt of the commencement thereofsuch notice, the an indemnifying party shall be entitled to participate therein andparty, to the extent that it shall wish, severally or jointly with any other indemnifying parties receiving such notice, may assume the defense of such action with counsel chosen by it and reasonably acceptable to the indemnified parties defendant (or target of) in such action, provided, however, that if (i) representation of such indemnified party similarly notifiedby the same counsel would present a conflict of interest or (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and any such indemnified party reasonably determines that there may be legal defenses available to such indemnified party which are different from or in addition to those available to such indemnifying party, then in the case of clauses (i) or (ii) of this Section 4(c) such indemnifying party and counsel for each indemnifying party or parties shall not be entitled to assume such defense. If an indemnifying party is not entitled to assume the defense thereofof such action as a result of the proviso to the preceding sentence, with counsel reasonably satisfactory for each indemnified party or parties shall be entitled to such indemnified party, and after notice from conduct the indemnifying party to defense of such indemnified party of its election so to assume or parties. If an indemnifying party assumes the defense thereofof such action, in accordance with and as permitted by the provisions of this paragraph, such indemnifying party parties shall not be liable to such indemnified party for any legal fees and expenses of other counsel or any other expenses, in each case subsequently for the indemnified parties incurred by such indemnified party, thereafter in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between such action. In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, without the prior writ- ten consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or elects any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not tothe indemnified parties are actual or potential parties thereto), assume unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding 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 at any time an indemnified party shall have requested an indemnifying party to reimburse the defense of a claim shall not be obligated to pay the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than one counsel for all parties indemnified 45 days after receipt by such indemnifying party with respect of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such claimsettlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. Notwithstanding the immediately preceding sentence, unless in the reasonable judgment of if at any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between time an indemnified party and any other of such indemnified parties with respect to such claim, in which event the shall have requested an indemnifying party shall be obligated to pay reimburse the indemnified party for fees and expenses of such additional counsel, provided that the an indemnifying party shall not be liable for any settlement of the fees and expenses of nature contemplated by Section 4(a)(ii) effected without its consent if such indemnifying party (i) more than one counsel for all Holders of Registrable Securities who are reimburses such indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory party in accordance with such request to the Company), extent it considers such request to be reasonable and (ii) more than one counsel for provides written notice to the underwriters or (iii) more than one counsel for indemnified party substantiating the Companyunpaid balance as unreasonable, 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 prior to the entry date 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 10. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partysettlement. (de) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of benefits received by the indemnifying party Company on the one hand, and indemnified party the Holders and the Initial Purchaser on the other hand, in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders and the Initial Purchaser on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Holders or indemnified party, the Initial Purchaser and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid or payable by a party as a result of Company, the Losses referred to above shall be deemed to include, subject to Holders and the limitations set forth in Section 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties Initial Purchaser agree that it would not be just and equitable if contribution pursuant to this Section 10(d) 4 were determined by pro rata allocation or by any other method of allocation that which does not take into account of the consideration equitable considerations referred to above in this Section 10(d4(e). If indemnification is available under this Section 10The aggregate amount of losses, the indemnifying parties shall indemnify each liabilities, claims, damages and expenses incurred by an indemnified party and referred to the full extent provided in Section 10(a) or 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 above in this Section 10(d). (e4(e) The shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in 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 untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 10 4(e), the Initial Purchaser shall not be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which 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 guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be in addition entitled to contribution from any liability which any indemnifying party may have to any indemnified party and shall survive the termination person who was nxx xxxxxy of such fraudulent misrepresentation. For purposes of this AgreementSection 4(e), each Person, if any, who controls the Initial Purchaser or a Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Initial Purchaser or Holder, and each director of the Company and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company.

Appears in 1 contract

Samples: Registration Rights Agreement (Fisher Scientific International Inc)

Indemnification; Contribution. (a) The Company shall indemnify and hold harmless each Holder of Registrable Securities the Selling Stockholders, and each Person, person (if any, ) who controls such Holder (Selling Stockholder within the meaning of Section 15 of the Securities Act of 1933, as amended (the "Act"), against all losses, claims, damages and liabilities and expense (including all reasonable fees and disbursements of counsel incurred in defending against any such claim, damage or Section 20 liability) caused by any untrue statement or alleged untrue statement of a material fact contained in the registration statement filed or to be filed with the Securities and Exchange Commission (the "Commission"), in connection with the Public Offering, as the same may be amended or supplemented from time to time (the "Registration Statement") or in any prospectus filed with, or delivered to, the Commission in connection with the Public Offering, or caused by any omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein, in the light of the Exchange Actcircumstances in which they were made, not misleading; provided, however, insofar as such losses, claims, -------- ------- damages, or liabilities are caused by an untrue statement of a material fact contained in, or any material fact omitted from, information relating to a Selling Stockholder furnished in writing to the Company by such Selling Stockholder for use in the Registration Statement or any amendment or supplement thereto, or any such prospectus, then the Company shall have no obligation hereunder to indemnify the Selling Stockholder furnishing such information. (b) Each Selling Stockholder shall indemnify each of the Company and the other Selling Stockholders, and each person (if any) who controls the Company or such other Selling Stockholder within the meaning of Section 15 of the Act against all losses, claims, damages and liabilities and expense (including all reasonable fees and disbursements of counsel incurred in defending against any such claim, damage or liability) caused by any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or in any prospectus filed with, or delivered to, the Commission in connection with the Public Offering, or caused by any omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading, but only with respect to information relating to such Selling Stockholder furnished in writing by or on behalf of such Selling Stockholder expressly for use in the Registration Statement or any amendment or supplement thereto, or any such prospectus, provided, however, no -------- ------- Selling Stockholder shall be liable in an amount that exceeds the aggregate initial public offering price of the Stockholder Shares sold by the Selling Stockholder, net of the underwriting discount. (c) The indemnity agreements of the Company and the Selling Stockholders contained in this Section 2 shall remain operative and in full force and effect regardless of any investigation made by or on behalf of any indemnified party and shall survive delivery of shares of Common Stock pursuant to the Public Offering. (d) In order to provide for just and equitable contribution in circumstances in which indemnification provided for in paragraph (a) of this Section 2 is unavailable, the Company and each of the Selling Stockholders shall contribute to the aggregate losses, claims, damages, liabilities and expenses (including all reasonable attorneys' feesfees and disbursements of counsel incurred in defending against any claim, disbursements and expenses, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained indamage, or any omission liability), to which one 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 more of the foregoing or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, 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 (i) 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 such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not Selling Stockholders may be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary 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 on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. (c) 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 10 except to the extent the indemnifying party shall have been actually 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, 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 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, unless in the reasonable judgment of any indemnified party, based on the written 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 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 10 is unavailable to an indemnified party hereunder in respect to any Losses, then the indemnifying 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 Losses subject in such proportion as is appropriate to reflect the relative relevant fault of the indemnifying party Company and indemnified party the respective Selling Stockholders in connection with the actions which statements or omissions that resulted in such Losseslosses, claims, damages, liabilities and expenses as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not that: -------- ------- (i) in any event to exceed the net proceeds received by case where any Selling Stockholder is seeking contribution hereunder such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether 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, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. 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 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) Selling Stockholder shall be entitled to contribution from the remaining Selling Stockholders pursuant to this Agreement only after first seeking contribution from the Company; (ii) no Selling Stockholder shall in any Person who was not guilty case be required to contribute or make any payments under this paragraph (d) which in the aggregate exceed his pro rata share of such fraudulent misrepresentation. The parties agree losses, claims, damages, liabilities and expenses determined in accordance with the total number of Company Shares and Stockholder Shares sold by each respective party hereto provided, however, that, except as set forth in subparagraph (iii) of this -------- ------- paragraph (d), no Selling Stockholder shall be liable to contribute an amount that it would not be just and equitable if exceeds the aggregate public offering price of the Stockholder Shares sold by the Selling Stockholder, net of the underwriting discount; (iii) in the event the Company or any Selling Stockholder defaults on its obligation to make any contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(dparagraph (d). If indemnification is available under this Section 10, the indemnifying amount by which each of the remaining parties is obligated to contribute hereunder shall indemnify be increased in accordance with the relation of the number of shares of Common Stock being sold by each indemnified such remaining party to the full extent provided in Section 10(a) or 10(b), as the case may be, without regard to the relative fault aggregate number of shares of Common Stock being sold by all such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d).remaining parties; (eiv) The provisions neither the Company nor any Selling Stockholder will be required to make any contribution to another Selling Stockholder with respect to matters for which the other Selling Stockholder would not otherwise be entitled to be indemnified under paragraph (a) of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination 2 had such indemnification been available; and (v) for purposes of this Agreementparagraph (d), each person, if any, who controls a Selling Stockholder within the meaning of Section 15 of the Act, and each director, officer or partner (if any) of such Selling Stockholder, shall have the same rights to contribution under this Agreement as such Selling Stockholder.

