Common use of Indemnification; Contribution Clause in Contracts

Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this Agreement, and such seller's partners, directors, officers, employees and any Person who controls such seller under the Securities Act (each, an "Indemnitee") from and against any and all losses, claims, damages, liabilities and expenses (including reasonable costs of investigation) arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement or prospectus or in any amendment or supplement thereto, or arising out of or based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise out of or are based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating Holder expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an 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, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.

Appears in 3 contracts

Samples: Registration Rights Agreement (Corporate Office Properties Trust), Registration Rights Agreement (Corporate Office Properties Trust), Registration Rights Agreement (Baltimore Gas & Electric Co)

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Indemnification; Contribution. (a) The Company ITC Investments agrees to indemnify and hold harmless each seller of Shareholder holding Registrable Securities covered by a Registration Statement filed pursuant to this AgreementSecurities, and such seller's partnersthe Affiliates, directors, officers, employees employees, shareholders, managers and any agents of each such Shareholder and each Person who controls any such seller under Shareholder within the meaning of either the Securities Act (eachor the Exchange Act, an "Indemnitee") 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 costs of investigationor actions in respect thereof) 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 in any prepricing prospectus, a registration statement or prospectus 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 arising arise out of or are based upon any the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of the Disclosure Package, or any preliminary, final or summary prospectus or Free Writing Prospectus included in any such registration statement, in light of the circumstances under which they were made) not misleading, except insofar and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such lossesloss, claimsclaim, damagesdamage, liabilities liability or expenses rise action (whether or not the indemnified party is a party to any proceeding); provided, that ITC Investments will not be liable in any case to the extent that any such loss, claim, damage, liability or expense arises (i) out of or are is based upon any such untrue statement or alleged untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the written information relating furnished to a participating Holder furnished in writing to the Company ITC Investments by or on behalf of any such Shareholder specifically for inclusion therein including any notice and questionnaire, or (ii) out of sales of Registrable Securities made during a participating Holder expressly for use in connection therewithSuspension Period after notice is given pursuant to Section 3.3(c). The foregoing This indemnity agreement shall will be in addition to any liability which the Company ITC Investments may otherwise have. (b) If Each Shareholder severally (and not jointly) agrees to indemnify and hold harmless ITC Investments and each of its Affiliates, directors, employees, shareholders, managers and agents and each Person who controls ITC Investments within the meaning of either the Securities Act or the Exchange Act, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages or liabilities to which they or any of them may become subject insofar as such losses, claims, damages or liabilities arise out of or are based upon any violation of the Securities Act, Exchange Act or state securities laws, upon any untrue statement or alleged untrue statement of a material fact contained in a registration statement as originally filed or in any amendment thereof, or in the Disclosure Package or any Shareholder Free Writing Prospectus, preliminary, final or summary prospectus included in any such registration statement, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of the Disclosure Package, or any preliminary, final or summary prospectus or Free Writing Prospectus included in any such registration statement, in light of the circumstances under which they were made) not misleading, to the extent, but only to the extent, that any such untrue statement or alleged untrue statement or omission or alleged omission is contained in any written information relating to such Shareholder furnished to ITC Investments by or on behalf of such Shareholder specifically for inclusion therein; provided, that the total amount to be indemnified by such Shareholder pursuant to this Section 3.8(b) shall be limited to the net proceeds (after deducting underwriters’ discounts and commissions and other reimbursable expenses) received by such Shareholder in the offering to which such registration statement or prospectus relates. (c) Promptly after receipt by an indemnified party under this Section 3.8 of notice of the commencement of any action, suit such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 3.8, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or proceeding (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 brought against an Indemnitee in respect of which indemnity may be sought against entitled to participate therein and, to the Companyextent that it shall wish, such Indemnitee shall promptly notify the Companyjointly with any other indemnifying party similarly notified, and the Company shall to assume the defense thereof, including with counsel reasonably satisfactory to such indemnified party (who shall not, except with the employment consent of the indemnified party, be counsel and payment to the indemnifying party), and, except as provided in the next sentence, after notice from the indemnifying party to such indemnified party of all fees and expensesits election to so assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The Indemnitee Notwithstanding the indemnifying party’s rights in the prior sentence, the indemnified party shall have the right to employ separate its own counsel in any such action(and one local counsel), suit or proceeding and to participate in the defense thereofindemnifying party shall bear the reasonable fees, but the fees costs and expenses of such separate counsel if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest; (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party; (iii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee)indemnifying party. It is understood, however, that the Company No indemnifying party shall, in connection with any one such action, suit or proceeding action or separate but substantially similar or related actions, suits or proceedings actions in the same jurisdiction arising out of the same general allegations circumstances or circumstancesallegations, be liable for the reasonable fees and expenses of only more than one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurredindemnified parties. The Company An indemnifying party shall not be liable for under this Section 3.8 to any indemnified party regarding any settlement or compromise or consent to the entry of any such judgment with respect to any pending or threatened claim, action, suit or proceeding effected without its written consentin respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, but if settled with compromise or consent is consented to by such written consentindemnifying party. No indemnifying party, or if them be a final judgment for in the plaintiff in defense of any such actionclaim or litigation, suit shall, except with the consent of each indemnified party, consent to entry of any judgment or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against enter into any loss, claim, damage, liability settlement or expense by reason of compromise unless such settlement or judgment. compromise (ci) Each includes an unconditional release of such indemnified party from all liability on claims that are the participating Holderssubject matter of such proceeding and (ii) does not include any statement as to or any admission of fault, severally and not jointly, agree culpability or a failure to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing act by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveindemnified party. (d) If In the indemnification event that the indemnity provided for in this Section 9 3.8(a) or Section 3.8(b) above is unavailable to or insufficient to hold harmless an indemnified party under paragraphs (a) or (c) hereof in respect of for any reason, then each applicable indemnifying party agrees to contribute to the aggregate losses, claims, damages, damages and liabilities (including legal or other expenses referred reasonably incurred in connection with investigating or defending same) to therein, then an which such 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, claims, damages, liabilities or expenses may be subject in such proportion as is appropriate to reflect the relative fault of the Company indemnifying party on the one hand and of the participating Holders indemnified party on the other hand in connection with the statements or omissions that which resulted in such losses, claims, damagesdamages or liabilities (or actions in respect thereof), liabilities or expensesas well as any other relevant equitable considerations. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company indemnifying party on the one hand or by such participating Holder the indemnified party on the other hand and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) . The Company and the participating Holders parties agree that it would not be just and equitable if contribution pursuant to this Section 9 3.8(d) were determined by a pro rata allocation (even if the Shareholders holding Registrable Securities or any agents or underwriters or all of them were treated as one entity for such purpose) or by any other method of allocation that which does not take account of the equitable considerations referred to above in this Section 9(d) hereof3.8(d). The amount paid to or payable by an indemnified party as a result of the losses, claims, damages, damages or liabilities and expenses (or actions in respect thereof) referred to above in this Section 9(d3.8(d) hereof shall be deemed to include, subject to the limitations set forth above, include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit action or proceedingclaim. Notwithstanding the provisions of this Section 93.8(d), no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder 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. For purposes of this Section 3.8, each Person who controls any Shareholder holding Registrable Securities, agent or underwriter within the meaning of either the Securities Act or the Exchange Act and each director, officer, employee and agent of any such Shareholder, agent or underwriter shall have the same rights to contribution as such Shareholder, agent or underwriter, and each Person who controls ITC Investments within the meaning of either the Securities Act or the Exchange Act and each officer and director of ITC Investments shall have the same rights to contribution as ITC Investments, subject in each case to the applicable terms and conditions of this Section 3.8(d). Notwithstanding the foregoing, the total amount to be contributed by any Shareholder pursuant to this Section 3.8(d) shall be limited to the net proceeds (after deducting underwriters’ discounts and commissions and other reimbursable expenses) received by such Shareholder in the offering to which such registration statement or prospectus relates. (fe) No indemnifying party shall, without the prior written consent The provisions of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall 3.8 will remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of any Shareholder holding Registrable Securities or ITC Investments or any of the officers, directors or controlling Persons referred to in this Section 3.8, and will survive the transfer of Registrable Securities. (f) To the extent any indemnification by an Indemniteeindemnifying party is prohibited or limited by law, the Companyindemnifying party agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under this Section 3.8 to the fullest extent permitted by Applicable Law; provided, its directors or officers, or that: (i) no Person involved in the sale of Registrable Securities which Person is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) in connection with such sale shall be entitled to contribution from any person controlling the Company, Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any termination seller of this AgreementRegistrable Securities shall be limited in amount to the net amount (after deducting underwriters’ discounts and commissions and other reimbursable expenses) of proceeds received by such seller from the sale of such Registrable Securities pursuant to such Shelf Registration.

Appears in 3 contracts

Samples: Shareholders Agreement (Fortis Inc.), Shareholders’ Agreement (Fortis Inc.), Subscription Agreement

Indemnification; Contribution. (a) The Company shall, and hereby agrees to to, indemnify and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementParticipating Holder and its partners, and such seller's partnersmembers, directors, officers, employees employees, agents and controlling Persons, if any, in any Person who controls such seller under offering or sale of the Securities Act (eachParticipating Shares pursuant to the Shelf Registration Statement, an "Indemnitee") from and against any and all losses, claims, damagesdamages or liabilities, liabilities actions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable costs fees of investigationcounsel) arising (collectively, “Claims”) to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, (i) arise out of or are based upon any an untrue statement or alleged untrue statement of a material fact contained in the Shelf Registration Statement, or any prepricing prospectusProspectus or preliminary Prospectus contained therein with respect to Participating Shares, registration statement or prospectus or in any amendment or supplement thereto, or arising any document incorporated by reference therein, or (ii) arise out of or are based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in each case in light of the circumstances in which they were made, not misleading; provided that the Company shall not be liable to any such Participating Holder in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Shelf Registration Statement, or Prospectus or preliminary Prospectus relating to the Participating Shares, or amendment or supplement thereto, in reliance upon and in conformity with written information furnished to the Company by the Participating Holder with respect to such Participating Holder expressly for use therein, or by such Participating Holder’s failure to furnish the Company, upon the Company’s reasonable request, with the information with respect to such Participating Holder, or such Participating Holder’s intended method of distribution, that is the subject of the untrue statement or omission, or if such Participating Holder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable Prospectus (excluding any documents incorporated by reference therein) or of the applicable Prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Company had previously furnished copies thereof to the Participating Holders, and such Prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in the Shelf Registration Statement. (b) Each Participating Holder, severally and not jointly, shall, and hereby agrees to, indemnify and hold harmless the Company, its directors, officers, employees and controlling Persons, if any, in any offering or sale of Participating Shares pursuant to the Shelf Registration Statement, against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of such Participating Holder as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Shelf Registration Statement or any Prospectus or preliminary Prospectus contained therein with respect to the Participating Shares, or any document incorporated by reference therein, or arise out of or are based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as in each case only to the extent that such losses, claims, damages, liabilities untrue statement or expenses rise out of or are based upon any alleged untrue statement or omission or alleged untrue statement or omission which has been was made therein or omitted therefrom in reliance upon and in conformity with the written information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating such Participating Holder with respect to such Participating Holder expressly for use therein; provided, that in connection therewith. The foregoing no event shall any indemnity agreement shall be under this Section 2.05(b), when combined with any contribution under Section 2.05(d) exceed the total proceeds from the offering received by such Participating Holder unless such liability arises out of or is based on Fraud (as defined in addition to any liability which the Company may otherwise haveMerger Agreement) or Willful Breach (as defined in the Merger Agreement) by such Participating Holder. (bc) If Promptly after receipt by an indemnified party under Section 2.05(a) or Section 2.05(b) of written notice of the commencement of any actionaction or proceeding for which indemnification under Section 2.05(a) or Section 2.05(b) may be requested, suit such indemnified party shall notify such indemnifying party in writing of the commencement of such action or proceeding. In case any such action or proceeding shall be brought against any indemnified party and it notifies an Indemnitee in respect indemnifying party of which indemnity may be sought against the Companycommencement thereof, such Indemnitee indemnifying party shall promptly notify be entitled to participate therein and, to the Companyextent that it shall determine, and the Company shall jointly with any other indemnifying party similarly notified, to assume the defense thereof, including with counsel reasonably satisfactory to such indemnified party, and, after notice from the employment indemnifying party to such indemnified party of counsel and payment of all fees and expenses. The Indemnitee shall have the right its election so to employ separate counsel in any such action, suit or proceeding and to participate in assume the defense thereof, but such indemnifying party shall not be liable to such indemnified party for any legal or any other expenses subsequently incurred by such indemnified party in connection with the fees and expenses defense thereof other than reasonable costs of investigation; provided, however, that (i) if the indemnifying party fails to take reasonable steps necessary to defend diligently the action or proceeding within twenty (20) days after receiving notice from such counsel shall be at indemnified party that the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company indemnified party believes it has failed to assume do so; (ii) if such indemnified party who is a defendant in any action or proceeding which is also brought against the defense and employ counsel, indemnifying party reasonably shall have concluded that there may be one or more legal defenses available to such indemnified party which are not available to the indemnifying party; or (ziii) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that if representation of such Indemnitee and the Company both parties by the same counsel would be is otherwise inappropriate under applicable standards of professional conduct (whether or not conduct, then, in any such representation by case, the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company indemnified party shall not have the right to assume or continue its own defense as set forth above (but with no more than one firm of counsel for all indemnified parties) and the indemnifying party shall be liable for any expenses therefor (including, without limitation, any such reasonable counsel’s fees). If the indemnifying party is not entitled to, or elects not to, assume the defense of such actiona claim, suit or proceeding on behalf of such Indemnitee). It is understood, however, that it will not be obligated to pay the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only more than one separate firm of attorneys (in addition counsel for each indemnified party with respect to such claim. The indemnifying party will not be subject to any local counselliability for any settlement made without its consent (not to be unreasonably withheld, conditioned or delayed). No indemnifying party shall, without the prior written consent of the indemnified party, compromise or consent to entry of any judgment or enter into any settlement agreement with respect to any action or proceeding in respect of which indemnification is sought under Section 2.05(a) at any time for all such Indemnitees or Section 2.05(b) (whether or not having the indemnified party is an actual or potential differing interests among themselvesparty thereto), unless such compromise, consent or settlement is solely for monetary damages and includes an unconditional release of the indemnified party from all liability in respect of such claim or litigation, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall does not be liable for any settlement include a statement or admission of any such actionfault, suit culpability or proceeding effected without its written consenta failure to act, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveindemnified party. (d) If The Participating Holders and the Company agree that if, for any reason, the indemnification provided for in this provisions contemplated by Section 9 is 2.05(a) or Section 2.05(b) hereof are unavailable to or are insufficient to hold harmless an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, claims, damages, liabilities or expenses Claims referred to therein, then an 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, claims, damages, liabilities or expenses Claims in such proportion as is appropriate to reflect the relative fault of the Company indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expensessecurities. The relative fault of the Company on the one hand such indemnifying party and a participating Holder on the other hand indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company on the one hand such indemnifying party or by such participating Holder on the other hand indemnified party, and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e. If, however, the allocation in the first sentence of this Section 2.05(d) The Company is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative fault, but also the relative benefits of the indemnifying party and the participating Holders indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Section 9 2.05(d) were to be determined by a pro rata allocation or by any other method of allocation that which does not take into account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions preceding sentences of this Section 9, no participating Holder shall be required to contribute 2.05(d). Notwithstanding any amount in excess of the amount foregoing, in no event shall any contribution by which any Participating Holder under this Section 2.05(d), when combined with any amounts payable or paid by such Participating Holder under Section 2.05(b), exceed the total proceeds to from the offering received by such participating Holder exceeds Participating Holder, unless such liability arises out of or is based on Fraud (as defined in the amount of any damages which Merger Agreement) or Willful Breach (as defined in the Merger Agreement) by such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omissionParticipating Holder. 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. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.

Appears in 2 contracts

Samples: Registration Rights Agreement, Registration Rights Agreement (Alphabet Inc.)

Indemnification; Contribution. (a) The In connection with any registration of Registrable Securities pursuant to Section 6.01 or Section 6.02 hereof, the Company agrees to indemnify and hold harmless harmless, to the fullest extent permitted by Law, each seller of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementParticipating Stockholder, and such seller's partnerstheir Affiliates, directors, officers, employees officers and any stockholders and each Person who controls each such seller under Participating Stockholder within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act (eachcollectively, an "Indemnitee"the “Indemnified Persons”) from and against any and all losses, claims, damages, liabilities and expenses expenses, joint or several (including reasonable costs of investigationattorneys’ fees) arising out of or based upon caused by any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectuspart of any Registration Statement, registration statement any preliminary or final prospectus used in connection with the Registrable Securities or in any amendment or supplement theretoIssuer FWP, or arising out of or based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a prospectus, in the light of the circumstances under which they were made) not misleading, except insofar as such ; provided that the Company will not be required to indemnify any Indemnified Persons for any losses, claims, damages, liabilities or expenses rise out of or are based upon resulting from any such untrue statement or omission or alleged if such untrue statement or omission which has been was made therein or omitted therefrom in reliance upon on and in conformity with the any information relating with respect to a participating Holder any Indemnified Person furnished in writing to the Company in writing by or on behalf of a participating Holder Participating Stockholder expressly for use in therein. In connection therewith. The foregoing indemnity agreement shall be in addition to any liability which with an underwritten offering, the Company may otherwise havewill indemnify each Underwriter, the officers and directors of such Underwriter, and each Person who controls such Underwriter (within the meaning of either the Securities Act or the Exchange Act) to the same extent as provided above with respect to the indemnification of the Participating Stockholders; provided that such Underwriter agrees to indemnify the Company to the same extent as provided below with respect to the indemnification of the Company by the Participating Stockholders. (b) If In connection with any actionRegistration Statement, suit preliminary or final prospectus or Issuer FWP, each Participating Stockholder, severally and not jointly. agrees to indemnify the Company, the Directors, its officers who sign such Registration Statement and each Person, if any, who controls the Company (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act) to the same extent as the foregoing indemnity from the Company to the Participating Stockholders, but only with respect to information with respect to any Indemnified Person furnished to the Company in writing by such Participating Stockholder expressly for use in such Registration Statement, preliminary or final prospectus, or Issuer FWP. (c) In case any proceeding shall (including any governmental investigation) will be brought against an Indemnitee instituted involving any Person in respect of which indemnity may be sought against the Companypursuant to Section 6.08(a) or (b), such Indemnitee shall Person (hereinafter called the “indemnified party”) will promptly notify the Company, Person against whom such indemnity may be sought (hereinafter called the “indemnifying party”) in writing and the Company shall assume indemnifying party, upon request of the defense thereofindemnified party, including will retain counsel reasonably satisfactory to the employment of counsel indemnified party to represent the indemnified party and payment of all will pay the fees and expensesdisbursements of such counsel related to such proceeding; provided that failure to so notify an indemnifying party shall not relieve it from any liability which it may have hereunder, except to the extent that the indemnifying party is materially prejudiced by such failure to give notice. The Indemnitee shall In any such proceeding, any indemnified party will have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereofretain its own counsel, but the fees and expenses of such counsel shall will be at the expense of such Indemnitee indemnified party unless (xi) the Company has indemnifying party and the indemnified party will have mutually agreed in writing to pay the retention of such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, counsel or (zii) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee the indemnifying party and the Company, indemnified party and such Indemnitee shall the indemnified party will have been advised in writing by its counsel that representation of such Indemnitee and the Company both parties by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing conflicting interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee)them. It is understood, however, understood that the Company shallindemnifying party will not, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstancesjurisdiction, be liable for the reasonable fees and expenses of only more than one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselvesindemnified parties, and that all such reasonable fees and expenses shall will be reimbursed as they are incurred. In the case of the retention of any such separate firm for the indemnified parties, such firm will be designated in writing by the indemnified parties. The Company shall indemnifying party will not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, consent or if them be there has been a final judgment for the plaintiff in any such action, suit or proceedingplaintiff, the Company indemnifying party agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, indemnified party from and against any loss, claim, damage, loss or liability or expense 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 6.08(c), the indemnifying party agrees that it will be liable for any settlement of any proceeding effected without its written consent if (ci) Each such settlement is entered into more than 15 days after receipt by such indemnifying party of the participating Holdersaforesaid request and (ii) such indemnifying party will not have reimbursed the indemnified party in accordance with such request or reasonably objected in writing, severally and not jointly, agree to indemnify and hold harmless on the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 basis of the Securities Act or Section 20 of the Exchange Actstandards set forth herein, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf propriety of such Holder expressly for use in reimbursement prior to the registration statementdate of such settlement. No indemnifying party will, prospectus without the prior written consent of the indemnified party, effect any settlement of any pending or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or threatened proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which any indemnified party is or could have been a party and indemnity may be could have been sought against any Holder pursuant to this Section 9(c)hereunder by such indemnified party, unless such settlement is of a claim for monetary damages only, such Holder shall have claim has been settled by the rights payment of money only and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses settlement includes an unconditional release of such counsel shall be at indemnified party from all liability on claims that are the Holder's expense), and the Company, its directors, any subject matter of such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveproceeding. (d) If the indemnification provided for in this Section 9 6.08 from the indemnifying party is unavailable to an indemnified party under paragraphs (a) or (c) hereof hereunder in respect of any losses, claims, damages, liabilities or expenses referred to thereinin this Section 6.08, then an 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, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company indemnifying party and of the participating Holders indemnified party in connection with the statements or omissions actions that resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand such indemnifying party and a participating Holder on the other hand shall indemnified party will be determined by reference to, among other things, whether the any action in question, including any untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact fact, has been made by, or relates to information supplied by the Company on the one hand by, such indemnifying party or by such participating Holder on the other hand indemnified party, and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereofaction. The amount paid or payable by an indemnified a party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall above will be deemed to include, subject to the limitations set forth abovein Section 6.08(c), any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit investigation or proceeding. Notwithstanding . (e) The parties agree that it would not be just and equitable if contribution pursuant to Section 6.08(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the provisions of this equitable considerations referred to in Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission6.08(d). No person Person guilty of fraudulent misrepresentation misrepresentation” (within the meaning of Section 11(f) of the Securities Act) shall will be entitled to contribution from any person Person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shallNotwithstanding the provisions of this Section 6.08, without no Participating Stockholder shall be required to make any indemnification or contribution payment, in the prior written consent aggregate, in any amount in excess of the indemnified party, effect any settlement amount of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder the net proceeds received by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are Participating Stockholder with respect to the subject matter of such action, suit or proceedingRegistrable Securities. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry If indemnification is entitled to indemnification or contribution available under this Section 9 shall be paid by 6.08, the indemnifying party will indemnify each indemnified party to the full extent provided in Sections 6.08(a) and (b) without regard to the relative fault of said indemnifying party or indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and other equitable consideration provided for in Section 6.08(d) or (ii) any termination of this Agreemente).

Appears in 2 contracts

Samples: Stockholder Agreement, Stockholder Agreement (Realnetworks Inc)

Indemnification; Contribution. (a) The Company shall, and it hereby agrees to to, indemnify and hold harmless each seller Stockholder (which, for purposes of this Article VI, shall be deemed to include each holder of Registrable Securities covered by a Registration Statement filed pursuant to this Agreement, Shares) and such seller's partners, its controlled Affiliates and their respective directors, officers, employees members, employees, managers, partners, accountants, attorneys and any agents and each Person who controls such seller under (within the meaning of the Securities Act (eachand the Exchange Act) such Persons, an "Indemnitee") in any offering or sale of the Registrable Shares, from and against any and all losses, claims, damagesdamages or liabilities, liabilities actions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable costs fees of investigationcounsel) arising (collectively, “Claims”) to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon any (i) an untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement used to register Registrable Shares pursuant to this Agreement or prospectus or in any amendment thereof or supplement thereto, or arising out of any document incorporated by reference therein, or based upon any omission or alleged omission to state therein of a material fact required to be stated therein or necessary to make the statements therein not misleading and (ii) any untrue or alleged untrue statement of a material fact in any prospectus or preliminary prospectus used to register Registrable Shares pursuant to this Agreement or any amendment thereof or supplement thereto, or any document incorporated by reference therein, or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, except insofar as and the Company shall, and it hereby agrees to, reimburse periodically the indemnified person for any legal or other out-of-pocket expenses reasonably incurred by them in connection with investigating or defending any such lossesClaims; provided, claimshowever, damages, liabilities or expenses rise that the Company shall not be liable to any such Person in any such case only to the extent that any such Claims arise out of or are based upon any an untrue statement or alleged untrue statement or omission or alleged untrue statement omission made in such registration statement, or omission which has been preliminary or final prospectus, or amendment or supplement thereto, made therein or omitted therefrom in reliance upon and in conformity with the written information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating Holder the Stockholder Group expressly for use in connection therewiththerein. The foregoing indemnity agreement shall be in addition to any liability which members of the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the CompanyStockholder Group shall, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holdershereby agree, severally and not jointly, agree to (i) indemnify and hold harmless the Company, its directors, its officers who sign the registration statementofficers, employees and any person each Person who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) such Persons, if any, in any offering or sale of Registrable Shares, against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact in any registration statement used to register Registrable Shares pursuant to this Agreement or any amendment thereof or supplement thereto, or any document incorporated by reference therein, or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading and (ii) any untrue or alleged untrue statement of a material fact in any prospectus or preliminary prospectus used to register Registrable Shares pursuant to this Agreement or any amendment thereof or supplement thereto, or any document incorporated by reference therein, or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case only to the same extent as the foregoing indemnity from that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information furnished to the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder the Stockholder Group expressly for use therein, and (ii) reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred by the Company in connection with investigating or defending any such Claim. Notwithstanding the foregoing, no member of the Stockholder Group shall be liable under this Section 6.1(a) for amounts in excess of the proceeds (net of underwriting discounts and commissions) received by such holder in the registration statementoffering giving rise to such liability. (b) Promptly after receipt by an indemnified party under Section 6.1(a) or Section 6.1(b) of written notice of the commencement of any action or proceeding for which indemnification under Section 6.1(a) or Section 6.1(b) may be requested, prospectus such indemnified party shall notify such indemnifying party in writing of the commencement of such action or proceeding; but the omission so to notify the indemnifying party shall not relieve it from any prepricing prospectusliability which it may have to any indemnified party in respect of such action or proceeding hereunder unless the indemnifying party was materially prejudiced by such failure of the indemnified party to give such notice, or and in no event shall such omission relieve the indemnifying party from any amendment or supplement theretoother liability it may have to such indemnified party. If In case any action, suit such action or proceeding shall be brought against any indemnified party and it shall notify an indemnifying party of the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c)commencement thereof, such Holder indemnifying party shall have the rights and duties given be entitled to participate therein and, to the Company by Section 9(b) hereof (except extent that if the Company it shall have assumed the defense thereof such Holder shall not be required determine, jointly with any other indemnifying party similarly notified, to do so, but may employ separate counsel therein and participate in assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, such indemnifying party shall not be liable to such indemnified party for any legal or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, that (i) if the indemnifying party fails to take reasonable steps necessary to defend diligently the action or proceeding within 20 days after receiving notice from such indemnified party that the indemnified party believes it has failed to do so; (ii) if such indemnified party who is a defendant in any action or proceeding which is also brought against the indemnifying party reasonably shall have concluded that there may be one or more legal defenses available to such indemnified party which are not available to the indemnifying party; or (iii) if representation of both parties by the same counsel is otherwise inappropriate under applicable standards of professional conduct, then, in any such case, the indemnified party shall have the right to assume or continue its own defense as set forth above (but with no more than one firm of counsel for all indemnified parties in each jurisdiction) and the indemnifying party shall be liable for any expenses therefor (including, without limitation, any such reasonable counsel’s fees). If the indemnifying party is not entitled to, or elects not to, assume the defense of a claim, it will not be obligated to pay the fees and expenses of more than one counsel for each indemnified party with respect to such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereofclaim. The foregoing indemnity agreement shall indemnifying party will not be in addition subject to any liability for any settlement made without its consent, which consent shall not be unreasonably withheld or delayed. No indemnifying party shall, without the participating Holders may otherwise haveprior written consent of the indemnified party, compromise or consent to entry of any judgment or enter into any settlement agreement with respect to any action or proceeding in respect of which indemnification is sought under Section 6.1(a) or Section 6.1(b) (whether or not the indemnified party is an actual or potential party thereto), unless such compromise, consent or settlement includes an unconditional release of the indemnified party from all liability in respect of such claim or litigation, does not subject the indemnified party to any material injunctive relief or other material equitable remedy and does not include a statement or admission of fault, culpability or a failure to act, by or on behalf of the indemnified party. (dc) If The members of the Stockholder Group and the Company agree that if, for any reason, the indemnification provided for in this Section 9 is provisions contemplated by Sections 6.1(a) or 6.1(b) hereof are unavailable to or are insufficient to hold harmless an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, claims, damages, liabilities or expenses Claims referred to therein, then an 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, claims, damages, liabilities or expenses Claims in such proportion as is appropriate to reflect the relative fault of, the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to such offering of the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expensessecurities. The relative fault of the Company on the one hand such indemnifying party and a participating Holder on the other hand indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company on the one hand such indemnifying party or by such participating Holder on the other hand indemnified party, and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) The Company . If, however, the allocation in the second preceding sentence is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the participating Holders indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Section 9 6.1(c) were to be determined by a pro rata allocation or by any other method of allocation that which does not take into account of the equitable considerations referred to in the preceding sentences of this Section 9(d) hereof6.1(c). The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses Claims referred to in Section 9(d) hereof above shall be deemed to include, include (subject to the limitations set forth above, in Section 6.1(b) hereof) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit proceeding or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omissionclaim. 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. (f) No indemnifying party shall. Notwithstanding the foregoing, without the prior written consent no member of the indemnified party, effect any settlement Stockholder Group shall be required to make a contribution in excess of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder the amount received by such indemnified party, unless such settlement includes an-unconditional release person from the sale of such indemnified party from all liability on claims its Registrable Shares in connection with the offering that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party gave rise to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreementobligation.

Appears in 2 contracts

Samples: Stockholders Agreement (Engility Holdings, Inc.), Agreement and Plan of Merger (Engility Holdings, Inc.)

Indemnification; Contribution. (a) The Company agrees to will indemnify and hold harmless each seller holder of Registrable Securities covered by a Registration Statement filed Warrant Stock registered pursuant to this AgreementAgreement with the Commission, and such seller's partnersor under any blue sky law or regulation, directors, officers, employees and any Person who controls such seller under the Securities Act (each, an "Indemnitee") from and against any and all 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 costs of investigationor actions in respect thereof) arising arise out of or are based upon any an untrue statement or alleged untrue statement of a material fact contained in any prepricing preliminary prospectus, registration statement or statement, prospectus or in any amendment or supplement thereto, or arising arise out of or are based upon any the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except and will reimburse each such holder for any legal or other expenses reasonably incurred by such holder in connection with investigating or defending any such action or claim; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any such document, in reliance upon and in conformity with written information furnished to the Company by any holder expressly for use therein (b) Each holder of Common Stock registered pursuant to this Agreement will indemnify and hold harmless the Company against any 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, damages or liabilities (or expenses rise actions in respect thereof) arise out of or are based upon any an untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating Holder expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel material fact contained in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing preliminary prospectus, registration statement or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in any such document, in reliance upon and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given conformity with written information furnished to the Company by such holder expressly for use therein, or in a document to be filed with the Commission or any state securities commission. (c) Promptly after receipt by an indemnified party under subsections (a) or (b) of this Section 9(b) hereof (except that 16 of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the Company indemnifying party under either such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have assumed to any indemnified party otherwise than under either of such subsections. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to assume the defense thereof by notice in writing to the indemnified party. After receipt of written notice from the indemnifying party to such Holder shall not be required indemnified party of its election to do so, but may employ separate counsel therein and participate in assume the defense thereof, but the fees and 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 counsel shall be at indemnified party, in connection with the Holder's expense), and defense thereof other than reasonable costs of investigation incurred prior to the Company, its directors, any such officer, and any such controlling person shall have assumption by the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveindemnifying party. (d) If the indemnification provided for in this Section 9 16 is unavailable or insufficient to hold harmless an indemnified party under paragraphs subsection (a) or (cb) hereof above in respect of any losses, claims, damages, damages or liabilities (or expenses actions in respect thereof) referred to therein, then an 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, claims, damages, damages or liabilities (or expenses 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 Company and of the participating Holders holders in connection with the statements or omissions that which resulted in such losses, claims, damagesdamages or liabilities (or actions in respect thereof), liabilities or expensesas well as any other relevant equitable considerations. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company on or the one hand or by such participating Holder on the other hand holder and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) . The Company and the participating Holders holders agree that it would not be just and equitable if contribution pursuant to this Section 9 subparagraph (d) were determined by a pro rata allocation (even if the holders were treated as one entity for such purpose) or by any other method of allocation that which does not take into account of the equitable considerations referred to above in this subparagraph (d). Except as provided in subparagraph (c) of this Section 9(d) hereof. The 16, the amount paid or payable by an indemnified party as a result of the losses, claims, damages, damages or liabilities and expenses (or actions in respect thereof) referred to above in Section 9(dthis subparagraph (d) hereof shall be deemed to include, subject to the limitations set forth above, include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit action or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omissionclaim. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. . Notwithstanding any provision in this subparagraph (fd) No indemnifying party shallto the contrary, without no holder shall be liable for any amount, in the prior written consent aggregate, in excess of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by net proceeds to such indemnified party, unless such settlement includes an-unconditional release holder from the sale of such indemnified party from all liability on claims that are the subject matter holder's shares (obtained upon exercise of such action, suit or proceeding. (gWarrants) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled giving rise to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities damages or expenses are incurred. liabilities. (e) The indemnity and contribution agreements contained in obligations of the Company under this Section 9 16 shall remain operative and be in full force and effect, regardless of (i) addition to any investigation made by liability which the Company may otherwise have at law or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreementin equity.

Appears in 2 contracts

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

Indemnification; Contribution. (a) The Company agrees agrees, to the extent permitted by law, to indemnify and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementHolder and each Person, and such seller's partnersif any, directors, officers, employees and any Person who controls such seller under any Holder within the Securities meaning of Section 15 of the Act (eachor Section 20 of the Exchange Act, an "Indemnitee") from and against any and all losses, claims, damages or liabilities, joint or several, to which they or any of them may become subject under the Act or otherwise ("Indemnified Holder"), and to reimburse the Holders and such controlling Person or Persons, if any, for any legal or other expenses incurred by them in connection with defending any action, suit or proceeding (including governmental investigations) as provided in Section 4(c) hereof, insofar as such losses, claims, damages, liabilities and expenses or actions, suits or proceedings (including reasonable costs of investigationgovernmental investigations) arising arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectusShelf Registration Statement, registration statement or, if any Shelf Registration Statement shall be amended or prospectus supplemented, in the Shelf Registration Statement as so amended or in any amendment or supplement theretosupplemented, or arising arise out of or are based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise actions arise out of or are based upon any such untrue statement or alleged untrue statement or omission or alleged untrue statement or omission which has been was made therein in the Shelf Registration Statement or omitted therefrom in the Shelf Registration Statement as so amended or supplemented, in reliance upon and in conformity with the information relating to a participating Holder furnished in writing to the Company by any Holder expressly for use therein. The Company's indemnity agreement contained in this Section 4(a), and the covenants, representations and warranties of the Company contained in this Agreement, shall remain in full force and effect regardless of any investigation made by or on behalf of a participating Holder expressly for use any Person, and the indemnity agreement contained in connection therewiththis Section 4 shall survive any termination of this Agreement. The foregoing indemnity agreement shall be liabilities of the Company in this Section 4 are in addition to any liability which other liabilities of the Company may otherwise haveunder this Agreement or otherwise. (b) Each Holder agrees, severally and not jointly, to the extent permitted by law, to indemnify, hold harmless and reimburse the Company and each Person, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act, to the same extent and upon the same terms as the indemnity agreement of the Company set forth in Section 4(a) hereof, but only with respect to alleged untrue statements or omissions made in the Shelf Registration Statement or in the Shelf Registration Statement, as amended or supplemented (if applicable), in reliance upon and in conformity with information furnished in writing to the Company by such Holder expressly for use therein. The indemnity agreement on the part of each Holder contained in this Section 4(b) shall remain in full force and effect regardless of any investigation made by or on behalf of the Company or any other Person, and the indemnity agreement contained in this Section 4(b) shall survive any termination of this Agreement. (c) If any a claim is made or an action, suit or proceeding shall be brought (including governmental investigations) is commenced or threatened against an Indemnitee in respect of any person as to which indemnity may be sought against the Companyunder Section 4(a) or 4(b) hereof, such Indemnitee Person (the "Indemnified Person") shall promptly notify the CompanyPerson against whom such indemnity may be sought (the "Indemnifying Person") promptly after any assertion of such claim threatening to institute an action, suit or proceeding or, if such an action, suit or proceeding is commenced against such Indemnified Person, promptly after such Indemnified Person shall have been served with a summons or other first legal process, giving information as to the nature and basis of the Company claim. Failure to so notify the Indemnifying Person shall not, however, relieve the Indemnifying Person from any liability which it may have on account of the indemnity under Section 4(a) or 4(b) hereof if the Indemnifying Person has not been prejudiced in any material respect by such failure. Subject to the immediately succeeding sentence, the Indemnifying Person shall assume the defense thereofof any such litigation or proceeding, including the employment of counsel and the payment of all fees expenses, with such counsel being designated, subject to the immediately succeeding sentence, in writing by a majority in principal amount of the Holders in the case of parties indemnified pursuant to Section 4(b) hereof and expensesby the Company in the case of parties indemnified pursuant to Section 4(a) hereof. The Indemnitee Any Indemnified Person shall have the right to employ separate counsel participate in any such action, suit litigation or proceeding and to participate in the defense thereofretain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnitee Indemnified Person unless (xi) the Company has Indemnifying Person and the Indemnified Person shall have mutually agreed in writing to pay the retention of such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, counsel or (zii) the named parties to any such action, suit or proceeding (including any impleaded parties) include both (x) the Indemnifying Person and (y) the Indemnified Person and, in the written opinion of counsel to such Indemnitee and the CompanyIndemnified Person, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company both parties by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests likely conflicts of interest between them them, in either of which cases the reasonable fees and expenses of counsel (including disbursements) for such Indemnified Person shall be reimbursed by the Indemnifying Person to the Indemnified Person. If there is a conflict as described in which case clause (ii) above, and the Company Indemnified Persons have participated in the litigation or proceeding utilizing separate counsel whose fees and expenses have been reimbursed by the Indemnifying Person, and the Indemnified Persons, or any of them, are found to be solely liable, such Indemnified Person shall not have repay to the right to assume the defense Indemnifying Parties such fees and expenses of such action, suit or proceeding on behalf of such Indemnitee)separate counsel as the Indemnifying Person shall have reimbursed. It is understood, however, understood that the Company shallIndemnifying Person shall not, in connection with any one such action, suit litigation or proceeding or separate but substantially similar or related actions, suits litigation or proceedings in the same jurisdiction arising out of as to which the same general allegations or circumstancesIndemnified Persons are entitled to such separate representation, be liable under this Agreement for the reasonable fees and out-of-pocket expenses of only more than one separate firm of attorneys (in addition to any together with not more than one appropriate local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselvesIndemnified Persons. Subject to the next paragraph, and that all such fees and expenses shall be reimbursed by payment to the Indemnified Persons of such reasonable fees and expenses of counsel promptly after payment thereof by the Indemnified Persons. In furtherance of the requirement above that fees and expenses of any separate counsel for the Indemnified Persons shall be reasonable, the Holders and the Company agree that the Indemnifying Person's obligations to pay such fees and expenses shall be conditioned upon the following: (1) in case separate counsel is proposed to be retained by the Indemnified Persons pursuant to clause (ii) of the preceding paragraph, the Indemnified Persons shall in good faith fully consult with the Indemnifying Person in advance as they are incurredto the selection of such counsel; (2) reimbursable fees and expenses of such separate counsel shall be detailed and supported in a manner reasonably acceptable to the Indemnifying Person (but nothing herein shall be deemed to require the furnishing to the Indemnifying Person of any information, including, without limitation, computer print-outs of lawyers' daily time entries, to the extent that, in the judgment of such counsel, furnishing such information might reasonably be expected to result in a waiver of any attorney-client privilege); and (3) the Company and the Holders shall cooperate in monitoring and controlling the fees and expenses of separate counsel for Indemnified Persons for which the Indemnifying Person is liable hereunder, and the Indemnified Person shall use every reasonable effort to cause such separate counsel to minimize the duplication of activities as between themselves and counsel to the Indemnifying Person. The Company Indemnifying Person shall not be liable for any settlement of any such action, suit litigation or proceeding effected without its the written consentconsent of the Indemnifying Person, but if settled with such written consent, consent or if them there be a final judgment for against the plaintiff in any such action, suit or proceedingIndemnified Person, the Company agrees Indemnifying Person agrees, subject to the provisions of this Section 4, to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, Indemnified Person from and against any loss, claim, damage, liability or expense expenses by reason of such settlement or judgment. (c) Each . The Indemnifying Person shall not, without the prior written consent of the participating HoldersIndemnified Persons, severally and not jointlyeffect any settlement of any pending or threatened litigation, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act proceeding or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and claim in respect of which indemnity may be has been properly sought against any Holder pursuant by the Indemnified Persons hereunder, unless such settlement includes an unconditional release by the claimant of all Indemnified Persons from all liability with respect to this Section 9(c), such Holder shall have claims which are the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses subject matter of such counsel shall be at the Holder's expense)litigation, and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveproceeding or claim. (d) If the indemnification provided for in this Section 9 4 is unavailable to or insufficient to hold harmless an indemnified party Indemnified Person under paragraphs (a) or (c) hereof this Section 4 in respect of any losses, claims, damagesdamages or liabilities (or actions, liabilities suits or expenses proceedings (including governmental investigations) in respect thereof) referred to therein, then an indemnifying party, in lieu of indemnifying such indemnified party, each Indemnifying Person under this Section 4 shall contribute to the amount paid or payable by such indemnified party Indemnified Person as a result of such losses, claims, damages, damages or liabilities (or expenses actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Indemnifying Person on the one hand and the Indemnified Person on the other from the sale of the Registrable Securities. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, then each Indemnifying Person shall contribute to such amount paid or payable by such Indemnified Person in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of each Indemnifying Person, if any, on the Company one hand and of the participating Holders Indemnified Person on the other in connection with the statements or omissions that which resulted in such losses, claims, damagesdamages or liabilities (or actions, liabilities suits or expensesproceedings (including governmental investigations) in respect thereof), as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder the Holders on the other hand and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) . The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 4 were determined by a pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method of allocation that which does not take account of the equitable considerations referred to in this Section 9(d) hereof4. The amount paid or payable by an indemnified party Indemnified Person as a result of the losses, claims, damagesdamages or liabilities (or actions, liabilities and expenses suits or proceedings (including governmental proceedings) in respect thereof) referred to in this Section 9(d) hereof 4 shall be deemed to include, subject to the limitations set forth above, include any legal or other expenses reasonably incurred by such indemnified party Indemnified Person in connection with investigating any claim or defending any such actionactions, suit suits or proceedingproceedings (including governmental proceedings) or claims, provided that the provisions of this Section 4 have been complied with (in all material respects) in respect of any separate counsel for such Indemnified Person. Notwithstanding the provisions of this Section 94, no participating Holder shall be required to contribute any amount in greater than the excess of the amount by which the proceeds total received by such Holder with respect to the sale of its Registrable Securities pursuant to a Shelf Registration Statement exceeds the sum of (A) the amount paid by such participating Holder exceeds for such Registrable Securities plus (B) the amount of any damages which such participating Holder 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 who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding . The Holders' obligations in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party 4 to the indemnified party as such losses, claims, damages, liabilities or expenses contribute are incurredseveral in proportion to their respective obligations and not joint. The indemnity and agreement with respect to contribution agreements contained in this Section 9 4 shall remain operative and in full force and effect, effect regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, Company or any person controlling the CompanyHolder, and (ii) shall survive any termination of this Agreement.