Appears in 1 contract

Samples: Selling Stockholder Agreement (Brooks Automation Inc)

Indemnification; Contribution. (a) The With respect to the Securities, the Company shall agrees to indemnify and hold harmless the Dealer Manager, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an “Underwriter”) and each Person, if any, who controls any such Holder (Person within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act with respect to the Securities as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Notes or Transfer Restricted Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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; ACTIVE 226080753v.4 provided, however, that this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Dealer Manager, each Underwriter, each Participating Broker-Dealer and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Dealer Manager, any Underwriter, any Participating Broker-Dealer or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Transfer Restricted Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 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, unless in the reasonable judgment of any indemnified party, based on the written 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 the indemnified party) also be counsel to the indemnified party. No indemnifying party shall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party.. ACTIVE 226080753v.4 (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company on the one hand and indemnified party the Holders, Underwriters, Participating Broker-Dealers and the Dealer Manager on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders, Underwriters, Participating Broker-Dealers and the Dealer Manager on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Holders, Underwriters, Participating Broker-Dealers or indemnified party, the Dealer Manager and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Holders, Underwriters, Participating Broker-Dealers and the Dealer Manager agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, neither the Dealer Manager nor any Holder, Participating Broker-Dealer or Underwriter shall be required to contribute any amount in excess of the amount by which the net proceeds received by such Holder from the sale of the Securities exceeds the amount of any damages which such Dealer Manager, Holder, Participating Broker-Dealer or Underwriter has otherwise been required to pay by reason of such ACTIVE 226080753v.4 untrue or alleged untrue statement or omission or alleged omission with respect to the Securities from the sale of the Securities. 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. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions For purposes of this Section 10 4, each Person, if any, who controls the Dealer Manager or a Holder, Participating Broker-Dealer or Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall be in addition have the same rights to any liability which any indemnifying party may contribution as such Dealer Manager, Holder, Participating Broker-Dealer or Underwriter and each director of the Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to any indemnified party and shall survive contribution as the termination of this AgreementCompany.

Appears in 1 contract

Samples: Registration Rights Agreement (Norfolk Southern Corp)

Indemnification; Contribution. (a) The Company shall agrees to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "Underwriter"), their respective affiliates, and each Person, if any, who controls any of such Holder (parties within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act and each of their respective directors, officers, employees and agents, as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party, except to the extent otherwise expressly provided in Section 4(c) hereof), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by the Initial Purchasers, such Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is requiredthereto); provided, except further, that such indemnity with respect to any preliminary prospectus shall not inure to the benefit of any Initial Purchaser, Holder or Underwriter (or any persons controlling such Initial Purchaser, Holder or Underwriter) (i) from whom the person asserting such loss, claim, damage or liability purchased the Securities which are the subject thereof if such person did not receive a copy of the final Prospectus (or the final Prospectus as so amended or supplemented. Notwithstanding ) at or prior to the foregoing provisions confirmation of this Section 10(a), the sale of such Securities to such person in any case where the Company shall not be liable to complied with its obligations under Sections 3(c) and 3(f)(A)(ii) hereof and any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that arise out of or are based upon an untrue statement or omission or alleged untrue statement or omission of a material fact contained in such preliminary prospectus (or alleged omission made any amendment or supplement thereto) was corrected in any the final Prospectus if either (ior the final Prospectus as amended or supplemented) (A) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to if it resulted from the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies use of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to during a period when the delivery of written confirmation use of the sale Prospectus has been suspended in accordance with Section 2.4(b) or Sections 3(e)(ii), 3(e)(iii), 3(e)(v) and 3(e)(vi) hereof; provided, in each case, that Holders received prior notice of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arisesuspension . (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant to any actual or threatened actionloss, suitliability, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained inclaim, 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 or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, damage and expense described in the light of the circumstances then existingindemnity contained in Section 4(a) not misleadinghereof, as incurred, but only with respect to untrue statements or omissions, or alleged (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of any action or proceeding commenced against it in respect of which indemnity may be sought hereunder, but failure so to notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder to the extent that any such untrue statement or omission it is made in reliance on not materially prejudiced as a result thereof and in conformity with information with respect to any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense of such Holder furnished in writing to the Company by such Holder or its counsel specifically for use thereinaction; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. (c) Any Person entitled to indemnification hereunder agrees to give prompt written notice counsel to the indemnifying party after shall not (except with the receipt by such indemnified party of any written notice consent 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 10 except party) also be counsel to the extent indemnified party. Notwithstanding the indemnifying party shall have been actually prejudiced as foregoing, if it so elects within a result reasonable time after receipt of such failure. In case any such action shall be brought against any indemnified party and it shall notify the notice, an indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall wishparty, jointly with any other indemnifying party similarly notifiedparties receiving such notice, to may assume the defense thereof, of such action with counsel chosen by it and approved by the indemnified parties defendant in such action (which approval shall not be unreasonably withheld), unless such indemnified parties reasonably satisfactory object to such indemnified assumption on the ground that there may be legal defenses available to them which are different from or in addition to those available to such indemnifying party, and after notice from the . If an indemnifying party to such indemnified party of its election so to assume assumes the defense thereofof such action, the indemnifying party shall not be liable to such indemnified party for any legal fees and expenses of other counsel or any other expenses, in each case subsequently for the indemnified parties incurred by such indemnified party, thereafter in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between such action. In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to, or insufficient to hold harmless, an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand, the Holders on another hand, and the Initial Purchasers on another hand, from the offering of the Securities, the Exchange Securities and the Registrable Securities (taken together) included in such offering 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 benefits referred to in clause (i) above but also the relative fault of the indemnifying party Company on the one hand, the Holders on another hand and indemnified party the Initial Purchasers on another hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that . The relative benefits received by the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds Company from the sale offering of the Securities, the Exchange Securities and the Registrable Securities sold by (taken together) included in such Holder under a Registration Statement bears offering shall in each case be deemed to include the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale Company in connection with the offering of the Securities pursuant to the Purchase Agreement. The parties hereto agree that any underwriting discount or commission or reimbursement of fees paid to the Initial Purchasers pursuant to the Purchase Agreement shall not be deemed to be a benefit received by the Initial Purchasers in connection with the offering of the Exchange Securities or Registrable Securities covered by included in such Registration Statementoffering. The relative fault of such indemnifying party the Company on the one hand, the Holders on another hand, and indemnified party the Initial Purchasers on another hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid or payable by a party as a result of Company, the Losses referred to above shall be deemed to include, subject to Holders and the limitations set forth in Section 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 10(d) 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or by any other method of allocation that which does not take into account of the consideration equitable considerations referred to above in this Section 10(d)4. If indemnification is available under this Section 10The aggregate amount of losses, the indemnifying parties shall indemnify each liabilities, claims, damages and expenses incurred by an indemnified party and referred to the full extent provided in Section 10(a) or 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 above in this Section 10(d). (e) The 4 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in 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 untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 10 4, no Initial Purchaser shall be required to contribute any amount in addition excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 1933 Xxx) xxall be entitled to contribution from any liability which any indemnifying party may have to any indemnified party and shall survive the termination person who was not guilty of such fraudulent misrepresentation. For purposes of this AgreementSection 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Company, each officer of the Company who signed the Registration Statement and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Initial Purchasers' respective obligations to contribute pursuant to this Section 4 are several in proportion to the principal amount of Securities set forth opposite their respective names in Schedule A to the Purchase Agreement and not joint.

Appears in 1 contract

Samples: Registration Rights Agreement (Di Giorgio Corp)

Indemnification; Contribution. (a) The With respect to the Securities, the Company shall agrees to indemnify and hold harmless the Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act with respect to the Securities as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Notes or Transfer Restricted Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Transfer Restricted Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 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, unless in the reasonable judgment of any indemnified party, based on the written 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 the indemnified party) also be counsel to the indemnified party. No indemnifying party shall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company on the one hand and indemnified party the Holders and the Purchasers of the Securities on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders and the Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Holders or indemnified party, the Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Holders and the Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Purchaser or Holder shall be required to contribute any amount in excess of the amount by which the net proceeds received by such Holder from the sale of the Securities exceeds the amount of any damages which such Purchaser or Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission with respect to the Securities from the sale of the Securities. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act1000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls a Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Purchaser or Holder, and each director of the Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The parties agree that it would not be just and equitable if contribution Purchasers' respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 7 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Norfolk Southern Corp)

Indemnification; Contribution. (a) The Company shall agrees to indemnify and hold harmless the Initial Purchaser, each Holder of Registrable Securities beneficial owner named as a selling security holder in the Prospectus, each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such Holder (any beneficial owner named as a selling security holder in the Prospectus or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin the Shelf Registration Statement (or any amendment or supplement thereto) pursuant to which Debentures were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; PROVIDED THAT (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense, as incurred (including the fees and disbursements of counsel chosen by any indemnified party as provided therein), reasonably incurred in investigating or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder the beneficial owner or its counsel Underwriter expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or any Prospectus (or any amendment or supplement thereto), and PROVIDED FURTHER, that the Company shall not indemnify any Underwriter or any person who controls such Underwriter from any loss, liability, claim or damage (or expense incurred in connection therewith) alleged by any person who purchased Debentures from such Underwriter if the untrue statement, omission or allegation thereof upon which such loss, liability, claim or damage is based was made in (i) any preliminary prospectus, if a copy of the Prospectus (as then amended or supplemented if the Company shall have furnished any amendments or supplements thereto) was not sent or given by or on behalf of such Underwriter to such person at or prior to the written confirmation of the sale of Debentures to such person, and if the Prospectus (as so amended or supplemented) corrected the untrue statement or omission giving rise to such loss, claim, damage or liability; (ii) the use of any Prospectus used by such Underwriter or any Person who controls such Underwriter, after such time as the Company advised the Underwriters that the filing of a post-effective amendment or supplement thereto was required, except the Prospectus as so amended or supplemented, if the Prospectus as amended or supplemented by such post-effective amendment or supplement would not have given rise to such loss, liability, claim or damage; or (iii) any Prospectus used after such time as the obligation of the Company to keep the same current and effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses ariseexpired. (b) In connection with any Registration Statement filed pursuant heretoEach beneficial owner severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Initial Purchaser, each Underwriter and the other selling beneficial owners, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Initial Purchaser, any Underwriter or any other selling beneficial owner within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder beneficial owner furnished in writing to the Company by such Holder or its counsel specifically beneficial owner expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); providedPROVIDED, howeverHOWEVER, that the liability of each Holder hereunder no such beneficial owner shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder beneficial owner from the sale of Registrable Securities covered by such Debentures pursuant to the Shelf Registration Statement. (c) Any Person entitled to indemnification hereunder agrees to Each indemnified party shall give prompt written notice as promptly as reasonably practicable to each indemnifying party of any action or proceeding commenced against it in respect of which indemnity may be sought hereunder, and the indemnifying party after shall assume the receipt defense thereof, including the employment of counsel satisfactory to the indemnified party, and the payment of all expenses. Any omission to so notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. Any such indemnified party shall have the right to employ separate counsel in any such action or proceeding and to participate in the defense thereof, but the fees and expenses of such separate counsel shall be paid 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 unless (a) the indemnifying party pursuant has agreed to this Section 10 except to the extent pay such fees and expenses or (b) the indemnifying party shall have been actually 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, failed to assume the defense thereof, with of such action or proceeding and employ counsel reasonably satisfactory to the indemnified party in any such action or proceeding or (c) the named parties to any such action of proceeding (including any impleaded parties) include both such indemnified party and indemnifying party, and after notice from the indemnified party shall have been advised by its counsel that there may be a conflict of interest between such indemnified party and indemnifying party in the conduct of the defense of such action (in which case, if such indemnified party notifies the indemnifying party in writing that it elects to such indemnified party employ separate counsel at the expense of its election so to assume the defense thereofindemnifying party, the indemnifying party shall not be liable have the right to assume the defense of such indemnified party for any legal expenses action or proceeding on behalf 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 investigationit being understood, unless in the reasonable judgment of any indemnified partyhowever, based on the written 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 that the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders of Registrable Securities who are indemnified partiesnot, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one such action or proceeding or separate but substantially similar or related actions. An indemnifying party who is not entitled toactions or proceedings arising out of the same general allegations or circumstances, or elects not to, assume be liable for the defense of a claim shall not be obligated to pay the reasonable fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, separate firm of attorneys (unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other members of such indemnified parties with respect firm are not admitted to such claimpractice in a jurisdiction where an action is pending, in which event case the indemnifying party shall be obligated to pay the reasonable fees and expenses of one additional firm of attorneys to act as local counsel in such additional counseljurisdiction, provided the services of such counsel are substantially limited to that the indemnifying party shall not be liable for the fees and expenses of (iappearing as attorneys of record) more than one counsel at any time for all Holders of Registrable Securities who are indemnified parties, selected which firm shall be designated in writing by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsparty. No indemnifying party, in defense of any such action, suit, proceeding or investigation, party shall, except with without the prior written consent of each the indemnified partyparties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party., (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) hereof effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into, and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to hold harmless an indemnified party hereunder (other than by reason of the first sentence of Section 4(c) hereof) in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the beneficial owners and the Initial Purchaser on the other hand from the offering of the Debentures included in such offering 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 benefits referred to in clause (i) above but also the relative fault of the indemnifying party Company on the one hand and indemnified party the beneficial owners and the Initial Purchaser on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that . The relative benefits received by the liability Company on the one hand and the beneficial owners and the Initial Purchaser on the other hand in connection with the offering of each Holder hereunder the Debentures included in such offering shall be limited deemed to be in the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to same respective proportions as the total net proceeds from the sale offering of all securities sold thereunder, but not in any event the Debentures pursuant to exceed the net proceeds Purchase Agreement (before deducting expenses) received by such Holder from the sale Company and the total underwriting discount received by the Initial Purchaser, bear to the aggregate initial offering price of Registrable Securities covered by such Registration Statementthe Debentures. The relative fault of such indemnifying party the Company on the one hand and indemnified party the beneficial owners and the Initial Purchaser on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the beneficial owners or indemnified party, the Initial Purchaser and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the beneficial owners and the Initial Purchaser agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Holders and the Initial Purchaser were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, the Initial Purchaser shall not be required to contribute any amount in excess of the amount by which the total price at which the Debentures purchased and sold by it were offered exceeds the amount of any damages which 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 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. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions For purposes of this Section 10 4, each Person, if any, who controls an Initial Purchaser or beneficial owner within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act, shall be in addition have the same rights to any liability which any indemnifying party may contribution as such Initial Purchaser or beneficial owner, and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to any indemnified party and shall survive contribution as the termination of this AgreementCompany.

Appears in 1 contract

Samples: Registration Rights Agreement (Liberty Media Corp /De/)

Indemnification; Contribution. (a) The With respect to the Securities, the Company shall agrees to indemnify and hold harmless each Holder of Registrable Securities the Dealer Managers, each Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an “Underwriter”) and each Person, if any, who controls any such Holder (Person within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act with respect to the Securities as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Notes or Transfer Restricted Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its each of the Dealer Managers, each Underwriter, each Participating Broker-Dealer and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, each of the Dealer Managers, any Underwriter, any Participating Broker-Dealer or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Transfer Restricted Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 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, unless in the reasonable judgment of any indemnified party, based on the written 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 the indemnified party) also be counsel to the indemnified party. No indemnifying party shall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company on the one hand and indemnified party the Holders, Underwriters, Participating Broker-Dealers and the Dealer Managers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders, Underwriters, Participating Broker-Dealers and the Dealer Managers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Holders. Underwriters, Participating Broker-Dealers or indemnified party, the Dealer Managers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Holders, Underwriters, Participating Broker-Dealers and the Dealer Managers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Dealer Managers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Dealer Manager, Holder, Participating Broker-Dealer or Underwriter shall be required to contribute any amount in excess of the amount by which the net proceeds received by such Holder from the sale of the Securities exceeds the amount of any damages which such Dealer Manager, Holder, Participating Broker-Dealer or Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission with respect to the Securities from the sale of the Securities. 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 4, each Person, if any, who controls a Dealer Manager, Holder, Participating Broker-Dealer or Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Dealer Manager, Holder, Participating Broker-Dealer or Underwriter and each director of the Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The parties agree that it would not be just and equitable if contribution Dealer Managers’ respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does 7 are several and not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d)joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Norfolk Southern Corp)

Indemnification; Contribution. (a) The Company shall indemnify and hold harmless agrees, notwithstanding the termination of this Agreement, to indemnify, to the fullest extent permitted by law, each Holder holder of Registrable Securities Securities, its officers, directors, employees, advisors, agents and Affiliates and each Person, if any, who Person that controls such Holder (within the meaning of Section 15 the Securities Act) such holder (collectively, “Holder Indemnified Parties”) from and against any and all losses, claims, damages, liabilities and expenses, including attorneys’ fees and disbursements and expenses of investigation (collectively, “Losses”), caused by any untrue or alleged untrue statement of material fact contained in any registration statement, prospectus or preliminary prospectus or any amendment thereof or supplement thereto, any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, or violation or alleged violation by the Company of the Securities Act, the Exchange Act, any applicable state securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act or any applicable state securities law; provided, however, that the Company shall not be liable to any holder for any Losses that are (i) caused by or contained in any information furnished in writing to the Company by a Holder Indemnified Party expressly for use therein or (ii) caused by such Holder Indemnified Party’s failure to deliver a copy of the registration statement or prospectus or any amendments or supplements thereto after the Company has furnished such Holder Indemnified Party in a timely manner with a sufficient number of copies of the same. In connection with an underwritten offering, the Company shall indemnify such underwriters, their officers and directors and each Person who controls such underwriters (within the meaning of the Securities Act) 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 shall furnish to the Company in writing such information and affidavits as the Company reasonably requests for use in connection with any such registration statement or prospectus and, to the extent permitted by law, shall indemnify the Company, its directors, officers, employees, agents and Affiliates and each Person who controls (within the meaning of the Securities Act or Section 20 of and the Exchange Act) the Company from and against any and all losses, claims, damages, liabilities and expenses (including reasonable attorneys' fees, disbursements and expenses, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon resulting from any untrue or alleged untrue statement of a material fact contained inin the registration statement, prospectus or preliminary prospectus or any amendment thereof or supplement thereto 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 therein or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, 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 (i) 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 such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary 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 contained in reliance on and in conformity with any information with respect to such Holder or affidavit so furnished in writing to the Company by such Holder or its counsel specifically holder expressly for use therein; provided, however, provided that the liability of obligation to indemnify shall be individual, not joint and several, for each Holder hereunder holder and shall be limited to the proportion net amount of any proceeds received by such Losses that is equal to the proportion that the net proceeds holder from the sale of Registrable Securities sold by pursuant to such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statementregistration statement. (c) Any Person entitled to indemnification hereunder agrees to shall (i) 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 claim with respect to which such indemnified party may claim it seeks indemnification or contribution pursuant to this Agreement, (provided that the failure to give such notification prompt notice shall not affect the obligations of the indemnifying party pursuant impair any Person’s right to this Section 10 except indemnification hereunder to the extent such failure has not prejudiced the indemnifying party shall have been actually prejudiced as party) and (ii) unless in such indemnified party’s reasonable judgment a result conflict of interest between such failure. In case any indemnified and indemnifying parties may exist with respect to such action shall be brought against any indemnified party and it shall notify the claim, permit such 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, of such claim with counsel reasonably satisfactory to such the indemnified party, and after notice from the indemnifying party to . If such indemnified party of its election so to assume the defense thereofis assumed, the indemnifying party shall not be liable subject to such any liability for any settlement made by the indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by without its consent (but such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written 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 consent shall not be liable for the fees and expenses of (i) more than one counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Companyunreasonably withheld), (ii) more than one counsel for the underwriters 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 (1) counsel (plus one (1) local counsel in each applicable jurisdiction) for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, party a conflict of interest is likely to may exist between an such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying . The indemnified party shall be obligated have the right to pay employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such additional counselcounsel shall be paid by the indemnified party unless (x) the indemnifying party agrees to pay the same, provided (y) the indemnifying party fails to assume the defense of such action with counsel satisfactory to the indemnified party in its reasonable judgment or (z) the indemnified party reasonably believes that the joint representation of the indemnified party and any other party in such proceeding (including but not limited to the indemnifying party) would be inappropriate under applicable standards of professional conduct. In the case of clause (y) above and (z) above, the indemnifying party shall not be liable for have the fees and expenses right to assume the defense of (i) more than one counsel for all Holders such action on behalf of Registrable Securities who are such indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsparty. No indemnifying party, in defense of any such action, suit, proceeding or investigation, party shall, except with without the written consent of each the indemnified party, effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or entry into any settlement 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 (1) includes an unconditional release of the indemnified party from all liability arising out of such action or claim and (2) does not include a statement as to, or an unconditional term thereof the giving admission of, fault, culpability or a failure to act by the claimant or plaintiff on behalf of any indemnified party. The rights afforded to any indemnified party hereunder shall be in addition to any rights that such indemnified party of a release from all liability in respect to such actionmay have at common law, suit, proceeding by separate agreement or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 10. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyotherwise. (d) The indemnification provided for under this Agreement shall remain in full force and effect regardless of any investigation made by or on behalf of the indemnified party or any officer, director or controlling Person of such indemnified party and shall survive the transfer of Registrable Securities. (e) If the indemnification required by this Section 6 from the indemnifying party provided for in this Section 10 is unavailable or insufficient to hold harmless an indemnified party hereunder in respect of any losses, claims, damages, liabilities or expenses referred to any Losses, then the in this Section 6: (i) The indemnifying 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 Losses losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party parties in connection with the actions which resulted in such Losseslosses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and indemnified party parties shall be determined by reference to, among other things, whether 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, question has been made committed by, or relates to information supplied by, such indemnifying party or indemnified partyparties, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionaction in question. The amount paid or payable by a party as a result of the Losses losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 10(c6(a) and Section 6(b), any legal or other fees and or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. (ii) The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 6(e) were determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in Section 6(e)(i). No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Calpine Corp)