Appears in 2 contracts

Samples: Purchase Agreement (CMS Energy Corp), Registration Rights Agreement (CMS Energy Corp)

Indemnification; Contribution. (a) The Company agrees Each holder of Common Stock registered pursuant to this Agreement will indemnify and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this Agreement, and such seller's partners, directors, officers, employees and any Person who controls such seller under the Securities Act (each, an "Indemnitee") from and Company against any and all losses, claims, damagesdamages or liabilities to which the Company may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities and expenses (including reasonable costs of investigationor actions in respect thereof) arising arise out of or are based upon any an untrue statement or alleged untrue statement of a material fact contained in any prepricing preliminary prospectus, registration statement or prospectus prospectus, or in any amendment or supplement thereto, or arising arise out of or are based upon any the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as in each case to the extent, but only to the extent, that (i) such losses, claims, damages, liabilities untrue statement or expenses rise out of or are based upon any alleged untrue statement or omission or alleged untrue omission was made in any preliminary prospectus, registration statement or omission which has been made therein prospectus, or omitted therefrom any amendment or supplement thereto, in reliance upon and in conformity with the written information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating Holder such holder expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition therein, or (ii) you failed to any liability deliver an amendment or supplement to the prospectus that the Company made available to you prior to the applicable date of sale of Common Stock to which the Company may otherwise haveclaim relates and that corrected any statement or omission in a preliminary prospectus, registration statement or prospectus that forms the basis for a claim against the Company. (b) If Promptly after receipt by an indemnified party under Section 7(a) above of the commencement of any action, suit or proceeding such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under either such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability that it may otherwise have to any indemnified party. In case any such action shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee any indemnified party and it shall promptly notify the Company, and indemnifying party of the Company commencement thereof the indemnifying party shall be entitled to assume the defense thereof by notice in writing to the indemnified party. After notice from the indemnifying party to such indemnified party of its election to assume the defense thereof, including the employment indemnifying party shall not be liable to such indemnified party under either of such subsections for any legal expenses of other counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel or any other expense, in any each case subsequently incurred by such actionindemnified party, suit or proceeding and to participate in connection with the defense thereofthereof other than reasonable costs of investigation incurred prior to the assumption by the indemnifying party, but the fees and unless such expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed have been specifically authorized in writing to pay such fees and expensesby the indemnifying party, (y) the Company indemnifying party has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) action include both such Indemnitee the indemnified party and the Companyindemnifying party, as appropriate, and such Indemnitee shall have indemnified party has been advised by its counsel that the representation of such Indemnitee indemnified party and the Company indemnifying party by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shallthem, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in each of which cases the same jurisdiction arising out fees of the same general allegations or circumstances, be liable counsel for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall indemnified party will be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for paid by the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgmentindemnifying party. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 7 is unavailable or insufficient to hold harmless an indemnified party under paragraphs (aSection 7(a) or (c) hereof in respect of any losses, claims, damages, damages or liabilities (or expenses action in respect thereof) referred to therein, then an 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, claims, damages, damages or liabilities (or expenses actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company and the holder or holders from this Agreement and from the offering of the shares of Common Stock. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, then each indemnifying party shall contribute to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company and of the participating Holders holders in connection with the statements statement or omissions that resulted in such losses, claims, damagesdamages or liabilities (or actions in respect thereof), liabilities or expensesas well as any other relevant equitable considerations. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company on or the one hand or by such participating Holder on the other hand holder and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) . The Company and the participating Holders holders agree that it would not be just and equitable if contribution pursuant to this Section 9 7(c) were determined by a pro rata allocation (even if the holders were treated as one entity for such purpose) or by any other method of allocation that does not take into account of the equitable considerations referred to above in this subsection (c). Except as provided in Section 9(d) hereof. The 7(b), the amount paid or payable by an indemnified party as a result of the losses, claims, damages, damages or liabilities and expenses (or actions in respect thereof) referred to above in this Section 9(d7(c) hereof shall be deemed to include, subject to the limitations set forth above, include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim investigation or defending any such action, suit action or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omissionclaim. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f. Notwithstanding any provision in this Section 7(c) No indemnifying party shallto the contrary, without no holder shall be liable for any amount, in the prior written consent aggregate, in excess of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by net proceeds to such indemnified party, unless such settlement includes an-unconditional release holder from the sale of such indemnified party from all liability on claims that are the subject matter holder's shares (obtained upon exercise of such action, suit or proceeding. (gWarrants) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled giving rise to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities damages or expenses are incurred. liabilities. (d) The indemnity and contribution agreements contained in obligations of the holders of Common Stock under this Section 9 7 shall remain operative be in addition to any liability that such holders may otherwise have and in full force shall extend, upon the same terms and effectconditions to each person, regardless if any, who controls the Company within the meaning of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this AgreementAct.

Appears in 2 contracts

Samples: Warrant Agreement (Commonwealth Biotechnologies Inc), Warrant Agreement (Commonwealth Biotechnologies Inc)

Indemnification; Contribution. (a) The Company agrees to shall indemnify and hold harmless each seller harmless, to the fullest extent permitted by law, the Holder in any offering or sale of Registrable Securities covered by a Registration Statement filed pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls the Holder or such seller's partnersunderwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, directorstrustees, officers, partners, agents, employees and any Person who controls such seller under the Securities Act (each, an "Indemnitee") from and affiliates against any and all losses, claims, damages, liabilities and expenses (including reasonable costs of investigationattorneys’ 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 upon: (i) any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement or prospectus or in any amendment or supplement theretoin, or arising out of or based upon any omission or alleged omission to state therein of a material fact required to be stated therein in, the Registration Statement, Prospectus or preliminary Prospectus or any amendment or supplement to any of the foregoing, any Free Writing Prospectus or any “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a preliminary Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such losses, claims, damages, liabilities statements or expenses rise omissions arise out of or are based upon (A) any such untrue statement or alleged untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon on and in conformity with information with respect to the information relating to a participating Holder furnished in writing to the Company by the Holder or its counsel expressly for use therein, (B) the use of any Prospectus, 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, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holder that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented; or (ii) any violation by the Company of any other federal or state securities laws or regulations applicable to the Company and relating to action required of or inaction by the Company in connection with any such registration. Notwithstanding the foregoing provisions of this Section 2.10(a), the Company shall not be liable to the Holder or any underwriter or to any other indemnified party under the indemnity agreement in this Section 2.10(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) the Holder or such underwriter failed to send or deliver a copy of the Prospectus prior to the time of the sale of Registrable Securities by the Holder or such 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 a participating Holder expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise havewith copies of the Prospectus as so amended or supplemented as required hereunder, the Holder or such underwriter thereafter fails to deliver such Prospectus, as so amended or supplemented, prior to the time of the sale of Registrable Securities by the Holder or underwriter to the Person asserting the claim from which such Losses arise. Such rights to indemnity and reimbursement of expenses shall survive the transfer of the Registrable Securities by such indemnified party. (b) If In connection with any actionRegistration Statement filed pursuant to this Agreement, suit or proceeding the Holder shall be brought against an Indemnitee in respect of which indemnity may be sought against indemnify and hold harmless, to the fullest extent permitted by law, the Company, such Indemnitee shall promptly notify the Companyeach Person, and the Company shall assume the defense thereofif any, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel who participates as an underwriter in any such actionoffering and sale of Registrable Securities and each Person, suit or proceeding and to participate in the defense thereofif any, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and affiliates, against all Losses incurred by such party pursuant to the same extent as the foregoing indemnity from the Company to an Indemniteeany actual action, but only with respect to information relating to such Holder furnished in writing by suit, proceeding or on behalf investigation arising out of such Holder expressly for use in the registration statementor based upon any untrue or alleged untrue statement of a material fact contained in, prospectus or any prepricing prospectusomission or alleged omission of a material fact required to be stated in, the Registration Statement, Prospectus or preliminary Prospectus or any amendment or supplement thereto. If to any action, suit or proceeding shall be brought against of the Companyforegoing, any Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of its directorsa Prospectus, preliminary Prospectus or Free Writing Prospectus, in the light of the circumstances then existing) not misleading, but only to the extent that any such officer, untrue statement or any such controlling person based omission is made in reliance on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in conformity with information with respect of which indemnity may be sought against any to the Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given furnished in writing to the Company by Section 9(b) hereof (except the Holder or its counsel specifically for use therein, provided that if the Company shall have assumed the defense thereof such Holder shall not be required to do soindemnify the Company or any other indemnified party under this Section 2.10(b) with respect to any amount in excess of the amount of the total net proceeds received by the Holder from sales of the Registrable Securities 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, but suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may employ separate counsel claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 2.10 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and participate in and, to the extent that it shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel 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 opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for the Holder (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the 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 the Holder (which selection shall be at reasonably satisfactory to the Holder's expenseCompany), and (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, its directorsin each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such officeraction, and 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 controlling person indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 2.10. No indemnified party shall have consent to entry of any judgment or entry into any settlement without the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveconsent of each indemnifying party. (d) If the indemnification from the indemnifying party provided for in this Section 9 2.10 is unavailable to an indemnified party under paragraphs (a) or (c) hereof hereunder in respect of any losses, claims, damages, liabilities or expenses referred to thereinLosses, then an 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, claims, damages, liabilities or expenses Losses in such proportion as is appropriate to reflect the relative fault of the Company indemnifying party and of the participating Holders indemnified party in connection with the statements or omissions that actions which resulted in such lossesLosses, claimsas well as any other relevant equitable considerations, damages, liabilities or expensesprovided that the Holder shall not be required to contribute any amount in excess of the amount of the total net proceeds received by the Holder from sales of the Registrable Securities under the applicable Registration Statement. The relative fault of the Company on the one hand such indemnifying party and a participating Holder on the other hand indemnified party shall be determined by reference to, among other thingsmatters, whether the any action in question, including any untrue statement or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact fact, has been made by, or relates to information supplied by the Company on the one hand by, such indemnifying party or by such participating Holder on the other hand indemnified party, and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereofaction. The amount paid or payable by an indemnified a party as a result of the losses, claims, damages, liabilities and expenses Losses referred to in Section 9(d) hereof above shall be deemed to include, subject to the limitations set forth abovein Section 2.10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit investigation or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder 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 pursuant to this Section 2.10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 2.10(d). If indemnification is available under this Section 2.10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 2.10(a) or 2.10(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 2.10(d). (e) The provisions of this Section 2.10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement. (f) No indemnifying party shall, without the prior written consent The indemnification and contribution required by this Section 2.10 shall be made by periodic payments of the indemnified party, effect any settlement amount thereof during the course of any pending or threatened action, suit suit, proceeding or proceeding in respect of which any indemnified party is investigation, as and when invoices are received or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses Losses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.

Appears in 2 contracts

Samples: Registration Rights and Governance Agreement (Advisory Board Co), Stock Purchase Agreement (Advisory Board Co)

Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementHolder, and such seller's partnersthe Affiliates, directors, officers, employees employees, members, managers and any agents of each such Holder and each Person who controls any such seller under Holder within the meaning of either the Securities Act (eachor the Exchange Act, an "Indemnitee") 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 costs of investigationor actions in respect thereof) arising arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement or prospectus 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 arising arise out of or are based upon any the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such lossesloss, claimsclaim, damagesdamage, liabilities liability or expenses rise 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 to the extent that any such loss, claim, damage, liability or expense arises (i) out of or are is based upon any such untrue statement or alleged untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the written information relating to a participating Holder furnished in writing to the Company by or on behalf of any such Holder specifically for inclusion therein including, without limitation, any notice or questionnaire, or (ii) out of sales of Registrable Securities made during a participating Holder expressly for use in connection therewithSuspension Period after notice is given pursuant to Section ‎2(b). The foregoing This indemnity agreement shall will be in addition to any liability which the Company may otherwise have. (b) If Each Holder severally (and not jointly) agrees to indemnify and hold harmless the Company and each of its Affiliates, directors, employees, members, managers and agents and each Person who controls the Company within the meaning of either the Securities Act or the Exchange Act, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages or liabilities to which they or any of them may become subject insofar as such losses, claims, damages or liabilities arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement as originally filed or in any amendment thereof, or in the Disclosure Package or any Holder Free Writing Prospectus, preliminary, final or summary Prospectus included in any such Registration Statement, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, to the extent, but only to the extent, that any such untrue statement or alleged untrue statement or omission or alleged omission is contained in any written information relating to such Holder furnished to the Company by or on behalf of such Holder specifically for inclusion therein; provided, however, that the total amount to be indemnified by such Holder pursuant to this Section ‎8(b) shall be limited to the gross proceeds (before deducting underwriters’ discounts and commissions) received by such Holder in the offering to which such Registration Statement or Prospectus relates. This indemnity agreement will be in addition to any liability which any such Holder may otherwise have. (c) Promptly after receipt by an indemnified party under this Section ‎8 of notice of the commencement of any action, suit such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section ‎8, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or proceeding (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 brought against an Indemnitee in respect of which indemnity may be sought against entitled to participate therein and, to the Companyextent that it shall wish, such Indemnitee shall promptly notify the Companyjointly with any other indemnifying party similarly notified, and the Company shall to assume the defense thereof, including with counsel satisfactory to such indemnified party (who shall not, except with the employment consent of the indemnified party, be counsel and payment to the indemnifying party), and, except as provided in the next sentence, after notice from the indemnifying party to such indemnified party of all fees and expensesits election to so assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The Indemnitee Notwithstanding the indemnifying party’s rights in the prior sentence, the indemnified parties shall collectively have the right to employ separate their own counsel in any such action(and one local counsel), suit or proceeding and to participate in the defense thereofindemnifying party shall bear the reasonable fees, but the fees costs and expenses of such separate counsel if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest; (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party; (iii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee)indemnifying party. It is understood, however, that the Company No indemnifying party shall, in connection with any one such action, suit or proceeding action or separate but substantially similar or related actions, suits or proceedings actions in the same jurisdiction arising out of the same general allegations circumstances or circumstancesallegations, be liable for the reasonable fees and expenses of only more than one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurredindemnified parties. The Company 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 entry of any such judgment with respect to any pending or threatened claim, action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity indemnification or contribution may be sought against any Holder pursuant hereunder (whether or not the indemnified parties are actual or potential parties to this Section 9(c)such claim or action) unless such settlement, compromise or consent is consented to by such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do soindemnifying party. No indemnifying party, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officerclaim or litigation, shall, except with the consent of each indemnified party, consent to entry of any judgment or enter into any settlement or compromise that does not include as an unconditional term thereof the giving by the claimant or plaintiff therein, to such indemnified party, of a full and any final release from all liability in respect to such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveclaim or litigation. (d) If In the indemnification event that the indemnity provided for in this Section 9 ‎8(a) or Section ‎8(b) is unavailable to or insufficient to hold harmless an indemnified party under paragraphs (a) or (c) hereof in respect of for any reason, then each applicable indemnifying party agrees to contribute to the aggregate losses, claims, damagesdamages and liabilities (including, liabilities without limitation, legal or other expenses referred reasonably incurred in connection with investigating or defending same) (collectively, “Losses”) to therein, then an which such 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, claims, damages, liabilities or expenses may be subject in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party on the one hand and by the indemnified party on the other from the offering of the INSW Common Stock. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, then each indemnifying party shall contribute to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company indemnifying party on the one hand and of the participating Holders indemnified party on the other in connection with the statements or omissions that which resulted in such losses, claims, damagesdamages or liabilities (or actions in respect thereof), liabilities or expensesas well as any other relevant equitable considerations. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company indemnifying party on the one hand or by such participating Holder the indemnified party on the other hand and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) . The Company and the participating Holders parties agree that it would not be just and equitable if contribution pursuant to this Section 9 ‎8(d) were determined by a pro rata allocation (even if the Holders or any agents or underwriters or all of them were treated as one entity for such purpose) or by any other method of allocation that which does not take account of the equitable considerations referred to above in this Section 9(d) hereof‎8(d). The amount paid or payable by an indemnified party as a result of the losses, claims, damages, damages or liabilities and expenses (or actions in respect thereof) referred to above in this Section 9(d‎8(d) hereof shall be deemed to include, subject to the limitations set forth above, include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit action or proceedingclaim. Notwithstanding the provisions of this Section 9‎8(d), no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder 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. For purposes of this Section ‎8, each Person who controls any Holder, 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). (fe) No indemnifying party shall, without the prior written consent The provisions of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall ‎8 will remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of any Holder 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 Indemniteeindemnifying party is prohibited or limited by law, the Companyindemnifying 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, its directors or officershowever, or that: (i) no Person involved in the sale of Registrable Securities which Person is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) in connection with such sale shall be entitled to contribution from any person controlling the Company, Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any termination seller of this AgreementRegistrable Securities shall be limited in amount to the net amount of proceeds received by such seller from the sale of such Registrable Securities.

Appears in 2 contracts

Samples: Registration Rights Agreement (International Seaways, Inc.), Registration Rights Agreement (International Seaways, Inc.)

Indemnification; Contribution. (a) The Incident to any registration of any Registrable Securities under the Securities Act pursuant to this Agreement, the Company agrees to will indemnify and hold harmless each seller of Holder who offers or sells any such Registrable Securities covered by a Registration Statement filed pursuant to this Agreementin connection with such registration statement (including its partners (including partners of partners and stockholders of any such partners), and such seller's partners, directors, officers, employees employees, representatives and agents of any Person who controls such seller under the Securities Act (each, an "Indemnitee") from and against any and all losses, claims, damages, liabilities and expenses (including reasonable costs of investigation) arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement or prospectus or in any amendment or supplement thereto, or arising out of or based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise out of or are based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating Holder expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Companythem, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any each person who controls the Company any of them within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act), from and against any and all losses, claims, damages, reasonable expenses and liabilities, joint or several (including any reasonable investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, as the same are incurred), to which they, or any of them, may become subject under the same extent 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 foregoing indemnity from statements in it not misleading; provided, however, that the Company will not be liable to the extent that (1) such loss, claim, damage, expense or liability arises from and is based on an Indemnitee, but only untrue statement or omission or alleged untrue statement or omission made in reliance on and in conformity with respect to information relating to such Holder furnished in writing to the Company by or on behalf of such Holder expressly in accordance with Section 4(b) of this Agreement for use in the such registration statement, or (2) in the case of a sale directly by such Holder (including a sale of Registrable Securities through any underwriter retained by such Holder to engage in a distribution solely on behalf of such Holder), such untrue statement or alleged untrue statement or omission or alleged omission was contained in a preliminary prospectus and corrected in a final or amended prospectus, and such Holder failed to deliver a copy of the final or amended prospectus at or prior to the confirmation of the sale of the Registrable Securities to the Person asserting any such loss, claim, damage or liability in any case where such delivery is required by the Securities Act or any prepricing prospectusstate securities laws. With respect to such untrue statement or omission or alleged untrue statement or omission in the information furnished in writing to the Company by or on behalf of such Holder in accordance with Section 4(b) of this Agreement for use in such registration statement, such Holder, on a several and not joint basis, will indemnify and hold harmless 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 amendment and all losses, claims, damages, reasonable expenses and liabilities, joint or supplement thereto. If several (including any reasonable investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding shall be brought against or any claim asserted, as the Companysame are incurred), any of its directors, any such officerto which they, or any such controlling person based on of them, may become subject under the registration statementSecurities Act, prospectus the Exchange Act or any prepricing prospectusother federal or state statutory law or regulation, at common law or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveotherwise. (db) If the indemnification provided for in this Section 9 5(a) above for any reason is held by a court of competent jurisdiction to be unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, claims, damages, expenses or liabilities or expenses referred to therein, then an 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, claims, damages, expenses or liabilities or expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the other Holders from the offering of the Registrable Securities or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company and of the participating other Holders in connection with the statements or omissions that which resulted in such losses, claims, damages, liabilities expenses or expensesliabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company and the Holders shall be deemed to be in the same respective proportions that the net proceeds from the offering received by the Company and the Holders, in each case as set forth in the table on the cover page of the applicable prospectus, bear to the aggregate public offering price of the Registrable Securities. The relative fault of the Company on and the one hand and a participating Holder on the other hand Holders shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by or on behalf of the Company on or the one hand or by such participating Holder on the other hand Holders and the parties' Parties’ relative intent, knowledge, knowledge and access or information and opportunity to correct or prevent such statement or omission. (e) information. The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 5(b) were determined by a pro rata or per capita allocation or by any other method of allocation that which does not take account of the equitable considerations referred to in the immediately preceding paragraph. No person found guilty of fraudulent misrepresentation (within the meaning of Section 9(d11(f) hereof. of the Securities Act) shall be entitled to contribution from any person who was not found guilty of such fraudulent misrepresentation. (c) The amount paid by an indemnifying party or payable by to an indemnified party as a result of the losses, claims, damages, damages and liabilities and expenses referred to in this Section 9(d) hereof 5 shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such actionaction or claim, suit or proceeding. Notwithstanding payable as the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses same are incurred. The indemnity indemnification and contribution agreements contained provided for in this Section 9 shall 5 will remain operative and in full force and effect, effect regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, indemnified parties or any officer, director, employee, agent or controlling person controlling of the Companyindemnified parties. No indemnifying party, in the defense of any such claim or litigation, shall enter into a consent of entry of any judgment or enter into a settlement without the consent of the indemnified party, which consent will not be unreasonably withheld. Any indemnified party that proposes to assert the right to be indemnified under this Section 5 will, promptly after receipt of notice of commencement or threat of any claim or action against such party in respect of which a claim is to be made against an indemnifying party under this Section 5 notify the indemnifying party in writing (such written notice, an “Indemnification Notice”) of the commencement or threat of such action, enclosing a copy of all papers served or notices received (if applicable), but the omission so to notify the indemnifying party will not relieve the indemnifying party from any liability that the indemnifying party may have to any indemnified party under the foregoing provisions of this Section 5 unless, and only to the extent that, such omission results in the forfeiture of substantive rights or defenses by the indemnifying party. The indemnified party will have the right to retain its own counsel in any such action if (i) the employment of counsel by the indemnified party has been authorized by the indemnifying party, (ii) the indemnified party’s counsel, with the concurrence of indemnifying party’s counsel, shall have reasonably concluded that there is a substantial likelihood of a conflict of interest between the indemnifying party and the indemnified party in the conduct of the defense of such action or (iii) the indemnifying party shall not in fact have employed counsel to assume the defense of such action within a reasonable period of time following its receipt of the Indemnification Notice, in each of which cases the fees and expenses of the indemnified party’s separate counsel shall be at the expense of the indemnifying party; provided, however, that the indemnified party shall agree to repay any termination expenses so advanced hereunder if it is ultimately determined by a court of competent jurisdiction that the indemnified party to whom such expenses are advanced is not entitled to be indemnified; and provided, further, that so long as the indemnified party has reasonably concluded that no conflict of interest exists, the indemnifying party may assume the defense of any action hereunder with counsel reasonably satisfactory to the indemnified party. (d) In the event of an underwritten offering of Registrable Securities under this Agreement, the Company and the Holders shall enter into standard indemnification and underwriting agreements with the underwriter thereof. To the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the provisions of this AgreementSection 5, the provisions in the underwriting agreement shall control. (e) The obligation of the Company and Holders under this Section 5 shall survive the completion of any offering of Registrable Securities in a registration statement under Section 2, and otherwise.

Appears in 2 contracts

Samples: Registration Rights Agreement (Aptevo Therapeutics Inc.), Class a Stockholders’ Registration Rights Agreement (Emergent BioSolutions Inc.)

Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each seller Holder of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementSecurities, and such seller's partnersthe Affiliates, directors, officers, employees employees, members, managers and any agents of each such Holder and each Person who controls any such seller under Holder within the meaning of either the Securities Act (eachor the Exchange Act, an "Indemnitee") 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 costs of investigationor actions in respect thereof) arising arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement or prospectus 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 arising arise out of or are based upon any the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar and agrees to reimburse each such indemnified party, as such lossesincurred, claims, damages, liabilities for any legal or other expenses rise out of or are based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the information relating to a participating Holder furnished in writing to the Company reasonably incurred by or on behalf of a participating Holder expressly for use them in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise have. (b) If any action, suit with investigating or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in defending any such actionloss, suit claim, damage, liability or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct action (whether or not such representation by the same counsel has been proposed) due indemnified party is a party to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemniteeany proceeding). It is understood; provided, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall will not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, case to the extent provided in the preceding paragraph, from and against that any such loss, claim, damage, liability or expense by reason arises (i) out of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, is based upon any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an 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, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall, without the prior omission made therein in reliance upon and in conformity with written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party information furnished to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made Company by or on behalf of an Indemniteeany such Holder specifically for inclusion therein including, the Companywithout limitation, its directors or officersany notice and questionnaire, or any person controlling the Company, and (ii) any termination out of this Agreement.sales of Registrable Securities made during a Suspension Period after notice is given pursuant to Section 2(e)(ii)

Appears in 2 contracts

Samples: Registration Rights Agreement (Select Energy Services, Inc.), Registration Rights Agreement (Select Energy Services, Inc.)

Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless harmless, to the extent permitted by law, each seller (i) Eligible Holder of Registrable Securities, (ii) each Person that controls (within the meaning of Section 15 of the Securities covered by a Registration Statement filed pursuant to this Agreement, Act and Section 20 of the Exchange Act) such seller's partners, Eligible Holder and (iii) the respective directors, officers, employees partners, employees, legal counsel, accountants and any agents of such Eligible Holder and controlling Person who controls such seller under the Securities Act (eachcollectively, an "Indemnitee"“Holder Indemnified Parties”) from and against any and all losses, claims, damages, liabilities and expenses (expenses, including reasonable costs attorney’s fees and disbursements and reasonable expenses of investigationinvestigation (collectively, “Losses”), caused by any (A) arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectusRegistration Statement, registration statement Prospectus or prospectus preliminary Prospectus or in any amendment thereof or supplement thereto, thereto or arising out of any Free Writing Prospectus or based upon any omission or alleged omission to state therein of a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise out of or are based upon any untrue statement or omission (B) violation or alleged untrue statement violation by the Company of the Securities Act, the Exchange Act, any applicable state securities law or omission which has been made therein any rule or omitted therefrom 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 reliance upon and in conformity with the any information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating Holder Indemnified Party or any underwriter expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition 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 liability which Free Writing Prospectus after the Company may otherwise havehas 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) If In connection with any actionRegistration Statement in which a holder of Registrable Securities is participating, suit 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 proceeding preliminary Prospectus or amendment or supplement thereto or any Free Writing Prospectus and shall be brought against an Indemnitee in respect of which indemnity may be sought against indemnify and hold harmless, to the extent permitted by law, (i) the Company, such Indemnitee shall promptly notify (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 thereof or supplement thereto or any Free Writing Prospectus or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, but only to the extent that such untrue or alleged untrue statement or omission or alleged omission is contained in any information or affidavit so furnished in writing by or on behalf of such holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or amendment or supplement thereto or such Free Writing Prospectus; provided that the obligation to indemnify shall be individual, not joint and several, for each holder and shall be limited to the net amount of proceeds received by such holder from the sale of Registrable Securities pursuant to such Registration Statement. In connection with an Underwritten Offering by the Company or any holder of the Company’s securities other than an Eligible Holder, a holder of Registrable Securities participating therein 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 Company and the Company other holders. (c) Any Person entitled to indemnification hereunder shall (i) give prompt written notice to the indemnifying party of any claim with respect to which such Person seeks indemnification (provided that the failure to give prompt notice shall not impair any Person’s right to indemnification hereunder to the extent such failure has not prejudiced the indemnifying party) and (ii) unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist with respect to such claim, permit such indemnifying party to assume the defense thereofof such claim with counsel reasonably satisfactory to the indemnified party. If such defense is assumed, including the employment indemnifying party shall not be subject to any liability for any settlement made by the indemnified party without its consent (but such consent shall not be unreasonably withheld). An indemnifying party who is not entitled to, or elects not to, assume the defense of counsel and payment of all a claim shall not be obligated to pay the fees and expenses. 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 a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such claim. (d) The Indemnitee indemnified party shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein action and participate in the defense thereof, but the fees and expenses of such counsel shall be at paid by the Holder's expense)indemnified party unless (x) the indemnifying party agrees to pay the same, (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 Companyindemnifying party) would be inappropriate under applicable standards of professional conduct. In the case of clause (y) above and (z) above, its directorsthe indemnifying party shall not have the right to assume the defense of such action on behalf of such indemnified party. No indemnifying party shall, without the written consent of the indemnified party, effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified party is an actual or potential party to such officeraction 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 admission of, fault, culpability or a failure to act by or on behalf of any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereofindemnified party. The foregoing indemnity agreement rights afforded to any indemnified party hereunder shall be in addition to any liability which the participating Holders rights that such indemnified party may otherwise havehave at common law, by separate agreement or otherwise. (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 provided for in required by this Section 9 7 from the indemnifying party is unavailable or insufficient to hold harmless an indemnified party under paragraphs (a) or (c) hereof hereunder in respect of any lossesLosses, claims, damages, liabilities or expenses referred to therein, then an 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 lossesLosses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company indemnifying party and of the participating Holders indemnified parties in connection with the statements or omissions that actions which resulted in such lossesLosses, claims, damages, liabilities or expensesas well as any other relevant equitable considerations. The relative fault of the Company on the one hand such indemnifying party and a participating Holder on the other hand indemnified parties shall be determined by reference to, among other things, whether the untrue any action in question has been committed by, or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand by, such indemnifying party or by such participating Holder on the other hand indemnified parties, and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement action in question. The amount paid or omissionpayable by a party as a result of the Losses shall be deemed to include, subject to the limitations set forth in Section 7(a) and Section 7(b), any legal or other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding. (eii) The Company and the participating Holders parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 9 7(f) were determined by a pro rata allocation or by any other method of allocation that which does not take into account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission7(f)(i). 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. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any 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 agrees to indemnify indemnify, defend and hold harmless each seller Initial Purchaser, each Holder, each person, if any, who controls any Initial Purchaser or Holder within the meaning of Registrable Section 15 of the Securities covered by Act or Section 20 of the Exchange Act (a Registration Statement filed pursuant to this Agreement, “Controlling Person”) and such seller's partnersthe respective officers, directors, officerspartners, employees employees, representatives and agents of the Initial Purchasers, the Holders or any Controlling Person who controls such seller under the Securities Act (each, an "Indemnitee") “Indemnified Party”), from and against any and all lossesloss, claimsdamage, damagesexpense, liabilities and expenses liability, claim or any actions in respect thereof (including the reasonable costs cost of investigation) arising which such Indemnified Party may incur or become subject to under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectusShelf Registration Statement or Prospectus, registration statement or prospectus including any document incorporated by reference therein, or in any amendment or supplement theretothereto or in any preliminary prospectus, or arising arises out of or is based upon any omission or alleged omission to state therein a material fact required to be stated therein in any Shelf Registration Statement or in any amendment or supplement thereto or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise arises out of or are is based upon any omission or alleged omission to state a material fact necessary in order to make the statements made in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which they were made, not misleading, and the Company shall reimburse, as incurred, the Indemnified Parties for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, damage, expense, liability, claim or action in respect thereof; provided, however, that (i) insofar as any such loss, damage, expense, liability, claim or action arises out of or is based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein of a material fact contained in, or omitted therefrom in reliance upon from, and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating any Initial Purchaser or Holder to the Company expressly for use therein and (ii) with respect to any untrue statement or omission or alleged untrue statement or omission made in any preliminary prospectus relating to a Shelf Registration Statement, the indemnity agreement contained in this subsection (a) shall not inure to the benefit of any Holder from whom the person asserting any such losses, damages, expenses, liabilities, claims or actions purchased the Registrable Securities concerned, to the extent that a prospectus relating to such Registrable Securities was required to be delivered by Such Holder under the Securities Act in connection therewith. The foregoing with such purchase and any such loss, damage, expense, liability, claim or action of such Holder results from the fact that there was not sent or given to such person, at or prior to the written confirmation of the sale of such Registrable Securities to such person, a copy of the final prospectus if the Company had previously furnished copies thereof to such Holder; provided further, however, that this indemnity agreement shall will be in addition to any liability which the Company may otherwise havehave to such Indemnified Party. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating HoldersHolder, severally and not jointly, agree agrees to indemnify indemnify, defend and hold harmless the Company, its directors, its officers who sign the registration statementofficers, employees, representatives, agents and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, a “Company 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 Company Indemnified Party may incur or become subject to under the Securities Act, to the same extent Exchange Act or otherwise, insofar as the foregoing indemnity from the Company to an Indemniteesuch loss, but only with respect to damage, expense, liability, claim or action arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in information relating to such Holder furnished in writing by or on behalf of such Holder to the Company expressly for use in the registration statementany Shelf Registration Statement or Prospectus, prospectus or including any prepricing prospectusdocument incorporated by reference therein, or in any amendment or supplement theretothereto or in any preliminary prospectus, or arises out of or is based upon any omission or alleged omission to state a material fact required to be stated in any Shelf Registration Statement or in any amendment or supplement 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 statements in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which they were made, not misleading, in connection with such information; and, subject to the limitation set forth immediately preceding this clause, each Holder shall reimburse, as incurred, the Company for any legal or other expenses reasonably incurred by the Company 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 Company or any of its controlling persons. In no event shall the liability of any selling Holder of Registrable Securities hereunder be greater in amount than the dollar amount of the proceeds received by such Holder upon the sale of the Registrable Securities pursuant to the Shelf Registration Statement giving rise to such indemnification obligation. (c) If any action, suit or proceeding shall be (each, a “Proceeding”) is brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to either subsection (a) or (b) of this Section 9(c)6, such Holder 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 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 rights and duties given right to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof employ its own counsel in any such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereofcase, but the fees and expenses of such counsel shall be at the Holder's expenseexpense of such Indemnified Party unless the employment of such counsel shall have been authorized in writing by such Indemnifying Party in connection with the defense of such Proceeding or such Indemnifying Party shall not have employed counsel to have charge of the defense of such Proceeding within 30 days of the receipt of notice thereof or such Indemnified Party shall have reasonably concluded upon the written advice of counsel that there may be one or more defenses available to it that are different from, additional to or in conflict with those available to such Indemnifying Party (in which case such Indemnifying Party shall not have the right to direct that portion of the defense of such Proceeding on behalf of the Indemnified Party, but such Indemnifying Party may employ counsel and participate in the defense thereof but the fees and expenses of such counsel shall be at the expense of such Indemnifying Party), in any of which events such reasonable fees and expenses shall be borne by such Indemnifying Party and paid as incurred (it being understood, however, that such Indemnifying Party shall not be liable for the Companyexpenses of more than one separate counsel in any one Proceeding or series of related Proceedings together with reasonably necessary local counsel representing the Indemnified Parties who are parties to such action). An Indemnifying Party shall not be liable for any settlement of such Proceeding effected without the written consent of such Indemnifying Party, its directorsbut 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 officersettlement. Notwithstanding the foregoing sentence, and if at any such controlling person 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 rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement 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 60 Business Days after receipt by such Indemnifying Party of the aforesaid request, (ii) such Indemnifying Party shall not have reimbursed such Indemnified Party in addition accordance with such request prior to the date of such settlement and (iii) such Indemnified Party shall have given such Indemnifying Party at least 30 days’ prior notice of its intention to settle. No Indemnifying Party shall, without the prior written consent of any Indemnified Party, effect any settlement of any pending or threatened Proceeding in respect of which such Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability which on claims that are the participating Holders may otherwise havesubject matter of such Proceeding and does not include an admission of fault, culpability or a failure to act, by or on behalf of such Indemnified Party. (d) If the indemnification provided for in this Section 9 6 is unavailable to an indemnified party Indemnified Party under paragraphs subsections (a) or and (cb) hereof of this Section 6 in respect of any losses, claims, damages, liabilities expenses, liabilities, claims or expenses actions referred to therein, then an 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, claims, damages, liabilities expenses, liabilities, claims or expenses actions (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and 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 Company on the one hand and of the participating Holders or the Initial Purchasers on the other in connection with the statements or omissions that which resulted in such losses, claims, damages, liabilities expenses, liabilities, claims or expensesactions, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and a participating Holder of the Holders or any Initial Purchaser on the other hand shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact omission relates to information supplied by the Company on the one hand or by the Holders or such participating Holder on the other hand Initial Purchaser and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, damages, expenses, liabilities, claims and actions referred to above shall be deemed to include any reasonable legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any Proceeding. (e) The Company Company, the Holders and the participating Holders Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 9 6 were determined by a pro rata allocation or by any other method of allocation that which does not take account of the equitable considerations referred to in Section 9(dsubsection (d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 96, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds total price at which the Registrable Securities sold by it were offered to such participating Holder the public exceeds the amount of any damages which such participating Holder it 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 Holders’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint. The remedies provided for in this Section 6 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements provisions contained in this Section 9 6 shall remain operative and in full force and effect, effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of an Indemniteeany Holder or Initial Purchaser or any person controlling any Holder or Initial Purchaser, or the Company, its or the Company’s officers or directors or officers, or any person controlling the Company, Company and (iiiii) the sale of any termination of this AgreementRegistrable Security by any Holder.