Indemnification; Contribution. (a) The Company shall shall, without limitation as to time, indemnify and hold harmless harmless, to the full extent permitted by law, each Holder Stockholder, the officers, directors, members, agents and employees of Registrable Securities and each Personof them, if any, each Person who controls each such Holder Person (within the meaning of Section 15 of the Securities 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, liabilities liabilities, actions or proceedings (whether commenced or threatened) reasonable costs (including, without limitation, reasonable costs of preparation and reasonable attorneys' fees) and reasonable expenses (including reasonable attorneys' fees, disbursements and expenses, as incurredexpenses of investigation) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action), suitas incurred, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained inin any Registration Statement, prospectus or form of prospectus or in any amendment or supplements thereto or in any preliminary prospectus, or arising out of or based upon 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 therein or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, 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 (i) any to the extent, but only to the extent, that such untrue statement or alleged untrue statement is contained in, or such omission or alleged omission made is required to be contained in, any information so furnished in reliance on and in conformity with information with respect writing by the Company to such Holder 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, prospectus or form of prospectus; provided, however, that the Company shall not be liable in any such case to the extent that the Company has furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use Stockholder within a reasonable period of any Prospectus after such time as the obligation of the Company prior to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an any such Registration Statement or prospectus or amendment or supplement thereto is requiredinformation expressly for use in such Registration Statement or prospectus or any amendment or supplement thereto which corrected or made not misleading, except information previously furnished to such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a)Stockholder, and such Stockholder failed to include such information therein; provided, further, however, that the Company shall not be liable to any Holder Person who participates as an underwriter in the offering or to sale of Registrable Securities or any Person other Person, if any, who controls such Holder (underwriter(s) within the meaning of Section 15 of the Securities Act or Section 20 of to the Exchange Act) under the indemnity agreement in this Section 10(a) for extent that any such Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any Prospectus preliminary prospectus if either (i) (A) such Holder Person failed to send or deliver a copy of the Prospectus prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder Person to the Person asserting the claim from which such Losses arise and arise, (B) the Prospectus prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (yC) having previously been furnished the Company has complied with its obligations under Section 7(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 the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses ariseIndemnified Stockholder. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary 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 on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. (c) 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 10 except to the extent the indemnifying party shall have been actually 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, 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 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, unless in the reasonable judgment of any indemnified party, based on the written 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 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 10 is unavailable to an indemnified party hereunder in respect to any Losses, then the indemnifying 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 Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether 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, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. 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 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Stockholders Agreement (MLC Holdings Inc)

Indemnification; Contribution. (a) The Company shall agrees to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "Underwriter"), their respective affiliates, and each Person, if any, who controls any of such Holder (parties within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act and each of their respective directors, officers, employees and agents, as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party, except to the extent otherwise expressly provided in Section 4(c) hereof), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by the Initial Purchasers, such Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is requiredthereto); provided, except further, that such indemnity with respect to any preliminary prospectus shall not inure to the benefit of any Initial Purchaser, Holder or Underwriter (or any persons controlling such Initial Purchaser, Holder or Underwriter) (i) from whom the person asserting such loss, claim, damage or liability purchased the Securities which are the subject thereof if such person did not receive a copy of the final Prospectus (or the final Prospectus as so amended or supplemented. Notwithstanding ) at or prior to the foregoing provisions confirmation of this Section 10(a), the sale of such Securities to such person in any case where the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of complied with its obligations under Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii3(c) or (iii3(f)(A)(ii) of the immediately preceding sentence or that arise out of or are based upon an hereof, as applicable, and any such untrue statement or omission or alleged untrue statement or omission of a material fact contained in such preliminary prospectus (or alleged omission made any amendment or supplement thereto) was corrected in any the final Prospectus if either (ior the final Prospectus as amended or supplemented) (A) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to if it resulted from the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies use of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to during a period when the delivery of written confirmation use of the sale Prospectus has been suspended in accordance with Section 2.4(b) or Sections 3(e)(ii), 3(e)(iii), 3(e)(v) and 3(e)(vi) hereof; provided, in each case, that Holders received prior notice of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arisesuspension. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification each indemnifying party of any action or proceeding commenced against it in respect of which indemnity may be sought hereunder, but failure so to notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder agrees to give prompt written notice the extent it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense of such action; provided, however, that counsel to the indemnifying party after shall not (except with the receipt by such indemnified party of any written notice consent 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 10 except party) also be counsel to the extent indemnified party. Notwithstanding the indemnifying party shall have been actually prejudiced as foregoing, if it so elects within a result reasonable time after receipt of such failure. In case any such action shall be brought against any indemnified party and it shall notify the notice, an indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall wishparty, jointly with any other indemnifying party similarly notifiedparties receiving such notice, to may assume the defense thereof, of such action with counsel chosen by it and approved by the indemnified parties defendant in such action (which approval shall not be unreasonably withheld), unless such indemnified parties reasonably satisfactory object to such indemnified assumption on the ground that there may be legal defenses available to them which are different from or in addition to those available to such indemnifying party, and after notice from the . If an indemnifying party to such indemnified party of its election so to assume assumes the defense thereofof such action, the indemnifying party shall not be liable to such indemnified party for any legal fees and expenses of other counsel or any other expenses, in each case subsequently for the indemnified parties incurred by such indemnified party, thereafter in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between such action. In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim the indemnified parties (which consent shall not be obligated unreasonably withheld), settle or compromise or consent to pay the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding 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 at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than one counsel for all parties indemnified 45 days after receipt by such indemnifying party with respect of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such claimsettlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. Notwithstanding the immediately preceding sentence, unless in if at any time an indemnified party shall have requested an indemnifying party to reimburse the reasonable judgment of any indemnified party, based on the written opinion party for fees and ex- penses of counsel, a conflict of interest is likely to 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 any settlement of the fees and expenses of nature contemplated by Section 4(a)(ii) effected without its consent if such indemnifying party (i) more than one counsel for all Holders of Registrable Securities who are reimburses such indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory party in accordance with such request to the Company), extent it reasonably considers such request to be reasonable and (ii) more than one counsel for provides written notice to the underwriters or (iii) more than one counsel for indemnified party substantiating the Companyunpaid balance as unreasonable, 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 prior to the entry date 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 10. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partysettlement. (de) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to, or insufficient to hold harmless, an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand, the Holders on another hand, and the Initial Purchasers on another hand, from the offering of the Securities, the Exchange Securities and the Registrable Securities (taken together) included in such offering 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 benefits referred to in clause (i) above but also the relative fault of the indemnifying party Company on the one hand, the Holders on another hand and indemnified party the Initial Purchasers on another hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that . The relative benefits received by the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds Company from the sale offering of the Securities, the Exchange Securities and the Registrable Securities sold by (taken together) included in such Holder under a Registration Statement bears offering shall in each case be deemed to include the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale Company in connection with the offering of the Securities pursuant to the Purchase Agreement. The parties hereto agree that any underwriting discount or commission or reimbursement of fees paid to the Initial Purchasers pursuant to the Purchase Agreement shall not be deemed to be a benefit received by the Initial Purchasers in connection with the offering of the Exchange Securities or Registrable Securities covered by included in such Registration Statementoffering. The relative fault of such indemnifying party the Company on the one hand, the Holders on another hand, and indemnified party the Initial Purchasers on another hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid or payable by a party as a result of Company, the Losses referred to above shall be deemed to include, subject to Holders and the limitations set forth in Section 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 10(d) 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or by any other method of allocation that which does not take into account of the consideration equitable considerations referred to above in this Section 10(d)4. If indemnification is available under this Section 10The aggregate amount of losses, the indemnifying parties shall indemnify each liabilities, claims, damages and expenses incurred by an indemnified party and referred to the full extent provided in Section 10(a) or 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 above in this Section 10(d). (e) The 4 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in 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 untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 10 4, no Initial Purchaser shall be required to contribute any amount in addition excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 0000 Xxx) shall be entitled to contribution from any liability which any indemnifying party may have to any indemnified party and shall survive the termination person who was not guilty of such fraudulent misrepresentation. For purposes of this AgreementSection 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Company, each officer of the Company who signed the Registration Statement and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Initial Purchasers' respective obligations to contribute pursuant to this Section 4 are several in proportion to the principal amount of Securities set forth opposite their respective names in Schedule A to the Purchase Agreement and not joint.

Appears in 1 contract

Samples: Registration Rights Agreement (Case Corp)

Indemnification; Contribution. (a) The Company shall agrees to indemnify and hold harmless each Holder of Registrable Securities Holder, each Person who participates as an underwriter, if any (any such Person being an “Underwriter”) and each Person, if any, who controls any such Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Shelf Registration Statement (or any amendment or supplement thereto) pursuant to which Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the indemnifying party; and (iii) against any and all expense whatsoever, as incurred (including the reasonable and documented fees and disbursements of counsel chosen by any indemnified party), reasonably incurred and documented in 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 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 this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of (A) any untrue statement or omission or alleged untrue statement or omission or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of any Holder or Underwriter, if any, expressly for use in a Shelf Registration Statement (or any amendment thereto), any Prospectus (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement thereto), (B) use of a Prospectus during a period when use of such Prospectus has been validly suspended pursuant to Section 2.5 hereof, provided that such Holder has received prior notice of such suspension, and provided further that this clause (B) shall continue to apply in the Company with copies event that such valid suspension continues beyond the relevant suspension period, or (C) failure of the Prospectus such Holder to deliver a prospectus, as so then amended or supplemented, as required by applicable laws, provided that the Company shall have delivered to such Holder thereafter fails to deliver such Prospectus, as so then amended or supplemented, with or prior (D) any loss, liability, claim, damage or expense which, in the case of this clause (D), is finally judicially determined to have resulted from the delivery gross negligence, willful misconduct or bad faith of written confirmation of the sale of Registrable Securities by any such Holder to the Person asserting the claim from which such Losses ariseparty seeking indemnification. (b) In connection with any Registration Statement filed pursuant heretoEach Holder, each Holder of Registrable Securities severally, but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its each Underwriter, if any, and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a)(i)-(iii) hereof, as incurred by such party pursuant and documented, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to thereto) or any of the foregoing or necessary to make the statements therein (in case of a Issuer Free Writing Prospectus or preliminary 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 on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by or on behalf of such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus; provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, 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 but failure to give such notification so notify an indemnifying party shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of such failurethis indemnity agreement. In case any such action action, claim, suit, investigation or proceeding 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, and to assume the defense thereof; provided, with counsel reasonably satisfactory to however, that in the event that any such action, claim, suit, investigation or proceeding includes both an indemnified party and the indemnifying party, and after notice such indemnified party reasonably concludes that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, or if the indemnifying party to such indemnified party of its election so fails to assume the defense thereofof the action, claim, suit, investigation or proceeding, in either case in a timely manner, then such indemnified party may employ separate counsel to represent or defend it in any such action, claim, suit, investigation or proceeding and the indemnifying party shall not be liable to such indemnified party 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, unless in will pay the reasonable judgment fees and disbursements of any indemnified partysuch counsel; provided, based on the written opinion of counselfurther, a conflict of interest is likely to exist between that 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 will not be liable for the fees and expenses of (i) more than one counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 required to pay the fees and expenses disbursements of more than one counsel for all indemnified parties indemnified by such indemnifying party with respect to such (and one separate local counsel). In any action, claim, unless in suit, investigation or proceeding the reasonable judgment defense of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 assumes, the indemnified party will have the right to pay the fees participate in such litigation and expenses of to retain its own counsel at such additional counsel, provided that the indemnified party’s own expense. No indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders of Registrable Securities who are indemnified parties, selected by without the Holders of a Majority prior written consent of the Registrable Securities who are indemnified parties (which selection consent shall not be reasonably satisfactory to the Companyunreasonably withheld), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (A) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (B) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act by the claimant or plaintiff to such on behalf of any 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 10. No indemnified party shall consent to entry (ii) be liable for any settlement of any judgment or entry into any settlement such action effected without the its prior written consent of each indemnifying party(which consent shall not be unreasonably withheld). (d) Notwithstanding clause (ii) of Section 4(c), if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that, subject to the proviso in the last paragraph of Section 4.1(a), it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 60 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company on the one hand and indemnified party the Holders on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party or indemnified party, by the Holders and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company and the Holders agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred and documented by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls any Purchaser or any Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Purchaser or the Holder, and each director of the Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The parties agree that it would not be just obligations of the Company, each Purchaser and equitable if contribution the Holders pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions of this Section 10 4 shall be in addition to any liability which any indemnifying that such party may have to any indemnified party and shall survive the termination of this Agreementotherwise have.

Appears in 1 contract

Samples: Registration Rights Agreement (Iconix Brand Group, Inc.)

Indemnification; Contribution. (a) The Company shall and the Parent jointly and severally agree to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company and the Parent; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Parent the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Parent, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification each indemnifying party of any action or proceeding commenced against it in respect of which indemnity may be sought hereunder, but failure so to notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder agrees to give prompt written notice the extent it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense of such action; provided, however, that counsel to the indemnifying party after shall not (except with the receipt by such indemnified party of any written notice consent 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 party) also be counsel to this Agreement, provided that failure to give such notification the indemnified party. In no event shall not affect the obligations of the indemnifying party pursuant or parties be liable for the fees and expenses of more than one counsel (in addition to this Section 10 except to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or related actions in the extent same jurisdiction arising out of the indemnifying party shall have been actually prejudiced as a result of such failuresame general allegations or circumstances. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereofaddition, the indemnifying party shall be entitled to participate therein andto, to the extent that it shall wishwishes, jointly with any other similarly notified indemnifying party similarly notifiedparty, to assume the defense thereof, of any claim or action brought against an indemnified party with counsel reasonably satisfactory to such the indemnified party, and after . After notice from the indemnifying party to such the indemnified party of its election so to assume the defense thereofof such claim or action, the indemnifying party shall not be liable to such the indemnified party under this Section 7 for any legal or other expenses of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, party in connection with the defense thereof other than reasonable costs of investigation; provided, unless however, that the Representative shall have the right to employ one counsel to represent jointly it and those other Initial Purchasers and their respective officers, employees and controlling persons who may be subject to liability arising out of any claim in respect of which indemnity may be sought by the Initial Purchasers against the Company and the Parent under this Section 4 if, in the reasonable judgment of any indemnified partythe Representative, based either (i) there is an actual or potential conflict between the position of the Company and the Parent on the written opinion one hand and the Initial Purchasers on the other hand or (ii) there may be defenses available to it or them that are different from or additional to those available to the Company and Parent (in any of counsel, a conflict of interest is likely which events the Company shall not have the right to exist between direct the indemnifying party and such indemnified party and any other defense of such indemnified parties action on behalf of the Representative with respect to such claimdifferent defenses), in any of which event the indemnifying party shall not be liable for the events such reasonable fees and expenses shall be borne by the Company and Parent. No indemnifying party shall, without the prior written consent of (i) more than one counsel for all Holders of Registrable Securities who are the indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company and indemnified party the Parent on the one hand and the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company and indemnified party the Parent on the one hand and the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Parent, the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Parent, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Company, the Parent and each Person, if any, who controls the Company or the Parent within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company and the Parent. The parties agree that it would not be just and equitable if contribution Initial Purchasers' respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 4 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Alliant Energy Corp)

Indemnification; Contribution. (a) The Company shall Operating Partnership agrees to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Operating Partnership; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company Operating Partnership by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the CompanyOperating Partnership, its the Initial Purchasers, each underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Operating Partnership, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company Operating Partnership by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); providedPROVIDED, howeverHOWEVER, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, 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 but failure to give such notification so notify an indemnifying party shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof, and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; PROVIDED, the indemnifying party shall be entitled HOWEVER, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim, and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Operating Partnership on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Operating Partnership on the one hand and indemnified party the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Operating Partnership, such indemnifying party the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Operating Partnership, the Holders and the Initial Purchasers agree that it would not be just and equitable if contributions pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Holder or Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Holder or Initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Operating Partnership, and each Person, if any, who controls the Operating Partnership within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Operating Partnership. The parties agree that it would not be just and equitable if contribution Initial Purchasers' respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 7 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Simon Property Group L P /De/)

Indemnification; Contribution. (a) The Company shall agrees to indemnify and hold harmless the Initial Purchasers, each Holder Holder, each Participating Broker-Dealer, each Person who participates as an underwriter in connection with a Shelf Registration (any such Person for all purposes of Registrable Securities this Section 4 being an "Underwriter") and each Person, if any, who controls any of such Holder (parties within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon any untrue statement or omission, or any such alleged statement or omission, in either case of the nature described in clause (i) above; provided that any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 untrue statement or omission, or any alleged untrue statement or omission, in either case of the nature described in clause (i) above, to the extent that any such expense is not paid under clause (i) or (ii) above; provided, however, that this indemnity agreement as to any indemnified party shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel indemnified party expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, or any omission or alleged omission of a material fact required to be stated in, made in the Shelf Registration Statement, Prospectus or preliminary Prospectus Statement (or any amendment or supplement to thereto) or any of the foregoing or necessary to make the statements Prospectus included therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingany amendment or supplement thereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment or supplement thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, 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 but failure to give such notification so notify an indemnifying party shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of such failurethis indemnity agreement. In case An indemnifying party may participate at its own expense in the defense of any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, or elects not to, assume without the defense prior written consent of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters settle or (iii) more than one counsel for the Company, in each case in connection with any one action compromise 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 with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If the indemnification from the indemnifying to which a party provided for in is entitled under this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then the each indemnifying party, in lieu of indemnifying such indemnified party, party shall contribute to the aggregate amount paid or payable of such losses, liabilities, claims, damages and expenses incurred by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the each indemnifying party on the one hand and the Holders and the indemnified party on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative Relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied by, such by the indemnifying party or the indemnified party, and the parties' each such party's relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, (i) no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities and Private Exchange Securities sold by it pursuant to a registration effected hereunder exceeds the amount of any damages which such Initial Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission and (ii) no Holder shall be required to contribute in excess of the amount by which the net proceeds received by such Holder from the sale of Registrable Securities by it pursuant to a registration effected hereunder exceeds 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 1933 Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes xx xxxx Section 4, each Person, if any, who controls an Initial Purchaser, Underwriter or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser, Underwriter or Holder, and each director of the Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The parties agree that it would not be just and equitable if contribution Initial Purchasers' respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method 4 are several in proportion to the principal amount of allocation that does Securities set forth opposite their respective names in Schedule A to the Purchase Agreement and not take into account the consideration referred joint. The obligations of each Holder to in contribute pursuant to this Section 10(d)4 are several and not joint and in the same proportion of all contributions of Holders required hereunder as such Holder's Registrable Securities sold pursuant to the Registration Statement is of the total amount of Registrable Securities sold pursuant to the Registration Statement. If indemnification is available under Any Underwriters' respective obligations to contribute pursuant to this Section 10, 4 are several in the indemnifying parties shall indemnify each indemnified party to proportions specified in the full extent provided in Section 10(a) or 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 10(d)relevant underwriting agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Pepco Holdings Inc)