Appears in 2 contracts

Samples: Registration Rights Agreement (Bradley Pharmaceuticals Inc), Registration Rights Agreement (Bradley Pharmaceuticals Inc)

Indemnification; Contribution. (a) The Company agrees Guarantor and the Issuer agree to indemnify indemnify, defend and hold harmless each seller Initial Purchaser, each Holder, each person (a “Controlling Person”), if any, who controls any Initial Purchaser or Holder within the meaning of Registrable Section 15 of the Securities covered by a Registration Statement filed pursuant to this Agreement, Act or Section 20 of the Exchange Act and such seller's partnersthe respective officers, directors, officerspartners, employees employees, representatives and agents of any Initial Purchaser, the Holders or any Controlling Person who controls such seller under the Securities Act (each, an "Indemnitee") “Indemnified Party”), from and against any and all lossesloss, claimsdamage, damagesexpense, liabilities and expenses liability, claim or any actions in respect thereof (including the reasonable costs cost of investigation) arising which such Indemnified Party may incur or become subject to under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectusShelf Registration Statement or Prospectus, registration statement or prospectus including any document incorporated by reference therein, or in any amendment or supplement theretothereto or in any preliminary prospectus, or arising arises out of or is based upon any omission or alleged omission to state therein a material fact required to be stated therein in any Shelf Registration Statement or in any amendment or supplement thereto or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise arises out of or are is based upon any omission or alleged omission to state a material fact necessary in order to make the statements made in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which such statements were made, not misleading, and the Guarantor and the Issuer shall reimburse, as incurred, the Indemnified Parties for any legal or other expenses reasonably incurred by them in 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 loss, damage, expense, liability, claim or action arises out of or is based upon (i) any untrue statement or omission or alleged untrue statement or omission which has been made therein of a material fact contained in, or omitted therefrom in reliance upon from, and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of an Initial Purchaser or a participating Holder to the Guarantor expressly for use in connection therewith. The foregoing 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 Suspension Period; provided further, however, that this indemnity agreement shall will be in addition to any liability which the Company Guarantor and the Issuer may otherwise havehave 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 who controls the Guarantor and the Issuer within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (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 Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or is based upon (A) any untrue statement or alleged untrue statement of a material fact contained in, and in conformity with information (the “Holder Information”) furnished in writing by or on behalf of such Holder to the Guarantor expressly for use in, any Shelf Registration Statement or Prospectus, or arises out of or is based upon any omission or alleged omission 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 any Shelf Registration Statement or Prospectus or necessary to make such Holder Information not misleading, (B) a sale, by such Holder pursuant to a Shelf Registration Statement in or with respect to which such Holder 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 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 controlling persons. In no event shall the liability of any selling Holder of Registrable Securities hereunder be greater in amount than the dollar amount of the proceeds received by such Holder upon the sale, pursuant to the Shelf Registration Statement, of the Registrable Securities giving rise to such indemnification obligation. (c) If any action, suit or proceeding shall be (each, a “Proceeding”) is brought against an Indemnitee any person in respect of which indemnity may be sought against the Companypursuant to either Section 6(a) or Section 6(b), such Indemnitee person (the “Indemnified Party”) shall promptly notify the Company, person against whom such indemnity may be sought (the “Indemnifying Party”) in writing of the institution of such Proceeding and the Company Indemnifying Party shall assume the defense thereofof such Proceeding; provided, including however, that the employment of counsel and payment of all fees and expensesomission 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. The Indemnitee Such Indemnified Party shall have the right to employ separate its own counsel in any such action, suit or proceeding and to participate in the defense thereofcase, but the fees and expenses of such counsel shall be at the expense of such Indemnitee Indemnified Party unless (x) the Company has agreed in writing to pay employment of such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee counsel shall have been advised authorized in writing by its such Indemnifying Party in connection with the defense of such Proceeding or such Indemnifying Party shall not have employed counsel to have charge of the defense of such Proceeding within thirty (30) days of the receipt of notice thereof or such Indemnified Party shall have reasonably concluded upon the written advice of counsel that representation of there may be one or more defenses available to it that are different from, additional to or in conflict with those available to such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them Indemnifying Party (in which case the Company such Indemnifying Party shall not have the right to assume direct that portion of the defense of such action, suit or proceeding Proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consentIndemnified Party, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but Indemnifying Party may employ separate counsel therein and participate in the defense thereof, thereof but the fees and expenses of such counsel shall be at the Holder's expenseexpense of such Indemnifying Party), in any of which events such reasonable fees and expenses shall be borne by such Indemnifying Party and paid as incurred (it being understood, however, that such Indemnifying Party shall not be liable for the Companyexpenses of more than one separate counsel in any one Proceeding or series of related Proceedings together with reasonably necessary local counsel representing the Indemnified Parties who are parties to such action). An Indemnifying Party shall not be liable for any settlement of such Proceeding effected without the written consent of such Indemnifying Party, its directorsbut 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 officersettlement. Notwithstanding the foregoing sentence, and if at any such controlling person 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 rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement second sentence of this paragraph, then such Indemnifying Party agrees that it shall be liable for any settlement of any Proceeding effected without its written consent if (i) such settlement is entered into more than sixty (60) Business Days after receipt by such Indemnifying Party of the aforesaid request, (ii) such Indemnifying Party shall not have fully reimbursed such Indemnified Party in addition accordance with such request prior to the date of such settlement and (iii) such Indemnified Party shall have given such Indemnifying Party at least thirty (30) days’ prior notice of its intention to settle. No Indemnifying Party shall, without the prior written consent of any Indemnified Party, effect any settlement of any pending or threatened Proceeding in respect of which such Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability which on claims that are the participating Holders may otherwise havesubject matter of such Proceeding and does not include an admission of fault or culpability or a failure to act by or on behalf of such Indemnified Party. (d) If the indemnification provided for in this Section 9 6 is unavailable to an indemnified party Indemnified Party under paragraphs (aSection 6(a) or (c) hereof Section 6(b), or insufficient to hold such Indemnified Party harmless, in respect of any losses, claims, damages, liabilities expenses, liabilities, claims or expenses actions referred to therein, then an 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, claims, damages, liabilities expenses, liabilities, claims or expenses 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 Company Guarantor and the Issuer, on the one hand, and of the participating Holders or the Initial Purchasers, on the other hand, in connection with the statements or omissions that which resulted in such losses, claims, damages, liabilities expenses, liabilities, claims or expensesactions, as well as any other relevant equitable considerations. The relative fault of the Company Guarantor and the Issuer, on the one hand hand, and a participating Holder of the Holders or the Initial Purchasers, on the other hand hand, shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact omission relates to information supplied by the Company on Guarantor and the one hand Issuer or by such participating Holder on the other hand Holders or the Initial Purchasers and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, damages, expenses, liabilities, claims and actions referred to above shall be deemed to include any reasonable legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any Proceeding. (e) The Company Guarantor, the Issuer, the Holders and the participating Holders Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 9 6 were determined by a pro rata allocation or by any other method of allocation that which does not take account of the equitable considerations referred to in Section 9(d6(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 96, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds total price at which the Registrable Securities giving rise to such participating contribution obligation and sold by such Holder were offered to the public exceeds the amount of any damages which such participating Holder it 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 Holders’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint. The remedies provided for in this Section 6 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements provisions contained in this Section 9 6 shall remain operative and in full force and effect, effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of an Indemniteeany Holder or the Initial Purchasers or any person controlling any Holder or Initial Purchaser, or the CompanyGuarantor, its or the Issuer, or the Guarantor’s or the Issuer’s officers or directors or officers, or any person controlling the Company, Guarantor or the Issuer and (iiiii) the sale of any termination of this AgreementRegistrable 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 If any Registrable Securities are included in a registration statement under this Agreement: 6.1. To the extent permitted by applicable law, the Company agrees to shall indemnify and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementSelling Holder, and such seller's partnerseach underwriter or Agent in any underwritten or agented offering, directorseach Person, officersif any, employees and any Person who controls such seller under Selling Holder, underwriter or Agent within the meaning of the Securities Act (eachAct, an "Indemnitee") from 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 reasonable costs attorneys’ fees and disbursements and expenses of investigation) arising , 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 any prepricing prospectus, such registration statement or prospectus, including any preliminary prospectus or final prospectus or any “issuer free writing prospectus” as such term is defined in any amendment or supplement theretoRule 433 under the Securities Act, or arising out of any amendments or based upon any supplements thereto; or (ii) the omission or alleged omission to state therein 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 therein, or necessary or allegedly necessary to make the statements therein therein, in light of the circumstances under which they were made, not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise out of or are based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating Holder expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood; provided, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company indemnification required by this Section 6.1 shall not be liable for any apply to amounts paid in settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of if such settlement or judgment. (c) Each is effected without the consent of the participating HoldersCompany (which consent shall not be unreasonably withheld, severally 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 not jointlyin conformity with written information furnished to the Company by the indemnified party for use in connection with such registration, agree or (y) the failure of any person entitled to indemnify and hold harmless indemnification hereunder to deliver or make available to a purchaser of Registrable Securities (to the Companyextent required by law), its directors, its officers who sign the 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 the Company such persons (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, ) to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only provided above with respect to information relating 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 Holder furnished in writing by underwriter or on behalf 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 attorneys’ fees and disbursements and expenses of investigation, incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation, or to which any of the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or other federal or state laws, insofar as such losses, claims, damages, liabilities and expenses arise out of or are based upon any Violation, in each case solely to the extent that such Violation occurs in reliance upon and in conformity with written information furnished by such Selling Holder or its Representatives or controlling persons expressly for use in connection with such registration; provided, however, that (x) the registration statementindemnification required by this Section 6.2 shall not apply to amounts paid in settlement of any such loss, prospectus claim, damage, liability or expense if settlement is effected without the consent of the 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 prepricing prospectus, or any amendment or supplement theretoindemnity under this Section 6.2 exceed the gross proceeds from the applicable offering received by such Selling Holder. 6.3. If Promptly after receipt by an indemnified party under this Section 6 of notice of the commencement of any action, suit suit, proceeding, investigation or proceeding shall be brought against the Company, any of its directors, any threat thereof made in writing for which such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity indemnified party may be sought against any Holder pursuant to make a claim under this Section 9(c)6, such Holder indemnified party shall deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the rights and duties given right to participate in, and, to the Company by Section 9(b) hereof (except that if extent the Company shall have assumed indemnifying party so desires, jointly with any other indemnifying party similarly given notice, to assume the defense thereof such Holder with counsel reasonably satisfactory to the parties; provided, however, that an indemnified party shall not be required have the right to do so, but may employ retain separate counsel therein in any such action, claim or proceeding and to participate in the defense thereof, but 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 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 (in which case the indemnifying party shall pay such fees and disbursements and expenses of the indemnified party and shall not have the right 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 reasonable time following the commencement of any such action, if and only to the extent prejudicial to the indemnifying party, shall relieve such indemnifying party of any liability to 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 any such action, claim or proceeding if the indemnifying party does not elect to assume control of the defense within thirty (30) days after receiving notice thereof; provided, that the indemnifying party shall be permitted to participate in the defense thereof with its own counsel and 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 unreasonably withheld, conditioned or delayed. No indemnifying party shall consent to any settlement of any action, proceeding or claim without the written consent of the indemnifying party, which consent shall not be unreasonably withheld, conditioned or delayed, that does not include the giving to such indemnified party of an unconditional release from all liability in respect of such counsel shall be at the Holder's expense)action, and the Company, its directors, proceeding or claim or that requires an admission of wrongdoing by any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveindemnified party. (d) 6.4. If the indemnification provided for in required by this Section 9 6 from the indemnifying party is unavailable to an indemnified party under paragraphs (a) or (c) hereof hereunder in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an 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, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company indemnifying party and of the participating Holders indemnified parties in connection with the statements or omissions actions that resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand such indemnifying party and a participating Holder on the other hand indemnified parties shall be determined by reference to, among other things, whether the untrue any Violation has been committed by, or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand by, such indemnifying party or by such participating Holder on the other hand indemnified parties, and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereofViolation. The amount paid or payable by an indemnified a party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof above shall be deemed to include, subject to the limitations set forth abovein Section 6.1 and Section 6.2, any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit investigation or proceeding. Notwithstanding the provisions of . (ii) The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 9, no participating Holder shall be required 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 contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omissionSection 6.4(i). No person 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 Person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party 6.5. If indemnification is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution available under this Section 9 shall be paid by 6, the indemnifying parties shall indemnify each indemnified party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained full extent provided in this Section 9 shall remain operative and in full force and effect, regardless 6 without regard to the relative fault of (i) any investigation made by such indemnifying party or on behalf of an Indemnitee, the Company, its directors or officers, indemnified party or any person controlling other equitable consideration referred to in Section 6.4. 6.6. The obligations of the CompanyCompany and the Selling Holders of Registrable Securities under this Section 6 shall survive the completion of any offering of Registrable Securities pursuant to a registration statement under this Agreement, and (ii) any termination otherwise until the expiration of this Agreementthe 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 agrees to shall indemnify and hold harmless harmless, to the fullest extent permitted by law, each seller Stockholder in any offering or sale of Registrable Securities covered by a Registration Statement filed 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 seller's partnersStockholder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, directorstrustees, officers, partners, agents, employees and any Person who controls such seller under the Securities Act (each, an "Indemnitee") from and affiliates against any and all losses, claims, damages, liabilities and expenses (including reasonable costs of investigationattorneys’ 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 upon: (i) any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement or prospectus or in any amendment or supplement theretoin, or arising out of or based upon any omission or alleged omission to state therein of a material fact required to be stated therein 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 losses, claims, damages, liabilities statements or expenses rise omissions arise out of or are based upon (A) any such untrue statement or alleged untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon on and in conformity with the information relating with respect to a participating Holder 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 a participating Holder expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise havewith 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) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in In connection with any one such actionRegistration Statement filed pursuant to this Agreement, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, each Stockholder holding Registrable Common Shares to be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holderscovered thereby shall, severally and not jointlyjointly with any other Stockholders, agree to indemnify and hold harmless harmless, to the fullest extent permitted by law, the Company, its directorseach Person, its officers if any, who sign the registration statementparticipates as an underwriter in any such offering and sale of Registrable Common Shares and each Person, and any person if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and affiliates, against all Losses incurred by such party pursuant to the same extent as the foregoing indemnity from the Company to an Indemniteeany actual action, but only with respect to information relating to such Holder furnished in writing by suit, proceeding or on behalf investigation arising out of such Holder expressly for use in the registration statementor based upon any untrue or alleged untrue statement of a material fact contained in, prospectus or any prepricing prospectusomission or alleged omission of a material fact required to be stated in, the Registration Statement, Prospectus or preliminary Prospectus or any amendment or supplement thereto. If to any of the foregoing, any Issuer Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, preliminary Prospectus or 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 Stockholder furnished in writing to the Company by such Stockholder or its counsel specifically for use therein; provided, however, that no Stockholder shall be required to indemnify the Company or any other indemnified party under this Section 11(b) with respect to any amount in excess of the amount of the total net proceeds received by such Stockholder from sales of the Registrable Common Shares of 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 suit, proceeding or proceeding 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 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 Companyindemnifying party of the commencement thereof, any of its directorsthe indemnifying party shall be entitled to participate therein and, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except extent that if the Company it shall have assumed the defense thereof such Holder shall not be required wish, jointly with any other indemnifying party similarly notified, to do so, but may employ separate counsel therein and participate in 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 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 Stockholders holding Registrable Common Shares who are indemnified parties, selected by the Stockholders holding a Majority of the Registrable 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 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 Stockholders holding Registrable Common Shares who are indemnified parties, selected by the Stockholders holding a Majority of the Registrable Common Shares who are indemnified parties (which selection shall be at reasonably satisfactory to the Holder's expenseCompany), and (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, its directorsin each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such officeraction, and 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 controlling person 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 11. No indemnified party shall have consent to entry of any judgment or entry into any settlement without the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveconsent of each indemnifying party. (d) If the indemnification from the indemnifying party provided for in this Section 9 11 is unavailable to an indemnified party under paragraphs (a) or (c) hereof hereunder in respect of any losses, claims, damages, liabilities or expenses referred to thereinLosses, then an 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, claims, damages, liabilities or expenses Losses in such proportion as is appropriate to reflect the relative fault of the Company indemnifying party and of the participating Holders indemnified party in connection with the statements or omissions that actions which resulted in such lossesLosses, claimsas well as any other relevant equitable considerations; provided, damageshowever, liabilities or expensesthat no Stockholder shall be required to contribute any amount in excess of the amount of the total net proceeds received by such Stockholder from sales of the Registrable Common Shares of the Stockholder under the applicable Registration Statement. The relative fault of the Company on the one hand such indemnifying party and a participating Holder on the other hand indemnified party shall be determined by reference to, among other things, whether the any action in question, including any untrue statement or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact fact, has been made by, or relates to information supplied by the Company on the one hand by, such indemnifying party or by such participating Holder on the other hand indemnified party, and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereofaction. The amount paid or payable by an indemnified a party as a result of the losses, claims, damages, liabilities and expenses Losses referred to in Section 9(d) hereof above shall be deemed to include, subject to the limitations set forth abovein Section 11(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit investigation or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder 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 pursuant to this Section 11(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 11(d). If indemnification is available under this Section 11, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 11(a) or 11(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 11(d). (e) The provisions of this Section 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) No indemnifying party shall, without the prior written consent The indemnification and contribution required by this Section 11 shall be made by periodic payments of the indemnified party, effect any settlement amount thereof during the course of any pending or threatened action, suit suit, proceeding or proceeding in respect of which any indemnified party is investigation, as and when invoices are received or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses Losses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.

Appears in 2 contracts

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

Indemnification; Contribution. (a) The Company agrees agrees, to the extent permitted by law, to indemnify and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementHolder and each Person, and such seller's partnersif any, directors, officers, employees and any Person who controls such seller under any Holder within the Securities meaning of Section 15 of the Act (eachor Section 20 of the Exchange Act, an "Indemnitee") from and against any and all losses, claims, damages or liabilities, joint or several, to which they or any of them may become subject under the Act or otherwise ("Indemnified Holder"), and to reimburse the Holders and such controlling Person or Persons, if any, for any legal or other expenses incurred by them in connection with defending any action, suit or proceeding (including governmental investigations) as provided in Section 4(c) hereof, insofar as such losses, claims, damages, liabilities and expenses or actions, suits or proceedings (including reasonable costs of investigationgovernmental investigations) arising arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectusShelf Registration Statement, registration statement or, if any Shelf Registration Statement shall be amended or prospectus supplemented, in the Shelf Registration Statement as so amended or in any amendment or supplement theretosupplemented, or arising arise out of or are based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise actions arise out of or are based upon any such untrue statement or alleged untrue statement or omission or alleged untrue statement or omission which has been was made therein in the Shelf Registration Statement or omitted therefrom in the Shelf Registration Statement as so amended or supplemented, in reliance upon and in conformity with the information relating to a participating Holder furnished in writing to the Company by any Holder expressly for use therein. The Company's indemnity agreement contained in this Section 4(a), and the covenants, representations and warranties of the Company contained in this Agreement, shall remain in full force and effect regardless of any investigation made by or on behalf of a participating Holder expressly for use any Person, and the indemnity agreement contained in connection therewiththis Section 4 shall survive any termination of this Agreement. The foregoing indemnity agreement shall be liabilities of the Company in this Section 4 are in addition to any liability which other liabilities of the Company may otherwise haveunder this Agreement or otherwise. (b) Each Holder agrees, severally and not jointly, to the extent permitted by law, to indemnify, hold harmless and reimburse the Company and each Person, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act, to the same extent and upon the same terms as the indemnity agreement of the Company set forth in Section 4(a) hereof, but only with respect to alleged untrue statements or omissions made in the Shelf Registration Statement or in the Shelf Registration Statement, as amended or supplemented (if applicable), in reliance upon and in conformity with information furnished in writing to the Company by such Holder expressly for use therein. The indemnity agreement on the part of each Holder contained in this Section 4(b) shall remain in full force and effect regardless of any investigation made by or on behalf of the Company or any other Person, and the indemnity agreement contained in this Section 4(b) shall survive any termination of this Agreement. (c) If any a claim is made or an action, suit or proceeding shall be brought (including governmental investigations) is commenced or threatened against an Indemnitee in respect of any person as to which indemnity may be sought against the Companyunder Section 4(a) or 4(b) hereof, such Indemnitee Person (the "Indemnified Person") shall promptly notify the CompanyPerson against whom such indemnity may be sought (the "Indemnifying Person") promptly after any assertion of such claim threatening to institute an action, suit or proceeding or, if such an action, suit or proceeding is commenced against such Indemnified Person, promptly after such Indemnified Person shall have been served with a summons or other first legal process, giving information as to the nature and basis of the Company claim. Failure to so notify the Indemnifying Person shall not, however, relieve the Indemnifying Person from any liability which it may have on account of the indemnity under Section 4(a) or 4(b) hereof if the Indemnifying Person has not been prejudiced in any material respect by such failure. Subject to the immediately succeeding sentence, the Indemnifying Person shall assume the defense thereofof any such litigation or proceeding, including the employment of counsel and the payment of all fees expenses, with such counsel being designated, subject to the immediately succeeding sentence, in writing by a majority in interest of the Holders in the case of parties indemnified pursuant to Section 4(b) hereof and expensesby the Company in the case of parties indemnified pursuant to Section 4(a) hereof. The Indemnitee Any Indemnified Person shall have the right to employ separate counsel participate in any such action, suit litigation or proceeding and to participate in the defense thereofretain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnitee Indemnified Person unless (xi) the Company has Indemnifying Person and the Indemnified Person shall have mutually agreed in writing to pay the retention of such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, counsel or (zii) the named parties to any such action, suit or proceeding (including any impleaded parties) include both (x) the Indemnifying Person and (y) the Indemnified Person and, in the written opinion of counsel to such Indemnitee and the CompanyIndemnified Person, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company both parties by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests likely conflicts of interest between them them, in either of which cases the reasonable fees and expenses of counsel (including disbursements) for such Indemnified Person shall be reimbursed by the Indemnifying Person to the Indemnified Person. If there is a conflict as described in which case clause (ii) above, and the Company Indemnified Persons have participated in the litigation or proceeding utilizing separate counsel whose fees and expenses have been reimbursed by the Indemnifying Person, and the Indemnified Persons, or any of them, are found to be solely liable, such Indemnified Person shall not have repay to the right to assume the defense Indemnifying Parties such fees and expenses of such action, suit or proceeding on behalf of such Indemnitee)separate counsel as the Indemnifying Person shall have reimbursed. It is understood, however, understood that the Company shallIndemnifying Person shall not, in connection with any one such action, suit litigation or proceeding or separate but substantially similar or related actions, suits litigation or proceedings in the same jurisdiction arising out of as to which the same general allegations or circumstancesIndemnified Persons are entitled to such separate representation, be liable under this Agreement for the reasonable fees and out-of-pocket expenses of only more than one separate firm of attorneys (in addition to any together with not more than one appropriate local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselvesIndemnified Persons. Subject to the next paragraph, and that all such fees and expenses shall be reimbursed by payment to the Indemnified Persons of such reasonable fees and expenses of counsel promptly after payment thereof by the Indemnified Persons. In furtherance of the requirement above that fees and expenses of any separate counsel for the Indemnified Persons shall be reasonable, the Holders and the Company agree that the Indemnifying Person's obligations to pay such fees and expenses shall be conditioned upon the following: (1) in case separate counsel is proposed to be retained by the Indemnified Persons pursuant to clause (ii) of the preceding paragraph, the Indemnified Persons shall in good faith fully consult with the Indemnifying Person in advance as they are incurredto the selection of such counsel; (2) reimbursable fees and expenses of such separate counsel shall be detailed and supported in a manner reasonably acceptable to the Indemnifying Person (but nothing herein shall be deemed to require the furnishing to the Indemnifying Person of any information, including, without limitation, computer print-outs of lawyers' daily time entries, to the extent that, in the judgment of such counsel, furnishing such information might reasonably be expected to result in a waiver of any attorney-client privilege); and (3) the Company and the Holders shall cooperate in monitoring and controlling the fees and expenses of separate counsel for Indemnified Persons for which the Indemnifying Person is liable hereunder, and the Indemnified Person shall use every reasonable effort to cause such separate counsel to minimize the duplication of activities as between themselves and counsel to the Indemnifying Person. The Company Indemnifying Person shall not be liable for any settlement of any such action, suit litigation or proceeding effected without its the written consentconsent of the Indemnifying Person, but if settled with such written consent, consent or if them there be a final judgment for against the plaintiff in any such action, suit or proceedingIndemnified Person, the Company agrees Indemnifying Person agrees, subject to the provisions of this Section 4, to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, Indemnified Person from and against any loss, claim, damage, liability or expense expenses by reason of such settlement or judgment. (c) Each . The Indemnifying Person shall not, without the prior written consent of the participating HoldersIndemnified Persons, severally and not jointlyeffect any settlement of any pending or threatened litigation, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act proceeding or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and claim in respect of which indemnity may be has been properly sought against any Holder pursuant by the Indemnified Persons hereunder, unless such settlement includes an unconditional release by the claimant of all Indemnified Persons from all liability with respect to this Section 9(c), such Holder shall have claims which are the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses subject matter of such counsel shall be at the Holder's expense)litigation, and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveproceeding or claim. (d) If the indemnification provided for in this Section 9 4 is unavailable to or insufficient to hold harmless an indemnified party Indemnified Person under paragraphs (a) or (c) hereof this Section 4 in respect of any losses, claims, damagesdamages or liabilities (or actions, liabilities suits or expenses proceedings (including governmental investigations) in respect thereof) referred to therein, then an indemnifying party, in lieu of indemnifying such indemnified party, each Indemnifying Person under this Section 4 shall contribute to the amount paid or payable by such indemnified party Indemnified Person as a result of such losses, claims, damages, damages or liabilities (or expenses actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Indemnifying Person on the one hand and the Indemnified Person on the other from the sale of the Registrable Securities. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, then each Indemnifying Person shall contribute to such amount paid or payable by such Indemnified Person in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of each Indemnifying Person, if any, on the Company one hand and of the participating Holders Indemnified Person on the other in connection with the statements or omissions that which resulted in such losses, claims, damagesdamages or liabilities (or actions, liabilities suits or expensesproceedings (including governmental investigations) in respect thereof), as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder the Holders on the other hand and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) . The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 4 were determined by a pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method of allocation that which does not take account of the equitable considerations referred to in this Section 9(d) hereof4. The amount paid or payable by an indemnified party Indemnified Person as a result of the losses, claims, damagesdamages or liabilities (or actions, liabilities and expenses suits or proceedings (including governmental proceedings) in respect thereof) referred to in this Section 9(d) hereof 4 shall be deemed to include, subject to the limitations set forth above, include any legal or other expenses reasonably incurred by such indemnified party Indemnified Person in connection with investigating any claim or defending any such actionactions, suit suits or proceedingproceedings (including governmental proceedings) or claims, provided that the provisions of this Section 4 have been complied with (in all material respects) in respect of any separate counsel for such Indemnified Person. Notwithstanding the provisions of this Section 94, no participating Holder shall be required to contribute any amount in greater than the excess of the amount by which the proceeds total received by such Holder with respect to the sale of its Registrable Securities pursuant to a Shelf Registration Statement exceeds the sum of (A) the amount paid by such participating Holder exceeds for such Registrable Securities plus (B) the amount of any damages which such participating Holder 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 who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding . The Holders' obligations in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party 4 to the indemnified party as such losses, claims, damages, liabilities or expenses contribute are incurredseveral in proportion to their respective obligations and not joint. The indemnity and agreement with respect to contribution agreements contained in this Section 9 4 shall remain operative and in full force and effect, effect regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, Company or any person controlling the CompanyHolder, and (ii) shall survive any termination of this Agreement.

Appears in 2 contracts

Samples: Purchase Agreement (CMS Energy Corp), Registration Rights Agreement (CMS Energy Corp)

Indemnification; Contribution. (a) The Company agrees Dealer Manager will indemnify, defend (subject to indemnify Section 4 of the Dealer Manager Agreement) and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this Agreementthe Wholesaler, its affiliates and such seller's partnerstheir respective officers, directors, officersshareholders, employees members, partners, other equity-holders and control persons (collectively, the “Other Indemnified Parties”), from and against any Person who controls such seller losses, claims (including the reasonable costs of investigation and legal fees), damages or liabilities (or actions in respect thereof), to which the Wholesaler, its affiliates or their respective Other Indemnified Parties may become subject under the Securities Act (eachor the Exchange Act, an "Indemnitee") from and against any and all or otherwise, insofar as such losses, claims, damages, damages or liabilities and expenses (including reasonable costs of investigationor actions in respect thereof) 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 in any prepricing prospectus, registration statement the information relating to the Dealer Manager that appears in the Dealer Manager Sections of the Prospectus or prospectus or in any amendment or supplement theretothereof, or arising arise out of or are based upon any the omission or alleged omission to state therein in the Dealer Manager Sections a material fact required to be stated therein or necessary to make the statements therein therein, in light of the circumstances under which they were made, not misleading, except insofar as such losses, claims, damages, liabilities ; and (iii) any unauthorized use of sales materials or expenses rise out use of or are based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with unauthorized verbal representations concerning the information relating to a participating Holder furnished in writing to Offered Shares by the Company by or on behalf of a participating Holder expressly for use in connection therewithDealer Manager. The foregoing indemnity agreement shall be in addition to Dealer Manager will reimburse the Wholesaler and its Other Indemnified Parties for any liability which the Company may otherwise have. (b) If any actionlegal or other expenses reasonably incurred by such Wholesaler, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, its affiliates and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, their respective Other Indemnified Parties in connection with any one investigating or defending such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense 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 losses, claims (including the reasonable costs of investigation and legal fees), damages or liabilities (or actions in respect thereof) arise out of or are based upon: (i) any inaccuracy in or breach of a representation or warranty contained herein by reason the Wholesaler, any breach of such settlement a covenant or judgmentagreement contained herein of the Wholesaler, or any failure by the Wholesaler to comply with state or federal securities laws applicable to the Offering; and (ii) any unauthorized use of sales materials or use of unauthorized verbal representations concerning the Shares by the Wholesaler. (c) Each Promptly after receipt by an indemnified party of notice of the participating Holderscommencement of any action, severally such indemnified party will, if a claim in respect thereof is to be made against the indemnifying 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 jointlyotherwise learn of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, agree in any event, relieve the indemnifying party from any obligations to indemnify any indemnified party other than the indemnification obligation provided in this Agreement. The indemnifying party shall be entitled to appoint counsel of the indemnifying party’s choice at the indemnifying party’s expense to represent the indemnified party in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be responsible for the fees and hold harmless expenses of any separate counsel retained by the Companyindemnified party or parties except as set forth below); provided, its directorshowever, its officers who sign that such counsel shall be subject to approval by the registration statementindemnified 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) 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 person who controls such action include both the Company indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, (iii) the indemnifying party shall not have employed counsel for the indemnified party (subject to approval by the indemnified party not to be unreasonably withheld or delayed) to represent the indemnified party within the meaning of Section 15 a reasonable time after notice of the Securities Act institution of such action or Section 20 (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of the Exchange Act, indemnifying party. An indemnifying party may settle or compromise or consent to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only entry of any judgment with respect to information relating to such Holder furnished in writing by any pending or on behalf of such Holder expressly for use in the registration statementthreatened claim, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity indemnification or contribution may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, hereunder but may employ separate counsel therein and participate in not do so without the defense thereofprior written consent of the indemnified parties, but the fees and expenses unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising out of such counsel shall be at the Holder's expense)claim, and the Companyaction, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise havesuit or proceeding. (d) If the right to indemnification provided for in this Section 9 8 would by its terms be available to a person hereunder, but is held to be unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect by a court of competent jurisdiction for any losses, claims, damages, liabilities or expenses referred to thereinreason, then an 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 lossesLosses and expenses in respect thereof, claimsas incurred, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company Dealer Manager and of the participating Holders Wholesaler, as applicable, in connection with the statements statements, omissions or omissions that other circumstances which resulted in such losses, claims, damages, liabilities Losses or expenses, as well as any other relevant equitable considerations. The relative fault of the Company on Dealer Manager and the one hand and a participating Holder on the other hand Wholesaler, as applicable, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, and access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree information. It is understood that it would not be just and equitable if contribution pursuant to this Section 9 8(d) were determined by a pro rata allocation or by any other method of allocation that which does not take account of the equitable considerations referred to above in this Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding8(d). Notwithstanding the provisions of this Section 98(d), no participating Holder the Dealer Manager shall not be required to contribute any amount in excess of the amount total price of the Offering Shares sold by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omissionit. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall. For purposes of this Section 8(d), without the prior written consent each Other Indemnified Party affiliate of the indemnified party, effect any settlement Dealer Manager shall have the same rights to contribution as the Dealer Manager and each Other Indemnified Party of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could the Wholesaler shall have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceedingsame rights to contribution as the Wholesaler. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.

Appears in 2 contracts

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

Indemnification; Contribution. (ai) The Company agrees to indemnify will indemnify, defend and hold harmless each seller holder of Registrable Securities covered by a Registration Statement filed Stockholder Shares included in any registration effected pursuant to this AgreementSection 7 and each underwriter of such securities, and each person, if any, who controls each such seller's holder and underwriter within the meaning of the Securities Act, and their respective partners, directors, officers, employees stockholders, members, employees, trustees, agents, advisors and any Person who controls such seller under the Securities Act Affiliates (each, an "Indemnitee") from and “Indemnified Person”), to the fullest extent enforceable under applicable law against any and all claims, losses, claimsdamages and liabilities (or actions or proceedings in respect thereof, damages, liabilities and expenses (including reasonable costs of investigationwhether or not such Indemnified Person is a party hereto) arising out of or based upon on any untrue statement (or alleged untrue statement statement) of a material fact contained in any prepricing prospectusDisclosure Package, registration statement Registration Statement, Prospectus or prospectus or in any amendment Free-Writing Prospectus or supplement thereto, or arising out of amendment thereto related to any such registration or based upon any omission (or alleged omission omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleadingmisleading and will reimburse each such Indemnified Person for any legal or any other expenses reasonably incurred in connection with investigating and/or defending (and/or preparing for any investigation or defense of) any such claim, except insofar as loss, damage, liability, action or proceeding; provided that the Company will not be liable in any such lossescase to any such Indemnified Person if, claimsbut only to the extent that, damagesany such claim, liabilities loss, damage, liability, action, proceeding or expenses rise expense is finally determined by a court of competent jurisdiction to arise out of or are based upon result from any untrue statement in or omission or alleged untrue statement or omission which has been made therein or omitted therefrom from written information about such Indemnified Person in reliance upon its capacity as a stockholder of the Company and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating Holder expressly an instrument duly executed by such Indemnified Person and stated to be specifically for use in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise havetherein. (bii) If Each holder of Stockholder Shares will, on a several (not joint) basis, if Stockholder Shares held by such holder are included in a registration effected pursuant to this Section 7, indemnify, defend and hold harmless the Company, each of its directors and officers who signs the related Registration Statement and each person, if any, who controls the Company within the meaning of the Securities Act and each other holder of Stockholder Shares whose Shares are included in such registration to the fullest extent enforceable under applicable law against all claims, losses, damages and liabilities (or actions or proceedings in respect thereof, whether or not the Company is a party hereto) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any such Disclosure Package, Registration Statement, Prospectus or Free-Writing Prospectus or supplement or amendment related to any such registration or any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading and will reimburse the Company, such directors, officers and controlling persons and such other holders for any legal or any other expenses reasonably incurred in connection with investigating and/or defending (and/or preparing for any investigation or defense of) any such claim, loss, damage, liability, action or proceeding, in each case to the extent, but only to the extent, that any such claim, loss, damage, liability, action, suit proceeding or proceeding shall expense is finally determined by a court of competent jurisdiction to arise out of or result from any untrue statement in or omission from written information about such holder in its capacity as a stockholder of the Company and furnished to the Company by an instrument duly executed by such holder and stated to be brought against an Indemnitee specifically for use therein; provided that the liability of any such holder under this Section 7(f) (whether in respect of indemnification or contribution obligations) shall be limited to the net sales proceeds actually received by such holder as a result of the sale by it of Stockholder Shares in such registration. (iii) Each party entitled to indemnification under this Section 7(f) (the “Indemnified Party”) shall give notice to each party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought against sought, provided that the Companyfailure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Section 7(f), except to the extent that the Indemnifying Party is materially prejudiced or otherwise forfeits substantive rights or defenses by reason of such Indemnitee failure. If notice of commencement of any such action is given to the Indemnifying Party as provided above, the Indemnifying Party shall promptly notify be entitled to participate in and, to the Companyextent it may wish, and the Company shall jointly with any other Indemnifying Party similarly notified, to assume the defense thereofof such claim or any litigation resulting therefrom at its own expenses, including with counsel chosen by it, which counsel shall be approved by the employment of counsel and payment of all fees and expensesIndemnified Party (whose approval shall not unreasonably be withheld). The Indemnitee shall have the right to Each Indemnified Party may employ separate counsel in any such action, suit or proceeding and to participate in the defense thereofsuch defense, but the fees and expenses of such counsel shall be at paid by the expense of such Indemnitee Indemnified Party unless (xa) the Company has agreed in writing Indemnifying Party agrees to pay such fees and expensesexpenses of such counsel, (yb) the Company has failed Indemnifying Party fails to assume the defense and employ counsel, of such action with counsel reasonably satisfactory to the Indemnified Party or (zc) the named parties to any such action, suit or proceeding action (including any impleaded parties) include both such Indemnitee the Indemnifying Party and the Company, Indemnified Party and such Indemnitee shall have the Indemnified Party has been advised by its counsel that either (1) representation of such Indemnitee Indemnified Party and the Company Indemnifying Party by the same counsel would be inappropriate under applicable standards of professional conduct or (whether 2) there may be one or not more legal defenses available to the Indemnified Party which are different from or additional to those available to the Indemnifying Party. In any of such representation by cases, the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company Indemnifying Party shall not have the right to assume the defense of such action, suit or proceeding action on behalf of such Indemnitee). It is Indemnified Party, it being understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, Indemnifying Party shall not be liable for the reasonable fees and expenses of only more than one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, Indemnified Parties and that all such fees and expenses shall be reimbursed as they are incurred. The Company No Indemnifying Party, in the defense of any such claim or litigation, shall, except with the consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement that does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect of such claim or litigation. No Indemnifying Party shall not be liable for any settlement of any such action, suit or proceeding effected entered into without its written consent, but if settled which consent shall not be unreasonably withheld. Each Indemnified Party shall furnish such information regarding itself or the claim in question as an Indemnifying Party may reasonably request in writing and as shall be reasonably required in connection with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason defense of such settlement claim or judgmentlitigation resulting therefrom. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (div) If the indemnification provided for in this Section 9 7(f) is held by a court of competent jurisdiction to be unavailable to an indemnified party under paragraphs (a) Indemnified Party with respect to any claim, loss, damage, liability or (c) hereof in respect of any losses, claims, damages, liabilities or expenses expense referred to thereinherein, then an indemnifying partyeach Indemnifying Party, in lieu of indemnifying such indemnified partyIndemnified Party hereunder, shall severally, and not jointly, contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such lossesclaim, claimsloss, damagesdamage, liabilities liability or expenses expense in such proportion as is appropriate to reflect the relative fault of the Company and Indemnifying Party, on the one hand, or of the participating Holders Indemnified Party, on the other hand, in connection with the statements such claim, loss, damage, liability or omissions that resulted in such lossesexpense, claims, damages, liabilities or expensesas well as any other relevant equitable considerations. The relative fault of the Company on Indemnifying Party and of the one hand and a participating Holder on the other hand Indemnified Party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company on the one hand such Indemnifying Party or by such participating Holder on the other hand Indemnified Party and the parties' relative intent, knowledge, access or information to information, and opportunity to correct or prevent such statement or omission. . The amount paid or payable by a party as a result of any claim, loss, damage, liability or expense referred to above shall be deemed to include, subject to the limitations set forth in Section 7(f)(ii) and (eiii) above, any legal or other fees, changes or expenses reasonably incurred by such party in connection with any investigation or proceeding. Anything to the contrary notwithstanding, the total amount to be contributed by any holder of Stockholder Shares shall be limited to the net proceeds (after deducting the underwriters’ discounts and commissions) received by such Stockholder in the offering. The Company and the participating Holders parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 9 7(f)(iv) were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omissionimmediately preceding paragraph. No person guilty of fraudulent misrepresentation (within the meaning meeting of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.

Appears in 1 contract

Samples: Stockholders Agreement (Critical Homecare Solutions Holdings, Inc.)

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 agrees to shall indemnify and hold harmless each seller Holder, each Person, if any, who controls any Holder within the meaning of Registrable the Securities covered by a Registration Statement filed pursuant to this AgreementAct, and each officer, director, trustee, partner and employee of any Holder and such seller's partnerscontrolling Person, directors, officers, employees and any Person who controls such seller under the Securities Act (each, an "Indemnitee") from and against any and all losses, claims, damages, liabilities and expenses (joint or several), including reasonable costs attorneys' fees and disbursements and reasonable expenses of investigation) arising , 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"): (a) Any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any prepricing prospectus, registration statement or preliminary prospectus or in any amendment or supplement theretofinal prospectus contained therein, or arising out of any amendments thereof or based upon any supplements thereto; or (b) The omission or alleged omission to state therein a material fact required to be stated therein therein, or necessary to make the statements therein not misleading; PROVIDED, except 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), 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 information related to the indemnified party furnished to the Company by the indemnified party in writing expressly for use in connection with such registration statement; and PROVIDED, FURTHER, that the indemnity agreement contained in this SECTION 6 shall not apply to the extent that any such loss is based on or arises out of (A) any matter covered by SECTION 6.2 for which the Selling Holders are required to indemnify the Company, (B) 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 an underwriter was under an obligation to deliver such final prospectus and failed to do so or (C) the Holders' failure to comply with applicable prospectus delivery requirements. 6.2. To the extent permitted by applicable law, each Holder, severally and not jointly, shall indemnify and hold harmless the Company, and each of the officers, employees and directors of the Company who shall have signed the registration statement, and each Person, if any, who controls the Company within the meaning of the Securities Act, against any and all losses, claims, damages, liabilities and expenses, including reasonable attorneys' fees and disbursements and reasonable expenses of investigation, incurred by such party pursuant to any actual or threatened action, suit, proceeding an 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, claims, damages, liabilities or and expenses rise arise out of or are based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom Violation, in each case to the extent that such Violation occurs in reliance upon and in conformity with the information relating related to a participating such Holder and furnished by such Holder in writing to the Company by or on behalf of a participating Holder expressly for use in connection therewith. The foregoing with such registration; PROVIDED, HOWEVER, that in no event shall the aggregate amount of any indemnity agreement shall be in addition to obligation of any liability which Holder under this SECTION 6.2 together with any contribution obligation under SECTION 6.4 exceed the Company may otherwise haveproceeds (net of any underwriting discounts or commissions) from the applicable offering received by such Holder. (b) If 6.3. Promptly after receipt by an indemnified party under this SECTION 6 of notice of the commencement of any action, suit suit, proceeding, investigation or proceeding shall be brought against an Indemnitee threat thereof made in respect of writing for which indemnity such indemnified party may be sought against the Companymake a claim under this SECTION 6, such Indemnitee indemnified party shall promptly notify deliver to the Company, indemnifying party a written notice thereof and the Company indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereofthereof with counsel mutually satisfactory to the parties; PROVIDED, including HOWEVER, that an indemnified party shall have the employment right to retain its own counsel if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential conflicts or differing interests between such indemnified party and payment 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 all any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this SECTION 6 to the extent of such prejudice but shall not relieve the indemnifying party of any liability that it may have to any indemnified party otherwise than pursuant to this SECTION 6. Any fees and expensesexpenses incurred by the indemnified party (including any fees and expenses incurred in connection with investigating or preparing to defend such action or proceeding) shall be paid to the indemnified party, as incurred, within thirty (30) days of written notice thereof to the indemnifying party (regardless of whether it is ultimately determined that an indemnified party is not entitled to indemnification hereunder). The Indemnitee Except as set forth above, any such indemnified party shall have the right to employ separate counsel in any such action, suit claim or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense expenses of such Indemnitee unless indemnified party unless: (xi) the Company indemnifying party has agreed in writing to pay such fees and expenses, or (yii) the Company has indemnifying party shall have failed to promptly assume the defense and employ counselof such action, claim or proceeding; or (ziii) the named parties to any such action, suit claim or proceeding (including any impleaded parties) include both such Indemnitee indemnified party and the Companyindemnifying party, and such Indemnitee indemnified party shall have been advised by its counsel that representation there may be one or more legal defenses available to it which are different from or in addition to those available to the indemnifying party and that the assertion of such Indemnitee and the Company defenses would create a conflict of interest such that counsel employed by the same counsel would be inappropriate under applicable standards of professional conduct (whether or indemnifying party could not such representation by faithfully represent the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such actionindemnified parry, suit or proceeding on behalf of such Indemnitee). It is it being understood, however, that the Company shallindemnifying party shall not, in connection with any one such action, suit claim or proceeding or separate but substantially similar or related actions, suits claims or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only more than one separate firm of attorneys (in addition to any together with appropriate local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgmentindemnified parties. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto6.4. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in required by this Section 9 SECTION 6 from the indemnifying party is unavailable to an indemnified party under paragraphs (a) or (c) hereof hereunder in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an in this SECTION 6: (a) 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, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company indemnifying party and of the participating Holders indemnified parties in connection with the statements or omissions that actions which resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company on the one hand such indemnifying party and a participating Holder on the other hand indemnified parties shall be determined by reference to, among other things, whether the untrue any Violation has been committed by, or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand by, such indemnifying party or by such participating Holder on the other hand indemnified parties, and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereofViolation. The amount paid or payable by an indemnified a party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof above shall be deemed to include, subject to the limitations set forth above, in SECTION 6.1 and SECTION 6.2. any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit investigation or proceeding. Notwithstanding . (b) 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 which does not take into account the provisions of this Section 9, no participating Holder shall be required relative fault referred to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omissionSECTION 6.4(a). 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. (fc) No indemnifying party shall, without In no event shall the prior written consent of the indemnified party, effect any settlement aggregate amount of any pending contribution obligation from any Selling Holder under this SECTION 6.4 together with any indemnification obligation under SECTION 6.2 exceed the proceeds (net of any underwriting commissions or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder discounts) from the applicable offering received by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceedingHolder. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry 6.5. If indemnification is entitled to indemnification or contribution available under this Section 9 shall be paid by SECTION 6. the indemnifying parties shall indemnify each indemnified party to the full extent provided in this SECTION 6 without regard to the relative fault of such indemnifying party or indemnified party as such losses, claims, damages, liabilities or expenses are incurredany other equitable consideration referred to in SECTION 6.4. 6.6. The indemnity obligations of the Company and contribution agreements contained in the Holders under this Section 9 SECTION 6 shall remain operative and in full force and effect, regardless survive the completion of (i) any investigation made by or on behalf offering of an Indemnitee, the Company, its directors or officers, or any person controlling the CompanyRegistrable Securities pursuant to a registration statement under this Agreement, and (ii) any termination of this Agreementotherwise.

Appears in 1 contract

Samples: Investor Rights Agreement (Istar Financial Inc)

Indemnification; Contribution. (a) The Company shall, and hereby agrees to to, indemnify and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this Agreementthe Participating Holder and its partners, and such seller's partnersmembers, directors, officers, employees and controlling Persons, if any, in any Person who controls such seller under offering or sale of the Securities Act (eachParticipating Shares pursuant to a registration statement hereunder, an "Indemnitee") from and against any and all losses, claims, damagesdamages (including reasonable attorney’s fees) or liabilities, liabilities actions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable costs fees of investigationcounsel) arising (collectively, “Claims”) to which each such indemnified party may become subject (and the Company will pay to the Participating Holder or other aforementioned person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any Claim as such expenses are incurred), insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon any (i) an untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectusregistration statement, registration statement or any preliminary or final prospectus contained therein, or in any amendment or supplement thereto, or arising any document incorporated by reference therein, (ii) any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in each case in light of the circumstances in which they were made, not misleading or (iii) any violation or alleged violation by the indemnifying party (or any of its agents or Affiliates) of the Securities Act, the Exchange Act, any state securities law, or any rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities law; provided, that the Company shall not be liable to the Participating Holder in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with written information furnished to the Company by the Participating Holder with respect to such Participating Holder expressly for use therein, by such Participating Holder’s failure to furnish the Company, upon request, with the information with respect to such Participating Holder, or such Participating Holder’s intended method of distribution, that is the subject of the untrue statement or omission, or if such Participating Holder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable prospectus (excluding any documents incorporated by reference therein) or of the applicable prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Company had previously furnished copies thereof to the Participating Holder, and such prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement. (b) The Participating Holder shall, and hereby agrees to, indemnify and hold harmless the Company, its directors, officers, employees and controlling Persons, if any, in any offering or sale of Participating Shares pursuant to a registration statement hereunder, against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise out of or are based upon in each case only with respect to any untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the written information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating the Participating Holder expressly for use in connection therewith. The foregoing the preparation of such registration statement or prospectus or any amendment or supplement thereto; provided, that in no event shall any indemnity agreement shall be in addition to any under this Section 2.05 exceed the net proceeds from the offering received by such Participating Holder unless such liability which the Company may otherwise havearises out of or is based on fraud or willful misconduct by such Participating Holder as finally determined by a court of competent jurisdiction. (bc) If Promptly after receipt by an indemnified party under Section 2.05(a) or Section 2.05(b) of written notice of the commencement of any actionaction or proceeding for which indemnification under Section 2.05(a) or Section 2.05(b) may be requested, suit such indemnified party shall notify such indemnifying party in writing of the commencement of such action or proceeding. In case any such action or proceeding shall be brought against any indemnified party and it shall notify an Indemnitee in respect indemnifying party of which indemnity may be sought against the Companycommencement thereof, such Indemnitee indemnifying party shall promptly notify be entitled to participate therein and, to the Companyextent that it shall determine, and the Company shall jointly with any other indemnifying party similarly notified, to assume the defense thereof, including with counsel reasonably satisfactory to such indemnified party, and, after notice from the employment indemnifying party to such indemnified party of counsel and payment of all fees and expenses. The Indemnitee shall have the right its election so to employ separate counsel in any such action, suit or proceeding and to participate in assume the defense thereof, but such indemnifying party shall not be liable to such indemnified party for any legal or any other expenses subsequently incurred by such indemnified party in connection with the fees and expenses defense thereof other than reasonable costs of investigation; provided, however, that (i) if the indemnifying party fails to take reasonable steps necessary to defend diligently the action or proceeding within twenty (20) days after receiving notice from such counsel shall be at indemnified party that the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company indemnified party believes it has failed to assume do so; (ii) if such indemnified party who is a defendant in any action or proceeding which is also brought against the defense and employ counsel, indemnifying party reasonably shall have concluded that there may be one or more legal defenses available to such indemnified party which are not available to the indemnifying party; or (ziii) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that if representation of such Indemnitee and the Company both parties by the same counsel would be is otherwise inappropriate under applicable standards of professional conduct (whether or not conduct, then, in any such representation by case, the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company indemnified party shall not have the right to assume or continue its own defense as set forth above (but with no more than one firm of counsel for all indemnified parties) and the indemnifying party shall be liable for any expenses therefor (including, without limitation, any such reasonable counsel’s fees). If the indemnifying party is not entitled to, or elects not to, assume the defense of such actiona claim, suit or proceeding on behalf of such Indemnitee). It is understood, however, that it will not be obligated to pay the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only more than one separate firm of attorneys (in addition counsel for each indemnified party with respect to such claim. The indemnifying party will not be subject to any local counselliability for any settlement made without its consent, which shall not be unreasonably withheld, conditioned or delayed. No indemnifying party shall, without the prior written consent of the indemnified party (which shall not be unreasonably withheld, conditioned or delayed), compromise or consent to entry of any judgment or enter into any settlement agreement with respect to any action or proceeding in respect of which indemnification is sought under Section 2.05(a) at any time for all such Indemnitees or Section 2.05(b) (whether or not having the indemnified party is an actual or potential differing interests among themselvesparty thereto), unless such compromise, consent or settlement is solely for monetary damages and includes an unconditional release of the indemnified party from all liability in respect of such claim or litigation, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall does not be liable for any settlement include a statement or admission of any such actionfault, suit culpability or proceeding effected without its written consenta failure to act, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveindemnified party. (d) If The Participating Holder and the Company agree that if, for any reason, the indemnification provided for in this provisions contemplated by Section 9 is 2.05(a) or Section 2.05(b) hereof are unavailable to or are insufficient to hold harmless an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, claims, damages, liabilities or expenses Claims referred to therein, then an 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, claims, damages, liabilities or expenses Claims in such proportion as is appropriate to reflect the relative fault of the Company indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expensessecurities. The relative fault of the Company on the one hand such indemnifying party and a participating Holder on the other hand indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company on the one hand such indemnifying party or by such participating Holder on the other hand indemnified party, and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e. If, however, the allocation in the first sentence of this Section 2.05(d) The Company is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative fault, but also the relative benefits of the indemnifying party and the participating Holders indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Section 9 2.05(d) were to be determined by a pro rata allocation or by any other method of allocation that which does not take into account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions preceding sentences of this Section 9, no participating Holder shall be required to contribute 2.05(d). Notwithstanding any amount in excess of the amount foregoing, in no event shall any contribution by which any Participating Holder under this Section 2.05(d), when combined with any amounts payable or paid by such Participating Holder under Section 2.05(b), exceed the net proceeds to from the offering received by such participating Holder exceeds the amount Participating Holder, unless such liability arises out of any damages which or is based on fraud or willful misconduct by such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omissionParticipating Holder. 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. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Albany Molecular Research Inc)

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 agrees to indemnify and hold harmless each seller of Registrable Securities covered harmless, to the fullest extent permitted by a Registration Statement filed pursuant to this AgreementLaw, and such seller's partnersStockholder, its Affiliates, directors, officers, employees officers and any stockholders and each Person who controls such seller under Stockholder within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act (eachcollectively, an "Indemnitee"the “Indemnified Persons”) from and against any and all losses, claims, damages, liabilities liabilities, judgments, actions and expenses (including reasonable costs of investigationattorneys’ fees) arising out of joint or based upon several caused by any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement part of any Registration Statement or any preliminary or final prospectus used in connection with the Registrable Securities or in any amendment or supplement theretoIssuer FWP, or arising out of or based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a prospectus, in the light of the circumstances under which they were made) not misleading, except insofar as such ; provided that the Company will not be required to indemnify any Indemnified Person for any losses, claims, damages, liabilities liabilities, judgments, actions or expenses rise out of or are based upon resulting from any such untrue statement or omission or alleged if such untrue statement or omission which has been was made therein or omitted therefrom in reliance upon on and in conformity with the information relating with respect to a participating Holder any Indemnified Person furnished in writing to the Company in writing by or on behalf of a participating Holder Stockholder expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise havetherein. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in In connection with any one such actionRegistration Statement, suit preliminary or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consentfinal prospectus, or if them be a final judgment for the plaintiff in any such actionIssuer FWP, suit or proceeding, the Company Stockholder agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directorsDirectors, its officers who sign the registration statementsuch Registration Statement and each Person, and any person if any, who controls the Company (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, ) to the same extent as the foregoing indemnity from the Company to an IndemniteeStockholder, but only with respect to information relating with respect to such Holder any Indemnified Person furnished to the Company in writing by or on behalf of such Holder Stockholder expressly for use in the registration statementsuch Registration Statement, prospectus preliminary or any prepricing final prospectus, or Issuer FWP. (c) In case any amendment or supplement thereto. If any actionclaim, suit action or proceeding shall be brought against the Company, (including any of its directors, governmental investigation) is instituted involving any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and Person in respect of which indemnity may be sought pursuant to Section 3.08(a) or (b), such Person (hereinafter called the “indemnified party”) will (i) promptly notify the Person against any Holder whom such indemnity may be sought (hereinafter called the “indemnifying party”) in writing; provided that the failure to give such notice shall not relieve the indemnifying party of its obligations pursuant to this Section 9(c)Agreement except to the extent such indemnifying party has been prejudiced in any material respect by such failure; (ii) permit the indemnifying party to assume the defense of such claim, action or proceeding with counsel reasonably satisfactory to the indemnified party to represent the indemnified party; and (iii) pay the fees and disbursements of such Holder shall counsel related to such claim, action or proceeding. In any such claim, action or proceeding, any indemnified party will have the rights and duties given right to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereofretain its own counsel, but the fees and expenses of such counsel shall will be at the Holder's expense)expense of such indemnified party (without prejudice to such indemnified party’s indemnity and other rights under the Charter, By-Laws and applicable Law, if any) unless (A) the indemnifying party and the indemnified party have mutually agreed to the retention of such counsel, (B) the named parties to any such claim, action or proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and the indemnified party has been advised in writing by counsel, with a copy provided to the Company, its directorsthat representation of both parties by the 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 such claim and employ counsel reasonably satisfactory to the indemnified party. It is understood that the indemnifying party will not, in connection with any such officerclaim, action or proceeding or related claims, actions or proceedings in the same jurisdiction, be liable for the reasonable fees and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be expenses of more than one separate firm of attorneys (in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided local counsel at any time for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an indemnifying party, in lieu of indemnifying all such indemnified party, shall contribute to the amount paid or payable by parties) and that all such indemnified party as reasonable fees and expenses will be reimbursed reasonably promptly following a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable written request by an indemnified party as a result 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 lossesretention of any such separate firm for the indemnified parties, claimssuch firm will be designated in writing by the indemnified parties. The indemnifying party will not be liable for any settlement of any claim, damagesaction or proceeding effected without its written consent (which consent shall not be unreasonably withheld), liabilities and expenses referred 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 in Section 9(d) hereof shall be deemed to include, subject to indemnify the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating from and against any claim loss or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay liability by reason of such untrue settlement or alleged untrue statement or omission or alleged omissionjudgment. No person guilty 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 fraudulent misrepresentation 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 (within the meaning of Section 11(fi) such settlement is entered into more than 45 days after receipt by such indemnifying party of the Securities Actaforesaid request and (ii) shall be entitled such indemnifying party will not have reimbursed the indemnified party in accordance with such request or reasonably objected in writing, on the basis of the standards set forth herein, to contribution from any person who was not guilty the propriety of such fraudulent misrepresentation. (f) reimbursement prior to the date of such settlement. No indemnifying party shallwill, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-an unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (gd) Any If the indemnification provided for in this Section 3.08 from the indemnifying party is unavailable to an indemnified party hereunder in respect of any losses, claims, damages, liabilities liabilities, judgments, actions or expenses for which an indemnified parry is entitled referred to indemnification or contribution under in this Section 9 shall be 3.08, then the indemnifying party, in lieu of indemnifying such indemnified party, will contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages, liabilities, judgments, actions or expenses (i) in such proportion as is appropriate to reflect the relative fault of the indemnifying party to the and indemnified party as in connection with the actions that resulted in such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effectexpenses, regardless of as well as any other relevant equitable considerations, or (ii) if the allocation provided by clause (i) any investigation made is not permitted by or on behalf 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 an Indemnitee, the Company, its directors on the one hand, and Stockholder, on the other, in connection with the statements or officersomissions that resulted in such losses, claims, damages, liabilities, judgments, actions or expenses, as well as any other relevant equitable considerations. The relative fault of such indemnifying party and indemnified party will be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been taken by, or any person controlling the Companyrelates to information supplied by, such indemnifying party or indemnified party, and (ii) any termination of this Agreement.the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such

Appears in 1 contract

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

Indemnification; Contribution. (a) The Company agrees and the Subsidiary Guarantor, jointly and severally, agree to indemnify indemnify, defend and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this Agreement, Holder and such seller's partners, directors, officers, employees and any Person each person who controls such seller under any Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, an "Indemnitee") a “Holder Indemnified Party”), from and against any and all lossesloss, claimsdamage, damagesexpense, liabilities and expenses liability or claim (including the reasonable costs cost of investigation) arising ), which such Holder Indemnified Party may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement Shelf Registration Statement or prospectus Prospectus or in any amendment or supplement theretothereto or in any preliminary prospectus, or arising arises out of or is based upon any omission or alleged omission to state therein a material fact required to be stated therein in any Shelf Registration Statement or in any amendment or supplement thereto or necessary to make the statements 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 statements made in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which they were made, not misleading, except insofar as any such lossesloss, claimsdamage, damagesexpense, liabilities liability or expenses rise claim arises out of or are is based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein of a material fact contained in, or omitted therefrom from any Shelf Registration Statement or Prospectus or in reliance upon and any amendment or supplement thereto or any preliminary prospectus, in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of any Holder to the Company or the Subsidiary Guarantor expressly for use therein. (b) Each Holder, severally and not jointly, agrees to indemnify, defend and hold harmless the Company and the Subsidiary Guarantor, their directors and officers and any person who controls the Company and the Subsidiary Guarantor within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, a participating “Company Indemnified Party”) from and against any loss, damage, expense, liability or claim (including the reasonable cost of investigation), which such Company Indemnified Party may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in information furnished in writing by or on behalf of such Holder to the Company or the Subsidiary Guarantor expressly for use in any Shelf Registration Statement or Prospectus 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 to state a material fact required to be stated in any Shelf Registration Statement or in any amendment or supplement 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 statements in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which they were made, not misleading, in connection therewithwith such information. The foregoing indemnity agreement In no event shall the liability of any selling Holder of Registrable Securities hereunder be greater in addition amount than the dollar amount of the proceeds received by such Holder upon the sale of the Registrable Securities pursuant to any liability which the Company may otherwise haveShelf Registration Statement giving rise to such indemnification obligation. (bc) If any action, suit or proceeding shall be (each, a “Proceeding”) is brought against an Indemnitee any person in respect of which indemnity may be sought against the Companypursuant to either subsection (a) or (b) of this Section 6, such Indemnitee person (the “Indemnified Party”) shall promptly notify the Company, person against whom such indemnity may be sought (the “Indemnifying Party”) in writing of the institution of such Proceeding and the Company Indemnifying Party shall assume the defense thereofof such Proceeding; provided, including however, that the employment of counsel and payment of all fees and expensesomission to notify such Indemnifying Party shall not relieve such Indemnifying Party from any liability which it may have to such Indemnified Party or otherwise except to the extent such Indemnifying Person has been materially prejudiced by such failure. The Indemnitee Such Indemnified Party shall have the right to employ separate its own counsel in any such action, suit or proceeding and to participate in the defense thereofcase, but the fees and expenses of such counsel shall be at the expense of such Indemnitee Indemnified Party unless (x) the Company has agreed in writing to pay employment of such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee counsel shall have been advised authorized in writing by its such Indemnifying Party in connection with the defense of such Proceeding or such Indemnifying Party shall not have employed counsel to take charge of the defense of such Proceeding within 30 days of the receipt of notice thereof or such Indemnified Party shall have reasonably concluded upon the written advice of counsel that representation of there may be one or more defenses available to it that are different from, additional to or in conflict with those available to such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them Indemnifying Party (in which case the Company such Indemnifying Party shall not have the right to assume direct that portion of the defense of such action, suit or proceeding Proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consentIndemnified Party, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but Indemnifying Party may employ separate counsel therein and participate in the defense thereof, thereof but the fees and expenses of such counsel shall be at the Holder's expenseexpense of such Indemnifying Party), in any of which events such reasonable fees and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement expenses shall be borne by such Indemnifying Party and paid as incurred (it being understood, however, that such Indemnifying Party shall not be liable for the expenses of more than one separate counsel in addition any one Proceeding or series of related Proceedings together with reasonably necessary local counsel representing the Indemnified Parties who are parties to such action). An Indemnifying Party shall not be liable for any settlement of such Proceeding effected without the written consent of such Indemnifying Party, but if settled with the written consent of such Indemnifying Party, such Indemnifying Party agrees to indemnify and hold harmless an Indemnified Party from and against any loss or liability by reason of such settlement. No Indemnifying Party shall, without the prior written consent of any Indemnified Party, effect any settlement of any pending or threatened Proceeding in respect of which such Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the participating Holders may otherwise havesubject matter of such Proceeding and does not include an admission of fault, culpability or a failure to act, by or on behalf of such Indemnified Party. (d) If the indemnification provided for in this Section 9 6 is unavailable to an indemnified party Indemnified Party under paragraphs subsections (a) or and (cb) hereof of this Section 6 in respect of any losses, claimsdamages, damagesexpenses, liabilities or expenses claims referred to therein, then an 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, claimsdamages, damagesexpenses, liabilities or expenses claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Subsidiary Guarantor on the one hand and the Holders 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 Company and the Subsidiary Guarantor on the one hand and of the participating Holders on the other in connection with the statements or omissions that omissions, which resulted in such losses, claimsdamages, damagesexpenses, liabilities or expensesclaims, as well as any other relevant equitable considerations. The relative fault of the Company and the Subsidiary Guarantor on the one hand and a participating Holder of the Holders on the other hand shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact omission relates to information supplied by the Company on Company, the one hand Subsidiary Guarantor or by such participating Holder on the other hand Holders and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, damages, expenses, liabilities and claims referred to above shall be deemed to include any reasonable legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any Proceeding. (e) The Company Company, the Subsidiary Guarantor and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 6 were determined by a pro rata allocation or by any other method of allocation that which does not take account of the equitable considerations referred to in Section 9(dsubsection (d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 96, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds total price at which the Registrable Securities sold by it were offered to such participating Holder the public exceeds the amount of any damages damages, which such participating Holder it 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 Holders’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint. The remedies provided for in this Section 6 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements provisions contained in this Section 9 6 shall remain operative and in full force and effect, effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of an Indemniteeany Holder or any person controlling any Holder, or the Company, its the Subsidiary Guarantor or their officers or directors or officers, or any person controlling the Company, Company or the Subsidiary Guarantor and (iiiii) the sale of any termination of this AgreementRegistrable Security by any Holder.

Appears in 1 contract

Samples: Registration Rights Agreement (United Industrial Corp /De/)

Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this Agreement, and such seller's partners, directors, officers, employees and any Person who controls such seller under the Securities Act (each, an "Indemnitee") from and against any and all losses, claims, damages, liabilities and expenses (including reasonable costs of investigation) arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement or prospectus or in any amendment or supplement thereto, or arising out of or based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise out of or are based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating Holder expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an 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, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry party is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Corporate Office Properties Trust)

Indemnification; Contribution. (a) The Company agrees to indemnify indemnify, defend and hold harmless each seller Initial Purchaser, each Holder, each person, if any, who controls any Initial Purchaser or Holder within the meaning of Registrable Section 15 of the Securities covered by Act or Section 20 of the Exchange Act (a Registration Statement filed pursuant to this Agreement, “Controlling Person”) and such seller's partnersthe respective officers, directors, officerspartners, employees employees, representatives and agents of any Initial Purchaser, the Holders or any Controlling Person who controls such seller under the Securities Act (each, an "Indemnitee") “Indemnified Party”), from and against any and all lossesloss, claimsdamage, damagesexpense, liabilities and expenses liability, claim or any actions in respect thereof (including the reasonable costs cost of investigation) arising which such Indemnified Party may incur or become subject to under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectusShelf Registration Statement or Prospectus, registration statement or prospectus including any document incorporated by reference therein, or in any amendment or supplement theretothereto or in any preliminary prospectus, or arising arises out of or is based upon any omission or alleged omission to state therein a material fact required to be stated therein in any Shelf Registration Statement or in any amendment or supplement thereto or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise arises out of or are is based upon any omission or alleged omission to state a material fact necessary in order to make the statements made in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which they were made, not misleading, and the Company shall reimburse, as incurred, the Indemnified Parties for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, damage, expense, liability, claim or action in respect thereof; provided, however, that (i) insofar as any such loss, damage, expense, liability, claim or action arises out of or is based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein of a material fact contained in, or omitted therefrom in reliance upon from, and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of an Initial Purchaser or a participating Holder to the Company expressly for use therein and (ii) with respect to any untrue statement or omission or alleged untrue statement or omission made in any preliminary prospectus relating to a Shelf Registration Statement, the indemnity agreement contained in this subsection (a) shall not inure to the benefit of any Holder from whom the person asserting any such losses, damages, expenses, liabilities, claims or actions purchased the Registrable Securities concerned, to the extent that a prospectus relating to such Registrable Securities was required to be delivered by such Holder under the Securities Act in connection therewith. The foregoing with such purchase and any such loss, damage, expense, liability, claim or action of such Holder results from the fact that there was not sent or given to such person, at or prior to the written confirmation of the sale of such Registrable Securities to such person, a copy of the final prospectus if the Company had previously furnished copies thereof to such Holder; provided further, however, that this indemnity agreement shall will be in addition to any liability which the Company may otherwise havehave to such Indemnified Party. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating HoldersHolder, severally and not jointly, agree agrees to indemnify indemnify, defend and hold harmless the Company, its directors, its officers who sign the registration statementofficers, employees, representatives, agents and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, a “Company 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 Company Indemnified Party may incur or become subject to under the Securities Act, to the same extent Exchange Act or otherwise, insofar as the foregoing indemnity from the Company to an Indemniteesuch loss, but only with respect to damage, expense, liability, claim or action arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in information relating to such Holder furnished in writing by or on behalf of such Holder to the Company expressly for use in the registration statementany Shelf Registration Statement or Prospectus, prospectus or including any prepricing prospectusdocument incorporated by reference therein, or in any amendment or supplement theretothereto or in any preliminary prospectus, or arises out of or is based upon any omission or alleged omission to state a material fact required to be stated in any Shelf Registration Statement or in any amendment or supplement 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 statements in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which they were made, not misleading, in connection with such information; and, subject to the limitation set forth immediately preceding this clause, each Holder shall reimburse the Company for any legal or other expenses reasonably incurred by the Company 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 Company or any of its controlling persons. In no event shall the liability of any selling Holder of Registrable Securities hereunder be greater in amount than the dollar amount of the proceeds received by such Holder upon the sale of the Registrable Securities pursuant to the Shelf Registration Statement giving rise to such indemnification obligation, absent fraud on the part of such Holder. (c) If any action, suit or proceeding shall be (each, a “Proceeding”) is brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to either subsection (a) or (b) of this Section 9(c)6, such Holder 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 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 rights and duties given right to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof employ its own counsel in any such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereofcase, but the fees and expenses of such counsel shall be at the Holder's expenseexpense of such Indemnified Party unless the employment of such counsel shall have been authorized in writing by such Indemnifying Party in connection with the defense of such Proceeding or such Indemnifying Party shall not have employed counsel to have charge of the defense of such Proceeding within thirty (30) days of the receipt of notice thereof or such Indemnified Party shall have reasonably concluded upon the written advice of counsel that there may be one or more defenses available to it that are different from, additional to or in conflict with those available to such Indemnifying Party (in which case such Indemnifying Party shall not have the right to direct that portion of the defense of such Proceeding on behalf of the Indemnified Party, but such Indemnifying Party may employ counsel and participate in the defense thereof but the fees and expenses of such counsel shall be at the expense of such Indemnifying Party), in any of which events such reasonable fees and expenses shall be borne by such Indemnifying Party and paid as incurred (it being understood, however, that such Indemnifying Party shall not be liable for the Companyexpenses of more than one separate counsel in any one Proceeding or series of related Proceedings together with reasonably necessary local counsel representing the Indemnified Parties who are parties to such action). An Indemnifying Party shall not be liable for any settlement of such Proceeding effected without the written consent of such Indemnifying Party, its directorsbut 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 officersettlement. Notwithstanding the foregoing sentence, and if at any such controlling person 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 rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement second sentence of this paragraph, then such Indemnifying Party agrees that it shall be liable for any settlement of any Proceeding effected without its written consent if (i) such settlement is entered into more than sixty (60) Business Days after receipt by such Indemnifying Party of the aforesaid request, (ii) such Indemnifying Party shall not have reimbursed such Indemnified Party in addition accordance with such request prior to the date of such settlement and (iii) such Indemnified Party shall have given such Indemnifying Party at least thirty (30) days’ prior notice of its intention to settle. No Indemnifying Party shall, without the prior written consent of any Indemnified Party, effect any settlement of any pending or threatened Proceeding in respect of which such Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability which on claims that are the participating Holders may otherwise havesubject matter of such Proceeding and does not include an admission of fault, culpability or a failure to act, by or on behalf of such Indemnified Party. (d) If the indemnification provided for in this Section 9 6 is unavailable to an indemnified party Indemnified Party under paragraphs subsections (a) or and (cb) hereof of this Section 6 in respect of any losses, claims, damages, liabilities expenses, liabilities, claims or expenses actions referred to therein, then an 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, claims, damages, liabilities expenses, liabilities, claims or expenses actions (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and 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 Company on the one hand and of the participating Holders or the Initial Purchasers on the other in connection with the statements or omissions that which resulted in such losses, claims, damages, liabilities expenses, liabilities, claims or expensesactions, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and a participating Holder of the Holders or the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact omission relates to information supplied by the Company on the one hand or by such participating Holder on the other hand Holders or the Initial Purchasers and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, damages, expenses, liabilities, claims and actions referred to above shall be deemed to include any reasonable legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any Proceeding. (e) The Company Company, the Holders and the participating Holders Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 9 6 were determined by a pro rata allocation or by any other method of allocation that which does not take account of the equitable considerations referred to in Section 9(dsubsection (d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 96, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds total price at which the Registrable Securities sold by it were offered to such participating Holder the public exceeds the amount of any damages which such participating Holder it 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 Holders’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint. The remedies provided for in this Section 6 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements provisions contained in this Section 9 6 shall remain operative and in full force and effect, effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of an Indemniteeany Holder or the Initial Purchasers or any person controlling any Holder or Initial Purchaser, or the Company, its or the Company’s officers or directors or officers, or any person controlling the Company, Company and (iiiii) the sale of any termination of this AgreementRegistrable Security by any Holder.

Appears in 1 contract

Samples: Registration Rights Agreement (Protein Design Labs Inc/De)

Indemnification; Contribution. (a) The Company agrees to indemnify indemnify, defend and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this Agreement, Notice Holder and such seller's partners, directors, officers, employees and any Person each person who controls such seller under any Notice Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, an a "IndemniteeHolder Indemnified Party") ), from and against any and all lossesloss, claimsdamage, damagesexpense, liabilities and expenses liability or claim (including the reasonable costs cost of investigation) arising which such Holder Indemnified Party may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement Shelf Registration Statement or prospectus Prospectus or in any amendment or supplement theretothereto or in any preliminary prospectus, or arising arises out of or is based upon any omission or alleged omission to state therein a material fact required to be stated therein in any Shelf Registration Statement or in any amendment or supplement thereto or necessary to make the statements 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 statements made in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which they were made, not misleading, except insofar as any such lossesloss, claimsdamage, damagesexpense, liabilities liability or expenses rise claim arises out of or are is based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein of a material fact contained in, or omitted therefrom in reliance upon from, and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of any Notice Holder or any person, if any, who controls a participating Notice Holder to the Company expressly for use in connection therewith. The foregoing therein and except that this indemnity agreement shall be in addition not apply to any loss, damage, expense, liability which or claim (1) arising from an offer or sale by a Notice Holder of Registrable Securities occurring during a Suspension Period, if the indemnified party is a Notice Holder that received from the Company may otherwise havea Deferral Notice prior to the making of such offer or sale or (2) the Notice Holder fails to deliver at or prior to written confirmation of sale, the most recent Prospectus, as amended or supplemented, and such Prospectus, as amended or supplemented, would have corrected such untrue statement or omission or alleged untrue statement or omission of a material fact and the Company had previously provided to such Notice Holder such most recent Prospectus, as amended or supplemented, in a timely manner and in requisite quantities so as to timely permit such delivery by the Notice Holder. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating HoldersNotice Holder, severally and not jointly, agree agrees to indemnify indemnify, defend and hold harmless the Company, its directors, its directors and officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, a "Company Indemnified Party") from and against any loss, damage, expense, liability or claim (including the reasonable cost of investigation) which such Company Indemnified Party may incur under the Securities Act, to the same extent Exchange Act or otherwise, insofar as the foregoing indemnity from the Company to an Indemniteesuch loss, but only with respect to damage, expense, liability or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in information relating to such Holder furnished in writing by or on behalf of such Notice Holder to the Company expressly for use in the registration statement, prospectus any Shelf Registration Statement or any prepricing prospectus, Prospectus or in any amendment or supplement theretothereto or in any preliminary prospectus, or arises out of or is based upon any omission or alleged omission to state a material fact required to be stated in any Shelf Registration Statement or in any amendment or supplement 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 statements in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which they were made, not misleading, in connection with such information. 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 of the Registrable Securities pursuant to the Shelf Registration Statement giving rise to such indemnification obligation. (c) If any action, suit or proceeding shall be (each, a "Proceeding") is brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to either subsection (a) or (b) of this Section 9(c)6, such Holder 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 notify such Indemnifying Party shall not relieve such Indemnifying Party from any liability which it may have to such Indemnified Party 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 Agreement. Such Indemnified Party shall have the rights and duties given right to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof employ its own counsel in any such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereofcase, but the fees and expenses of such counsel shall be at the Holder's expenseexpense of such Indemnified Party unless the employment of such counsel shall have been authorized in writing by such Indemnifying Party in connection with the defense of such Proceeding or such Indemnifying Party shall not have employed counsel to have charge of the defense of such Proceeding within 60 days of the receipt of notice thereof or such Indemnified Party shall have reasonably concluded upon the written advice of counsel that there may be one or more defenses available to it that are different from, additional to or in conflict with those available to such Indemnifying Party (in which case such Indemnifying Party shall not have the right to direct that portion of the defense of such Proceeding on behalf of the Indemnified Party, but such Indemnifying Party may employ counsel and participate in the defense thereof but the fees and expenses of such counsel shall be at the expense of such Indemnifying Party), in any of which events such reasonable fees and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement expenses shall be borne by such Indemnifying Party and paid as incurred (it being understood, however, that such Indemnifying Party shall not be liable for the expenses of more than one separate counsel in addition any one Proceeding or series of related Proceedings together with reasonably necessary local counsel representing the Indemnified Parties who are parties to such action). An Indemnifying Party shall not be liable for any settlement of such Proceeding effected without the written consent of such Indemnifying Party, but if settled with the written consent of such Indemnifying Party, such Indemnifying Party agrees to indemnify and hold harmless an Indemnified Party from and against any loss or liability by reason of such settlement. No Indemnifying Party shall, without the prior written consent of any Indemnified Party, effect any settlement of any pending or threatened Proceeding in respect of which such Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the participating Holders may otherwise havesubject matter of such Proceeding and does not include an admission of fault, culpability or a failure to act, by or on behalf of such Indemnified Party. (d) If the indemnification provided for in this Section 9 6 is unavailable to an indemnified party Indemnified Party under paragraphs subsections (a) or and (cb) hereof of this Section 6 in respect of any losses, claimsdamages, damagesexpenses, liabilities or expenses claims referred to therein, then an 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, claimsdamages, damagesexpenses, liabilities or expenses claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Holders 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 Company on the one hand and of the participating Holders on the other in connection with the statements or omissions that which resulted in such losses, claimsdamages, damagesexpenses, liabilities or expensesclaims, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and a participating Holder of the Holders on the other hand shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact omission relates to information supplied by the Company on the one hand or by such participating Holder on the other hand Holders and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, damages, expenses, liabilities and claims referred to above shall be deemed to include any reasonable legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any Proceeding. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 6 were determined by a pro rata allocation or by any other method of allocation that which does not take account of the equitable considerations referred to in Section 9(dsubsection (d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 96, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds total price at which the Registrable Securities sold by it were offered to such participating Holder the public exceeds the amount of any damages which such participating Holder it 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 Holders' respective obligations to contribute pursuant to this Section 6 are several in proportion to the respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint. The remedies provided for in this Section 6 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements provisions contained in this Section 9 6 shall remain operative and in full force and effect, effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of an Indemniteeany Holder or any person controlling any Holder, or the Company, its or the Company's officers or directors or officers, or any person controlling the Company, Company and (iiiii) the sale of any termination of this AgreementRegistrable Security by any Holder.

Appears in 1 contract

Samples: Registration Rights Agreement (Webmd Corp /New/)

Indemnification; Contribution. (a) The Company agrees to indemnify indemnify, defend and hold harmless each seller Initial Purchaser, each Holder, each person, if any, who controls any Initial Purchaser or Holder within the meaning of Registrable Section 15 of the Securities covered by Act or Section 20 of the Exchange Act (a Registration Statement filed pursuant to this Agreement, “Controlling Person”) and such seller's partnersthe respective officers, directors, officerspartners, employees employees, representatives and agents of the Initial Purchasers, the Holders or any Controlling Person who controls such seller under the Securities Act (each, an "Indemnitee") “Indemnified Party”), from and against any and all lossesloss, claimsdamage, damagesexpense, liabilities and expenses liability, claim or any actions in respect thereof (including the reasonable costs cost of investigation) arising which such Indemnified Party may incur or become subject to under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectusShelf Registration Statement or Prospectus, registration statement or prospectus including any document incorporated by reference therein, or in any amendment or supplement theretothereto or in any preliminary prospectus, or arising arises out of or is based upon any omission or alleged omission to state therein a material fact required to be stated therein in any Shelf Registration Statement or in any amendment or supplement thereto or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise arises out of or are is based upon any omission or alleged omission to state a material fact necessary in order to make the statements made in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which they were made, not misleading, and the Company shall reimburse, as incurred, the Indemnified Parties for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, damage, expense, liability, claim or action in respect thereof; provided, however, that (i) insofar as any such loss, damage, expense, liability, claim or action arises out of or is based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein of a material fact contained in, or omitted therefrom in reliance upon from, and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating an Initial Purchaser or Holder to the Company expressly for use therein, including without limitation all information, to the extent provided by such Holder, regarding such Holder and its affiliates included in a Notice and Questionnaire provided by such Holder to the Company, and (ii) with respect to any untrue statement or omission or alleged untrue statement or omission made in any preliminary prospectus relating to a Shelf Registration Statement, the indemnity agreement contained in this subsection (a) shall not inure to the benefit of any Holder from whom the person asserting any such losses, damages, expenses, liabilities, claims or actions purchased the Registrable Securities concerned, to the extent that a prospectus relating to such Registrable Securities was required to be delivered by such Holder under the Securities Act in connection therewith. The foregoing with such purchase and any such loss, damage, expense, liability, claim or action of such Holder results from the fact that there was not sent or given to such person, at or prior to the written confirmation of the sale of such Registrable Securities to such person, a copy of the final prospectus if the Company had previously furnished copies thereof to such Holder; provided further, however, that this indemnity agreement shall will be in addition to any liability which the Company may otherwise havehave to such Indemnified Party. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating HoldersHolder, severally and not jointly, agree agrees to indemnify indemnify, defend and hold harmless the Company, its directors, its officers who sign the registration statementofficers, employees, representatives, agents and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, a “Company 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 Company Indemnified Party may incur or become subject to under the Securities Act, to the same extent Exchange Act or otherwise, insofar as the foregoing indemnity from the Company to an Indemniteesuch loss, but only with respect to damage, expense, liability, claim or action arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in information relating to such Holder furnished in writing by or on behalf of such Holder to the Company expressly for use in the registration statementany Shelf Registration Statement or Prospectus, prospectus or including any prepricing prospectusdocument incorporated by reference therein, or in any amendment or supplement theretothereto or in any preliminary prospectus, including without limitation all information, to the extent provided by such Holder, regarding such Holder and its affiliates included in a Notice and Questionnaire provided by such Holder to the Company, or arises out of or is based upon any omission or alleged omission to state a material fact required to be stated in any Shelf Registration Statement or in any amendment or supplement 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 statements in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which they were made, not misleading, in connection with such information; and, subject to the limitation set forth immediately preceding this clause, each Holder shall reimburse, as incurred, the Company for any legal or other expenses reasonably incurred by the Company 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 Company or any of its controlling persons. In no event shall the liability of any selling Holder of Registrable Securities hereunder be greater in amount than the dollar amount of the proceeds received by such Holder upon the sale of the Registrable Securities pursuant to the Shelf Registration Statement giving rise to such indemnification obligation. (c) If any action, suit or proceeding shall be (each, a “Proceeding”) is brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to either subsection (a) or (b) of this Section 9(c)6, such Holder 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 notify such Indemnifying Party shall not relieve such Indemnifying Party from any liability which it may have to such Indemnified Party or otherwise unless materially prejudiced thereby. Such Indemnified Party shall have the rights and duties given right to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof employ its own counsel in any such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereofcase, but the fees and expenses of such counsel shall be at the Holder's expenseexpense of such Indemnified Party unless the employment of such counsel shall have been authorized in writing by such Indemnifying Party in connection with the defense of such Proceeding or such Indemnifying Party shall not have employed counsel to have charge of the defense of such Proceeding within a reasonable amount of time following the receipt of notice thereof or such Indemnified Party shall have reasonably concluded upon the written advice of counsel that there may be one or more defenses available to it that are different from, additional to or in conflict with those available to such Indemnifying Party (in which case such Indemnifying Party shall not have the right to direct that portion of the defense of such Proceeding on behalf of the Indemnified Party, but such Indemnifying Party may employ counsel and participate in the defense thereof but the fees and expenses of such counsel shall be at the expense of such Indemnifying Party), in any of which events such reasonable fees and expenses shall be borne by such Indemnifying Party and paid as incurred (it being understood, however, that such Indemnifying Party shall not be liable for the Companyexpenses of more than one separate counsel in any one Proceeding or series of related Proceedings together with necessary local counsel representing the Indemnified Parties who are parties to such action). An Indemnifying Party shall not be liable for any settlement of such Proceeding effected without the written consent of such Indemnifying Party, its directorsbut 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 officersettlement. Notwithstanding the foregoing sentence, and if at any such controlling person 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 rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement second sentence of this paragraph, then such Indemnifying Party agrees that it shall be liable for any settlement of any Proceeding effected without its written consent if (i) such settlement is entered into more than sixty (60) Business Days after receipt by such Indemnifying Party of the aforesaid request, (ii) such Indemnifying Party shall not have reimbursed such Indemnified Party in addition accordance with such request prior to the date of such settlement and (iii) such Indemnified Party shall have given such Indemnifying Party at least forty-five (45) days’ prior notice of its intention to settle. No Indemnifying Party shall, without the prior written consent of any Indemnified Party, effect any settlement of any pending or threatened Proceeding in respect of which such Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability which on claims that are the participating Holders may otherwise havesubject matter of such Proceeding and does not include an admission of fault, culpability or a failure to act, by or on behalf of such Indemnified Party. (d) If the indemnification provided for in this Section 9 6 is unavailable to an indemnified party Indemnified Party under paragraphs subsections (a) or and (cb) hereof of this Section 6 in respect of any losses, claims, damages, liabilities expenses, liabilities, claims or expenses actions referred to therein, then an 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, claims, damages, liabilities expenses, liabilities, claims or expenses actions (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and 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 Company on the one hand and of the participating Holders or the Initial Purchasers on the other in connection with the statements or omissions that which resulted in such losses, claims, damages, liabilities expenses, liabilities, claims or expensesactions, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and a participating Holder of the Holders or the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact omission relates to information supplied by the Company on the one hand or by such participating Holder on the other hand Holders or the Initial Purchasers and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, damages, expenses, liabilities, claims and actions referred to above shall be deemed to include any reasonable legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any Proceeding. (e) The Company Company, the Holders and the participating Holders Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 9 6 were determined by a pro rata allocation or by any other method of allocation that which does not take account of the equitable considerations referred to in Section 9(dsubsection (d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 96, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds total price at which the Registrable Securities sold by it were offered to such participating Holder the public exceeds the amount of any damages which such participating Holder it 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 Holders’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint. The remedies provided for in this Section 6 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements provisions contained in this Section 9 6 shall remain operative and in full force and effect, effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of an Indemniteeany Holder or Initial Purchaser or any person controlling any Holder or Initial Purchaser, or the Company, its or the Company’s officers or directors or officers, or any person controlling the Company, Company and (iiiii) the sale of any termination of this AgreementRegistrable Security by any Holder.