Indemnification; Contribution. (a) The Company shall will indemnify and hold harmless each harmless, to the fullest extent permitted by law, any Holder of Registrable Securities and any underwriter for such Holder, and each Personperson, if any, who controls the Holder or such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) underwriter, from and against any and all losses, damages, claims, damagesliabilities, liabilities joint or several, costs and expenses (including reasonable attorneys' fees, disbursements and expenses, as incurredany amounts paid in any settlement effected with Company's consent) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, which the Holder or any omission such underwriter or alleged omission of a material fact required to be stated incontrolling person may become subject under applicable law or otherwise, the Registration Statement, Prospectus or preliminary Prospectus or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, in the light of the circumstances then existing) not misleading, except in each case insofar as such statements losses, damages, claims, liabilities (or omissions actions or proceedings in respect thereof), costs or expenses arise out of or are based upon (i) any such untrue statement or alleged untrue statement of any material fact contained in the registration statement or included in the prospectus, as amended or supplemented, or (ii) the omission or alleged omission made to state therein a material fact required to be stated therein or necessary to make the statements therein, in reliance on the light of the circumstances under which they are made, not misleading, and in conformity with information with respect to Company will reimburse the Holder, such Holder furnished in writing to underwriter and each such controlling person of the Company by such Holder or its counsel expressly the underwriter, promptly upon demand, for use thereinany reasonable legal or any other expenses incurred by them in connection with investigating, (ii) the use of any Prospectus after preparing to defend or defending against or appearing as a third party witness in connection with such time as the obligation of the loss, claim, damage, liability, action or proceeding; provided, however, that Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall will not be liable in any such case to the extent that any Holder such loss, damage, liability, cost or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise expense arises out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that arise out of or are is based upon an untrue statement or alleged untrue statement or omission or alleged omission so made in any Prospectus if either (i) (A) such Holder failed to send or deliver strict conformity with written information furnished by a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary 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 on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel managing underwriter specifically for use inclusion therein; provided, howeverfurther, that the liability of each Holder hereunder indemnity agreement contained in this subsection 2.6(a) shall be limited not apply to the proportion amounts paid in settlement of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. (c) 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 10 except to the extent the indemnifying party shall have been actually 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, 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 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, unless in the reasonable judgment of any indemnified party, based on the written 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 all Holders of Registrable Securities who are indemnified partiesloss, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company)damage, (ii) more than one counsel for the underwriters liability 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 if such settlement 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 10. No indemnified party shall consent to entry of any judgment or entry into any settlement effected without the consent of each indemnifying party. (d) If the indemnification from the indemnifying party provided for in this Section 10 is unavailable to an indemnified party hereunder in respect to any LossesCompany, then the indemnifying party, in lieu of indemnifying such indemnified party, which consent shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether 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, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. 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 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d)unreasonably withheld. If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.Such indemnity

Appears in 1 contract

Samples: Registration Rights Agreement (Enron Corp/Or/)

Indemnification; Contribution. (a) The Company shall indemnify Strategic REIT and the Issuer agree to indemnify, defend and hold harmless each Holder of Registrable Securities and Initial Purchaser, each Holder, each person (a “Controlling Person”), if any, who controls such any Initial Purchaser or Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) Act and the respective officers, directors, partners, employees, representatives and agents of any Initial Purchaser, the Holders or any Controlling Person (each, an “Indemnified Party”), from and against all lossesany loss, claimsdamage, damagesexpense, liabilities and expenses liability, claim or any actions in respect thereof (including the reasonable attorneys' feescost of investigation) which such Indemnified Party may incur or become subject to under the Securities Act, disbursements and expensesthe Exchange Act or otherwise, insofar as incurred) (collectivelysuch loss, "Losses") incurred by such party pursuant to any actual damage, expense, liability, claim or ------ threatened action, suit, proceeding or investigation arising action arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained inin any Shelf Registration Statement or Prospectus, including any document incorporated by reference therein, or in any amendment or supplement thereto or in any preliminary prospectus, or arises out of or is based upon any omission or alleged omission of to state a material fact required to be stated in, the in any Shelf Registration Statement, Prospectus Statement or preliminary Prospectus or in any amendment or supplement to any of the foregoing thereto or necessary to make the statements therein (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 case of a statements made in any Prospectus or a in any amendment or supplement thereto or in any preliminary Prospectusprospectus, in the light of the circumstances then existing) under which such statements were made, not misleading, except and Strategic REIT and the Issuer shall reimburse, as incurred, the Indemnified Parties for any legal or other expenses reasonably incurred by them in each connection with investigating or defending any such loss, damage, expense, liability, claim or action in respect thereof; provided, however, that Strategic REIT and the Issuer shall not be required to provide any indemnification pursuant to this Section 6(a) in any such case insofar as any such statements loss, damage, expense, liability, claim or omissions arise action arises out of or are is based upon (i) any such untrue statement or omission or alleged untrue statement or omission of a material fact contained in, or alleged omission made in reliance on omitted from, and in conformity with information furnished in writing by or on behalf of an Initial Purchaser or a Holder to Strategic REIT expressly for use in, any Shelf Registration Statement or any Prospectus or (ii) a disposition, pursuant to a Shelf Registration Statement, of Registrable Securities by an Indemnified Party during a Suspension Period, provided such Indemnified Party received, prior to such disposition, a Suspension Notice with respect to such Holder furnished Suspension Period; provided further, however, that this indemnity agreement will be in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable addition to any Holder or liability which Strategic REIT and the Issuer may otherwise have to such Indemnified Party. (b) Each Holder, severally and not jointly, agrees to indemnify, defend and hold harmless Strategic REIT and the Issuer, each of its directors, officers, employees, representatives, agents and any Person person who controls such Holder (Strategic REIT and the Issuer within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange ActAct (each, a “Guarantor Indemnified Party”) from and against any loss, damage, expense, liability, claim or any actions in respect thereof (including the reasonable cost of investigation) which such Guarantor Indemnified Party may incur or become subject to under the indemnity agreement in this Section 10(a) for any Losses that arise Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or are is based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such any untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue 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 Strategic REIT expressly for use in, any Shelf Registration Statement or Prospectus, or arises out of or is based upon any omission or alleged omission of to state 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 in, the in any Shelf Registration Statement, Statement or Prospectus or preliminary Prospectus or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existing) such Holder Information not misleading, but only (B) a sale, by such Holder pursuant to the extent that any such untrue statement a Shelf Registration Statement in or omission is made in reliance on and in conformity with information with respect to which such Holder furnished is named as a selling securityholder, of Registrable Securities during a Suspension Period, provided that Strategic REIT shall have theretofore provided such Holder a Suspension Notice in writing to the Company 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 Strategic REIT pursuant to Section 3(i) or Section 2(d)(i)(C), provided Strategic REIT 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, Strategic REIT and the Issuer for any legal or other expenses reasonably incurred by Strategic REIT 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 Holder may otherwise have to Strategic REIT and the Issuer or any of its counsel specifically for use thereincontrolling 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 of the institution 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 Holder hereunder such counsel shall be limited to at the proportion expense of any such Losses that is equal to Indemnified Party unless the proportion that the net proceeds from the sale employment of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. (c) 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 10 except to the extent the indemnifying party counsel shall have been actually 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, 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 legal expenses of other counsel or any other expenses, authorized in each case subsequently incurred writing by such indemnified party, 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 other than reasonable costs or such Indemnified Party shall have reasonably concluded upon the written advice of investigationcounsel that there may be one or more defenses available to it that are different from, unless 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 reasonable judgment of any indemnified party, based on defense thereof but the written opinion of counsel, a conflict of interest is likely to exist between the indemnifying party fees and such indemnified party and any other expenses of such indemnified parties with respect to counsel shall be at the expense of such claimIndemnifying Party), in any of which event the indemnifying party 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 fees and expenses of (i) more than one counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 separate counsel for all in any one Proceeding or series of related Proceedings together with reasonably necessary local counsel representing the Indemnified Parties who are parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 action). An Indemnifying Party shall not be liable for any settlement of such Proceeding effected without the fees written consent of such Indemnifying Party, but if settled with the written consent of such Indemnifying Party, such Indemnifying Party agrees to indemnify and expenses hold harmless an Indemnified Party from and against any loss or liability by reason of (i) more than one counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionssuch settlement. No indemnifying partyIndemnifying Party shall, in defense without the prior written consent of any such actionIndemnified Party, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry effect any settlement of any judgment pending or entry into any 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 Indemnified Party, unless such settlement which includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding and does not include as an unconditional term thereof the giving admission of fault or culpability or a failure to act by the claimant or plaintiff to on behalf of 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 10. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyIndemnified Party. (d) If the indemnification from the indemnifying party provided for in this Section 10 6 is unavailable to an indemnified party hereunder Indemnified Party under Section 6(a) or Section 6(b), or insufficient to hold such Indemnified Party harmless, in respect of any losses, damages, expenses, liabilities, claims or actions referred to any Lossestherein, then the indemnifying partyeach applicable Indemnifying Party, in lieu of indemnifying such indemnified partyIndemnified Party, shall contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Losses losses, damages, expenses, liabilities, claims or actions (i) in such proportion as is appropriate to reflect the relative benefits received by Strategic REIT and the Issuer, on the one hand, and by the Holders or the Initial Purchasers, on the other hand, 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 Strategic REIT and the indemnifying party Issuer, on the one hand, and indemnified party of the Holders or the Initial Purchasers, on the other hand, in connection with the actions statements or omissions which resulted in such Losseslosses, damages, expenses, liabilities, claims or actions, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party Strategic REIT and indemnified party the Issuer, on the one hand, and of the Holders or the Initial Purchasers, on the other hand, shall be determined by reference to, among other things, whether any action in question, including any the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party by Strategic REIT and the Issuer or indemnified party, by the Holders or the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid or payable by a party as a result of the Losses losses, damages, expenses, liabilities, claims and actions referred to above shall be deemed to include, subject to the limitations set forth in Section 10(c), include any reasonable legal or other fees and or expenses reasonably incurred by such indemnified party in connection with investigating or defending any investigation Proceeding. (e) Strategic REIT, the Issuer, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 6 were determined by pro rata allocation or proceedingby any other method of allocation which does not take account of the equitable considerations referred to in Section 6(d) above. Notwithstanding the provisions of this Section 6, no Holder shall be required to contribute any amount in excess of the amount by which the total price at which the Registrable Securities giving rise to such contribution obligation and sold by such Holder were offered to the public exceeds the amount of any damages which it 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. The parties agree that it would not be just and equitable if contribution Holders’ respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 6 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided in Section 10(a) or 10(b)respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration and not joint. The remedies provided for in this Section 10(d). (e) The provisions of this Section 10 6 are not exclusive and shall not limit any rights or remedies which may otherwise be in addition to any liability which any indemnifying party may have available to any indemnified party at law or in equity. (f) The indemnity and contribution provisions contained in this Section 6 shall survive the remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of any Holder or the Initial Purchasers or any person controlling any Holder or Initial Purchaser, or Strategic REIT, or the Issuer, or Strategic REIT’s or the Issuer’s officers or directors or any person controlling Strategic REIT or the Issuer and (iii) the sale of any Registrable Security by any Holder.