Appears in 1 contract

Samples: Registration Rights Agreement (Biomarin Pharmaceutical Inc)

Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this Agreement, Holder and such seller's partners, its directors, officers, employees employees, members, representatives and any Person agents and each person, if any, who controls such seller under any Holder within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act (each, an a "IndemniteeHolder Indemnified Party") ), from and against any and all lossesloss, claimsdamage, damagesexpense, liabilities and expenses liability or claim (including the reasonable costs cost of investigation) arising which such Holder Indemnified Party may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement Shelf Registration Statement or prospectus Prospectus or in any amendment or supplement theretothereto or in any preliminary prospectus, or arising arises out of or is based upon any omission or alleged omission to state therein a material fact required to be stated therein in any Shelf Registration Statement or in any amendment or supplement thereto or necessary to make the statements 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 statements made in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which they were made, not misleading, except insofar as any such lossesloss, claimsdamage, damagesexpense, liabilities liability or expenses rise claim arises out of or are is based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein of a material fact contained in, or omitted therefrom in reliance upon from, and in conformity with information required to be included in any Shelf Registration Statement or the information relating to a participating Holder related Prospectus pursuant the Securities Act furnished in writing to the Company by or on behalf of a participating any Holder expressly for use in connection therewith. The foregoing to the Company; provided, however, that as to any preliminary prospectus, this indemnity agreement shall be in addition not inure to the benefit of any Holder Indemnified Party on account of any loss, claim, damage, liability or action arising from the sale of the Registrable Securities sold pursuant to the Shelf Registration Statement to any liability which person by such Holder Indemnified Party if (i) that Holder Indemnified Party failed to send or give a copy of the Prospectus, as the same may be amended or supplemented, to that person within the time required by the Securities Act (other than as a result of a failure by the Company to timely deliver copies of the Prospectus to such Holder Indemnified Party) and (ii) the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact in such preliminary prospectus was corrected in the Prospectus or a supplement or amendment thereto, as the case may otherwise havebe. (b) Each Holder, severally and not jointly, agrees to indemnify, defend and hold harmless the Company, and its directors, officers, employees, members, representatives and agents 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 (each, a "Company Indemnified Party") from and against any loss, damage, expense, liability or claim (including the reasonable cost of investigation) which such Company Indemnified Party may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in information furnished in writing by or on behalf of such Holder to the Company required to be included in any Shelf Registration Statement or the related Prospectus pursuant the Securities Act, or arises out of or is based upon any omission or alleged omission to state a material fact required to be stated in any Shelf Registration Statement or in any amendment or supplement 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 statements in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which they were made, not misleading, in connection with such information; provided, however, that no such Holder shall be liable for any claims hereunder in excess of the amount of net proceeds received by such Holder from the sale of Registrable Securities pursuant to such Shelf Registration Statement. (c) If any action, suit or proceeding shall be (each, a "Proceeding") is brought against an Indemnitee any person in respect of which indemnity may be sought against the Companypursuant to either subsection (a) or (b) of this Section 6, such Indemnitee person (the "Indemnified Party") shall promptly notify the Company, person against whom such indemnity may be sought (the "Indemnifying Party") in writing of the institution of such Proceeding and the Company Indemnifying Party shall assume the defense thereofof such Proceeding; provided, including however, that failure to so notify the employment 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 otherwise have than on account of counsel and payment of all fees and expensesthis indemnity agreement. The Indemnitee Such Indemnified Party shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereofits own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnitee Indemnified Party unless (xi) the Company has Indemnifying Party and the Indemnified Party shall have mutually agreed in writing to pay such fees and expensesthe contrary, (yii) the Company Indemnifying Party has failed within a reasonable time after receipt of notice to assume defense of a Proceeding to retain counsel reasonably satisfactory to the defense and employ counsel, Indemnified Party or (ziii) the named parties to in any such action, suit or proceeding Proceeding (including any impleaded parties) include both such Indemnitee the Indemnifying Party and the CompanyIndemnified Party, the Indemnifying Party proposes to have the same counsel represent it and the Indemnified Party, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company both parties by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee)them. It is understood, however, understood that the Company shallIndemnifying Party shall not, in connection with any one such action, suit or proceeding or separate but substantially similar Proceeding or related actions, suits or proceedings Proceeding in the same jurisdiction arising out of the same general allegations or circumstancesjurisdiction, be liable for the reasonable fees and expenses of only more than one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselvesIndemnified Parties, and that all such fees and expenses actually incurred shall be promptly reimbursed as they are incurredupon delivery to the Indemnifying Party of reasonable documentation therefor setting forth such expenses in reasonable detail. The Company Indemnifying Party shall not be liable for any settlement of any such action, suit or proceeding Proceeding effected without its written consent, but if settled with such written consent, consent or if them there be a final judgment for the plaintiff in any such action, suit or proceedingplaintiff, the Company Indemnifying Party agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, any Indemnified Party from and against any loss, claim, damage, loss or liability or expense by reason of such settlement or judgment. . Notwithstanding the foregoing sentence, if at any time an Indemnified Party shall have requested the Indemnifying Party to reimburse the Indemnified Party as contemplated by this paragraph, the Indemnifying Party agrees that it shall be liable for any settlement of any Proceeding effected without its consent if (ci) Each such settlement is entered into more than 60 Business Days after receipt by the Indemnifying Party of the participating Holdersaforesaid request, severally (ii) such indemnifying party shall not have reimbursed the Indemnified Party in accordance with such request prior to the date of such settlement and not jointly(iii) such Indemnified Party shall have given such Indemnifying Party at least 30 days' prior notice of its intention to settle. No Indemnifying Party shall, agree to indemnify and hold harmless without the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 prior written consent of the Securities Act Indemnified Party, effect any settlement of any pending or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and threatened Proceeding in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c)Indemnified Party is a party, unless such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses settlement includes an unconditional release of such counsel shall be at Indemnified Party from all liability on claims that are the Holder's expense), and the Company, its directors, any subject matter of such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveProceeding. (d) If the indemnification provided for in this Section 9 6 is unavailable to an indemnified party Indemnified Party under paragraphs subsections (a) or and (cb) hereof of this Section 6 in respect of any losses, claimsdamages, damagesexpenses, liabilities or expenses claims referred to therein, then an 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, claimsdamages, damagesexpenses, liabilities or expenses claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Holders 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 Company on the one hand and of the participating Holders on the other in connection with the statements or omissions that which resulted in such losses, claimsdamages, damagesexpenses, liabilities or expensesclaims, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and a participating Holder of the Holders on the other hand shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact omission relates to information supplied by the Company on the one hand or by such participating Holder on the other hand Holders and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, damages, expenses, liabilities and claims referred to above shall be deemed to include any reasonable legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any Proceeding. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 6 were determined by a pro rata allocation or by any other method of allocation that which does not take account of the equitable considerations referred to in Section 9(dsubsection (d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Holders' respective obligations to contribute pursuant to this Section 6 are several in proportion to the respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint. The remedies provided for in this Section 6 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements provisions contained in this Section 9 6 shall remain operative and in full force and effect, effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of an Indemniteeany Holder or any person controlling any Holder, or the Company, its or the Company's officers or directors or officers, or any person controlling the Company, Company and (iiiii) the sale of any termination of this AgreementRegistrable Security by any Holder.

Appears in 1 contract

Samples: Registration Rights Agreement (Interstate Bakeries Corp/De/)

Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each seller of Buyer Party holding Registrable Securities covered by a Registration Statement filed pursuant to this AgreementSecurities, and such seller's partnersthe Affiliates, directors, officers, employees employees, stockholders, managers and any agents of each such Buyer Party and each Person who controls any such seller under Buyer Party within the Securities meaning of either the 1933 Act (eachor the 1934 Act, an "Indemnitee") 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 costs of investigationor actions in respect thereof) arising arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement or prospectus 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 arising arise out of or are based upon any the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of the Disclosure Package, or any preliminary, final or summary prospectus or Free Writing Prospectus included in any such Registration Statement, in light of the circumstances under which they were made) not misleading, except insofar and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such lossesloss, claimsclaim, damagesdamage, liabilities liability or expenses rise 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 to the extent that any such loss, claim, damage, liability or expense arises (i) out of or are is based upon any such untrue statement or alleged untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the written information relating to a participating Holder furnished in writing to the Company by or on behalf of any such Buyer Party specifically for inclusion therein including, without limitation, any notice and questionnaire, (ii) out of or is based upon any Buyer Party’s failure to deliver a participating Holder expressly for use copy of the Registration Statement, the Disclosure Package, or any preliminary, final or summary prospectus or Free Writing Prospectus included in connection therewithany such Registration Statement or any amendments or supplements thereto (if the same was required by applicable law to be so delivered) after the Company has furnished such Buyer Party with a sufficient number of copies of the same prior to any written confirmation of the sale of Registrable Securities or (iii) out of sales of Registrable Securities made during a Suspension Period after notice is given pursuant to Section 5.3(c) hereof. The foregoing This indemnity agreement shall will be in addition to any liability which the Company may otherwise have. (b) If Each Buyer Party severally (and not jointly) agrees to indemnify and hold harmless the Company and each of its Affiliates, directors, employees, stockholders, managers and agents and each Person who controls the Company within the meaning of either the 1933 Act or the 1934 Act, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages or liabilities to which they or any of them may become subject insofar as such losses, claims, damages or liabilities arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement as originally filed or in any amendment thereof, or in the Disclosure Package or any Buyer Party Free Writing Prospectus, preliminary, final or summary prospectus included in any such Registration Statement, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of the Disclosure Package, or any preliminary, final or summary prospectus or Free Writing Prospectus included in any such Registration Statement, in light of the circumstances under which they were made) not misleading, to the extent, but only to the extent, that any such untrue statement or alleged untrue statement or omission or alleged omission is contained in any written information relating to such Buyer Party furnished to the Company by or on behalf of such Buyer Party specifically for inclusion therein or (ii) Buyer Party’s failure to deliver a copy of the Registration Statement, the Disclosure Package, or any preliminary, final or summary prospectus or Free Writing Prospectus included in any such Registration Statement or any amendments or supplements thereto (if the same was required by applicable law to be so delivered) after the Company has furnished such Buyer Party with a sufficient number of copies of the same prior to any written confirmation of the sale of Registrable Securities; provided, however, that the total amount to be indemnified by such Buyer Party pursuant to this Section 5.8(b) shall be limited to the net proceeds (after deducting underwriters’ discounts and commissions) received by such Buyer Party in the offering to which such Registration Statement or Prospectus relates. (c) Promptly after receipt by an indemnified party under this Section 5.8 of notice of the commencement of any action, suit such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 5.8, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or proceeding (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 brought against an Indemnitee in respect of which indemnity may be sought against entitled to participate therein and, to the Companyextent that it shall wish, such Indemnitee shall promptly notify the Companyjointly with any other indemnifying party similarly notified, and the Company shall to assume the defense thereof, including with counsel satisfactory to such indemnified party (who shall not, except with the employment consent of the indemnified party, be counsel and payment to the indemnifying party), and, except as provided in the next sentence, after notice from the indemnifying party to such indemnified party of all fees and expensesits election to so assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The Indemnitee Notwithstanding the indemnifying party’s rights in the prior sentence, the indemnified party shall have the right to employ separate its own counsel in any such action(and one local counsel), suit or proceeding and to participate in the defense thereofindemnifying party shall bear the reasonable fees, but the fees costs and expenses of such separate counsel if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest; (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party; (iii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee)indemnifying party. It is understood, however, that the Company No indemnifying party shall, in connection with any one such action, suit or proceeding action or separate but substantially similar or related actions, suits or proceedings actions in the same jurisdiction arising out of the same general allegations circumstances or circumstancesallegations, be liable for the reasonable fees and expenses of only more than one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurredindemnified parties. The Company An indemnifying party shall not be liable for under this Section 5.8 to any indemnified party regarding any settlement or compromise or consent to the entry of any such judgment with respect to any pending or threatened claim, action, suit or proceeding effected without its written consentin respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, but if settled with compromise or consent is consented to by such written consentindemnifying party. No indemnifying party, or if them be a final judgment for in the plaintiff in defense of any such actionclaim or litigation, suit shall, except with the consent of each indemnified party, consent to entry of any judgment or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against enter into any loss, claim, damage, liability settlement or expense by reason of compromise unless such settlement or judgment. compromise (ci) Each includes an unconditional release of such indemnified party from all liability on claims that are the participating Holderssubject matter of such proceeding and (ii) does not include any statement as to or any admission of fault, severally and not jointly, agree culpability or a failure to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing act by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveindemnified party. (d) If In the indemnification event that the indemnity provided for in this Section 9 5.8(a) or 5.8(b) above is unavailable to or insufficient to hold harmless an indemnified party under paragraphs (a) or (c) hereof in respect of for any reason, then each applicable indemnifying party agrees to contribute to the aggregate losses, claims, damagesdamages and liabilities (including, liabilities without limitation, legal or other expenses referred reasonably incurred in connection with investigating or defending same) to therein, then an which such 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, claims, damages, liabilities or expenses may be subject in such proportion as is appropriate to reflect the relative fault of the Company indemnifying party on the one hand and of the participating Holders indemnified party on the other hand in connection with the statements or omissions that which resulted in such losses, claims, damagesdamages or liabilities (or actions in respect thereof), liabilities or expensesas well as any other relevant equitable considerations. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company indemnifying party on the one hand or by such participating Holder the indemnified party on the other hand and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) . The Company and the participating Holders parties agree that it would not be just and equitable if contribution pursuant to this Section 9 5.8(d) were determined by a pro rata allocation (even if the Buyer Parties holding Registrable Securities or any agents or underwriters or all of them were treated as one entity for such purpose) or by any other method of allocation that which does not take account of the equitable considerations referred to above in this Section 9(d) hereof5.8(d). The amount paid or payable by an indemnified party as a result of the losses, claims, damages, damages or liabilities and expenses (or actions in respect thereof) referred to above in Section 9(d) hereof this Article V shall be deemed to include, subject to the limitations set forth above, include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit action or proceedingclaim. Notwithstanding the provisions of this Section 95.8(d), no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder 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 Act0000 Xxx) shall be entitled to contribution from any person Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 5.8, each Person who controls any Buyer Party holding Registrable Securities, agent or underwriter within the meaning of either the 1933 Act or the 1934 Act and each director, officer, employee and agent of any such Buyer Party, agent or underwriter shall have the same rights to contribution as such Buyer Party, agent or underwriter, and each Person who controls the Company within the meaning of either the 1933 Act or the 1934 Act and each officer and director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this Section 5.8(d). Notwithstanding the foregoing, the total amount to be contributed by any Buyer Party pursuant to this Section 5.8(d) shall be limited to the net proceeds (after deducting underwriters’ discounts and commissions) received by such Buyer Party in the offering to which such Registration Statement or prospectus relates. (fe) No indemnifying party shall, without the prior written consent The provisions of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall 5.8 will remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of any Buyer Party holding Registrable Securities or the Company or any of the officers, directors or controlling Persons referred to in this Section 5.8, and will survive the transfer of Registrable Securities. (f) To the extent any indemnification by an Indemniteeindemnifying party is prohibited or limited by law, the Companyindemnifying party agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under this Section 5.8 to the fullest extent permitted by Applicable Law; provided, its directors or officershowever, or 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 controlling the Company, Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any termination seller of this AgreementRegistrable Securities shall be limited in amount to the net amount of proceeds received by such seller from the sale of such Registrable Securities pursuant to such Shelf Registration.

Appears in 1 contract

Samples: Stock Purchase Agreement (Professional Diversity Network, Inc.)

Indemnification; Contribution. (a) Indemnification by the Company. The Company agrees to indemnify ------------------------------ and hold harmless each seller Selling Holder of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementSecurities, its officers and such seller's partnersdirectors and each person, directorsif any, officers, employees and any Person who controls such seller under Selling Holder within the meaning of Section 15 of the Securities Act (each, an "Indemnitee") or Section 20 of the Exchange Act from and against any and all losses, claims, damages, liabilities and expenses (including reasonable costs of investigation) arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement or prospectus relating to the Registrable Securities or in any amendment or supplement theretothereto or in any preliminary prospectus, or arising out of or based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise arise out of of, or are based upon, any such untrue statement or omission or allegation thereof based upon information furnished in writing to the Company by such Selling Holder or on such Selling Holder's behalf expressly for use therein; and provided that with respect to any -------- untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with any preliminary prospectus, the information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating Holder expressly for use in connection therewith. The foregoing indemnity agreement shall be contained in addition to any liability which the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company this paragraph shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, apply to the extent provided in the preceding paragraph, from and against that any such loss, claim, damage, liability or expense by reason 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 concerned to such person if it is determined that the provision of such settlement or judgment. (c) Each person with a current copy of the participating Holdersprospectus would have cured the defect giving rise to such loss, severally claim, damage, liability or expense. The Company also agrees to indemnify, as applicable, (i) the Broker-Dealers who hold Registrable Securities acquired for their own accounts pursuant to the Registered Exchange Offer and not jointlytheir officers, agree to indemnify directors and hold harmless the Company, its directors, its officers who sign the registration statement, and any each person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an 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, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the CompanyBroker- Dealers, and (ii) any termination the Underwriters of the Registrable Securities and their officers, directors and each person who controls such Underwriters, on substantially the same basis as that of the indemnification of the Selling Holders provided in this AgreementSection 7 if such Broker-Dealers and Underwriters agree in writing to indemnify and contribute to the Company on substantially the same basis as the Selling Holders indemnify and contribute to the Company pursuant to this Section 7.

Appears in 1 contract

Samples: Exchange and Registration Rights Agreement (Danbury Pharmacal Puerto Rico Inc)

Indemnification; Contribution. (a) The Company agrees KHC shall indemnify, to indemnify and hold harmless the fullest extent permitted by law, each seller holder of KHC Registrable Securities covered by a Registration Statement filed pursuant to this AgreementSecurities, and such seller's partnersits officers, directors, officerspartners, employees and any Person agents, if any, and each Person, if any, who controls such seller under holder within the meaning of Section 15 of the Securities Act (eachAct, an "Indemnitee") from and against any and all losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (including reasonable costs under the Securities Act or common law or otherwise), joint or several, resulting from any violation by KHC of investigation) arising out the provisions of the Securities Act or based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement or prospectus (and as amended or in supplemented if amended or supplemented) or any amendment preliminary prospectus or supplement thereto, or arising out of or based upon 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 insofar as to the extent that such losses, claims, damages, liabilities (or proceedings in respect thereof) or expenses rise out of or are based upon caused by any untrue statement or alleged untrue statement contained in or by any omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the from information relating to a participating Holder concerning any holder of KHC Registrable Securities furnished in writing to the Company KHC by or on behalf of a participating Holder such holder expressly for use in connection therewiththerein. The foregoing indemnity agreement shall be in addition If the Public Offering pursuant to any liability which registration statement provided for under this Article IV is made through underwriters, no action or failure to act on the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses part of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct underwriters (whether or not such representation by underwriter is an Affiliate of any holder of KHC Registrable Securities) shall affect the same counsel has been proposed) due obligations of KHC to actual indemnify any holder of KHC Registrable Securities or potential differing interests between them (in which case any other Person pursuant to the Company shall not have preceding sentence. If the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition Public Offering pursuant to any local counsel) at any time registration statement provided for all such Indemnitees not having actual or potential differing interests among themselvesunder this Article IV is made through underwriters, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled KHC agrees to enter into an underwriting agreement in customary form with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company underwriters and KHC agrees to indemnify and hold harmless such Indemniteeunderwriters, to the extent provided in the preceding paragraphtheir officers, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statementemployees and agents, if any, and any person each Person, if any, who controls the Company such underwriters within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only herein before provided with respect to information relating to such Holder furnished in writing by or on behalf the indemnification of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any holders of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except KHC Registrable Securities; provided that if the Company shall have assumed the defense thereof such Holder KHC shall not be required to do soindemnify any such underwriter, but may employ separate counsel therein and participate in the defense thereofor any officer, but the fees and expenses director or employee of such counsel shall be 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 Holder's expense), written confirmation of the sale of KHC 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 Company, its directors, any underwriter was provided with such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveamended or supplemented final prospectus. (db) If In connection with any registration statement in which a holder of KHC Registrable Securities is participating, each such holder, severally and not jointly, shall indemnify, to the indemnification provided for in this fullest extent permitted by law, KHC, each underwriter and their respective officers, directors, employees and agents, if any, and each Person, if any, who controls KHC or such underwriter within the meaning of Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect 15 of the Securities Act, against any losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses referred resulting from any untrue statement or alleged untrue statement of a material fact, or any omission or alleged omission of a material fact required to therein, then an indemnifying partybe stated in the registration statement or prospectus or preliminary prospectus or any amendment thereof or supplement thereto or necessary to make the statements therein (in the case of any prospectus, in lieu light of the circumstances under which they were made) not misleading, but only to the extent that such untrue statement is contained in or such omission is from information so concerning a holder furnished in writing by such holder expressly for use therein; provided that such holder's obligations hereunder shall be limited to an amount equal to the net proceeds to such holder of the KHC Registrable Securities sold pursuant to such registration statement; and provided further that, without such holder's consent, such holder shall not be required to indemnify KHC, any such underwriter, or any of their officers, directors or employees or any Person who controls KHC or 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 KHC 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. (c) Any Person entitled to indemnification under the provisions of this Section 4.7 shall (i) give prompt notice to the indemnifying party of any claim with respect to which it seeks indemnification and (ii) unless in such indemnified party's reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist in respect of such claim, permit such indemnifying party to assume the defense of such claim, with counsel reasonably satisfactory to the indemnified party; and if such defense is so assumed, such indemnifying party shall not enter into any settlement without the consent of the indemnified party if such settlement attributes liability to the indemnified party and such indemnifying party shall not be subject to any liability for any settlement made without its consent (which shall not be unreasonably withheld); and any underwriting agreement entered into with respect to any registration statement provided for under this Article IV shall so provide. In the event an indemnifying party shall not be entitled, or elects not, to assume the defense of a 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 in respect of such claim, unless in the reasonable judgment of any such indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties in respect to such claim. (d) If for any reason the foregoing indemnity is unavailable, then the indemnifying party shall contribute to the amount paid or payable by such the indemnified party as a result of such losses, claims, damages, liabilities or expenses (i) in such proportion as is appropriate to reflect the relative fault of benefits received by the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company indemnifying party on the one hand and a participating Holder the indemnified party on the other hand shall be determined or (ii) if the allocation provided by reference toclause (i) above is not permitted by Applicable Law or provides a lesser sum to the indemnified party than the amount hereinafter calculated, among other things, whether in such proportion as is appropriate to reflect not only the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied relative benefits received by the Company indemnifying party on the one hand or by such participating Holder and the indemnified party on the other hand but also the relative fault of the indemnifying party and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, well as any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceedingrelevant equitable considerations. Notwithstanding the provisions of this Section 9foregoing, no participating Holder holder of KHC Registrable Securities shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise holder would have been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omissionto an indemnified party if the indemnity under Section 4.7(b) was available. 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 obligation of any Person to contribute pursuant to this Section 4.7 shall be several and not joint. (e) An indemnifying party shall make payments of all amounts required to be made pursuant to the foregoing provisions of this Section 4.7 to 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) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 4.7 shall remain operative and in full force and effect, effect regardless of (i) any investigation made by or on behalf of an Indemnitee, the Companya participating holder of KHC Registrable Securities, its directors or officers, directors, members, agents or any person controlling the CompanyPerson, if any, who controls such holder as aforesaid, and (ii) any 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 agrees to indemnify and hold harmless each seller Holder of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementSecurities, and such seller's partnersthe Affiliates, directors, officers, employees employees, members, managers and any agents of each such Holder and each Person who controls any such seller under Holder within the meaning of either the Securities Act (eachor the Exchange Act, an "Indemnitee") 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 costs of investigationor actions in respect thereof) 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 in any prepricing prospectus, registration statement or prospectus 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 arising arise out of or are based upon any the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration Statement, in light of the circumstances under which they were made) not misleading, except insofar and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such lossesloss, claimsclaim, damagesdamage, liabilities liability or expenses rise 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 to the extent that any such loss, claim, damage, liability or expense arises (i) out of or are is based upon any such untrue statement or alleged untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the written information relating to a participating 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 (ii) out of sales of Registrable Securities made during a participating Holder expressly for use in connection therewithSuspension Period after notice is given pursuant to Section 2(e)(ii) hereof. The foregoing This indemnity agreement shall will be in addition to any liability which the Company may otherwise have. (b) If Each Holder severally (and not jointly) agrees to indemnify and hold harmless the Company and each of its Affiliates, directors, employees, members, managers and agents and each Person who controls the Company within the meaning of either the Securities Act or the Exchange Act, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages or liabilities to which they or any of them may become subject insofar as such losses, claims, damages or liabilities arise out of or are based upon any violation of the Securities Act, Exchange Act or state securities laws, upon any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement as originally filed or in any amendment thereof, or in the Disclosure Package or 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 the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration Statement, in light of the circumstances under which they were made) not misleading, to the extent, but only to the extent, that any such untrue statement or alleged untrue statement or omission or alleged omission is contained in any written information relating to such Holder furnished to the Company by or on behalf of such Holder specifically for inclusion therein; provided, however, that the total amount to be indemnified by such Holder pursuant to this Section 8(b) shall be limited to the net proceeds (after deducting underwriters’ discounts and commissions) received by such Holder in the offering to which such Registration Statement or Prospectus relates. (c) Promptly after receipt by an indemnified party under this Section 8 of notice of the commencement of any action, suit such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 8, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or proceeding (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 brought against an Indemnitee in respect of which indemnity may be sought against entitled to participate therein and, to the Companyextent that it shall wish, such Indemnitee shall promptly notify the Companyjointly with any other indemnifying party similarly notified, and the Company shall to assume the defense thereof, including with counsel satisfactory to such indemnified party (who shall not, except with the employment consent of the indemnified party, be counsel and payment to the indemnifying party), and, except as provided in the next sentence, after notice from the indemnifying party to such indemnified party of all fees and expensesits election to so assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The Indemnitee Notwithstanding the indemnifying party’s rights in the prior sentence, the indemnified party shall have the right to employ separate its own counsel in any such action(and one local counsel), suit or proceeding and to participate in the defense thereofindemnifying party shall bear the reasonable fees, but the fees costs and expenses of such separate counsel if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest; (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party; (iii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee)indemnifying party. It is understood, however, that the Company No indemnifying party shall, in connection with any one such action, suit or proceeding action or separate but substantially similar or related actions, suits or proceedings actions in the same jurisdiction arising out of the same general allegations circumstances or circumstancesallegations, be liable for the reasonable fees and expenses of only more than one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurredindemnified parties. The Company 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 entry of any such judgment with respect to any pending or threatened claim, action, suit or proceeding effected without its written consentin respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, but if settled with compromise or consent is consented to by such written consentindemnifying party. No indemnifying party, or if them be a final judgment for in the plaintiff in defense of any such actionclaim or litigation, suit shall, except with the consent of each indemnified party, consent to entry of any judgment or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against enter into any loss, claim, damage, liability settlement or expense by reason of compromise unless such settlement or judgment. compromise (ci) Each includes an unconditional release of such indemnified party from all liability on claims that are the participating Holderssubject matter of such proceeding and (ii) does not include any statement as to or any admission of fault, severally and not jointly, agree culpability or a failure to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing act by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveindemnified party. (d) If In the indemnification event that the indemnity provided for in this Section 9 8(a) or Section 8(b) above is unavailable to or insufficient to hold harmless an indemnified party under paragraphs (a) or (c) hereof in respect of for any reason, then each applicable indemnifying party agrees to contribute to the aggregate losses, claims, damagesdamages and liabilities (including, liabilities without limitation, legal or other expenses referred reasonably incurred in connection with investigating or defending same) (collectively, “Losses”) to therein, then an which such 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, claims, damages, liabilities or expenses may be subject in such proportion as is appropriate to reflect the relative fault of the Company indemnifying party on the one hand and of the participating Holders indemnified party on the other in connection with the statements or omissions that which resulted in such losses, claims, damagesdamages or liabilities (or actions in respect thereof), liabilities or expensesas well as any other relevant equitable considerations. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company indemnifying party on the one hand or by such participating Holder the indemnified party on the other hand and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) . The Company and the participating Holders parties agree that it would not be just and equitable if contribution pursuant to this Section 9 8(d) were determined by a 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 that which does not take account of the equitable considerations referred to above in this Section 9(d) hereof8(d). The amount paid or payable by an indemnified party as a result of the losses, claims, damages, damages or liabilities and expenses (or actions in respect thereof) referred to above in this Section 9(d8(d) hereof shall be deemed to include, subject to the limitations set forth above, include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit action or proceedingclaim. Notwithstanding the provisions of this Section 98(d), no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder 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. 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 contributed by any Holder pursuant to this Section 8(d) shall be limited to the net proceeds (after deducting underwriters’ discounts and commissions) received by such Holder in the offering to which such Registration Statement or Prospectus relates. (fe) No indemnifying party shall, without the prior written consent The provisions of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall 8 will remain operative and in full force and effect, regardless of (i) 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 Indemniteeindemnifying party is prohibited or limited by law, the Companyindemnifying 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, its directors or officershowever, or 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 controlling the Company, Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any termination seller of this AgreementRegistrable Securities shall be limited in amount to the net amount of proceeds received by such seller from the sale of such Registrable Securities pursuant to such Shelf Registration.

Appears in 1 contract

Samples: Registration Rights Agreement (Citadel Securities LLC)

Indemnification; Contribution. (a) The Company agrees to will indemnify and hold harmless each seller holder of Registrable Securities covered by a Registration Statement filed Warrant Stock registered pursuant to this AgreementAgreement with the Commission, and such seller's partnersor under any blue sky law or regulation, directors, officers, employees and any Person who controls such seller under the Securities Act (each, an "Indemnitee") from and against any and all 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 costs of investigationor actions in respect thereof) arising arise out of or are based upon any an untrue statement or alleged untrue statement of a material fact contained in any prepricing preliminary prospectus, registration statement or statement, prospectus or in any amendment or supplement thereto, or arising arise out of or are based upon any the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except and will reimburse each such holder for any legal or other expenses reasonably incurred by such holder in connection with investigating or defending any such action or claim; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any such document, in reliance upon and in conformity with written information furnished to the Company by any holder expressly for use therein. (b) Each holder of Common Stock registered pursuant to this Agreement will indemnify and hold harmless the Company against any 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, damages or liabilities (or expenses rise actions in respect thereof) arise out of or are based upon any an untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating Holder expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel material fact contained in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing preliminary prospectus, registration statement or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in any such document, in reliance upon and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given conformity with written information furnished to the Company by such holder expressly for use therein, or in a document to be filed with the Commission or any state securities commission. (c) Promptly after receipt by an indemnified party under subsections (a) or (b) of this Section 9(b) hereof (except that 16 of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the Company indemnifying party under either such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have assumed to any indemnified party otherwise than under either of such subsections. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to assume the defense thereof by notice in writing to the indemnified party. After receipt of written notice from the indemnifying party to such Holder shall not be required indemnified party of its election to do so, but may employ separate counsel therein and participate in assume the defense thereof, but the fees and 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 counsel shall be at indemnified party, in connection with the Holder's expense), and defense thereof other than reasonable costs of investigation incurred prior to the Company, its directors, any such officer, and any such controlling person shall have assumption by the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveindemnifying party. (d) If the indemnification provided for in this Section 9 16 is unavailable or insufficient to hold harmless an indemnified party under paragraphs subsection (a) or (cb) hereof above in respect of any losses, claims, damages, damages or liabilities (or expenses actions in respect thereof) referred to therein, then an 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, claims, damages, damages or liabilities (or expenses 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 Company and of the participating Holders holders in connection with the statements or omissions that which resulted in such losses, claims, damagesdamages or liabilities (or actions in respect thereof), liabilities or expensesas well as any other relevant equitable considerations. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company on or the one hand or by such participating Holder on the other hand holder and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) . The Company and the participating Holders holders agree that it would not be just and equitable if contribution pursuant to this Section 9 subparagraph (d) were determined by a pro rata allocation (even if the holders were treated as one entity for such purpose) or by any other method of allocation that which does not take into account of the equitable considerations referred to above in this subparagraph (d). Except as provided in subparagraph (c) of this Section 9(d) hereof. The 16, the amount paid or payable by an indemnified party as a result of the losses, claims, damages, damages or liabilities and expenses (or actions in respect thereof) referred to above in Section 9(dthis subparagraph (d) hereof shall be deemed to include, subject to the limitations set forth above, include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit action or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omissionclaim. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. . Notwithstanding any provision in this subparagraph (fd) No indemnifying party shallto the contrary, without no holder shall be liable for any amount, in the prior written consent aggregate, in excess of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by net proceeds to such indemnified party, unless such settlement includes an-unconditional release holder from the sale of such indemnified party from all liability on claims that are the subject matter holder’s shares (obtained upon exercise of such action, suit or proceeding. (gWarrants) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled giving rise to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities damages or expenses are incurred. liabilities. (e) The indemnity and contribution agreements contained in obligations of the Company under this Section 9 16 shall remain operative and be in full force and effect, regardless of (i) addition to any investigation made by liability which the Company may otherwise have at law or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreementin equity.

Appears in 1 contract

Samples: Warrant Purchase Agreement (Parallel Petroleum Corp)

Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each seller Holder of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementSecurities, and such seller's partnersits officers, directors, officersmembers, partners, agents and employees and any each Person who controls any such seller under Holder within the meaning of either the Securities Act or the Exchange Act (eacheach such party other than each Holder, an "Indemnitee"the “Holder Parties”) , to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, expenses and actions to which they or any of them may become subject insofar as such losses, claims, damages, liabilities and expenses (including reasonable costs of investigationor actions in respect thereof) arising arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement, the Disclosure Package, or any prepricing prospectuspreliminary, registration statement final or prospectus summary Prospectus or Free Writing Prospectus included in any such Registration Statement, or in any amendment thereof or supplement thereto, or arising arise out of or are based upon any the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability, expense or action (whether or not the indemnified party is a party to any proceeding); provided, however, that the Company will not be liable in any case to the extent that any such loss, claim, damage, liability or expense arises (i) out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance upon and in conformity with written information furnished to the Company by or on behalf of any Holder specifically for inclusion therein including, without limitation, any notice and questionnaire (including, for the avoidance of doubt, Exhibit A hereto), or (ii) out of sales of Registrable Securities made during a Suspension Period after notice is given pursuant to Section 1(c) hereof. (b) Each Holder severally (and not jointly) agrees to indemnify and hold harmless the Company, its affiliates and each of their respective officers, directors, members, partners, agents and employees (each such party other than the Company, the “Company Parties”) to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages or liabilities to which they or any of them may become subject insofar as such losses, claims, damages, damages or liabilities or expenses rise arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement, in the Disclosure Package or any Free Writing Prospectus, preliminary, final or summary Prospectus included in any such Registration Statement, or in any amendment thereof or supplement thereto (collectively, “Disclosure Documents”), or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, to the extent, but only to the extent, that any such untrue statement or alleged untrue statement or omission which has been made therein or omitted therefrom alleged omission (if the losses, claims, damages or liabilities arise in reliance upon and connection with Disclosure Documents first disseminated by the Company) is contained in conformity with the any written information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating such Holder expressly specifically for use in connection therewith. The foregoing indemnity agreement inclusion therein; provided, however, that the total amount to be indemnified by such Holder pursuant to this Section 4(b) shall be limited to the net proceeds received by such Holder in addition the offering to any liability which the Company may otherwise havesuch Registration Statement, Disclosure Package, Prospectus or Free Writing Prospectus relates. (bc) If Promptly after receipt by an indemnified party under this Section 4 of notice of the commencement of any action, suit such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 4, 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 proceeding (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 brought against an Indemnitee in respect of which indemnity may be sought against entitled to participate therein and, to the Companyextent that it shall wish, such Indemnitee shall promptly notify the Companyjointly with any other indemnifying party similarly notified, and the Company shall to assume the defense thereof, including with counsel reasonably satisfactory to such indemnified party, and after notice from the employment indemnifying party to such indemnified party of its election to so assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel and payment of all fees and expensesor any other expenses subsequently incurred by such indemnified party in connection with the defense thereof. The Indemnitee Notwithstanding the indemnifying party’s rights in the prior sentence, the indemnified party shall have the right to employ its own single counsel (and one local counsel), but the indemnified party shall bear the fees, costs and expenses of such separate counsel in unless the use of only one firm of attorneys would be inappropriate due to a conflict of interest. An indemnifying party shall not be liable under this Section 4 to any such indemnified party regarding any settlement or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding and to participate in the defense thereof, but the fees and expenses respect of such counsel shall which indemnification or contribution may be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct sought hereunder (whether or not such representation by the same counsel has been proposed) due to indemnified parties are actual or potential differing interests between them (parties to such claim or action) unless such settlement, compromise or consent is consented to in which case the Company shall not have the right to assume writing by such indemnifying party. No indemnifying party, in the defense of any claim or litigation, shall, except with the consent of each indemnified party, consent to entry of any judgment or enter into any settlement or compromise of any pending or threatened proceeding in respect of which any indemnified party is a party and indemnity could have been sought hereunder by such actionindemnified party, suit unless such settlement or proceeding on behalf compromise includes an unconditional release of such Indemnitee). It is understood, however, indemnified party from all liability on claims that are the subject matter of such proceeding. (d) In the event that the Company shall, indemnity provided in connection with any one such action, suit Section 4(a) or proceeding Section 4(b) above is held by a court of competent jurisdiction to be unavailable to or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition insufficient to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, an indemnified party with respect to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability liability, expense or expense by reason of such settlement or judgment. (c) Each of the participating Holdersaction referred to herein, severally and not jointly, agree then each applicable indemnifying party agrees to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, contribute to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect of any aggregate losses, claims, damagesdamages and liabilities (including, liabilities without limitation, legal or other expenses referred reasonably incurred in connection with investigating or defending same) (collectively, “Losses”) to therein, then an which such 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, claims, damages, liabilities or expenses may be subject in such proportion as is appropriate to reflect the relative benefits received from the offering of the Preferred Shares and the Common Shares, as applicable, and relative fault of the Company indemnifying party on the one hand and of the participating Holders indemnified party on the other in connection with the statements or omissions that which resulted in such losses, claims, damagesdamages or liabilities (or actions in respect thereof), liabilities or expensesas well as any other relevant equitable considerations. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company indemnifying party on the one hand or by such participating Holder the indemnified party on the other hand and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) . The Company and the participating Holders parties agree that it would not be just and equitable if contribution pursuant to this Section 9 4(d) were determined by a pro rata allocation (even if the Holders of Registrable Securities or any agents or all of them were treated as one entity for such purpose) or by any other method of allocation that which does not take account of the equitable considerations referred to above in this Section 9(d) hereof4(d). The amount paid or payable by an indemnified party as a result of the losses, claims, damages, damages or liabilities and expenses (or actions in respect thereof) referred to above in this Section 9(d4(d) hereof shall be deemed to include, subject to the limitations set forth above, include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit action or proceedingclaim. Notwithstanding the provisions of this Section 94(d), no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder 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 fraud or 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 fraud or fraudulent misrepresentation. For purposes of this Section 4, each Holder Party shall have the same rights to contribution as the Holder to which it relates, and each Company Party shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this Section 4(d). (fe) No indemnifying party shall, without the prior written consent The provisions of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall 4 will remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, any Holder of Registrable Securities or the Company, its directors Company or any of the officers, directors, members, partners, agents and employees or any person controlling the Companyaffiliates referred to in this Section 4, and (ii) any termination will survive the transfer of this AgreementRegistrable Securities.

Appears in 1 contract

Samples: Registration Rights Agreement (Quinpario Acquisition Corp.)

Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this Agreement, Holder and such seller's partners, its directors, officers, employees employees, members, representatives and any Person agents and each person, if any, who controls such seller under any Holder within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act (each, an "Indemnitee") a “Holder Indemnified Party”), from and against any and all lossesloss, claimsdamage, damagesexpense, liabilities and expenses liability or claim (including the reasonable costs cost of investigation) arising which such Holder Indemnified Party may incur under the Securities Act, Exchange 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, insofar as such loss, damage, expense, liability or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectusthe Shelf Registration Statement, registration statement or prospectus or in any Prospectus, or any amendment thereof or supplement thereto, or arising arises out of or is based upon any the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which they were made) not misleading; provided, except insofar as however, that: (i) the Company shall not be liable in any such lossescase to the extent that any such loss, claimsdamage, damagesexpense, liabilities liability or expenses rise claim arises out of or are is based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein of a material fact contained in, or omitted therefrom in reliance upon from, and in conformity with information required to be used in any Shelf Registration Statement, related prospectus or any amendments or supplements thereto pursuant to the information relating to a participating Holder Securities Act furnished in writing to the Company by or on behalf of a participating the applicable Holder Indemnified Party to the Company expressly for use in connection therewith. The foregoing a Shelf Registration Statement or Prospectus or any amendment thereof or supplement thereto; and (ii) with respect to any untrue statement or omission of material fact made in the 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 then amended or supplemented, if such corrected Prospectus was timely made available by the Company pursuant to Section 3(g) hereof, and the Holder Indemnified Party was promptly advised in writing not to use the incorrect prospectus prior to the 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 which that the 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 a Notice Holder who has previously received notice from the Company of the commencement of the Suspension Period pursuant to Section 3(i). (b) If any actionEach Holder, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Companyseverally and not jointly, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from Company and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statementofficers, employees, members, representatives and any person agents 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, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an 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, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.either

Appears in 1 contract

Samples: Registration Rights Agreement (I2 Technologies Inc)

Indemnification; Contribution. (a) The Company agrees to will indemnify and hold harmless to the full extent permitted by the law each seller Holder, each of Registrable its officers, directors, agents, underwriters, attorneys, accountants and employees of each Holder, and each person controlling the Holder, within the meaning of Section 15 of the Securities covered by a Registration Statement filed Act and the rules and regulations thereunder with respect to which registration, qualification or compliance has been effected pursuant to this Agreement, and such seller's partnersagainst all claims, directors, officers, employees and any Person who controls such seller under the Securities Act (each, an "Indemnitee") from and against any and all losses, claims, damages, damages liabilities and expenses (including reasonable costs of investigationor actions in respect thereof) arising out of of, based on or based upon related to any untrue statement (or alleged untrue statement statement) of a material fact contained in any prepricing prospectus, registration statement or prospectus or in other offering materials, (including, without limitation, any amendment related Registration Statement, notification or supplement theretothe like) relating to any such registration, qualification or compliance, or arising out of of, based on or based upon related to any omission (or alleged omission omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such lossesor any violation by the Company of the Securities Act or any state securities law or in either case, claims, damages, liabilities any rule or expenses rise out of or are based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the information relating to a participating Holder furnished in writing regulation thereunder applicable to the Company by and relating to action or on behalf inaction required of a participating Holder expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such registration, qualification or compliance, and will reimburse each Holder, each of its officers, directors, agents, underwriters, attorneys, accountants and employees of each Holder, and each person controlling such Holder, for any legal and any other expenses reasonably incurred in connection with investigating and defending any such claim, loss, damage, liability or action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in provided that the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall will not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, case to the extent provided in the preceding paragraphthat any such claim, from and against any loss, claim, damage, liability or expense arises out of, is based on or related to any untrue statement or omission based upon written information furnished to the Company by reason of such settlement or judgmentthe Holder and stated to be specifically for use therein. (cb) Each The Company may require, as a condition to including any Registrable Shares in any registration statement filed pursuant to Section 1.2 ----------- or Section 1.4, that the Company shall have received an undertaking reasonably ----------- satisfactory to the Company from the Holder of the participating Holders, severally and not jointly, agree such Registrable Shares to indemnify and hold harmless to the full extent permitted by the law the Company, each of its directors, its officers who sign officers, agents, attorneys, accountants and Company employees and each underwriter, if any, of the Company's securities covered by such a registration statement, and any each person who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of and the Exchange Actrules and regulations thereunder, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof each other shareholder (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expenseany), and the Companyeach of their officers, its directors, any such officerdirectors and partners, and any each person controlling such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, other shareholder against all claims, damages, liabilities or expenses referred to therein, then an 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, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred (or actions in respect thereof) arising out of based on or related to any untrue statement (or alleged untrue statement) of a material fact contained in Section 9(dany such Registration Statement, prospectus, offering circular or other document, or any omission (or alleged omission) hereof shall to state therein a material fact required to be deemed stated therein or necessary to includemake the statement therein not misleading, subject to and will reimburse the limitations set forth aboveCompany and such other shareholders and their directors, officers, agents, attorneys, accountants and Company employees and partners, underwriters or control persons for any legal or any other expenses reasonably incurred by such indemnified party in connection with investigating any claim or and defending any such claim, loss, damage, liability or action, suit in each case to the extent, but only to the extent, that such untrue statement (or proceeding. Notwithstanding alleged untrue statement) or omission (or alleged omission) is made in such registration statement, prospectus, offering circular or other document in reliance upon and in conformity with written information furnished to the provisions of this Section 9Company by the Holder and stated to be specifically for use therein, no participating and provided that the maximum amount for which the Holder shall be required to contribute any amount in excess liable under this indemnity shall not exceed the net proceeds received by the Holder from the sale of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentationRegistrable Shares. (fc) Each party entitled to indemnification under this Section 1.9 (the ----------- "Indemnified Party") shall give notice to the party required to provide indemnification (the "Indemnifying Party") promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of any such claim in any litigation resulting therefrom, provided that counsel for the Indemnifying Party, who shall conduct the defense of such claim or any litigation resulting therefrom, shall be approved by the Indemnified Party (whose approval shall not be unreasonably withheld), and the Indemnified Party may participate in such defense at such party's expense, and provided further that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Article except to the extent that the Indemnifying Party is materially and adversely affected by such failure to provide notice. No indemnifying party Indemnifying Party, in the defense of any such claim or litigation, shall, without except with the prior written consent of the indemnified partyeach Indemnified Party, effect consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are in respect to such claim or litigation. Each Indemnified Party shall furnish such information regarding itself or the subject matter claim in question as an Indemnifying Party may reasonably request in writing and as shall be reasonably required in connection with the defense of such action, suit or proceedingclaim and litigation resulting therefrom. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Nettel Communications Inc)