Appears in 1 contract

Samples: Registration Rights Agreement (Strategic Hotels & Resorts, Inc)

Indemnification; Contribution. (a) The With respect to the Securities, the Company shall agrees to indemnify and hold harmless the Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an “Underwriter”) and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act with respect to the Securities as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Notes or Transfer Restricted Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(athereto), the Company shall not be liable to any Holder or to any Person who controls such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that 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) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Transfer Restricted Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 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, unless in the reasonable judgment of any indemnified party, based on the written 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 the indemnified party) also be counsel to the indemnified party. No indemnifying party shall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or entry into any settlement investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an unconditional term thereof the giving admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company on the one hand and indemnified party the Holders and the Purchasers of the Securities on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders and the Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Holders or indemnified party, the Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Holders and the Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Purchaser or Holder shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Purchaser or Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission with respect to the Securities. 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 4, each Person, if any, who controls a Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Purchaser or Holder, and each director of the Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The parties agree that it would not be just and equitable if contribution Purchasers’ respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 7 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Norfolk Southern Corp)

Indemnification; Contribution. (a) Indemnification by the Company. The Company shall shall, without ------------------------------ limitation as to time, indemnify and hold harmless harmless, to the full extent permitted by law, each Holder holder of Registrable Securities Securities, the officers, directors, agents and employees of each Personof them, if any, each Person who controls each such Holder holder (within the meaning of Section 15 of the Securities 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 Party"), ----------------- to the fullest extent lawful, from and against any and all losses, claims, damages, liabilities liabilities, actions or proceedings (whether commenced or threatened) reasonable costs (including, without limitation, reasonable costs of preparation and reasonable attorneys' fees) and reasonable expenses (including reasonable attorneys' fees, disbursements and expenses, as incurredexpenses of investigation) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action), suitas incurred, proceeding or investigation arising out of ------ or based upon (i) any untrue or alleged untrue statement of a material fact contained inin any Registration Statement, prospectus or form of prospectus or in any amendment or supplements thereto or in any preliminary prospectus, or arising out of or based upon 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 therein or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions to the extent that the same arise out of or are based upon (i) 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 such Holder furnished in writing to the Company by such Holder Indemnified Party or its counsel the related holder of Registrable Securities expressly for use therein, therein or (ii) any violation by the use Company of any Prospectus after such time as the obligation of federal, state or common law rule or regulation applicable to the Company and relating to keep effective the Registration Statement action required of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as inaction by the Company has advised the Holders in connection with any such registration; provided, however, that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the -------- ------- Company shall not be liable to any Holder Person who participates as an underwriter in the offering or to sale of Registrable Securities or any Person other Person, if any, who controls such Holder (underwriters within the meaning of Section 15 of the Securities Act or Section 20 of to the Exchange Act) under the indemnity agreement in this Section 10(a) for extent that any such Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any Prospectus preliminary prospectus if either (i) (A) such Holder Person failed to send or deliver a copy of the Prospectus prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder Person to the Person asserting the claim from which such Losses arise and arise, (Bii) the Prospectus prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (yiii) having previously been furnished the Company has complied with its obligations under Section 5.4(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 the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary 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 on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. (c) 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 10 except to the extent the indemnifying party shall have been actually 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, 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 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, unless in the reasonable judgment of any indemnified party, based on the written 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters 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 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 10 is unavailable to an indemnified party hereunder in respect to any Losses, then the indemnifying 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 Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether 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, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action. 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 10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 10(a) or 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 10(d). (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Securityholders Agreement (M Foods Investors LLC)

Indemnification; Contribution. (a) The Company shall agrees to indemnify and hold harmless each Holder of Registrable Securities Securities, the Affiliates, directors, officers, employees, members, managers and agents of each such Holder and each Person, if any, Person who controls any such Holder (within the meaning of Section 15 of either the Securities Act or Section 20 of the Exchange Act) , to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities and expenses to which they or any of them may become subject insofar as such losses, claims, damages, liabilities and expenses (including reasonable attorneys' fees, disbursements and expenses, as incurredor actions in respect thereof) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising arise out of or are based upon 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 inin 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 in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission of to state therein 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 therein or necessary to make the statements therein (in the case of a the Disclosure Package, or any preliminary, final or summary Prospectus or a preliminary ProspectusFree Writing Prospectus included in any such Registration Statement, in the light of the circumstances then existingunder which they were made) not misleading, except and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in each connection with investigating or defending any such loss, 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 any case insofar as to the extent that any such statements loss, claim, damage, liability or omissions arise expense arises (i) out of or are is based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by or on behalf of any such Holder specifically for inclusion therein including, without limitation, any notice and questionnaire, or its counsel expressly for use therein, (ii) the use 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 addition to any Prospectus after such time as the obligation of liability which the Company may otherwise have. (b) Each Holder severally (and not jointly) agrees to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus after such time as indemnify and hold harmless the Company has advised the Holders that the filing and each of an amendment or supplement thereto is requiredits Affiliates, except such Prospectus as so amended or supplemented. Notwithstanding the foregoing provisions of this Section 10(a)directors, the Company shall not be liable to any Holder or to any employees, members, managers and agents and each Person who controls such Holder (the Company within the meaning of Section 15 of either the Securities Act or Section 20 of the Exchange Act) under , to the indemnity agreement in this Section 10(a) for fullest extent permitted by applicable law, from and against any Losses that 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 any violation of the matters specified Securities Act, Exchange Act or state securities laws, upon any untrue statement or alleged untrue statement of a material fact contained in clause (ii) a Registration Statement as originally filed or (iii) of in any amendment thereof, or in the immediately preceding sentence Disclosure Package or that any Holder Free Writing Prospectus, 18 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 an untrue statement or alleged untrue statement or the omission or alleged omission made 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 Prospectus if either (i) (A) such Holder failed to send or deliver a copy Registration Statement, in light of the Prospectus with or prior circumstances under which they were made) not misleading, to the delivery of written confirmation of the sale of Registrable Securities by such Holder extent, but only to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omissionextent, or (ii) (x) that any such untrue statement or alleged untrue statement or omission or alleged omission is corrected contained in an amendment or supplement any written information relating to such Holder furnished to the Prospectus and (y) having previously been furnished Company by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise. (b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and each Person, if any, who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and all other Holders against all Losses incurred by such party pursuant to any actual or threatened 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 or necessary to make the statements therein (in case of a Prospectus or preliminary 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 on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use inclusion therein; provided, however, that the liability of each total amount to be indemnified by such Holder hereunder pursuant to this Section 8(b) shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds (after deducting underwriters’ discounts and commissions) received by such Holder from in the sale of Registrable Securities covered by offering to which such Registration StatementStatement or Prospectus relates. (c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party Promptly after the receipt by such an indemnified party under this Section 8 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 will, if a claim indemnification or contribution pursuant in respect thereof is to this Agreement, provided that failure to give such notification shall not affect the obligations of be made against the indemnifying party pursuant to under this Section 10 except to the extent the indemnifying party shall have been actually prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall 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, and 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 to 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, in each case expenses subsequently incurred by such indemnified party, party in connection with the defense thereof other than reasonable costs of investigation, unless . 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 indemnifying party shall bear the reasonable judgment fees, costs and expenses of any such separate counsel if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party, based on the written opinion of counsel, party would present such counsel with a conflict of interest is likely to exist between interest; (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and such the indemnified party and any shall have reasonably concluded that there may be legal defenses available to it and/or other of such indemnified parties with respect which are different from or additional to such claim, in which event those available to the indemnifying party; (iii) the indemnifying party shall not be liable for the fees and expenses of (i) more than one have employed counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for indemnified party to represent the underwriters indemnified party within a reasonable time after notice of the institution of such action; or (iiiiv) more than one the indemnifying party shall authorize the indemnified party to employ separate counsel for at the Companyexpense of the indemnifying party. No indemnifying party shall, in each case in connection with any one action or separate but substantially similar or related actions. An indemnifying party who is not entitled toactions in the same jurisdiction arising out of the same general circumstances or allegations, or elects not to, assume the defense of a claim shall not be obligated to pay liable for the fees and expenses of more than one counsel separate firm of attorneys (in addition to any local counsel) for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to 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 parties. An indemnifying party shall not be liable for under this Section 8 to any indemnified party regarding any settlement or compromise or consent to the fees and expenses 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 (i) more than one counsel for all Holders of Registrable Securities who are indemnified parties, selected by whether or not the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory are actual or potential parties to the Company)such claim or action) unless such settlement, (ii) more than one counsel for the underwriters compromise or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsconsent is consented to by such indemnifying party. No indemnifying party, in the defense of any such action, suit, proceeding claim or investigationlitigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry enter into any settlement which 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 an unconditional term thereof the giving to or any admission of fault, culpability or a failure to act 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 10. No indemnified party shall consent to entry on behalf of any judgment or entry into any settlement without the consent of each indemnifying indemnified party. (d) If In the indemnification from event that the indemnifying party indemnity provided for in this Section 10 8(a) or Section 8(b) above is unavailable to or insufficient to hold harmless an indemnified party hereunder in respect to for any Lossesreason, then the each applicable indemnifying party, in lieu of indemnifying such indemnified party, shall party 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 Losses may be subject 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 in connection with the actions statements or omissions which resulted in such Losseslosses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether any action in question, including any the untrue statement or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied by, such by the indemnifying party on the one hand or the indemnified party, party on the other and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The parties agree that it would not be just and equitable if contribution pursuant to this Section 8(d) were 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 account of the equitable considerations referred to above in this Section 8(d). The amount paid or payable by a an indemnified party as a result of the Losses 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 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating or defending any investigation such action or proceedingclaim. 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. The parties agree that it would not 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, the total amount to be just and equitable if contribution contributed by any Holder pursuant to this Section 10(d8(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party be limited to the full extent provided net proceeds (after deducting underwriters’ discounts and commissions) received by such Holder in Section 10(a) the offering to which such Registration Statement or 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 10(d)Prospectus relates. (e) The provisions of this Section 10 8 will remain in full force and effect, regardless of any investigation made by or on behalf of any Holder of Registrable Securities or the Company or any of the 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 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 addition 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 any liability which any indemnifying party may have the net amount of proceeds received by such seller from the sale of such Registrable Securities pursuant to any indemnified party and shall survive the termination of this Agreementsuch Shelf Registration.