Indemnification; Contribution. (a) The Company agrees to will indemnify and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this Agreement, Holder and such seller's partners, directors, officers, employees and any Person who controls such seller under the Securities Act (each, an "Indemnitee") from and each Exchanging Dealer against any and all losses, claims, damagesdamages or liabilities, joint or several, to which such Holder or Exchanging Dealer may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities and expenses (including reasonable costs of investigationor actions in respect thereof) arising arise out of or are based upon any an untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectuspreliminary Prospectus, registration statement any preliminary Prospectus supplement, the Registration Statement, the Prospectus as amended or supplemented and any other prospectus relating to the Offered Debt Securities or in the Exchange Debt Securities, or any amendment or supplement thereto, or arising arise out of or are based upon any the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as and will reimburse each Holder and Exchanging Dealer for any legal or other expenses reasonably incurred by such lossesHolder or Exchanging Dealer in connection with investigating or defending any such action or claim; provided, claimshowever, damagesthat the Company shall not be liable in any such case to the extent that any such loss, liabilities claim, damage or expenses rise liability arises out of or are is based upon any an untrue statement or alleged untrue statement or omission or alleged untrue statement omission made in any preliminary Prospectus, any preliminary Prospectus supplement, the Registration Statement, the Prospectus as amended or omission which has been made therein or omitted therefrom in reliance upon supplemented and in conformity with the information any other prospectus relating to a participating Holder furnished in writing to the Company by Offered Debt Securities or on behalf of a participating Holder expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectusDebt Securities, or any amendment or supplement thereto, in reliance upon and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given conformity with written information furnished to the Company by Section 9(bany Holder or Exchanging Dealer expressly for inclusion in the Prospectus; provided further, that if any preliminary Prospectus, any preliminary Prospectus supplement, the Prospectus as amended or supplemented and any other prospectus relating to the Offered Debt Securities or the Exchange Debt Securities, or any amendment or supplement thereto, contained any alleged untrue statement or allegedly omitted to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading and such statement or omission shall have been corrected in a revised preliminary Prospectus, any preliminary Prospectus supplement, the Prospectus as amended or supplemented and any other prospectus relating to the Offered Debt Securities or the Exchange Debt Securities, or any amendment or supplement thereto, the Company shall not be liable to any Holder or Exchanging Dealer under this subsection (a) hereof with respect to such alleged untrue statement or alleged omission to the extent that any such loss, claim, damage or liability of such Holder or Exchanging Dealer results from the fact that such Holder or Exchanging Dealer sold Offered Debt Securities or Exchange Debt 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 a revised preliminary Prospectus (except that excluding documents incorporated by reference), preliminary Prospectus supplement (excluding documents incorporated by reference), the Prospectus (excluding documents incorporated by reference), the Prospectus as amended or supplemented (excluding documents incorporated by reference), any other amended prospectus relating to the Offered Debt Securities or the Exchange Debt Securities (excluding documents incorporated by reference) or any amendment or supplement thereto relating to the Offered Debt Securities or the Exchange Debt Securities (excluding documents incorporated by reference), as the case may be, containing a correction of such alleged misstatement or omission, if the Company shall have assumed the defense has made available copies thereof to such Holder or Exchanging Dealer prior to the confirmation of such sale; and provided, further, that the Company shall not be liable to any Holder or Exchanging Dealer under this subsection (a) to the extent that any such loss, claim, damage or liability of such Holder or Exchanging Dealer results from the use by such Holder or Exchanging Dealer of the Prospectus as amended or supplemented (excluding documents incorporated by reference) or the Prospectus as amended or supplemented as it may be further amended or supplemented (excluding documents incorporated by reference), as the case may be (i) otherwise than in connection with an offer or sale of the Offered Debt Securities or the Exchange Debt Securities, or (ii) at any time nine months or more after the time of issue of the Prospectus as amended or supplemented unless the Company has prior to such use amended or supplemented the Prospectus as amended or supplemented to comply with Section 10(a)(3) of the Act if required pursuant to Section 5(c) hereof and such Holder or Exchanging Dealer uses the Prospectus as amended or supplemented as so further amended or supplemented. Each Holder and Exchanging Dealer acknowledges that the indemnity agreement in this subsection (a) does not extend to any liability which such Holder or Exchanging Dealer might have under Section 5(b) of the Act by reason of the fact that such Holder or Exchanging Dealer sold Offered Debt Securities or Exchange Debt Securities to a person to whom there was not sent or given, at or prior to the written confirmation of such sale, a copy of the Prospectus (excluding documents incorporated by reference), the Prospectus as amended or supplemented (excluding documents incorporated by reference), any other prospectus relating to the Offered Debt Securities or the Exchange Debt Securities (excluding documents incorporated by reference) or any amendment or supplement relating thereto (excluding documents incorporated by reference), as the case may be, if the Company has made available copies thereof to such Holder or Exchanging Dealer. For purposes of this subsection (a) the Prospectus (excluding documents incorporated by reference), the Prospectus as amended or supplemented (excluding documents incorporated by reference), any other prospectus relating to the Offered Debt Securities or the Exchange Debt Securities (excluding documents incorporated by reference) or any amendment or supplement relating thereto (excluding documents incorporated by reference), shall not be deemed to have been made available to a Holder or Exchanging Dealer until such Holder or Exchanging Dealer has received the same. (b) Each Holder and Exchanging Dealer will indemnify and hold harmless the Company against any losses, claims, damages or liabilities to which the Company may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained any preliminary Prospectus, any preliminary Prospectus supplement, the Registration Statement, the Prospectus as amended or supplemented and any other prospectus relating to the Offered Debt Securities or the Exchange Debt Securities, or any amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to do sobe stated therein or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in any preliminary Prospectus, any preliminary Prospectus supplement, the Registration Statement, the Prospectus as amended or supplemented and any other prospectus relating to the Offered Debt Securities or the Exchange Debt Securities, or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by such Holder or Exchanging Dealer expressly for inclusion therein; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending any such action or claim. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof, and in the event that such indemnified party shall not so notify the indemnifying party within 30 days following receipt of any such notice by such indemnified party, the indemnifying party shall have no further liability under such subsection to such indemnified party unless such indemnifying party shall have received other notice addressed and delivered in the manner provided in Section 8(c) hereof of the commencement of such action; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may employ separate counsel have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof as provided above, the indemnifying party shall be entitled to participate therein and participate in and, to the extent that it shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, but with counsel satisfactory to such indemnified party (who shall not, except with the fees and consent of the indemnified party, be counsel to the indemnifying party), and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such counsel shall be at indemnified party, in connection with the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise havedefense thereof other than reasonable costs of investigation. (d) If the indemnification provided for in this Section 9 6 is unavailable to an indemnified party under paragraphs subsection (a) or (cb) hereof above in respect of any losses, claims, damages, damages or liabilities (or expenses actions in respect thereof) referred to therein, then an each indemnifying partyparty shall, 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, claims, damages, damages or liabilities (or expenses actions in respect thereof) in such proportion as is appropriate to reflect the relative fault benefits received by the Company on the one hand and the Holders and Exchanging Dealers on the other from the offering of the Company and of Offered Debt Securities or Exchange Debt Securities to which such loss, claim, damage or liability (or action in respect thereof) relates. If, however, the participating Holders in connection with allocation provided by the statements immediately preceding sentence is not permitted by applicable law or omissions that resulted 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 losses, claims, damages, liabilities or expenses. The proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and a participating Holder the Holders and Exchanging Dealers on the other hand in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The benefits received by the Company shall be deemed to be equal to the sum of (x) the total net proceeds from the Initial Placement (before deducting expenses) as set forth on the cover page of the Final Offering Memorandum and (y) the total amount of additional interest which the Company was not required to pay as a result of registering the securities covered by the Registration Statement which resulted in such losses, claims, damages or liabilities. Benefits received by the Initial Purchasers shall be deemed to be equal to the total purchase discounts and commissions as set forth on the cover page of the Final Offering Memorandum, and benefits received by any other Holders or Exchanging Dealers shall be deemed to be equal to the value of receiving Offered Debt Securities or Exchange Debt Securities, as applicable, registered under the Act. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder Holders or Exchanging Dealers on the other hand and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) . The Company and the participating Holders and Exchanging Dealers agree that it would not be just and equitable if contribution pursuant to this Section 9 subsection (d) were determined by a pro rata allocation (even if the Holders and Exchanging Dealers were treated as one entity for such purpose) or by any other method of allocation that which does not take account of the equitable considerations referred to above in Section 9(d) hereofthis subsection (d). The amount paid or payable by an indemnified party as a result of the losses, claims, damages, damages or liabilities and expenses (or actions in respect thereof) referred to above in Section 9(dthis subsection (d) hereof shall be deemed to include, subject to the limitations set forth above, include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit action or proceedingclaim. Notwithstanding the provisions of this Section 9subsection (d), no participating Holder or Exchanging Dealer shall be required to contribute any amount in excess of the amount by which the proceeds total price at which the applicable Offered Debt Securities or Exchange Debt Securities sold pursuant to such participating Holder the Registration Statement exceeds the amount of any damages which such participating Holder or Exchanging Dealer 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 obligations of the Holders and Exchanging Dealers in this subsection (d) to contribute are several and not joint. (fe) No indemnifying party shall, without the prior written consent The obligations of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution Company under this Section 9 6 shall be paid by in addition to any liability that the indemnifying party Company may otherwise have and shall extend, upon the same terms and conditions, to each officer and director of a Holder or Exchanging Dealer and to each person, if any, who controls a Holder or Exchanging Dealer within the indemnified party as such losses, claims, damages, liabilities meaning of the Act or expenses are incurred. The indemnity the Exchange Act; and contribution agreements contained in the obligations of the Holders and Exchanging Dealers under this Section 9 6 shall remain operative be in addition to any liability that the respective Holders and in full force Exchanging Dealers may otherwise have and effectshall extend, regardless upon the same terms and conditions, to each officer and director of (i) any investigation made by the Company and to each person, if any, who controls the Company within the meaning of the Act or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this AgreementExchange Act.

Appears in 1 contract

Samples: Registration Rights Agreement (Monsanto Co)

Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this Agreement, Underwriter and such seller's partners, directors, officers, employees and any Person each person who controls such seller under any Underwriter within the Securities meanings of the 1933 Act (each, an "Indemnitee") from and against any and all losses, claims, damagesdamages or liabilities, joint or several, to which they or any of them may become subject under the 1933 Act, the 1934 Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities and expenses (including reasonable costs of investigationor actions in respect thereof) arising arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement or prospectus the Registration Statement as originally filed or in any amendment thereof, or in any preliminary prospectus or the Prospectus, or in any amendment thereof or supplement thereto, or arising arise out of or are based upon any the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such lossesloss, claimsclaim, damagesdamage, liabilities liability or expenses rise action; provided, however, that (i) the Company will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or are is based upon any such untrue statement or alleged untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the written information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating Holder expressly any Underwriter through you specifically for use in connection therewithwith the preparation thereof, and (ii) such indemnity with respect to any preliminary prospectus shall not inure to the benefit of any Underwriter (or any person controlling such Underwriter) from whom the person assessing any such loss, claim, damage or liability purchased the Securities which are the subject thereof if such person did not receive a copy of the Prospectus (or the Prospectus as amended or supplemented) at or prior to the confirmation of the sale of such Securities to such person in any case where such delivery is required by the 1933 Act and the untrue statement or omission of a material fact contained in such preliminary prospectus was corrected in the Prospectus (or the Prospectus as amended or supplemented). The foregoing This indemnity agreement shall will be in addition to any liability which the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company Each Underwriter severally agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any each of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect each of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an 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, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.

Appears in 1 contract

Samples: Underwriting Agreement (Coca Cola Enterprises Inc)

Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each seller of the broker-dealers whose Registrable Securities covered by are included in an Exchange Registration Statement, each Electing Holder whose Registrable Securities are included in a Shelf Registration Statement filed pursuant to this Agreementand each person, and such seller's partnersif any, directors, officers, employees and any Person who controls any such seller under Electing Holder, or such broker dealer within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act as follows: (each, an "Indemnitee"i) from and against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable costs of investigation) expense whatsoever, as incurred, arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectusExchange Registration Statement or Shelf Registration Statement, registration statement as the case may be, or prospectus or in any amendment or supplement thereto, pursuant to which Exchange Securities or arising out of Registrable Securities were registered under the Securities Act, including all documents incorporated therein by reference, or based upon any the omission or alleged omission to state therein therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise arising out of any untrue statement or are alleged untrue statement of a material fact contained in any prospectus contained in any such Exchange Registration Statement or Shelf Registration Statement, as the case may be, or any amendment or supplement thereto, or in any Issuer Free Writing Prospectus (when taken together with the related prospectus, prospectus supplement and related documents) related 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 such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the prior 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 the Company and the Guarantors shall not be liable to any such person to the extent such loss, liability, claim, damage or expense arises out of any untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the written information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating Holder such person expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to an Exchange Registration Statement or Shelf Registration Statement (or any liability which the Company may otherwise haveamendment thereto), any related prospectus (or any amendment or supplement thereto), or any Issuer Free Writing Prospectus related thereto. (b) If any actionEach Electing Holder, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereofseverally, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree agrees to (i) indemnify and hold harmless the Company, its directors, its officers who sign the registration statementGuarantors and the other Electing Holders, and any person each of their respective directors and officers, and each person, if any, who controls the Company Company, the Guarantors or any other Electing Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to against any and all loss, liability, claim, damage and expense described in the same extent indemnity contained in Section 5(a) hereof, as the foregoing indemnity from the Company to an Indemniteeincurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in any Shelf Registration Statement (or any amendment thereto), or any prospectus included therein (or any amendment or supplement thereto) or any related Issuer Free Writing Prospectus in reliance upon and in conformity with written information relating furnished to such Holder furnished in writing the Company by or on behalf of such Electing Holder expressly for use in the registration statement, prospectus Shelf Registration Statement (or any prepricing prospectus, amendment thereto) or such prospectus (or any amendment or supplement thereto. If ) or any actionrelated Issuer Free Writing Prospectus, suit and (ii) reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending any such action or claim as such expenses are incurred; provided, however, that no such holder shall be liable for any claims hereunder in excess of the amount of net proceeds received by such Electing Holder from the sale of Registrable Securities pursuant to such Shelf Registration Statement. (c) Each indemnified party shall give written notice promptly to each indemnifying party of any action or proceeding shall be brought commenced against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and 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 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. In case any such action shall be brought against any Holder pursuant to this Section 9(c)indemnified party and it shall notify an indemnifying party of the commencement thereof, such Holder indemnifying party shall have the rights and duties given be entitled to participate therein and, to the Company by Section 9(b) hereof (except extent that if the Company it shall have assumed the defense thereof such Holder shall not be required wish, jointly with any other indemnifying party similarly notified, to do so, but may employ separate counsel therein and participate in assume the defense thereof, but 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, such 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). To the extent that an indemnifying party does not assume the defense of any such action, in no event shall such indemnifying party be liable for the fees and expenses of such more than one counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be (in addition to any local counsel) separate from its own counsel for all indemnified parties in connection with any one action or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances. 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 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 5 (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 which the participating Holders may otherwise havearising 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 the indemnification provided for in this Section 9 5 is for any reason unavailable to or insufficient to hold harmless an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, liabilities, claims, damages, liabilities damages or expenses referred to therein, then an each indemnifying partyparty shall contribute to the aggregate 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 lossesincurred, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company indemnifying party and of the participating Holders indemnified party in connection with the statements or omissions that which resulted in such losses, liabilities, claims, damages, liabilities damages or expenses, as well as any other relevant equitable considerations. The relative fault of the Company on indemnifying party and the one hand and a participating Holder on the other hand indemnified party shall be determined by reference to, among other things, whether the any such untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company on the one hand such indemnifying party or by such participating Holder on the other hand indemnified party and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) . The Company and the participating Holders parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 9 5(d) were determined by a pro rata allocation or by any other method of allocation that which does not take account of the equitable considerations referred to above in this Section 9(d) hereof5(d). The aggregate amount paid or payable of losses, liabilities, claims, damages and expenses incurred by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to above in this Section 9(d5(d) hereof shall be deemed to include, subject to the limitations set forth above, include any reasonable out-of-pocket legal or other expenses reasonably incurred by such indemnified party in connection with investigating investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim or defending whatsoever based upon any such action, suit untrue or proceedingalleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 95(d), no participating Electing Holder shall be required to contribute any amount in excess of the amount by which the dollar amount of the proceeds to received by such participating Holder holder from the sale of any Registrable Securities exceeds the amount of any damages which such participating the Electing Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall. For purposes of this Section 5(d), without each person, if any, who controls any Electing Holder within the prior written consent meaning of Section 15 of the indemnified party, effect any settlement Securities Act or Section 20 of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could the Exchange Act shall have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled same rights to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such lossesElecting Holder, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless each director of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (iieach 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 Electing Holders’ obligation in this Section 5(d) any termination to contribute shall be several in proportion to the principal amount of this AgreementRegistrable Securities registered by them and not joint.

Appears in 1 contract

Samples: Exchange and Registration Rights Agreement (Unistrut International Holdings, LLC)

Indemnification; Contribution. (a) The Company agrees and each of the Guarantors agree, jointly and severally, to indemnify indemnify, defend and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this Agreement, Holder and such seller's partners, directors, officers, employees and any Person each person who controls such seller under any Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, an a "IndemniteeHOLDER INDEMNIFIED PARTY") ), from and against any and all lossesloss, claimsdamage, damagesexpense, liabilities and expenses liability or claim (including the reasonable costs cost of investigation) arising out of which such Holder Indemnified Party may incur under the Securities Act, the Exchange Act or based upon otherwise, insofar as such loss, damage, expense, liability or claim is caused by any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement Shelf Registration Statement or prospectus Prospectus or in any amendment or supplement theretothereto or in any preliminary prospectus, or arising arises out of or is based upon any omission or alleged omission to state therein a material fact required to be stated therein in any Shelf Registration Statement or in any amendment or supplement thereto or necessary to make the statements therein not misleading, or is caused by any omission or alleged omission to state a material fact necessary in order to make the statements made in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which they were made, not misleading, except insofar as any such lossesloss, claimsdamage, damagesexpense, liabilities liability or expenses rise claim arises out of or are is based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein of a material fact contained in, or omitted therefrom in reliance upon from, and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of any Holder to the Company expressly for use therein. (b) Each Holder, severally and not jointly, agrees to indemnify, defend and hold harmless the Company and each Guarantor, and each of their respective directors and officers and any person who controls the Company or any such Guarantors within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, a participating "COMPANY INDEMNIFIED PARTY") from and against any loss, damage, expense, liability or claim (including the reasonable cost of investigation) which such Company Indemnified Party may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability or claim is caused by any untrue statement or alleged untrue statement of a material fact contained in information furnished in writing by or on behalf of such Holder to the Company expressly for use in any Shelf Registration Statement or Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or is caused by any omission or alleged omission to state a material fact required to be stated in any Shelf Registration Statement or in any amendment or supplement 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 statements in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which they were made, not misleading, in connection therewithwith such information. The foregoing indemnity agreement In no event shall the liability of any selling Holder of Registrable Securities hereunder be greater in addition amount than the dollar amount of the proceeds received by such Holder upon the sale of the Registrable Securities pursuant to any liability which the Company may otherwise haveShelf Registration Statement giving rise to such indemnification obligation. (bc) If any action, suit or proceeding shall be (each, a "PROCEEDING") is brought against an Indemnitee any person in respect of which indemnity may be sought against the Companypursuant to either subsection (a) or (b) of this Section 6, such Indemnitee person (the "INDEMNIFIED PARTY") shall promptly notify the Company, person against whom such indemnity may be sought (the "INDEMNIFYING PARTY") in writing of the institution of such Proceeding and the Company Indemnifying Party shall assume the defense thereofof such Proceeding; provided, including however, that the employment of counsel and payment of all fees and expensesomission to notify such Indemnifying Party shall not relieve such Indemnifying Party from any liability which it may have to such Indemnified Party or otherwise, except to the extent that it has been materially prejudiced by such failure. The Indemnitee Such Indemnified Party shall have the right to employ separate its own counsel in any such action, suit or proceeding and to participate in the defense thereofcase, but the fees and expenses of such counsel shall be at the expense of such Indemnitee Indemnified Party unless (x) the Company has agreed in writing to pay employment of such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee counsel shall have been advised authorized in writing by its such Indemnifying Party in connection with the defense of such Proceeding or such Indemnifying Party shall not have employed counsel to have charge of the defense of such Proceeding within 30 days of the receipt of notice thereof or such Indemnified Party shall have reasonably concluded upon the written advice of counsel that representation of there may be one or more defenses available to it that are different from, additional to or in conflict with those available to such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them Indemnifying Party (in which case the Company such Indemnifying Party shall not have the right to assume direct that portion of the defense of such action, suit or proceeding Proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consentIndemnified Party, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but Indemnifying Party may employ separate counsel therein and participate in the defense thereof, thereof but the fees and expenses of such counsel shall be at the Holder's expenseexpense of such Indemnifying Party), in any of which events such reasonable fees and expenses shall be borne by such Indemnifying Party and paid as incurred (it being understood, however, that such Indemnifying Party shall not be liable for the Companyexpenses of more than one separate counsel in any one Proceeding or series of related Proceedings together with reasonably necessary local counsel representing the Indemnified Parties who are parties to such action). An Indemnifying Party shall not be liable for any settlement of such Proceeding effected without the written consent of such Indemnifying Party, its directorsbut 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 officersettlement. Notwithstanding the foregoing sentence, and if at any such controlling person 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 rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement 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 60 Business Days after receipt by such Indemnifying Party of the aforesaid request, (ii) such Indemnifying Party shall not have reimbursed such Indemnified Party in addition accordance with such request prior to the date of such settlement and (iii) such Indemnified Party shall have given such Indemnifying Party at least 30 days' prior notice of its intention to settle. No Indemnifying Party shall, without the prior written consent of any Indemnified Party, effect any settlement of any pending or threatened Proceeding in respect of which such Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability which on claims that are the participating Holders may otherwise havesubject matter of such Proceeding and does not include an admission of fault, culpability or a failure to act, by or on behalf of such Indemnified Party. (d) If the indemnification provided for in this Section 9 6 is unavailable to an indemnified party Indemnified Party under paragraphs subsections (a) or and (cb) hereof of this Section 6 in respect of any losses, claimsdamages, damagesexpenses, liabilities or expenses claims referred to therein, then an 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, claimsdamages, damagesexpenses, liabilities or expenses claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Guarantors on the one hand and the Holders 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 Company and the Guarantors on the one hand and of the participating Holders on the other in connection with the statements or omissions that which resulted in such losses, claimsdamages, damagesexpenses, liabilities or claims, as well as any other relevant equitable considerations. The relative benefit received by the Company and the Guarantors shall be deemed to be equal to the total net proceeds from the initial placement pursuant to the Purchase Agreement (before deducting expenses) of the Registrable Securities to which such losses, claims, damages or liabilities relate. The relative benefit received by any Holder shall be deemed to be equal to the value of receiving registration rights under this Agreement for the Registrable Securities. The relative fault of the Company and the Guarantors on the one hand and a participating Holder of the Holders on the other hand shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact omission relates to information supplied by the Company on the one hand or any Guarantor or by such participating Holder on the other hand Holders and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, damages, expenses, liabilities and claims referred to above shall be deemed to include any reasonable legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any Proceeding. (e) The Company Company, the Guarantors and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 6 were determined by a pro rata allocation or by any other method of allocation that which does not take account of the equitable considerations referred to in Section 9(dsubsection (d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 96, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds total price at which the Registrable Securities sold by it were offered to such participating Holder the public exceeds the amount of any damages which such participating Holder it 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 Holders' respective obligations to contribute pursuant to this Section 6 are several in proportion to the respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint. The remedies provided for in this Section 6 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements provisions contained in this Section 9 6 shall remain operative and in full force and effect, effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of an Indemniteeany Holder or any person controlling any Holder, the Company, its any Guarantor, the officers or directors of the Company or officers, any Guarantor or any person controlling the Company, Company or any Guarantor and (iiiii) the sale of any termination of this AgreementRegistrable Security by any Holder.

Appears in 1 contract

Samples: Registration Rights Agreement (Genesis Healthcare Corp)

Indemnification; Contribution. (a) The In connection with any registration of Registrable Shares or any distribution, offer or sale of any Registrable Shares, including any Underwritten Offering, made in reliance on any Registration Statement or by means of any Offering Documents, the Company agrees to indemnify indemnify, defend and hold harmless harmless, to the fullest extent permitted by Applicable Law, each seller of Registrable Securities covered by a Registration Statement filed pursuant to this Agreement, and such seller's partners, directors, officers, employees and any Selling Shareholder Indemnified Person who controls such seller under the Securities Act (each, an "Indemnitee") from and against any and all losses, claims, damages, liabilities and expenses (including reasonable costs of investigation) arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement or prospectus or in any amendment or supplement thereto, or arising out of or based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise out of or are based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating Holder expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise haveSelling Shareholder Claims. (b) If In connection with any actionregistration of Registrable Shares or any distribution, suit offer or sale of any Registrable Shares, including any Underwritten Offering, made in reliance on any Registration Statement or by means of any Offering Documents, each of the Selling Shareholders, severally but not jointly, agrees to indemnify, defend and hold harmless each and every Company Indemnified Person from and against any and all Company Claims against such Selling Shareholder; provided, however, that in no event shall the liability of any Selling Shareholder for such indemnification exceed the dollar amount by which the proceeds (net of underwriting discounts and commissions and other selling expenses) received by such Selling Shareholder from the sale of the Registrable Shares giving rise to such indemnification exceed the amount of any damages which such Selling Shareholder has otherwise actually paid in satisfaction of any judgment with respect to or the settlement of any claim against such Selling Shareholder by one or more third parties not affiliated with such Selling Shareholder in connection with the subject matter giving rise to the Company Claim against such Selling Shareholder. (c) In case any claim, action or proceeding shall be brought (including any governmental investigation) is instituted involving any Indemnified Party, such Indemnified Party will promptly notify the Indemnifying Party against an Indemnitee in respect of which whom such indemnity may be sought against the Company, such Indemnitee shall promptly notify the Companyin writing, and the Company shall assume Indemnifying Party, upon request of the defense thereofIndemnified Party, including will retain counsel (which may also be counsel to the employment of counsel Indemnifying Party) as may be reasonably satisfactory to the Indemnified Party to represent the Indemnified Party in connection with any claim, action or legal proceeding that could result in a claim for indemnification by the Indemnified Party and payment of all will pay the fees and expensesdisbursements of such counsel related to such claim, action or proceeding; provided, however, that the failure or delay to give such notice shall not relieve the Indemnifying Party of its obligations pursuant to this Agreement except to the extent such Indemnifying Party has been prejudiced in any material respect by such failure or delay. The Indemnitee shall In any such claim, action or proceeding, any Indemnified Party will have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereofretain its own counsel, but the fees and expenses of such counsel shall will be at the expense of such Indemnitee unless Indemnified Party unless: (xi) the Company has Indemnifying Party and the Indemnified Party have mutually agreed in writing to pay the retention of such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, ; or (zii) the named parties to any such actionclaim, suit action or proceeding (including any impleaded parties) include both such Indemnitee the Indemnifying Party and the Company, Indemnified Party and such Indemnitee shall have the Indemnified Party has been advised in writing by its counsel that representation of such Indemnitee and the Company both parties by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing conflicting interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee)them. It is understood, however, understood that the Company shallIndemnifying Party will not, in connection with any one such actionclaim, suit action or proceeding or separate but substantially similar or related actionsclaims, suits actions or proceedings in the same jurisdiction arising out of the same general allegations or circumstancesjurisdiction, be liable for the reasonable fees and expenses of only more than one separate firm of attorneys (in addition to any required local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, Indemnified Parties and that all such reasonable fees and expenses shall will be reimbursed as they are incurred. In the case of the retention of any such separate firm for the Indemnified Parties, such firm of attorneys will be designated in writing by the Indemnified Parties. The Company shall Indemnifying Party will not be liable for any settlement of any such actionclaim, suit action or proceeding effected without its prior, express written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity consent may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (a) unreasonably withheld or (c) hereof in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an 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, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omissiondelayed. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shallIndemnifying Party will, without the prior written consent of the indemnified party, Indemnified Party: (i) confess any judgment or permit any default judgment to be taken; or (ii) effect any settlement of any pending or threatened actionclaim, suit action or proceeding in respect of which any indemnified party Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such indemnified partyIndemnified Party, unless such settlement includes an-an unconditional release of such indemnified party Indemnified Party from all liability on claims that are the subject matter of such actionclaim, suit action or proceedingproceeding and unless such settlement does not include a statement to, or an admission of, fault, culpability or a failure to act, by or on behalf of the Indemnified Party. (gd) Any If an indemnification provided for in this Section 11 from the Indemnifying Party is unavailable to an Indemnified Party hereunder in respect of any Claims (other than any losses, claims, damages, liabilities or liabilities, judgments, costs and expenses for which an indemnified parry Indemnified Party is expressly not entitled to indemnification pursuant to this Section 11), then the Indemnifying Party, in lieu of indemnifying such Indemnified Party, will contribute to the amount paid or payable by such Indemnified Party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the Company, on the one hand, and the applicable Selling Shareholders, on the other, in connection with the statements or omissions or, in the case of the Selling Shareholders, inaccurate certifications that resulted in such Claims; provided, however, that in no event shall a Selling Shareholder be required to contribute an aggregate amount in excess of the lesser of: (A) the amount that such Selling Shareholder would have been obligated to pay under Section 11(b) if such indemnity was available to the Indemnified Party; and (B) the dollar amount by which proceeds (net of underwriting discounts and commissions and other selling expenses) received by such Selling Shareholder exceeds the amount of any damages which such Selling Shareholder has otherwise actually paid in satisfaction of any judgment with respect to or the settlement of any claim by any unaffiliated third party in connection with the subject matter giving rise to the Claims for which such contribution is sought. The relative fault of the Company and any Selling Shareholder will be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been taken by, or relates to information supplied by, the Company or such Selling Shareholder, 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 Claims referred to above will be deemed to include, subject to the limitations set forth in Section 11(c), any legal or other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding initiated in connection with such Claims. (e) The parties agree that it would not be just and equitable if contribution pursuant to Section 11(d) 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 11(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. (f) If indemnification is available under this Section 11, the Indemnifying Party will indemnify each Indemnified Party to the full extent provided in Sections 11(a) and 11(b) without regard to the relative fault of said Indemnifying Party or Indemnified Party or any other equitable consideration provided for in Section 11(d) or 11(e). (g) Notwithstanding anything to the contrary in this Agreement, each of the Indemnified Parties has relied on this Section 11, is an express third party beneficiary of this Section 11 and is entitled to indemnification or contribution enforce the obligations of the applicable Indemnifying Parties under this Section 9 shall be paid by the indemnifying party 11 directly against such Indemnifying Parties to the indemnified party as such lossesfull extent thereof. (h) In no event will any Indemnifying Party be liable for, claimsor any Indemnified Party have any right to, damagesany indemnification hereunder with respect to any consequential, liabilities loss of profits, special or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of other similar damages suffered by an Indemnified Party. (i) The provisions of this Section 11 shall be in addition to any investigation made by remedies which any party may have to any other party, whether at law or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Companyin equity, and (ii) shall survive the Expiration Date or any termination of this AgreementAgreement occurring prior to the Expiration Date.

Appears in 1 contract

Samples: Registration Rights Agreement (Wal Mart Stores Inc)

Indemnification; Contribution. (a) The Company agrees Incident to indemnify and hold harmless each seller any registration of any Registrable Securities covered by a Registration Statement filed under the Securities Act pursuant to this Agreement, the Company will indemnify and hold harmless PSC from and against any and all losses, claims, damages, reasonable expenses and liabilities (including any reasonable investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, as the same are incurred) to which it 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 seller's partnerslosses, 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 (1) 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 or on behalf of PSC in accordance with Section 4(b) of this Agreement for use in such registration statement, or (2) in the case of a sale directly by PSC, such untrue statement or alleged untrue statement or omission or alleged omission was contained in a preliminary prospectus and corrected in a final or amended prospectus, and PSC failed to deliver a copy of the final or amended prospectus at or prior to the confirmation of the sale of the Registrable Securities to the Person asserting any such loss, claim, damage or liability in any case where such delivery is required by the Securities Act or any state securities laws. With respect to such untrue statement or omission or alleged untrue statement or omission in the information furnished in writing to the Company by or on behalf of PSC in accordance with Section 4(b) of this Agreement for use in such registration statement, PSC will indemnify and hold harmless the Company (including its directors, officers, employees employees, representatives and any Person who controls such seller under the Securities Act (each, an "Indemnitee"agents) from and against any and all losses, claims, damages, reasonable expenses and liabilities and expenses (including any reasonable costs of investigation) arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement or prospectus or in any amendment or supplement thereto, or arising out of or based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or legal and other expenses rise out of or are based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating Holder expressly for use incurred in connection therewith. The foregoing indemnity agreement shall be with, and any amount paid in addition to any liability which the Company may otherwise have. (b) If settlement of, any action, suit or proceeding shall be brought against an Indemnitee in respect of or any claim asserted, as the same are incurred) to which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counselthey, or (z) any of them, may become subject under the named parties to any such actionSecurities Act, suit the Exchange Act or proceeding (including any impleaded parties) include both such Indemnitee and the Companyother federal or state statutory law or regulation, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether at common law or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understoodotherwise; provided, however, that in no event shall the Company shallaggregate amounts payable by PSC by way of indemnity or contribution under Sections 5(a) and 5(b) exceed the proceeds from the offering received by PSC (net of any selling expenses paid by PSC), in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings except in the same jurisdiction arising out case of the same general allegations fraud or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense willful misconduct by reason of such settlement or judgmentPSC. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (db) If the indemnification provided for in this Section 9 5(a) above for any reason is held by a court of competent jurisdiction to be unavailable to an indemnified party under paragraphs (a) or (c) hereof Party in respect of any losses, claims, damages, expenses or liabilities or expenses referred to therein, then an 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 Party as a result of such losses, claims, damages, expenses or liabilities or expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and PSC 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 Company and of the participating Holders PSC in connection with the statements or omissions that which resulted in such losses, claims, damages, liabilities expenses or expensesliabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company and PSC shall be deemed to be in the same respective proportions that the net proceeds from the offering received by the Company and PSC, in each case as set forth in the table on the cover page of the applicable prospectus, bear to the aggregate public offering price of the Registrable Securities. The relative fault of the Company on the one hand and a participating Holder on the other hand PSC shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by or on behalf of the Company on the one hand or by such participating Holder on the other hand PSC and the parties' Parties’ relative intent, knowledge, knowledge and access or information and opportunity to correct or prevent such statement or omission. (e) information. The Company and the participating Holders PSC agree that it would not be just and equitable if contribution pursuant to this Section 9 5(b) were determined by a pro rata or per capita allocation or by any other method of allocation that which does not take account of the equitable considerations referred to in the immediately preceding paragraph. No Person found guilty of fraudulent misrepresentation (within the meaning of Section 9(d11(f) hereof. of the Securities Act) shall be entitled to contribution from any Person who was not found guilty of such fraudulent misrepresentation. (c) The amount paid by an indemnifying Party or payable by to an indemnified party Party as a result of the losses, claims, damages, damages and liabilities and expenses referred to in this Section 9(d) hereof 5 shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party Party in connection with investigating any claim or defending any such actionaction or claim, suit or proceeding. Notwithstanding payable as the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses same are incurred. The indemnity indemnification and contribution agreements contained provided for in this Section 9 shall 5 will remain operative and in full force and effect, effect regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, indemnified Party or any person officer, director, employee, agent or controlling Person of the Companyindemnified Party. No indemnifying Party, in the defense of any such claim or litigation, shall enter into a consent of entry of any judgment or enter into a settlement without the consent of the indemnified Party, which consent will not be unreasonably withheld. Any indemnified Party that proposes to assert the right to be indemnified under this Section 5 will, promptly after receipt of notice of commencement or threat of any claim or action against such Party in respect of which a claim is to be made against an indemnifying Party under this Section 5 notify the indemnifying Party in writing (such written notice, an “Indemnification Notice”) of the commencement or threat of such action, enclosing a copy of all papers served or notices received (if applicable), but the omission to so notify the indemnifying Party will not relieve the indemnifying Party from any liability that the indemnifying Party may have to any indemnified Party under the foregoing provisions of this Section 5 unless, and only to the extent that, such omission results in the forfeiture of substantive rights or defenses by the indemnifying Party. The indemnified Party will have the right to retain its own counsel in any such action if (i) the employment of counsel by the indemnified Party has been authorized by the indemnifying Party, (ii) the indemnified Party’s counsel, with the concurrence of indemnifying Party’s counsel, shall have reasonably concluded that there is a substantial likelihood of a conflict of interest between the indemnifying Party and the indemnified Party in the conduct of the defense of such action or (iii) the indemnifying Party shall not in fact have employed counsel to assume the defense of such action within a reasonable period of time following its receipt of the Indemnification Notice, in each of which cases the fees and expenses of the indemnified Party’s separate counsel shall be at the expense of the indemnifying Party; provided, however, that the indemnified Party shall agree to repay any termination expenses so advanced hereunder if it is ultimately determined by a court of competent jurisdiction that the indemnified Party to whom such expenses are advanced is not entitled to be indemnified; and provided, further, that so long as the indemnified Party has reasonably concluded that no conflict of interest exists, the indemnifying Party may assume the defense of any action hereunder with counsel reasonably satisfactory to the indemnified Party. (d) The obligation of the Company and PSC under this AgreementSection 5 shall survive the completion of any offering of Registrable Securities in a registration statement under Section 2, and otherwise.

Appears in 1 contract

Samples: Asset Purchase Agreement (Emergent BioSolutions Inc.)

Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this Agreement, Holder and such seller's partners, its directors, officers, employees employees, members, representatives and any Person agents and each person, if any, who controls such seller under any Holder within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act (each, an "Indemnitee") a “Holder Indemnified Party”), from and against any and all lossesloss, claimsdamage, damagesexpense, liabilities and expenses liability or claim (including the reasonable costs cost of investigation) arising which such Holder Indemnified Party may incur under the Securities Act, Exchange 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, insofar as such loss, damage, expense, liability or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectusthe Shelf Registration Statement, registration statement or prospectus or in any Prospectus, or any amendment thereof or supplement thereto, or arising arises out of or is based upon any the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which they were made) not misleading; provided, except insofar as however, that: (i) the Company shall not be liable in any such lossescase to the extent that any such loss, claimsdamage, damagesexpense, liabilities liability or expenses rise claim arises out of or are is based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein of a material fact contained in, or omitted therefrom in reliance upon from, and in conformity with information required to be used in any Shelf Registration Statement, related prospectus or any amendments or supplements thereto pursuant to the information relating to a participating Holder Securities Act furnished in writing to the Company by or on behalf of a participating the applicable Holder Indemnified Party to the Company expressly for use in connection therewith. The foregoing a Shelf Registration Statement or Prospectus or any amendment thereof or supplement thereto; and (ii) with respect to any untrue statement or omission of material fact made in the 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 then amended or supplemented, if such corrected Prospectus was timely made available by the Company pursuant to Section 3(g) hereof, and the Holder Indemnified Party was promptly advised in writing not to use the incorrect prospectus prior to the 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 which that the 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 a Notice Holder who has previously received notice from the Company of the commencement of the Suspension Period pursuant to Section 3(i). (b) Each Holder, severally and not jointly, agrees to indemnify and hold harmless the Company and its directors, officers, employees, members, representatives and agents 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 (each, a “Company Indemnified Party”) from and against any loss, damage, expense, liability or claim (including the reasonable cost of investigation) which such Company Indemnified Party may incur under the Securities Act or otherwise, insofar as such loss, damage, expense, liability or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in information furnished in writing by or on behalf of such Holder to the Company required to be included in any Shelf Registration Statement, or in any Prospectus, or any amendment thereof or supplement thereto, or arises out of or is based upon any omission or alleged omission to state a material fact required to be stated in any Shelf Registration Statement or in any amendment or supplement 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 statements in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which they were made, not misleading, in connection with such information; provided, however, that no such Holder shall be liable for any claims hereunder in excess of the amount of net proceeds received by such Holder from the sale of Registrable Securities pursuant to such Shelf Registration Statement. (c) If any action, suit or proceeding shall be (each, a “Proceeding”) is brought against an Indemnitee any person in respect of which indemnity may be sought against the Companypursuant to either subsection (a) or (b) of this Section 6, such Indemnitee person (the “Indemnified Party”) shall promptly notify the Company, person against whom such indemnity may be sought (the “Indemnifying Party”) in writing of the institution of such Proceeding and the Company Indemnifying Party shall assume the defense of such Proceeding with one counsel (in addition to any local counsel) reasonably satisfactory to the Indemnified Party and shall pay the fees and expenses of such counsel related to such Proceeding; provided, however, that failure to so notify the Indemnifying Party shall not relieve such Indemnifying Party from any liability hereunder except to the extent it is materially prejudiced as a result thereof, including the employment of counsel and payment of all fees and expensesbut in no event shall such Indemnifying Party be relieved from any liability which it may otherwise have separate from these indemnification provisions. The Indemnitee Such Indemnified Party shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereofits own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnitee Indemnified Party unless (xi) the Company has agreed in writing to pay such fees and expensesIndemnified Party is a Holder of Notes representing not less than 33% of the aggregate principal amount of the then outstanding Notes, (yii) the Company Indemnifying Party and the Indemnified Party shall have mutually agreed to the contrary, (iii) the Indemnifying Party has failed within a reasonable time after receipt of notice to assume defense of a Proceeding to retain counsel reasonably satisfactory to the defense and employ counsel, Indemnified Party or (ziv) the named parties to in any such action, suit or proceeding Proceeding (including any impleaded parties) include both such Indemnitee the Indemnifying Party and the CompanyIndemnified Party, the Indemnifying Party proposes to have the same counsel represent it and the Indemnified Party, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company both parties by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee)them. It is understood, however, understood that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, Indemnifying Party may be liable for the reasonable fees and expenses of only more than one separate firm of attorneys counsel (in addition to any local counsel) at any time separate from their own counsel for all such Indemnitees not having actual or potential differing interests among themselvesIndemnified Parties in accordance with the foregoing sentence, and that all such fees and expenses actually incurred shall be promptly reimbursed as they are incurredincurred upon delivery to the Indemnifying Party of reasonable documentation therefor setting forth such expenses in reasonable detail. The Company Indemnifying Party shall not be liable for any settlement of any such action, suit or proceeding Proceeding effected without its written consent, but if settled with such written consent, consent or if them there be a final judgment for the plaintiff in any such action, suit or proceedingplaintiff, the Company Indemnifying Party agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, any Indemnified Party from and against any loss, claim, damage, loss or liability or expense by reason of such settlement or judgment. . Notwithstanding the foregoing sentence, if at any time an Indemnified Party shall have requested the Indemnifying Party to reimburse the Indemnified Party as contemplated by this paragraph, the Indemnifying Party agrees that it shall be liable for any settlement of any Proceeding effected without its consent if (ci) Each such settlement is entered into more than 60 Business Days after receipt by the Indemnifying Party of the participating Holdersaforesaid request, severally (ii) such Indemnifying Party shall not have reimbursed the Indemnified Party in accordance with such request prior to the date of such settlement and not jointly(iii) such Indemnified Party shall have given such Indemnifying Party at least 30 days’ prior notice of its intention to settle. No Indemnifying Party shall, agree to indemnify and hold harmless without the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 prior written consent of the Securities Act Indemnified Party, effect any settlement of any pending or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and threatened Proceeding in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c)Indemnified Party is a party, unless such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses settlement includes an unconditional release of such counsel shall be at Indemnified Party from all liability on claims that are the Holder's expense), subject matter of such Proceeding and without admission of fault by the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveIndemnified Party. (d) If the indemnification provided for in this Section 9 6 is unavailable to an indemnified party Indemnified Party under paragraphs subsections (a) or and (cb) hereof of this Section 6 in respect of any losses, claimsdamages, damagesexpenses, liabilities or expenses claims referred to therein, then an 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, claimsdamages, damagesexpenses, liabilities or expenses claims, as incurred, (i) in such proportion as is appropriate to reflect the relative fault benefits received by the Company on the one hand and the Holders on the other hand from the offering of the Company and of Registrable Securities or (ii) if the participating Holders in connection with the statements or omissions that resulted allocation provided by clause (i) above is not permitted by applicable law, in such losses, claims, damages, liabilities or expenses. The proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and a participating Holder of the Holders on the other hand shall be determined by reference to, among other things, whether in connection with the untrue statements or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by omissions which resulted in such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, expenses, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to includeor claims, subject to the limitations set forth above, as well as any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceedingrelevant equitable considerations. Notwithstanding the provisions of this Section 96, no participating neither any of the Purchasers nor any Holder shall be required to indemnify or contribute any amount in excess of the amount by which the proceeds to total price at which the Registrable Securities sold by such participating Holder or Purchaser, as the case may be, exceeds the amount of any damages which that such participating Holder or Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. The relative fault of the Company on the one hand and of the Holders on the other shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or omission or alleged omission relates to information supplied by the Company or by the Holders and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, damages, expenses, liabilities and claims referred to above shall be deemed to include any reasonable legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any Proceeding. (e) The Company and the Holders agree that it would not be just and equitable if contribution pursuant to this Section 6 were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in subsection (d) above. 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 Holders’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint. The remedies provided for in this Section 6 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any Indemnified Party at law or in equity, (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements provisions contained in this Section 9 6 shall remain operative and in full force and effect, effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of an Indemniteeany Holder or any person controlling any Holder, the Company or the Company, its ’s officers or directors or officers, or any person controlling the Company, Company and (iiiii) the sale of any termination Registrable Security by any Holder. (g) Section 6 of this AgreementAgreement may not be amended except by an instrument in writing signed by the Indemnified Party affected thereby.