Appears in 1 contract

Samples: Registration Rights Agreement (Citadel Securities LLC)

Indemnification; Contribution. (a) The Company shall and each of the Guarantors, jointly and severally, agrees to indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securities Holder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an "Underwriter") and each Person, if any, who controls such any Holder (or Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Act1934 Act as follows: (i) against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable attorneys' fees, disbursements and expensesexpense whatsoever, as incurred) (collectively, "Losses") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom 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 therein or necessary to make the statements therein (in the case not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a preliminary Prospectusmaterial fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading; (ii) against any and all loss, except liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in each case insofar as such statements settlement of any litigation, or omissions arise out any investigation or proceeding by any governmental agency or body, commenced or threatened, or of or are any claim whatsoever based upon (i) any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in 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 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 (i) this indemnity agreement shall not apply 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 or alleged omission made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company or the Guarantors by such the Holder or its counsel Underwriter expressly for use therein, in a Registration Statement (iior any amendment thereto) the use of or any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired (or (iii) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended thereto) or supplemented. Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Holder or to any Person person who controls such Holder or Underwriter expressly for use in a Registration Statement (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Actany amendment thereto) under the indemnity agreement in this Section 10(aor any Prospectus (or any amendment or supplement thereto) for any Losses that arise out of or are based upon any of the matters specified in clause and (ii) if the Person asserting any such loss, liability, claim, damage or (iii) of the immediately preceding sentence expense was not sent or that 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) such Holder failed to send or deliver given a copy of the final Prospectus with (or any amendment or supplement thereto) (in each case exclusive of the documents from which information is incorporated by reference) at or prior to the delivery sale of written confirmation such Registrable Securities to such Person (other than as a result of the failure by the Company to comply with its obligations under [Section 3(c)] hereof) and the untrue statement contained in or omitted from such Prospectus was subsequently corrected in the final Prospectus (or any amendment or supplement thereto); and provided, further, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense arising from an offer or sale of Registrable Securities by occurring during a Suspension Period, if a notice of such Holder Suspension Period was given to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arisePerson. (b) In connection with any Registration Statement filed pursuant heretoEach Holder severally, each Holder of Registrable Securities but not jointly, agrees to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its the Guarantors, the Initial Purchasers, each Underwriter and the other selling Holders, and each of their respective directors and officers, and each Person, if any, who controls the Company (Company, the Guarantors, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act) , against any and all other Holders against all Losses incurred by such party pursuant loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to any actual untrue statements or threatened actionomissions, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained instatements or omissions, made in the Shelf Registration Statement (or any omission amendment thereto) or alleged omission of a material fact required to be stated in, the Registration Statement, any Prospectus or preliminary Prospectus included therein (or any amendment or supplement to any of the foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, in the light of the circumstances then existingthereto) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company or the Guarantors by such Holder or its counsel specifically expressly for use thereinin the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that the liability of each no such Holder hereunder shall be limited to liable for any claims hereunder in excess of the proportion amount of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by pursuant to such Shelf Registration Statement. (c) Any Person entitled Each indemnified party shall give notice as promptly as reasonably practicable to indemnification hereunder agrees to give prompt written notice to the each indemnifying party after the receipt by such indemnified party of any written notice action or proceeding commenced against it in respect of the commencement of any actionwhich indemnity may be sought hereunder, suit, proceeding or investigation or threat thereof made in writing for which such indemnified but failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the relieve such indemnifying party pursuant to this Section 10 except from any liability hereunder to the extent the indemnifying party shall have been actually it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense 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 thereofaction; provided, the indemnifying party shall be entitled however, that counsel 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, 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 legal expenses (except with the consent of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party, in connection with ) also be counsel to the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between . In no event shall the indemnifying party and such indemnified party and any other of such indemnified or 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 (in addition to any local counsel) separate from their own counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsactions in the same jurisdiction arising out of the same general allegations or circumstances. An No indemnifying party who is not entitled toshall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or elects any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not tothe indemnified parties are actual or potential parties thereto), assume unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding 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 at any time an indemnified party shall have requested an indemnifying party to reimburse the defense of a claim shall not be obligated to pay the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is entered into more than one counsel for all parties indemnified 45 days after receipt by such indemnifying party with respect of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such claimsettlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. Notwithstanding the immediately preceding sentence, unless in the reasonable judgment of if at any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between time an indemnified party and any other of such indemnified parties with respect to such claim, in which event the shall have requested an indemnifying party shall be obligated to pay reimburse the indemnified party for fees and expenses of such additional counsel, provided that the an indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority any settlement of the Registrable Securities who are nature contemplated by Section 4(a)(ii) effected without its consent if such indemnifying party (1) reimburses such indemnified parties (which selection shall be reasonably satisfactory party in accordance with such request to the Company), extent it considers such request to be reasonable and (ii2) more than one counsel for provides written notice to the underwriters or (iii) more than one counsel for indemnified party substantiating the Companyunpaid balance as unreasonable, 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 prior to the entry date 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 10. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partysettlement. (de) If the indemnification from the indemnifying party provided for in this Section 10 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of any losses, liabilities, claims, damages or expenses referred to any Lossestherein, then each indemnifying party shall contribute to the indemnifying partyaggregate amount of such losses, in lieu of indemnifying liabilities, claims, damages and expenses incurred by such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers on the other hand in connection with the actions statements or omissions which resulted in such Losseslosses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations; provided, however, that the liability of each Holder hereunder shall be limited to the proportion of any such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Holder from the sale of Registrable Securities covered by such Registration Statement. The relative fault of such indemnifying party the Company and indemnified party the Guarantors on the one hand and the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any action in question, including any such untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party the Guarantors, the Holders or indemnified party, the Initial Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid Company, the Guarantors, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed to include, subject to the limitations set forth in Section 10(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending against any litigation, or any investigation or proceedingproceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser 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 Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Company or the Guarantors, and each Person, if any, who controls the Company or the Guarantors within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company and the Guarantors. The parties agree that it would not be just and equitable if contribution Initial Purchasers' respective obligations to contribute pursuant to this Section 10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 7 are several in this Section 10(d). If indemnification is available under this Section 10, the indemnifying parties shall indemnify each indemnified party proportion to the full extent provided principal amount of Securities set forth opposite their respective names in Section 10(a) or 10(b), as the case may be, without regard Schedule A to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 10(d)Purchase Agreement and not joint. (e) The provisions of this Section 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Dycom Industries Inc)

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