Appears in 1 contract

Samples: Registration Rights Agreement (I2 Technologies Inc)

Indemnification; Contribution. (a) The Company Coty Parent shall, and it hereby agrees to to, (i) indemnify and hold harmless each seller Registration Equityholder in any offering or sale of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementSecurities, and such seller's Registration Equityholder’s partners, directorsmembers, officersmanagers and Affiliates (but not, employees for the avoidance of doubt, any Stockholder Designee in such person’s capacity as a Director of Coty Parent) and any Person each Person, if any, who controls such seller under any of the foregoing Persons within the meaning of the Securities Act (eachor the Exchange Act, an "Indemnitee") from and against any and all losses, claims, damages, liabilities or liabilities, or any actions or proceedings (whether commenced or threatened) in respect thereof and costs and expenses (including reasonable costs fees of investigationcounsel) arising (collectively, “Claims”) to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement reached in accordance with the requirements for consent as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon any an untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectusRegistration Statement, registration statement or prospectus any preliminary or in final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement thereto, or arising any document incorporated by reference therein, or arise out of or are based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of any preliminary or final Prospectus, including any Free Writing Prospectus, incorporated into such Registration Statement, in the light of the circumstances in which they were made), not misleading; and (ii) reimburse upon written demand each indemnified party for any reasonable and documented legal or other out-of-pocket expenses reasonably incurred by such indemnified party in connection with investigating or defending (or preparing to defend) any such Claims; provided, except insofar as however, that Coty Parent shall not be liable to an indemnified party in any such losses, claims, damages, liabilities or expenses rise case to the extent that any such Claims arise out of or are based upon any an untrue statement or alleged untrue statement or omission or alleged untrue statement omission made in such Registration Statement, or omission which has been made therein preliminary or omitted therefrom final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), or amendment or supplement thereto, in reliance upon and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of Coty Parent about a participating Holder expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing Registration Equityholder by or on behalf of such Holder indemnified party expressly for use therein, or if the Registration Equityholder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable Prospectus (excluding any documents incorporated by reference therein) or of the applicable Prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if Coty Parent had previously furnished copies thereof to such Registration Equityholder a reasonable period of time prior to such sale and such Prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such Registration Statement. (b) Each Registration Equityholder shall, and hereby agrees to, severally and not jointly (i) indemnify and hold harmless Coty Parent in any offering or sale of Registrable Securities, each Director and officer of Coty Parent (including any such Director or officer who shall sign the registration statementapplicable Registration Statement) and each Person, prospectus if any, who controls any of the foregoing Persons within the meaning of the Securities Act or the Exchange Act, from and against any prepricing prospectusClaims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement reached in accordance with the requirements for consent as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any Registration Statement, or any amendment preliminary or supplement thereto. If final Prospectus (including any action, suit or proceeding shall be brought against the Company, any of its directors, any Free Writing Prospectus incorporated into such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectusRegistration Statement) contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), in the light of the circumstances in which they were made), not misleading; and (ii) reimburse upon written demand each indemnified party for any reasonable and documented legal or other out-of-pocket expenses reasonably incurred by such indemnified party in connection with investigating or defending (or preparing to defend) any such Claims, in each case, to the extent, that such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in respect conformity with information about such Registration Equityholder furnished in writing to Coty Parent by or on behalf of which indemnity may be sought against such Registration Equityholder expressly for use therein, or if such Registration Equityholder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable Prospectus (excluding any Holder pursuant to this Section 9(cdocuments incorporated by reference therein) or of the applicable Prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), such Holder shall have the rights and duties given if Coty Parent had previously furnished copies thereof to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof Registration Equityholders a reasonable period of time prior to such Holder shall not be required to do so, but may employ separate counsel therein sale and participate such Prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveRegistration Statement. (dc) If Each Registration Equityholder, on the one hand, and Coty Parent, on the other hand, agrees that if, for any reason, the indemnification provided for in this provisions contemplated by Section 9 is 2.7(a) or Section 2.7(b) are unavailable to or are insufficient to hold harmless an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, claims, damages, liabilities or expenses Claims referred to therein, then an 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, claims, damages, liabilities or expenses Claims in such proportion as is appropriate to reflect the relative fault of the Company indemnifying party, on the one hand, and of the participating Holders in connection indemnified party, on the other hand, with the respect to statements or omissions that that resulted in such losses, claims, damages, liabilities or expensesClaims. The relative fault of the Company on the one hand such indemnifying party and a participating Holder on the other hand indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company on the one hand such indemnifying party or by such participating Holder on the other hand indemnified party, and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e. If, however, the allocation in the first sentence of this Section 2.7(c) The Company is not permitted by applicable Requirements of Law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the participating Holders indemnified party, as well as any other relevant equitable considerations. The relative benefits received by Coty Parent, on the one hand, and a Registration Equityholder, on the other hand, shall be deemed to be in the same proportion as the total net proceeds from the offering of securities (net of discounts and commissions but before deducting expenses) giving rise to the applicable Claim bears to the net proceeds received by such Registration Equityholder with respect to its sale of Registrable Securities giving rise to such Claim. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Section 9 2.7(c) were to be determined by a pro rata allocation or by any other method of allocation that which does not take into account of the equitable considerations referred to in the preceding sentences of this Section 9(d) hereof2.7(c). The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses Claims referred to in Section 9(d) hereof above shall be deemed to include, include (subject to the limitations set forth above, in Section 2.8) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending (or preparing to defend) any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omissionProceeding. 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. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained Registration Equityholders obligations to contribute as provided in this Section 9 shall remain operative 2.7(c) are several and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreementnot joint.

Appears in 1 contract

Samples: Contribution Agreement (Coty Inc.)

Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each seller agrees, notwithstanding the termination of Registrable Securities covered by a Registration Statement filed pursuant to this Agreement, and such seller's partnersto indemnify, to the fullest extent permitted by law, each holder of Registrable Securities, its officers, directors, officersemployees, employees advisors, agents and any Affiliates and each Person who that controls such seller under (within the meaning of the Securities Act Act) such holder (eachcollectively, an "Indemnitee"“Holder Indemnified Parties”) from and against any and all losses, claims, damages, liabilities and expenses, including attorneys’ fees and disbursements and expenses of investigation (including reasonable costs of investigation) arising out of or based upon collectively, “Losses”), caused by any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectusregistration statement, registration statement or prospectus or in preliminary prospectus or any amendment thereof or supplement thereto, or arising out of or based upon any omission or alleged omission to state therein of a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar 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 and the Exchange Act) the Company from and against any and all losses, claims, damages, liabilities and expenses resulting from any untrue or expenses rise out alleged untrue statement of material fact contained in the registration statement, prospectus or are based upon preliminary prospectus or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, but only to the extent that such untrue statement or omission is contained in any information or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the information relating to a participating Holder affidavit so furnished in writing to the Company by or on behalf of a participating Holder such holder expressly for use in connection therewith. The foregoing indemnity agreement therein; provided that the obligation to indemnify shall be individual, not joint and several, for each holder and shall be limited to the net amount of proceeds received by such holder from the sale of Registrable Securities pursuant to such registration statement. (c) Any Person entitled to indemnification hereunder shall (i) give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification (provided that the failure to give prompt notice shall not impair any Person’s right to indemnification hereunder to the extent such failure has not prejudiced the indemnifying party) and (ii) unless in addition such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist with respect to such claim, permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party. If such defense is assumed, the indemnifying party shall not be subject to any liability which for any settlement made by the Company may otherwise have. indemnified party without its consent (b) If any actionbut such consent shall not be unreasonably withheld). An indemnifying party who is not entitled to, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Companyelects not to, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including of a claim shall not be obligated to pay the employment of counsel and payment of all fees and expensesexpenses 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 a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such claim. The Indemnitee indemnified party shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein action and participate in the defense thereof, but the fees and expenses of such counsel shall be at paid by the Holder's expense)indemnified party unless (x) the indemnifying party agrees to pay the same, (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 Companyindemnifying party) would be inappropriate under applicable standards of professional conduct. In the case of clause (y) above and (z) above, its directorsthe indemnifying party shall not have the right to assume the defense of such action on behalf of such indemnified party. No indemnifying party shall, without the written consent of the indemnified party, effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified party is an actual or potential party to such officeraction 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 admission of, fault, culpability or a failure to act by or on behalf of any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereofindemnified party. The foregoing indemnity agreement rights afforded to any indemnified party hereunder shall be in addition to any liability which the participating Holders rights that such indemnified party may otherwise havehave at common law, by separate agreement or otherwise. (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 provided for in required by this Section 9 6 from the indemnifying party is unavailable or insufficient to hold harmless an indemnified party under paragraphs (a) or (c) hereof hereunder in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an 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, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company indemnifying party and of the participating Holders indemnified parties in connection with the statements or omissions that actions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand such indemnifying party and a participating Holder on the other hand indemnified parties shall be determined by reference to, among other things, whether the untrue any action in question has been committed by, or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand by, such indemnifying party or by such participating Holder on the other hand indemnified parties, and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to action in Section 9(d) hereofquestion. The amount paid or payable by an indemnified a party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof above shall be deemed to include, subject to the limitations set forth abovein Section 6(a) and Section 6(b), any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit investigation or proceeding. Notwithstanding the provisions of . (ii) The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 9, no participating Holder shall be required 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 contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omissionSection 6(e)(i). 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. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Calpine Corp)

Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each seller of the broker-dealers whose Registrable Securities covered by are included in an Exchange Registration Statement, each Electing Holder whose Registrable Securities are included in a Shelf Registration Statement filed pursuant to this Agreementand each person, and such seller's partnersif any, directors, officers, employees and any Person who controls any such seller under Electing Holder, or such broker dealer within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act as follows: (each, an "Indemnitee"i) from and against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable costs of investigation) expense whatsoever, as incurred, arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectusExchange Registration Statement or Shelf Registration Statement, registration statement as the case may be, or prospectus or in any amendment or supplement thereto, pursuant to which Exchange Securities or arising out of Registrable Securities were registered under the Securities Act, including all documents incorporated therein by reference, or based upon any the omission or alleged omission to state therein therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise arising out of any untrue statement or are alleged untrue statement of a material fact contained in any prospectus contained in any such Exchange Registration Statement or Shelf Registration Statement, as the case may be, or any amendment or supplement thereto, or in any Issuer Free Writing Prospectus (when taken together with the related prospectus, prospectus supplement and related documents) related 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 such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the prior 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 the Company shall not be liable to any such person to the extent such loss, liability, claim, damage or expense arises out of any untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the written information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating Holder such person expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to an Exchange Registration Statement or Shelf Registration Statement (or any liability which the Company may otherwise haveamendment thereto), any related prospectus (or any amendment or supplement thereto), or any Issuer Free Writing Prospectus related thereto. (b) If any actionEach Electing Holder, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereofseverally, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree agrees to (i) indemnify and hold harmless the Company, its directors, its officers who sign Company and the registration statementother Electing Holders, and any person each of their respective directors and officers, and each person, if any, who controls the Company or any other Electing Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to against any and all loss, liability, claim, damage and expense described in the same extent indemnity contained in Section 5(a) hereof, as the foregoing indemnity from the Company to an Indemniteeincurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in any Shelf Registration Statement (or any amendment thereto), or any prospectus included therein (or any amendment or supplement thereto) or any related Issuer Free Writing Prospectus in reliance upon and in conformity with written information relating furnished to such Holder furnished in writing the Company by or on behalf of such Electing Holder expressly for use in the registration statement, prospectus Shelf Registration Statement (or any prepricing prospectus, amendment thereto) or such prospectus (or any amendment or supplement thereto. If ) or any actionrelated Issuer Free Writing Prospectus, suit and (ii) reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending any such action or claim as such expenses are incurred; provided, however, that no such holder shall be liable for any claims hereunder in excess of the amount of net proceeds received by such Electing Holder from the sale of Registrable Securities pursuant to such Shelf Registration Statement. (c) Each indemnified party shall give written notice promptly to each indemnifying party of any action or proceeding shall be brought commenced against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and 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 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. In case any such action shall be brought against any Holder pursuant to this Section 9(c)indemnified party and it shall notify an indemnifying party of the commencement thereof, such Holder indemnifying party shall have the rights and duties given be entitled to participate therein and, to the Company by Section 9(b) hereof (except extent that if the Company it shall have assumed the defense thereof such Holder shall not be required wish, jointly with any other indemnifying party similarly notified, to do so, but may employ separate counsel therein and participate in assume the defense thereof, but 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, such 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). To the extent that an indemnifying party does not assume the defense of any such action, in no event shall such indemnifying party be liable for the fees and expenses of such more than one counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be (in addition to any local counsel) separate from its own counsel for all indemnified parties in connection with any one action or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances. 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 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 5 (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 which the participating Holders may otherwise havearising 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 the indemnification provided for in this Section 9 5 is for any reason unavailable to or insufficient to hold harmless an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, liabilities, claims, damages, liabilities damages or expenses referred to therein, then an each indemnifying partyparty shall contribute to the aggregate 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 lossesincurred, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company indemnifying party and of the participating Holders indemnified party in connection with the statements or omissions that which resulted in such losses, liabilities, claims, damages, liabilities damages or expenses, as well as any other relevant equitable considerations. The relative fault of the Company on indemnifying party and the one hand and a participating Holder on the other hand indemnified party shall be determined by reference to, among other things, whether the any such untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company on the one hand such indemnifying party or by such participating Holder on the other hand indemnified party and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) . The Company and the participating Holders parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 9 5(d) were determined by a pro rata allocation or by any other method of allocation that which does not take account of the equitable considerations referred to above in this Section 9(d) hereof5(d). The aggregate amount paid or payable of losses, liabilities, claims, damages and expenses incurred by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to above in this Section 9(d5(d) hereof shall be deemed to include, subject to the limitations set forth above, include any reasonable out-of-pocket legal or other expenses reasonably incurred by such indemnified party in connection with investigating investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim or defending whatsoever based upon any such action, suit untrue or proceedingalleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 95(d), no participating Electing Holder shall be required to contribute any amount in excess of the amount by which the dollar amount of the proceeds to received by such participating Holder holder from the sale of any Registrable Securities exceeds the amount of any damages which such participating the Electing Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall. For purposes of this Section 5(d), without each person, if any, who controls any Electing Holder within the prior written consent meaning of Section 15 of the indemnified party, effect any settlement Securities Act or Section 20 of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could the Exchange Act shall have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled same rights to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such lossesElecting Holder, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless each director of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (iieach 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 Electing Holders’ obligation in this Section 5(d) any termination to contribute shall be several in proportion to the principal amount of this AgreementRegistrable Securities registered by them and not joint.

Appears in 1 contract

Samples: Exchange and Registration Rights Agreement (Johnsondiversey Holdings Inc)

Indemnification; Contribution. (a) The In the event of a registration of any of the Registrable Securities under the Securities Act pursuant to this Article 2, the Company agrees to will indemnify and hold harmless each seller of such Registrable Securities covered by a Registration Statement filed pursuant to this Agreementthereunder, each underwriter of such Registrable Securities thereunder and such seller's partnerseach other Person, directorsif any, officers, employees and any Person who controls such seller or underwriter within the meaning of the Securities Act, against any losses, claims, damages or liabilities, joint or several, to which such seller, underwriter or controlling Person may become subject under the Securities Act (eachor otherwise, an "Indemnitee") from and against any and all insofar as such losses, claims, damages, damages or liabilities and expenses (including reasonable costs of investigationor actions in respect thereof) arising arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained in any prepricing prospectus, registration statement or under which such Registrable Securities were registered under the Securities Act pursuant to this Article II, any preliminary prospectus or in final prospectus contained therein, or any amendment or supplement theretothereof, or arising out of or based upon any (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, except or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any federal, state or other securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act or any federal or state securities law in connection with the offering covered by such registration statement and the Company will reimburse each such seller, each such underwriter and each such controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action, including amounts paid in settlement thereof; provided, however, that the Company will not be liable in any such case if and to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission which occurs in reliance upon or in connection with written information furnished expressly for use in connection with such registration by any such seller, any such underwriter or any such controlling Person. In the event of a registration of any of the Registrable Securities under the Securities Act pursuant to this Article 2, each seller of such Registrable Securities thereunder, severally and not jointly, will indemnify and hold harmless the Company, each Person, if any, who controls the Company within the meaning of the Securities Act, each officer of the Company who signs the registration statement, each director of the Company, each underwriter and each Person who controls any underwriter within the meaning of the Securities Act, against all losses, claims, damages or liabilities, joint or several, to which the Company or such officer, director, underwriter or controlling Person may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages, damages or liabilities (or expenses rise actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the registration statement under which such Registrable Securities were registered under the Securities Act pursuant to this Article 2, any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereof, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the Company and each such officer, director, underwriter and controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action, provided, however, that such seller will be liable hereunder in any such case if and only to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission which has been or alleged omission made therein or omitted therefrom in reliance upon and or in conformity connection with the written information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating Holder such seller expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, with such Indemnitee shall promptly notify the Companyregistration, and the Company shall assume the defense thereofprovided, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understoodfurther, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out liability of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses each seller hereunder shall be reimbursed as they are incurred. The Company shall not be liable for any settlement limited to the proportion of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each which is equal to the proportion that the public offering price of the participating Holdersshares sold by such seller under such registration statement bears to the total public offering price of all securities sold thereunder, severally and but not jointly, agree in any event to indemnify and hold harmless exceed the Company, its directors, its officers who sign net proceeds received by such seller from the sale of Registrable Securities covered by such registration statement, and any person who controls the Company within the meaning . Promptly after receipt by an indemnified party hereunder of Section 15 notice of the Securities Act or Section 20 commencement of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding such indemnified party shall, if a claim in respect thereof is to be made against an indemnifying party hereunder, notify the indemnifying party in writing thereof, but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to such indemnified party other than under this Section 2(e) and shall only relieve it from any liability which it may have to such indemnified party under this Section 2(e) if and to the extent the indemnifying party is prejudiced by such omission. In case any such action shall be brought against any indemnified party and it shall notify the Companyindemnifying party of the commencement thereof, any the indemnifying party shall be entitled to participate in and, to the extent it shall wish, to assume and undertake the defense thereof with counsel reasonably satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its directorselection so to assume and undertake the defense thereof, the indemnifying party shall not be liable to such indemnified party under this Section 2(e) for any legal expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation and of liaison with counsel so selected, provided, however, that, if the defendants in any such officeraction include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be reasonable defenses available to it which are different from or additional to those available to the indemnifying party or if the interests of the indemnified party reasonably may be deemed to conflict with the interests of the indemnifying party, the indemnified party shall have the right to select a separate counsel and to assume such legal defenses and otherwise to participate in the defense of such action, with the expenses and fees of such separate counsel and other expenses related to such participation to be reimbursed by the indemnifying party as incurred. The indemnifying party shall not be liable to indemnify any indemnified party for any settlement of any action effected without the indemnifying party’s consent (which consent shall not be unreasonably withheld or delayed). The indemnifying party shall not, except with the approval of each party being indemnified under this Section 2(e)(iii), consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving of the claimant or the plaintiff to the parties being so indemnified of a release from all liability in respect to such claim or litigation. In order to provide for just and equitable contribution to joint liability under the Securities Act in any case in which either (i) any holder of Registrable Securities exercising rights under this Agreement, or any controlling Person of any such holder, makes a claim for indemnification pursuant to this Section 2(e) but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case notwithstanding the fact that this Section 2.05 provides for indemnification in such case, or (ii) contribution under the Securities Act may be required on the part of any such selling holder or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement theretoPerson in circumstances for which indemnification is otherwise required under this Section 2(e); then, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c)each such case, the Company and such Holder shall have the rights and duties given holder will contribute to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect of any aggregate losses, claims, damages, damages or liabilities or expenses referred to therein, then an 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, claims, damages, liabilities or expenses which they may be subject (after contribution from others) in such proportion as is appropriate to reflect the relative fault of the Company on the one hand and of the participating Holders holder of Registrable Securities on the other in connection with the statements or omissions that which resulted in such losses, claims, damagesdamages or liabilities, liabilities or expensesas well as any other relevant equitable considerations or, if the allocation provided herein is not permitted by applicable law, in such proportion as shall be appropriate to reflect the relative benefits received by the Company and any holder of Registrable Securities from the offering of the securities covered by such registration statement. The relative fault of the Company on the one hand and a participating Holder of the holder of Registrable Securities on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder the holder of Registrable Securities on the other hand other, and the parties' each party’s relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to ; provided, however, that, in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such actioncase, suit or proceeding. Notwithstanding the provisions of this Section 9, (A) no participating Holder shall such holder will be required to contribute any amount in excess of the amount public offering price of all such Registrable Securities offered by which the proceeds it pursuant to such participating Holder exceeds registration statement, but not in any event to exceed the amount net proceeds received by such seller from the sale of any damages which Registrable Securities covered by such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person registration statement; and (B) no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall will be entitled to contribution from any person Person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall, without the prior written consent . The obligations of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party Company and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution Holders under this Section 9 2(e) shall be paid by survive the indemnifying party to completion of any offering of Registrable Securities in a registration statement under this Article 2 and shall survive the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.

Appears in 1 contract

Samples: Rights Agreement (Vuzix Corp)

Indemnification; Contribution. (a) The Company agrees KSI shall indemnify, to indemnify and hold harmless the fullest extent permitted by law, each seller holder of KSI Registrable Securities covered by a Registration Statement filed pursuant to this AgreementSecurities, and such seller's partnersits officers, directors, officerspartners, employees and any Person agents, if any, and each Person, if any, who controls such seller under holder within the meaning of Section 15 of the Securities Act (eachAct, an "Indemnitee") from and against any and all losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (including reasonable costs under the Securities Act or common law or otherwise), joint or several, resulting from any violation by KSI of investigation) arising out the provisions of the Securities Act or based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement or prospectus (and as amended or in supplemented if amended or supplemented) or any amendment preliminary prospectus or supplement thereto, or arising out of or based upon 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 insofar as to the extent that such losses, claims, damages, liabilities (or proceedings in respect thereof) or expenses rise out of or are based upon caused by any untrue statement or alleged untrue statement contained in or by any omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the from information relating to a participating Holder concerning any holder of KSI Registrable Securities furnished in writing to the Company KSI by or on behalf of a participating Holder such holder expressly for use in connection therewiththerein. The foregoing indemnity agreement shall be in addition If the Public Offering pursuant to any liability which registration statement provided for under this Article III is made through underwriters, no action or failure to act on the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses part of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct underwriters (whether or not such representation by underwriter is an Affiliate of any holder of KSI Registrable Securities) shall affect the same counsel has been proposed) due obligations of KSI to actual indemnify any holder of KSI Registrable Securities or potential differing interests between them (in which case any other Person pursuant to the Company shall not have preceding sentence. If the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition Public Offering pursuant to any local counsel) at any time registration statement provided for all such Indemnitees not having actual or potential differing interests among themselvesunder this Article III is made through underwriters, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled KSI agrees to enter into an underwriting agreement in customary form with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company underwriters and KSI agrees to indemnify and hold harmless such Indemniteeunderwriters, to the extent provided in the preceding paragraphtheir officers, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statementemployees and agents, if any, and any person each Person, if any, who controls the Company such underwriters within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only herein before provided with respect to information relating to such Holder furnished in writing by or on behalf the indemnification of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any holders of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except KSI Registrable Securities; provided that if the Company shall have assumed the defense thereof such Holder KSI shall not be required to do soindemnify any such underwriter, but may employ separate counsel therein and participate in the defense thereofor any officer, but the fees and expenses director or employee of such counsel shall be 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 Holder's expense), 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 Company, its directors, any underwriter was provided with such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveamended or supplemented final prospectus. (db) If 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 indemnification provided for in this 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 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect 15 of the Securities Act, against any losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses referred resulting from any untrue statement or alleged untrue statement of a material fact, or any omission or alleged omission of a material fact required to therein, then an indemnifying partybe stated in the registration statement or prospectus or preliminary prospectus or any amendment thereof or supplement thereto or necessary to make the statements therein (in the case of any prospectus, in lieu light of the circumstances under which they were made) not misleading, but only to the extent that such untrue statement is contained in or such omission is from information so concerning a holder furnished in writing by such holder expressly for use therein; provided that such holder's obligations hereunder shall be limited to an amount equal to the net proceeds to such holder of the KSI Registrable Securities sold pursuant to such registration statement; and provided further that, without such holder's consent, such holder shall not be required to indemnify KSI, any such underwriter, or any of their officers, directors or employees or any Person who controls KSI or 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. (c) Any Person entitled to indemnification under the provisions of this Section 3.7 shall (i) give prompt notice to the indemnifying party of any claim with respect to which it seeks indemnification and (ii) unless in such indemnified party's reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist in respect of such claim, permit such indemnifying party to assume the defense of such claim, with counsel reasonably satisfactory to the indemnified party; and if such defense is so assumed, such indemnifying party shall not enter into any settlement without the consent of the indemnified party if such settlement attributes liability to the indemnified party and such indemnifying party shall not be subject to any liability for any settlement made without its consent (which shall not be unreasonably withheld); and any underwriting agreement entered into with respect to any registration statement provided for under this Article III shall so provide. In the event an indemnifying party shall not be entitled, or elects not, to assume the defense of a 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 in respect of such claim, unless in the reasonable judgment of any such indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties in respect to such claim. (d) If for any reason the foregoing indemnity is unavailable, then the indemnifying party shall contribute to the amount paid or payable by such the indemnified party as a result of such losses, claims, damages, liabilities or expenses (i) in such proportion as is appropriate to reflect the relative fault of benefits received by the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company indemnifying party on the one hand and a participating Holder the indemnified party on the other hand shall be determined or (ii) if the allocation provided by reference toclause (i) above is not permitted by Applicable Law or provides a lesser sum to the indemnified party than the amount hereinafter calculated, among other things, whether in such proportion as is appropriate to reflect not only the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied relative benefits received by the Company indemnifying party on the one hand or by such participating Holder and the indemnified party on the other hand but also the relative fault of the indemnifying party and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, well as any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceedingrelevant equitable considerations. Notwithstanding the provisions of this Section 9foregoing, no participating Holder holder of KSI Registrable Securities shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise holder would have been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omissionto an indemnified party if the indemnity under Section 3.7(b) was available. 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 obligation of any Person to contribute pursuant to this Section 3.7 shall be several and not joint. (e) An indemnifying party shall make payments of all amounts required to be made pursuant to the foregoing provisions of this Section 3.7 to 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) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 3.7 shall remain operative and in full force and effect, effect regardless of (i) any investigation made by or on behalf of an Indemnitee, the Companya participating holder of KSI Registrable Securities, its directors or officers, directors, members, agents or any person controlling the CompanyPerson, if any, who controls such holder as aforesaid, and (ii) any 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 agrees to will indemnify and hold harmless each seller of Registrable Securities covered harmless, to the fullest extent permitted by a Registration Statement filed pursuant to this Agreementlaw, any Holder and any underwriter for such Holder, and such seller's partnerseach person, directorsif any, officers, employees and any Person who controls the Holder or such seller under the Securities Act (eachunderwriter, an "Indemnitee") from and against any and all losses, damages, claims, damagesliabilities, liabilities joint or several, costs and expenses (including reasonable any amounts paid in any settlement effected with Company's consent) to which the Holder or any such underwriter or controlling person may become subject under applicable law or otherwise, insofar as such losses, damages, claims, liabilities (or actions or proceedings in respect thereof), costs of investigation) arising or expenses arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained in any prepricing prospectus, the registration statement or prospectus included in the prospectus, as amended or in any amendment or supplement theretosupplemented, or arising out of or based upon any (ii) the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein therein, in the light of the circumstances under which they are made, not misleading, except insofar and Company will reimburse the Holder, such underwriter and each such controlling person of the Holder or the underwriter, promptly upon demand, for any reasonable legal or any other expenses incurred by them in connection with investigating, preparing to defend or defending against or appearing as a third party witness in connection with such lossesloss, claimsclaim, damagesdamage, liabilities liability, action or expenses rise proceeding; provided, however, that Company will not be liable in any such case to the extent that any such loss, damage, liability, cost or expense arises out of or are is based upon any an untrue statement or alleged untrue statement or omission or alleged untrue statement or omission which has been so made therein or omitted therefrom in reliance upon and in strict conformity with the written information relating to furnished by a participating Holder furnished in writing to the Company managing underwriter specifically for inclusion therein; provided, further, that the indemnity agreement contained in this subsection 2.6(a) shall not apply to amounts paid in settlement of any such claim, loss, damage, liability or action if such settlement is effected without the consent of Company, which consent shall not be unreasonably withheld. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of a participating the selling Holder, the underwriter or any controlling person of the selling Holder expressly for use or the underwriter, and regardless of any sale in connection therewithwith such offering by the selling Holder. The foregoing Such indemnity agreement shall be in addition to any liability which survive the Company may otherwise havetransfer of securities by a selling Holder. (b) If any action, suit or proceeding shall be brought against an Indemnitee Each Holder participating in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to registration hereunder will indemnify and hold harmless Company, any underwriter for Company, and each person, if any, who controls Company or such Indemnitee, to the extent provided in the preceding paragraphunderwriter, from and against any and all losses, damages, claims, liabilities, costs or expenses (including any amounts paid in any settlement effected with the selling Holder's consent) to which Company or any such controlling person and/or any such underwriter may become subject under applicable law or otherwise, insofar as such losses, damages, claims, liabilities (or actions or proceedings in respect thereof), costs or expenses arise out of or are based on (i) any untrue 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 the alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, and each such Holder will reimburse Company, any underwriter and each such controlling person of Company or any underwriter, promptly upon demand, for any reasonable legal or other expenses incurred by them in connection with investigating, preparing to defend or defending against or appearing as a third party witness in connection with such loss, claim, damage, liability liability, action or expense proceeding; in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was so made in strict conformity with written information furnished by reason such Holder to the managing underwriter specifically for inclusion therein; provided, however, that the indemnity agreement contained in this subsection 2.6(b) shall not apply to amounts paid in settlement of any such claim, loss, damage, liability, or action if such settlement is effected without the consent of such settlement or judgmentHolder, which consent shall not be unreasonably withheld. In no event shall the liability of any Holder exceed the gross proceeds received by such Holder from the offering. (c) Each Promptly after receipt by an indemnified party pursuant to the provisions of subsections 2.6(a) or (b) of notice of the participating Holders, severally and not jointly, agree to indemnify and hold harmless commencement of any action involving the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 subject matter of the Securities Act foregoing indemnity provisions, such indemnified party will, if a claim thereof is to be made against the indemnifying party pursuant to the provisions of said subsections 2.6(a) or Section 20 (b), promptly notify the indemnifying party of the Exchange Actcommencement thereof; but the omission to notify the indemnifying party will not relieve it from any liability which it may have to any indemnified party otherwise than to the extent the party to be notified is actually prejudiced thereby. In case such action is brought against any indemnified party and it notifies the indemnifying party of the commencement thereof, the indemnifying party shall have the right to participate in, and, to the same extent as that it may wish, jointly with any other indemnifying party similarly notified, to assume the foregoing indemnity from the Company to an Indemnitee, but only defense thereof with respect to information relating counsel reasonably satisfactory to such Holder furnished indemnified party; provided, however, that if the defendants in writing by any action include both the indemnified party and the indemnifying party and there is a conflict of interests which would prevent counsel for the indemnifying party from also representing the indemnified party, the indemnified party or parties shall have the right to select one separate counsel to participate in the defense of such action on behalf of such Holder expressly for use in indemnified party or parties. After notice from the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any indemnifying party to such indemnified party of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant election to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in assume the defense thereof, but the fees and expenses of indemnifying party will not be liable to such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (apursuant to the provisions of said subsections 2.6(a) or (cb) hereof in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an 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, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, for any legal or other expenses reasonably expense subsequently incurred by such indemnified party in connection with investigating the defense thereof, unless (i) the indemnified party shall have employed counsel in accordance with the provision of the preceding sentence, (ii) the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after the notice of the commencement of the action and within 15 days after written notice of the indemnified party's intention to employ separate counsel pursuant to the previous sentence, or (iii) the indemnifying party has authorized the employment of counsel for the indemnified party at the expense of the indemnifying party. No indemnifying party will consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such claim or defending litigation. (d) If recovery is not available under the foregoing indemnification provisions with respect to a matter referred to in Sections 2.6 (a) or(b) hereof, for any reason other than as specified therein, the parties entitled to indemnification by the terms thereof shall be entitled to contribution to liabilities and expenses as more fully set forth in an underwriting agreement to be executed in connection with such actionregistration. In determining the amount of contribution to which the respective parties are entitled, suit there shall be considered the parties' relative knowledge and access to information concerning the matter with respect to which the claim was asserted, the opportunity to correct and prevent any statement or proceeding. Notwithstanding omission, and any other equitable considerations appropriate under the provisions of this Section 9, circumstances; provided that no participating Holder party shall be required to contribute any an amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise it would have 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. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party pursuant to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreementforegoing indemnification provisions if they had been available.

Appears in 1 contract

Samples: Purchase Agreement (Sheridan Energy Inc)

Indemnification; Contribution. (a) The Company agrees and the Issuer agree to indemnify indemnify, defend and hold harmless each seller Initial Purchaser, each Holder, each person (a “Controlling Person”), if any, who controls any Initial Purchaser or Holder within the meaning of Registrable Section 15 of the Securities covered by a Registration Statement filed pursuant to this Agreement, Act or Section 20 of the Exchange Act and such seller's partnersthe respective officers, directors, officerspartners, employees employees, representatives and agents of any Initial Purchaser, the Holders or any Controlling Person who controls such seller under the Securities Act (each, an "Indemnitee") a “Holder Indemnified Party”), from and against any and all lossesloss, claimsdamage, damagesexpense, liabilities and expenses liability, claim or any actions in respect thereof (including the reasonable costs cost of investigation) arising which such Holder Indemnified Party may incur or become subject to under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectusShelf Registration Statement or Prospectus, registration statement or prospectus including any document incorporated by reference therein, or in any amendment or supplement theretothereto or in any preliminary prospectus, or arising arises out of or is based upon any omission or alleged omission to state therein a material fact required to be stated therein in any Shelf Registration Statement or in any amendment or supplement thereto or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise arises out of or are is based upon any omission or alleged omission to state a material fact necessary in order to make the statements made in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which such statements were made, not misleading, and the Company and the Issuer shall reimburse, as incurred, the Holder Indemnified Parties for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, damage, expense, liability, claim or action in respect thereof; provided, however, that the Company 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 loss, damage, expense, liability, claim or action arises out of or is based upon (i) any untrue statement or omission or alleged untrue statement or omission which has been made therein of a material fact contained in, or omitted therefrom in reliance upon from, and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of an Initial Purchaser or a participating Holder to the Company expressly for use in connection therewith. The foregoing in, any Shelf Registration Statement or any Prospectus or (ii) a disposition, pursuant to a Shelf Registration Statement, of Registrable Securities by a Holder Indemnified Party during a Suspension Period, provided such Holder Indemnified Party received, prior to such disposition, a Suspension Notice with respect to such Suspension Period; provided further, however, that this indemnity agreement shall will be in addition to any liability which the Company and the Issuer may otherwise havehave to such Holder Indemnified Party. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating HoldersHolder, severally and not jointly, agree agrees to indemnify indemnify, defend and hold harmless the CompanyCompany and the Issuer, each of its directors, its officers who sign the registration statementofficers, employees, representatives, agents and any person who controls the Company and the Issuer within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, a “Company 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 Company Indemnified Party may incur or become subject to under the Securities Act, to the same extent Exchange Act or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or is based upon (A) any untrue statement or alleged untrue statement of a material fact contained in, and in conformity with information (the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder Information”) furnished in writing by or on behalf of such Holder to the Company expressly for use in, any Shelf Registration Statement or Prospectus, or arises out of or is based upon any omission or alleged omission 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 any Shelf Registration Statement or Prospectus or necessary to make such Holder Information not misleading, (B) a sale, by such Holder pursuant to a Shelf Registration Statement in or with respect to which such Holder is named as a selling securityholder, of Registrable Securities during a Suspension Period, provided that the Company shall have theretofore provided such Holder a Suspension Notice in accordance with Section 3(k), or (C) a public sale of Registrable Securities by such Holder without delivery, if required by the Securities Act, of the most recent applicable Prospectus provided to such Holder by the Company pursuant to Section 3(i) or Section 2(d)(i)(C), provided the Company shall have theretofore provided such Holder with copies of such Prospectus in a timely manner so as to permit such delivery; and, subject to the limitation set forth in the registration statementimmediately preceding clause, prospectus each Holder shall reimburse, as incurred, the Company and the Issuer for any legal or other expenses reasonably incurred by the Company and the Issuer or any prepricing prospectussuch 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 Company and the Issuer or any amendment or supplement theretoof its controlling persons. In no event shall the liability of any selling Holder of Registrable Securities hereunder be greater in amount than the dollar amount of the proceeds received by such Holder upon the sale, pursuant to the Shelf Registration Statement, of the Registrable Securities giving rise to such indemnification obligation. (c) If any action, suit or proceeding shall be (each, a “Proceeding”) is brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this either Section 9(c6(a) or Section 6(b), such Holder person (the “Indemnified Party”) shall have promptly notify the rights person against whom such indemnity may be sought (the “Indemnifying Party”) in writing of the institution of such Proceeding and duties given to the Company by Section 9(b) hereof (except that if the Company Indemnifying Party shall have assumed assume the defense thereof of such Holder 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. The Indemnifying Party shall be required entitled to do so, but may employ separate appoint counsel therein and participate (including local counsel) of the Indemnifying Party’s choice at the Indemnifying Party’s expense to represent the Indemnified Party in any action for which indemnification is sought (in which case the defense thereof, but Indemnifying Party shall not thereafter be responsible for the fees and expenses of any separate counsel, other than local counsel if not appointed by the Indemnifying Party, retained by the Indemnified Party or parties except as set forth below); provided, however, that such counsel shall be at reasonably satisfactory to the Holder's expenseIndemnified Party. Notwithstanding the Indemnifying Party’s election to appoint counsel (including local counsel) to represent the Indemnified Party in an action, the Indemnified Party shall have the right to employ separate counsel (including local counsel), and the CompanyIndemnifying Party shall bear the reasonable fees, its directorscosts and expenses of such separate counsel (it being understood, however, that such Indemnifying Party shall not be liable for the expenses of more than one separate counsel in any one Proceeding or series of related Proceedings together with reasonably necessary local counsel representing the Indemnified Parties who are parties to such action) if (i) the use of counsel chosen by the Indemnifying Party to represent the Indemnified Party would present such counsel with a conflict of interest; (ii) the actual or potential defendants in, or targets of, any such officeraction include both the Indemnified Party and the Indemnifying Party and the Indemnified Party shall have reasonably concluded that there may be legal defenses available to it and/or other Indemnified Parties that are different from or additional to those available to the Indemnifying Party; (iii) the Indemnifying Party shall not have employed counsel satisfactory to the Indemnified Party to represent the Indemnified Party within sixty (60) days after notice of the institution of such action; or (iv) the Indemnifying Party shall authorize the Indemnified Party to employ separate counsel at the expense of the Indemnifying Party. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending or threatened action in respect of which any Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party unless such settlement (i) includes an unconditional release of such Indemnified Party from all liability on any claims that are the subject matter of such action, (ii) does not include a statement as to, or an admission of, fault, culpability or a failure to act by or on behalf of an Indemnified Party, and (iii) does not include any such controlling person shall have undertaking or obligation to act or to refrain from acting by the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveIndemnified Party. (d) If the indemnification provided for in this Section 9 6 is unavailable to an indemnified party Indemnified Party under paragraphs (aSection 6(a) or (c) hereof Section 6(b), or insufficient to hold such Indemnified Party harmless, in respect of any losses, claims, damages, liabilities expenses, liabilities, claims or expenses actions referred to therein, then an 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, claims, damages, liabilities expenses, liabilities, claims or expenses actions (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Issuer, on the one hand, and by the Holders or the Initial Purchaser, 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 Company and the Issuer, on the one hand, and of the participating Holders or the Initial Purchaser, on the other hand, in connection with the statements or omissions that which resulted in such losses, claims, damages, liabilities expenses, liabilities, claims or expensesactions, as well as any other relevant equitable considerations. The relative fault of the Company and the Issuer, on the one hand hand, and a participating Holder of the Holders or the Initial Purchaser, on the other hand hand, shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact omission relates to information supplied by the Company on and the one hand Issuer or by such participating Holder on the other hand Holders or the Initial Purchaser and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, damages, expenses, liabilities, claims and actions referred to above shall be deemed to include any reasonable legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any Proceeding. (e) The Company Company, the Issuer, the Holders and the participating Holders Initial Purchaser agree that it would not be just and equitable if contribution pursuant to this Section 9 6 were determined by a pro rata allocation or by any other method of allocation that which does not take account of the equitable considerations referred to in Section 9(d6(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 96, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds total price at which the Registrable Securities giving rise to such participating contribution obligation and sold by such Holder were offered to the public exceeds the amount of any damages which such participating Holder it 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 Holders’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint. The remedies provided for in this Section 6 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements provisions contained in this Section 9 6 shall remain operative and in full force and effect, effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of an Indemniteeany Holder or the Initial Purchaser or any person controlling any Holder or Initial Purchaser, or the Company, its or the Issuer, or the Company’s or the Issuer’s officers or directors or officers, or any person controlling the Company, Company or the Issuer and (iiiii) the sale of any termination of this AgreementRegistrable Security by any Holder.

Appears in 1 contract

Samples: Registration Rights Agreement (Sl Green Realty Corp)

Indemnification; Contribution. (a) The If any Registrable Securities are included in a registration statement under this Agreement: 7.1 To the extent permitted by applicable law, the Company agrees to shall indemnify and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementSelling Holder, and such seller's partners, its directors, officers, employees shareholders, employees, investment advisors, agents and any Person Affiliates, either direct or indirect (each such Affiliate's directors, officers, shareholders, employees, investment advisors and agents) and each other Person, if any, who controls such seller under Selling Holder within the meaning of the Securities Act (each, an "Indemnitee") from and against any and all losses, claims, damages, liabilities and expenses, including attorneys' fees and disbursements and expenses (including reasonable costs of investigation) arising , incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation, 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 untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any prepricing prospectus, registration statement or preliminary prospectus or in final prospectus contained therein, or any amendment amendments or supplement supplements thereto, or arising out of or based upon any the omission or alleged omission to state therein a material fact required to be stated therein therein, or necessary to make the statements therein not misleadingmisleading (collectively, except a "Violation"); provided, however, that the indemnification required by this Section 7.1 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or expense if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable 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. 7.2 To the extent permitted by applicable law, each Selling Holder shall indemnify and hold harmless the Company, its directors, officers, shareholders, employees, investment advisors, agents and Affiliates, either direct or indirect (and each such Affiliate's directors, officers, shareholders, employees, investment advisors and agents) and each other Person, if any, who controls the Company within the meaning of the Securities Act, any other Selling Holder and any controlling Person of any such Selling Holder against any and all losses, claims, damages, liabilities and expenses, including attorneys' fees and disbursements and expenses of investigation, incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation, to which any of the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or other federal or state laws, insofar as such losses, claims, damages, liabilities or and expenses rise arise out of or are based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with the written information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating such Selling Holder expressly for use in connection therewith. The foregoing indemnity agreement with such registration statement; provided, however, that (x) the indemnification required by this Section 7.2 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or expense if settlement is effected without the consent of the relevant Selling Holder or Registrable Securities, which consent shall be unreasonably withheld, (y) in addition no event shall the amount of any indemnity under this Section 7.2 and of the contribution obligation of a Selling Holder under Section 7.4 exceed the net proceeds from the applicable offering received by such Selling Holder, and (z) the obligation to any liability which provide indemnification hereunder shall be several, and not joint and several, among the Company may otherwise haveindemnifying parties. (b) If 7.3 Promptly after receipt by an indemnified party under this Section 7 of notice of the commencement of any action, suit suit, proceeding, investigation or proceeding threat thereof made in writing for which such indemnified party may make a claim under this Section 7, such indemnified party shall deliver to the indemnifying party a written notice of the commencement thereof. The failure to deliver written notice to the indemnifying party within a reasonable time following the commencement of any such action, if and to the extent materially prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 7 but shall not relieve the indemnifying party of any liability that it may have to any indemnified party otherwise than pursuant to this Section 7. Any fees and expenses incurred by the indemnified party (including any fees and expenses incurred in connection with investigating or preparing to defend such action or proceeding) shall be brought against paid to the indemnified party, as incurred, within thirty days of written notice thereof to the indemnifying party (regardless of whether it is ultimately determined that an Indemnitee in respect of which indemnity may be sought against the Company, indemnified party is not entitled to indemnification hereunder). Any such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee indemnified party shall have the right to employ separate counsel in any such action, suit claim or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense expenses of such Indemnitee indemnified party unless (xi) the Company has agreed in writing to pay such fees and expenses, (y) the Company has indemnifying party shall have failed to promptly assume the defense and employ counselof such action, claim or proceeding or (zii) the named parties to any such action, suit claim or proceeding (including any impleaded parties) include both such Indemnitee indemnified party and the Companyindemnifying party, and such Indemnitee indemnified party shall have been advised by its counsel that representation there may be one or more legal defenses available to it which are different from or in addition to those available to the indemnifying party and that the assertion of such Indemnitee and the Company defenses would create a conflict of interest such that counsel employed by the same counsel would be inappropriate under applicable standards of professional conduct (whether or indemnifying party could not such representation by represent the same counsel has been proposed) due to actual or potential differing interests between them indemnified party (in which case case, if such indemnified party notifies the Company indemnifying party in writing that it elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense of such action, suit claim or proceeding on behalf of such Indemnitee). It is indemnified party; it being understood, however, that the Company shallindemnifying party shall not, in connection with any one such action, suit claim or proceeding or separate but substantially similar or related actions, suits claims or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only more than one separate firm of attorneys (in addition to any together with appropriate local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselvesindemnified parties, unless the indemnified party shall have been advised by its counsel that a conflict of interest may exist between such indemnified party and that all any other of such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any indemnified parties with respect to such action, suit claim or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for that the plaintiff in counsel could not represent the indemnified party and any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason other of such settlement or judgment. (c) Each of indemnified parties, in which event the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding indemnifying party shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant obligated to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but pay the fees and expenses of such additional counsel or counsels). No indemnifying party shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable liable to an indemnified party under paragraphs (a) or (c) hereof in respect for any settlement of any losses, claims, damages, liabilities or expenses referred to therein, then an 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, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit proceeding or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall, claim without the prior written consent of the indemnified indemnifying party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceedingconsent shall not be unreasonably withheld. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.

Appears in 1 contract

Samples: Stockholders Agreement (Bankamerica Corp)

Indemnification; Contribution. (a) The Company agrees and the Issuer agree to indemnify indemnify, defend and hold harmless the Initial Purchaser, each seller Holder, each person (a “Controlling Person”), if any, who controls the Initial Purchaser or any Holder within the meaning of Registrable Section 15 of the Securities covered by a Registration Statement filed pursuant to this Agreement, Act or Section 20 of the Exchange Act and such seller's partnersthe respective officers, directors, officerspartners, employees employees, representatives and agents of the Initial Purchaser, the Holders or any Controlling Person who controls such seller under the Securities Act (each, an "Indemnitee") a “Holder Indemnified Party”), from and against any and all lossesloss, claimsdamage, damagesexpense, liabilities and expenses liability, claim or any actions in respect thereof (including the reasonable costs cost of investigation) arising which such Holder Indemnified Party may incur or become subject to under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectusShelf Registration Statement or Prospectus, registration statement or prospectus including any document incorporated by reference therein, or in any amendment or supplement theretothereto or in any preliminary prospectus, or arising arises out of or is based upon any omission or alleged omission to state therein a material fact required to be stated therein in any Shelf Registration Statement or in any amendment or supplement thereto or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise arises out of or are is based upon any omission or alleged omission to state a material fact necessary in order to make the statements made in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which such statements were made, not misleading, and the Company and the Issuer shall reimburse, as incurred, the Holder Indemnified Parties for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, damage, expense, liability, claim or action in respect thereof; provided, however, that the Company 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 loss, damage, expense, liability, claim or action arises out of or is based upon (i) any untrue statement or omission or alleged untrue statement or omission which has been made therein of a material fact contained in, or omitted therefrom in reliance upon from, and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of an Initial Purchaser or a participating Holder to the Company expressly for use in connection therewith. The foregoing in, any Shelf Registration Statement or any Prospectus or (ii) a disposition, pursuant to a Shelf Registration Statement, of Registrable Securities by a Holder Indemnified Party during a Suspension Period, provided such Holder Indemnified Party received, prior to such disposition, a Suspension Notice with respect to such Suspension Period; provided further, however, that this indemnity agreement shall will be in addition to any liability which the Company and the Issuer may otherwise havehave to such Holder Indemnified Party. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating HoldersHolder, severally and not jointly, agree agrees to indemnify indemnify, defend and hold harmless the Company, its the Issuer, each of their respective directors, its officers who sign the registration statementofficers, employees, representatives, agents and any person who controls the Company or the Issuer within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, a “Company 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 Company Indemnified Party may incur or become subject to under the Securities Act, to the same extent Exchange Act or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or is based upon (A) any untrue statement or alleged untrue statement of a material fact contained in, and in conformity with information (the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder Information”) furnished in writing by or on behalf of such Holder to the Company expressly for use in, any Shelf Registration Statement or Prospectus, or arises out of or is based upon any omission or alleged omission 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 any Shelf Registration Statement or Prospectus or necessary to make such Holder Information not misleading, (B) a sale, by such Holder pursuant to a Shelf Registration Statement in or with respect to which such Holder is named as a selling securityholder, of Registrable Securities during a Suspension Period, provided that the Company shall have theretofore provided such Holder a Suspension Notice in accordance with Section 3(k), or (C) a public sale of Registrable Securities by such Holder without delivery, if required by the Securities Act, of the most recent applicable Prospectus provided to such Holder by the Company pursuant to Section 3(i) or Section 2(d)(i)(C), provided the Company shall have theretofore provided such Holder with copies of such Prospectus in a timely manner so as to permit such delivery; and, subject to the limitation set forth in the registration statementimmediately preceding clause, prospectus each Holder shall reimburse, as incurred, the Company and the Issuer for any legal or other expenses reasonably incurred by the Company and the Issuer or any prepricing prospectussuch 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 Company and the Issuer or any amendment or supplement theretoof its controlling persons. In no event shall the liability of any selling Holder of Registrable Securities hereunder be greater in amount than the dollar amount of the proceeds received by such Holder upon the sale, pursuant to the Shelf Registration Statement, of the Registrable Securities giving rise to such indemnification obligation. (c) If any action, suit or proceeding shall be (each, a “Proceeding”) is brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this either Section 9(c6(a) or Section 6(b), such Holder 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 the rights to such Indemnified Party or otherwise unless and duties given to the Company by Section 9(bextent such failure to give notice results in the loss or compromise of any material rights or defenses of the Indemnifying Party. The Indemnifying Party shall be entitled to appoint counsel (including local counsel) hereof of the Indemnifying Party’s choice at the Indemnifying Party’s expense to represent the Indemnified Party in any action for which indemnification is sought (except that if in which case the Company shall have assumed the defense thereof such Holder Indemnifying Party shall not thereafter be required to do so, but may employ separate counsel therein and participate in the defense thereof, but responsible for the fees and expenses of any separate counsel, other than local counsel if not appointed by the Indemnifying Party, retained by the Indemnified Party or parties except as set forth below); provided, however, that such counsel shall be at reasonably satisfactory to the Holder's expenseIndemnified Party. Notwithstanding the Indemnifying Party’s election to appoint counsel (including local counsel) to represent the Indemnified Party in an action, the Indemnified Party shall have the right to employ separate counsel (including local counsel), and the CompanyIndemnifying Party shall bear the reasonable fees, its directorscosts and expenses of such separate counsel (it being understood, however, that such Indemnifying Party shall not be liable for the expenses of more than one separate counsel in any one Proceeding or series of related Proceedings together with reasonably necessary local counsel representing the Indemnified Parties who are parties to such action) if (i) the use of counsel chosen by the Indemnifying Party to represent the Indemnified Party would present such counsel with a conflict of interest; (ii) the actual or potential defendants in, or targets of, any such officeraction include both the Indemnified Party and the Indemnifying Party and the Indemnified Party shall have reasonably concluded that there may be legal defenses available to it and/or other Indemnified Parties that are different from or additional to those available to the Indemnifying Party; (iii) the Indemnifying Party shall not have employed counsel satisfactory to the Indemnified Party to represent the Indemnified Party within sixty (60) days after notice of the institution of such action; or (iv) the Indemnifying Party shall authorize the Indemnified Party to employ separate counsel at the expense of the Indemnifying Party. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending or threatened action in respect of which any Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party unless such settlement (i) includes an unconditional release of such Indemnified Party from all liability on any claims that are the subject matter of such action, (ii) does not include a statement as to, or an admission of, fault, culpability or a failure to act by or on behalf of an Indemnified Party, and (iii) does not include any such controlling person shall have undertaking or obligation to act or to refrain from acting by the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveIndemnified Party. (d) If the indemnification provided for in this Section 9 6 is unavailable to an indemnified party Indemnified Party under paragraphs (aSection 6(a) or (c) hereof Section 6(b), or insufficient to hold such Indemnified Party harmless, in respect of any losses, claims, damages, liabilities expenses, liabilities, claims or expenses actions referred to therein, then an 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, claims, damages, liabilities expenses, liabilities, claims or expenses actions (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Issuer, on the one hand, and by the Holders or the Initial Purchaser, 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 Company and the Issuer, on the one hand, and of the participating Holders or the Initial Purchaser, on the other hand, in connection with the statements or omissions that which resulted in such losses, claims, damages, liabilities expenses, liabilities, claims or expensesactions, as well as any other relevant equitable considerations. The relative fault of the Company and the Issuer, on the one hand hand, and a participating Holder of the Holders or the Initial Purchaser, on the other hand hand, shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact omission relates to information supplied by the Company on and the one hand Issuer or by such participating Holder on the other hand Holders or the Initial Purchaser and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, damages, expenses, liabilities, claims and actions referred to above shall be deemed to include any reasonable legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any Proceeding. (e) The Company Company, the Issuer, the Holders and the participating Holders Initial Purchaser agree that it would not be just and equitable if contribution pursuant to this Section 9 6 were determined by a pro rata allocation or by any other method of allocation that which does not take account of the equitable considerations referred to in Section 9(d6(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 96, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds total price at which the Registrable Securities giving rise to such participating contribution obligation and sold by such Holder were offered to the public exceeds the amount of any damages which such participating Holder it 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 Holders’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint. The remedies provided for in this Section 6 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements provisions contained in this Section 9 6 shall remain operative and in full force and effect, effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of an Indemniteeany Holder or the Initial Purchaser or any person controlling any Holder or Initial Purchaser, or the Company or the Issuer, or the Company, its ’s or the Issuer’s officers or directors or officers, or any person controlling the Company, Company or the Issuer and (iiiii) the sale of any termination of this AgreementRegistrable Security by any Holder.

Appears in 1 contract

Samples: Registration Rights Agreement (SL Green Operating Partnership, L.P.)

Indemnification; Contribution. (a) The Company agrees Trust hereby indemnifies, to indemnify and hold harmless the fullest extent permitted by law, each seller Holder of Registrable Securities covered included in any registration statement filed by a Registration Statement filed pursuant to this Agreement, the Trust and such seller's partners, the directors, officers, employees partners, employees, agents and any each Person who controls such seller under any Holder within the meaning of the Securities Act (eachand the Exchange Act, an "Indemnitee") from and if any, against any and all losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (including reasonable costs of investigation) arising under the Securities Act, common law and otherwise), joint or several, which arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, such registration statement or prospectus or in any prospectus, preliminary prospectus, any amendment or supplement theretothereto or any document incorporated by reference relating thereto or in any filing made in connection with the registration or qualification of the offering under "blue sky" or other securities laws of jurisdictions in which the Registrable Securities are offered, or arising out of or based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein therein, in light of the circumstances under which they were made, not misleading, except insofar and the Trust shall reimburse such Holders for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or proceeding, (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, if used prior to the effective date of such registration statement (unless such statement is corrected in the final prospectus and the Trust has previously furnished copies thereof to any holder of Registrable Securities seeking such indemnification and to the underwriters of the registration in question), or contained in the final prospectus (as amended or supplemented if the Trust shall have filed with the Commission any amendment thereof or supplement thereto) if used within the period during which the Trust is required to keep the registration statement to which such prospectus relates current, or the omission or alleged omission to state therein a material fact necessary in order to make the statements therein in light of the circumstances under which they were made, not misleading; provided, however, that such indemnification shall not extend to any such losses, claims, damages, liabilities (or proceedings in respect thereof) or expenses rise out that are caused by any untrue statement or alleged untrue statement contained in, or by any omission or alleged omission from, information furnished in writing to the Trust by such Holder in such capacity specifically and expressly for use in any such registration statement or prospectus. (b) In the case of an underwritten offering pursuant to Section 3 hereof in which the registration statement covers Registrable Securities, the Trust shall enter into an underwriting agreement in customary form and substance with such underwriters and, if so requested, a contribution agreement in customary form and substance with such underwriters and shall indemnify the underwriters, their officers and directors, if any, and each person, if any, who controls such underwriters within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act, to the same extent as provided in the preceding paragraph with respect to the indemnification of the Holders of Registrable Securities and to the same extent as then customary in underwriting agreements of such underwriter; provided, however, that the Trust shall not be required to indemnify any such underwriter, or are based upon any officer or director of such underwriter or any person who controls such underwriter within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act, to the extent that the loss, claim, damage, liability (or proceedings in respect thereof) or expense for which indemnification is sought results from such underwriter's failure to deliver or otherwise provide a copy of the final prospectus to the Person asserting an untrue statement or omission or alleged untrue statement or omission at or prior to the written confirmation of the sale of securities to such Person, if such statement or omission was in fact corrected in such final prospectus. (c) In connection with any registration statement with respect to which has been a Holder of Registrable Securities is participating, each such Holder shall furnish to the Trust in writing such information regarding such Holder included in a registration statement and the intended method of distribution as shall be reasonably requested by the Trust for use in any such registration statement or prospectus and each of the Holders hereby indemnifies, severally but not jointly, to the fullest extent permitted by law, the Trust, its officers and directors and each person, if any, who controls the Trust within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act, against any losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses resulting from any untrue statement or alleged untrue statement of a material fact or any omission or alleged omission of a material fact required to be stated or necessary to make the statements in the registration statement or prospectus, or any amendment thereof or supplement thereto, not misleading; provided, however, that each of the Holders shall be liable hereunder if and only to the extent that any such loss, claim, damage, liability (or proceeding in respect thereof) or expense arises out of or is based upon an untrue statement, or alleged untrue statement or omission or alleged omission, made therein or omitted therefrom in reliance upon and in conformity with information pertaining to such Holder which is requested by the information relating to a participating Holder Trust and furnished in writing to the Company Trust by or on behalf of a participating such Holder specifically and expressly for use in connection therewith. The foregoing indemnity agreement any such registration statement or prospectus. (d) Any Person seeking indemnification under the provisions of this Section 8 shall, promptly after receipt by such Person of notice of the commencement of any action, suit, claim or proceeding, notify each party against whom indemnification is to be sought in writing of the commencement thereof; provided, however, that the failure so to notify an indemnifying party shall be not relieve the indemnifying party from any liability which it or he may have under this Section 8 (except to the extent that it has been prejudiced in addition to any material respect by such failure) or from any liability which the Company indemnifying party may otherwise have. (b) If . In case any such action, suit suit, claim or proceeding is brought against any indemnified party, and it notifies an indemnifying party of the commencement thereof, the indemnifying party shall be brought against an Indemnitee in respect of which indemnity entitled to participate therein and, to the extent it or he may be sought against elect by written notice delivered to the Companyindemnified party promptly after receiving the aforesaid notice from such indemnified party, such Indemnitee shall promptly notify the Company, and the Company shall to assume the defense thereofthereof with counsel reasonably satisfactory to such indemnified party. Notwithstanding the foregoing, including the employment of counsel and payment of all fees and expenses. The Indemnitee indemnified party shall have the right to employ separate its or his own counsel in any such action, suit or proceeding and to participate in the defense thereofcase, but the fees and expenses of such counsel shall be at the expense of such Indemnitee indemnified party unless (xi) the Company has agreed employment of such counsel shall have been authorized in writing to pay by the indemnifying party in connection with the defense of such fees and expensessuit, action, claim or proceeding, (yii) the Company has failed indemnifying party shall not have employed counsel (reasonably satisfactory to assume the indemnified party) to take charge of the defense and employ counselof such action, suit, claim or proceeding within a reasonable time after notice of commencement of the action, suit, claim or proceeding, or (ziii) such indemnified party shall have reasonably concluded, based on the named parties advice of counsel, that there may be defenses available to any such actionit which are different from or additional to those available to the indemnifying party which, suit or proceeding (including any impleaded parties) include both such Indemnitee if the indemnifying party and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company indemnified party were to be represented by the same counsel, could result in a conflict of interest for such counsel would or materially prejudice the prosecution of the defenses available to such indemnified party. If any of the events specified in clauses (ii) or (iii) of the preceding sentence shall have occurred or shall otherwise be inappropriate under applicable standards applicable, then the fees and expenses of professional conduct (whether one counsel or not such representation firm of counsel selected by a majority in interest of the indemnified parties shall be borne by the same counsel has been proposed) due to actual or potential differing interests between them (indemnifying party. If, in which case any case, the Company indemnified party employs separate counsel, the indemnifying party shall not have the right to assume direct the defense of such action, suit suit, claim or proceeding on behalf of such Indemnitee)the indemnified party. It is understoodAnything in this paragraph to the contrary notwithstanding, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company an indemnifying party shall not be liable for any the settlement of any such action, suit suit, claim or proceeding effected without its prior written consent, but if settled with such written consent, or if them be a final judgment for consent (which consent in the plaintiff in any such case of an action, suit suit, claim or proceeding, the Company agrees to indemnify proceeding exclusively seeking monetary relief shall not be unreasonably withheld or delayed). Such indemnification shall remain in full force and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against effect irrespective of any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing investigation made by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveindemnified party. (de) If the indemnification from the indemnifying party as provided for in this Section 9 8 is unavailable or is otherwise insufficient to hold harmless an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an the 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, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company indemnifying party and of the participating Holders indemnified parties in connection with the statements or omissions that actions which resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company on the one hand and a participating Holder on the other hand such indemnifying party shall be determined by reference to, among other things, whether the any action in question, including any untrue (or alleged untrue untrue) statement of a material fact or the omission (or alleged -omission omission) to state a material fact fact, has been made, or relates to information supplied by the Company on the one hand such indemnifying party or by such participating Holder on the other hand indemnified party, and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereofaction. The amount paid or payable by an indemnified a party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof above shall be deemed to include, subject to the limitations set forth abovein Section 8(e) hereof, any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit investigation or proceeding. Notwithstanding the provisions of The parties hereto acknowledge that it would not be just and equitable if contribution pursuant to this Section 9, no participating Holder shall be required to contribute 8 were determined by pro rata allocation or by any amount in excess other method of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omissionallocation other than as described above. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall. If, without the prior written consent of the indemnified partyhowever, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party indemnification is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution available under this Section 9 shall be paid by 8, the indemnifying parties shall indemnify each indemnified party to the fullest extent provided in Sections 8(a) through 8(e) hereof without regard to the relative fault of said indemnifying party or indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreementother equitable consideration.

Appears in 1 contract

Samples: Registration Rights Agreement (Pennsylvania Real Estate Investment Trust)

Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each seller Holder of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementSecurities, and such seller's partnersthe Affiliates, directors, officers, employees employees, members, managers and any agents of each such Holder and each Person who controls any such seller under Holder within the meaning of either the Securities Act (eachor the Exchange Act, an "Indemnitee") to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, expenses and actions to which they or any of them may become subject insofar as such losses, claims, damages, liabilities and expenses (including reasonable costs of investigationor actions in respect thereof) arising arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement or prospectus 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 arising arise out of or are based upon any the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration Statement (in light of the circumstances under which they were made) not misleading, except insofar and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such lossesloss, claimsclaim, damagesdamage, liabilities liability, expense or expenses rise 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 to the extent that any such loss, claim, damage, liability or expense arises (i) out of or are is based upon any such untrue statement or alleged untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the written information relating to a participating 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 (ii) out of sales of Registrable Securities made during a participating Holder expressly for use in connection therewithSuspension Period after notice is given pursuant to Section 1(f)(ii) hereof. The foregoing This indemnity agreement shall clause will be in addition to any liability which the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an 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, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Dynegy Inc.)

Indemnification; Contribution. (a) The Company agrees to indemnify In connection with any registration of Registrable Securities, Moelis Holdings will indemnify, defend and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementSMBC Unit-Holder, and such seller's partnersits affiliates, directors, officers, employees officers and any Person SMBC Unit-Holders and each person who controls such seller under SMBC Unit-Holder within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act (eachcollectively, an "Indemnitee"the “Indemnified Persons”) from and against any and all direct losses, claims, damages, liabilities liabilities, obligations, costs and expenses (including, without limitation, as a result of any notices, actions, suits, proceedings, claims, demands, assessments, judgments, awards, costs, penalties, taxes and reasonable expenses, including reasonable costs of investigationattorneys’ and other professionals’ fees and disbursements, but excluding any consequential damages) arising out of or based upon (collectively “Losses”) caused by (i) any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectuspart of any Registration Statement or any Prospectus, registration statement or prospectus or in including any amendment or supplement thereto, used in connection with the Registrable Securities or arising out of any Issuer FWP or based upon (ii) any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a Prospectus, in the light of the circumstances under which they were made) not misleading; provided, except insofar as however, that Moelis Holdings will not be required to indemnify any Indemnified Person for any Losses resulting from any such losses, claims, damages, liabilities or expenses rise out of or are based upon any untrue statement or omission or alleged if such untrue statement or omission which has been was made therein or omitted therefrom in reliance upon on and in conformity with the information relating with respect to a participating Holder any Indemnified Person furnished to Moelis Holdings in writing to the Company by by, or on behalf of, any of a participating Holder the SMBC Unit-Holders expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise havetherein. (b) If In connection with any actionRegistration Statement, suit Prospectus or Issuer FWP, each SMBC Unit-Holder, jointly and severally, will indemnify, defend and hold harmless Moelis Holdings, its directors, its officers and each person, if any, who controls Moelis Holdings (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act) to the same extent as the foregoing indemnity from Moelis Holdings to each SMBC Unit-Holder, but only with respect to information furnished to Moelis Holdings in writing by, or on behalf of, any SMBC Unit-Holder or any Indemnified Persons expressly for use in such Registration Statement, Prospectus or Issuer FWP; and provided, further, however, that in no event shall the liability for indemnity of any SMBC Unit-Holder under this Section 13.9(b) exceed the dollar amount of the proceeds (net of any underwriting discount or commission or other selling expenses) received by such SMBC Unit-Holder from the sale of the Registrable Securities giving rise to such indemnification. (c) In case any claim, action or proceeding shall be brought against an Indemnitee (including any governmental investigation) is instituted involving any person in respect of which indemnity may be sought against the Companypursuant to Section 13.9(a) or 13.9(b), such Indemnitee shall promptly person (the “Indemnified Party”) will promptly, but in any event within 10 Business Days, notify the Companyperson against whom such indemnity may be sought (the “Indemnifying Party”) in writing, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee Indemnifying Party shall have the right to employ separate participate in, and to the extent the Indemnifying Party so desires, to assume the defense thereof with counsel reasonably satisfactory to the Indemnified Party; provided, that the failure of any Indemnified Party to give notice within the time limit provided herein shall not relieve the Indemnifying Party of its obligations under Section 13.9(a) or 13.9(b), except to the extent that the Indemnifying Party is actually and materially prejudiced by such failure to give notice. In any such claim, action or proceeding where the Indemnifying Party has assumed the defense thereof, the Indemnified Party shall have the right, but not the obligation, to participate in any such action, suit or proceeding defense and to participate in the defense thereofretain its own counsel, but the fees and expenses of such counsel shall will be at the expense of such Indemnitee Indemnified Party unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee Indemnified Party and the Company, and such Indemnitee shall Indemnified Party have been advised by its counsel that representation of such Indemnitee and the Company both parties by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing conflicting interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee)them. It is understood, however, understood that the Company shallIndemnifying Party will not, in connection with any one such actionclaim, suit action or proceeding or separate but substantially similar or related actionsclaims, suits actions or proceedings in the same jurisdiction arising out of the same general allegations or circumstancesjurisdiction, be liable for the reasonable fees and expenses of only more than one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, Indemnified Parties and that all such reasonable fees and expenses shall will be reimbursed as they are incurred. In the case of the retention of any such separate firm for the Indemnified Parties, such firm will be designated in writing by the Indemnified Parties. No Indemnified Party will, without the prior written consent of the Indemnifying Party, settle, compromise or offer to settle or compromise any pending or threatened proceeding in respect of which any Indemnified Party is seeking indemnity hereunder. The Company shall Indemnifying Party will not be liable for any settlement of any such actionclaim, suit action or proceeding effected without its written consent, but if such claim, action or proceeding is settled with such written consent, consent or if them be there has been a final judgment for the plaintiff in any such action, suit or proceedingplaintiff, the Company Indemnifying Party agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, Indemnified Party from and against any loss, claim, damage, liability or expense Loss by reason of such settlement or judgment. (c) Each . No Indemnifying Party will, without the prior written consent of the participating HoldersIndemnified Party, severally and not jointlysettle, agree compromise or offer to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and settle or compromise any person who controls the Company within the meaning of Section 15 of the Securities Act pending or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or threatened proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which any Indemnified Party is seeking indemnity may be sought against hereunder, unless such settlement includes (i) an unconditional release of such Indemnified Party from all liability in connection with such proceeding, (ii) no finding or admission of any Holder pursuant to this Section 9(c), such Holder shall have violation of law or any violation of the rights and duties given to of any person by the Company by Section 9(b) hereof (except that if Indemnified Party or any of its Affiliates can be made as the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses result of such counsel shall be at the Holder's expense)action, and (iii) the Company, its directors, any such officer, and any such controlling person shall have sole relief (if any) provided is monetary damages that are reimbursed in full by the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveIndemnifying Party. (d) If the indemnification provided for in this Section 9 13.9 from the Indemnifying Party is unavailable to an indemnified party under paragraphs (a) Indemnified Party hereunder or (c) hereof is insufficient in respect of any losses, claims, damages, liabilities or expenses Losses referred to thereinin this Section 13.9, then an indemnifying partythe Indemnifying Party, in lieu of indemnifying such indemnified partyIndemnified Party, shall will contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such losses, claims, damages, liabilities or expenses Losses (i) in such proportion as is appropriate to reflect the relative fault of the Company Indemnifying Party and Indemnified Party in connection with the actions that resulted in such Losses, as well as any other relevant equitable considerations, or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative fault referred to in clause (i) but also the relative benefit of Moelis Holdings, on the participating Holders one hand, and each SMBC Unit-Holder, on the other, in connection with the statements or omissions that resulted in such lossesLosses, claimsas well as any other relevant equitable considerations; provided, damageshowever, liabilities or that in no event shall a SMBC Unit-Holder be required by this Section 13.9(d) to contribute an aggregate amount in excess of the dollar amount of proceeds (net of underwriting discounts and commissions and other selling expenses) received by such SMBC Unit-Holder from the sale of Registrable Securities giving rise to such contribution. The relative fault of the Company on the one hand such Indemnifying Party and a participating Holder on the other hand shall Indemnified Party will be determined by reference to, among other things, whether the any action in question, including any untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact fact, has been taken by, or relates to information supplied by the Company on the one hand by, such Indemnifying Party or by such participating Holder on the other hand Indemnified Party, and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement action. The amount paid or omissionpayable by a party as a result of the Losses referred to above will be deemed to include, subject to the limitations set forth in Section 13.9(c), any reasonable out of pocket legal or other out of pocket fees or expenses reasonably incurred by such party in connection with any investigation or proceeding. (e) The Company and the participating Holders parties agree that it would not be just and equitable if contribution pursuant to this Section 9 13.9(d) were determined by a pro rata allocation or by any other method of allocation that does not take into account of the equitable considerations referred to in Section 9(d13.9(d). No person guilty of “fraudulent misrepresentation” (within the meaning of Section 11(f) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred Securities Act) will be entitled to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, contribution from any legal or other expenses reasonably incurred by person who was not guilty of such indemnified party in connection with investigating any claim or defending any such action, suit or proceedingfraudulent misrepresentation. Notwithstanding the provisions of this Section 913.9(e), no participating a SMBC Unit-Holder shall not be required to contribute contribute, in the aggregate, any amount in excess of the amount by which the net proceeds to received by such participating SMBC Unit-Holder from the sale of the Registrable Securities exceeds the amount of any damages which such participating SMBC Unit-Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shallIf indemnification is available under this Section 13.9, the Indemnifying Party will indemnify each Indemnified Party to the fullest extent permissible under applicable law provided in Sections 13.9(a) and 13.9(b) without regard to the prior written consent relative fault of the indemnified party, effect said Indemnifying Party or Indemnified Party or any settlement other equitable consideration provided for in Section 13.9(d) or 13.9(e). The obligations of Moelis Holdings under this Section 13.9 shall be in addition to any pending or threatened action, suit or proceeding in respect of which liability that Moelis Holdings may otherwise have to any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceedingIndemnified Person. (g) Any lossesNotwithstanding anything to the contrary in this Agreement, claimseach of the Indemnified Parties has relied on this Section 13.9, damages, liabilities or expenses for which is an indemnified parry express third party beneficiary of this Section 13.9 and is entitled to indemnification or contribution enforce the obligations of the applicable Indemnified Parties under this Section 9 shall be paid by the indemnifying party 13.9 directly against such Indemnified Parties to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreementextent thereof.

Appears in 1 contract

Samples: Strategic Alliance Agreement (Moelis & Co)

Indemnification; Contribution. (a) The Company agrees to indemnify indemnify, defend and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this Agreement, Holder and such seller's partners, directors, officers, employees and any Person each person who controls such seller under any Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, an "Indemnitee") a “Holder Indemnified Party”), from and against any and all lossesloss, claimsdamage, damagesexpense, liabilities and expenses liability or claim (including the reasonable costs cost of investigation) arising which such Holder Indemnified Party may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement Shelf Registration Statement or prospectus Prospectus or in any amendment or supplement theretothereto or in any preliminary prospectus, or arising arises out of or is based upon any omission or alleged omission to state therein a material fact required to be stated therein in any Shelf Registration Statement or in any amendment or supplement thereto or necessary to make the statements 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 statements made in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which they were made, not misleading, except insofar as any such lossesloss, claimsdamage, damagesexpense, liabilities liability or expenses rise claim arises out of or are is based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein of a material fact contained in, or omitted therefrom in reliance upon from, and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating any Holder to the Company expressly for use in connection therewith. The therein; provided that the foregoing indemnity agreement shall be in addition not inure to the benefit of any liability which Initial Purchaser who fails to deliver a Prospectus (as then amended or supplemented and provided by the Company may otherwise haveto the Initial Purchasers in the requisite quantity and on a timely basis to permit proper delivery on or prior to the Closing Date) to the person asserting any loss, damage, expense, liability or claim caused by an untrue statement or alleged untrue statement of a material fact contained in the Preliminary Prospectus or caused by any omission or alleged omission to state therein a material fact necessary to make the statement therein, in the light of the circumstances under which they were made, not misleading, if such Prospectus would have cured the material misstatement or omission or alleged material misstatement or omission. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating HoldersHolder, severally and not jointly, agree agrees to indemnify indemnify, defend and hold harmless the Company, its directors, its directors and officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, a “Company Indemnified Party”) from and against any loss, damage, expense, liability or claim (including the reasonable cost of investigation) which such Company Indemnified Party may incur under the Securities Act, to the same extent Exchange Act or otherwise, insofar as the foregoing indemnity from the Company to an Indemniteesuch loss, but only with respect to damage, expense, liability or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in information relating to such Holder furnished in writing by or on behalf of such Holder to the Company expressly for use in the registration statement, prospectus any Shelf Registration Statement or any prepricing prospectus, Prospectus or in any amendment or supplement theretothereto or in any preliminary prospectus, or arises out of or is based upon any omission or alleged omission to state a material fact required to be stated in any Shelf Registration Statement or in any amendment or supplement 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 statements in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which they were made, not misleading, in connection with such information. 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 of the Registrable Securities pursuant to the Shelf Registration Statement giving rise to such indemnification obligation. (c) If any action, suit or proceeding shall be (each, a “Proceeding”) is brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to either subsection (a) or (b) of this Section 9(c)6, such Holder 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 notify such Indemnifying Party shall not relieve such Indemnifying Party from any liability which it may have to such Indemnified Party except to the extent that it has been prejudiced in any material respect by such failure or relieve such Indemnifying Party from any liability it may have under this Section 6 otherwise. Such Indemnified Party shall have the rights and duties given right to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof employ its own counsel in any such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereofcase, but the fees and expenses of such counsel shall be at the Holder's expenseexpense of such Indemnified Party unless the employment of such counsel shall have been authorized in writing by such Indemnifying Party in connection with the defense of such Proceeding or such Indemnifying Party shall not have employed counsel to have charge of the defense of such Proceeding within 30 days of the receipt of notice thereof or such Indemnified Party shall have reasonably concluded upon the written advice of counsel that there may be one or more defenses available to it that are different from, additional to or in conflict with those available to such Indemnifying Party (in which case such Indemnifying Party shall not have the right to direct that portion of the defense of such Proceeding on behalf of the Indemnified Party, but such Indemnifying Party may employ counsel and participate in the defense thereof but the fees and expenses of such counsel shall be at the expense of such Indemnifying Party), in any of which events such reasonable fees and expenses shall be borne by such Indemnifying Party and paid as incurred (it being understood, however, that such Indemnifying Party shall not be liable for the Companyexpenses of more than one separate counsel in any one Proceeding or series of related Proceedings together with reasonably necessary local counsel representing the Indemnified Parties who are parties to such action). An Indemnifying Party shall not be liable for any settlement of such Proceeding effected without the written consent of such Indemnifying Party, its directorsbut 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 officersettlement. Notwithstanding the foregoing sentence, and if at any such controlling person 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 rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement 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 60 Business Days after receipt by such Indemnifying Party of the aforesaid request, (ii) such Indemnifying Party shall not have reimbursed such Indemnified Party in addition accordance with such request prior to the date of such settlement and (iii) such Indemnified Party shall have given such Indemnifying Party at least 30 days’ prior notice of its intention to settle. No Indemnifying Party shall, without the prior written consent of any Indemnified Party, effect any settlement of any pending or threatened Proceeding in respect of which such Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability which on claims that are the participating Holders may otherwise havesubject matter of such Proceeding and does not include an admission of fault, culpability or a failure to act, by or on behalf of such Indemnified Party. (d) If the indemnification provided for in this Section 9 6 is unavailable to an indemnified party Indemnified Party under paragraphs subsections (a) or and (cb) hereof of this Section 6 in respect of any losses, claimsdamages, damagesexpenses, liabilities or expenses claims referred to therein, then an 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, claimsdamages, damagesexpenses, liabilities or expenses claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Holders 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 Company on the one hand and of the participating Holders on the other in connection with the statements or omissions that which resulted in such losses, claimsdamages, damagesexpenses, liabilities or expensesclaims, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and a participating Holder of the Holders on the other hand shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact omission relates to information supplied by the Company on the one hand or by such participating Holder on the other hand Holders and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, damages, expenses, liabilities and claims referred to above shall be deemed to include any reasonable legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any Proceeding. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 6 were determined by a pro rata allocation or by any other method of allocation that which does not take account of the equitable considerations referred to in Section 9(dsubsection (d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 96, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds total price at which the Registrable Securities sold by it were offered to such participating Holder the public exceeds the amount of any damages which such participating Holder it 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 Holders’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint. The remedies provided for in this Section 6 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements provisions contained in this Section 9 6 shall remain operative and in full force and effect, effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of an Indemniteeany Holder or any person controlling any Holder, or the Company, its or the Company’s officers or directors or officers, or any person controlling the Company, Company and (iiiii) the sale of any termination of this AgreementRegistrable Security by any Holder.

Appears in 1 contract

Samples: Registration Rights Agreement (Bankunited Financial Corp)

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Indemnification; Contribution. (a) The Company agrees to indemnify indemnify, defend and hold harmless (i) each seller Holder, (ii) each person (a “Controlling Person”), if any, who controls any Holder within the meaning of Registrable Section 15 of the Securities covered by a Registration Statement filed pursuant to this Agreement, Act or Section 20 of the Exchange Act and such seller's partners(iii) the respective officers, directors, officerspartners, employees members, employees, representatives and agents of each Holder or any Controlling Person who controls such seller under the Securities Act (each, an "Indemnitee") “Indemnified Party”), from and against any and all lossesloss, claimsdamage, damagesexpense, liabilities and expenses liability, claim or any actions in respect thereof (including the reasonable costs cost of investigation) arising which such Indemnified Party may incur or become subject to under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing Shelf Registration Statement or Prospectus or any free writing prospectus, registration statement or prospectus including any document incorporated by reference therein, or in any amendment or supplement theretothereto or in any preliminary prospectus, or arising arises out of or is based upon any omission or alleged omission to state therein a material fact required to be stated therein in any Shelf Registration Statement or in any amendment or supplement thereto or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise arises out of or are is based upon any omission or alleged omission to state a material fact necessary in order to make the statements made in any Prospectus or any free writing prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which such statements were made, not misleading, and the Company shall reimburse, as incurred, the Indemnified Parties for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, damage, expense, liability, claim or action in respect thereof; provided, however, that the Company shall not be required to provide any indemnification pursuant to this Section 5(a) in any such case insofar as any such loss, damage, expense, liability, claim or action arises out of or is based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein of a material fact contained in, or omitted therefrom in reliance upon from, and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating Holder to the Company expressly for use in connection therewith. The foregoing in, any Shelf Registration Statement or any Prospectus; provided, further, however, that this indemnity agreement shall will be in addition to any liability which the Company may otherwise havehave to such Indemnified Party. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating HoldersHolder, severally and not jointly, agree agrees to indemnify indemnify, defend and hold harmless (i) the Company, (ii) its directors, its officers who sign the registration statementofficers, employees and (iii) any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, a “Company 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 Company Indemnified Party may incur or become subject to under the Securities Act, to the same extent Exchange Act or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in, and in conformity with information (the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder Information”) furnished in writing by or on behalf of such Holder to the Company expressly for use in, any Shelf Registration Statement or Prospectus, or arises out of or is based upon any omission or alleged omission to state a material fact in connection with such Holder Information required to be stated in any Shelf Registration Statement or Prospectus or necessary to make such Holder Information, in light of the circumstances under which such statements were made, not misleading; and, subject to the limitation set forth in the registration statementimmediately preceding clause, prospectus each Holder shall reimburse, as incurred, the Company for any legal or other expenses reasonably incurred by the Company or any prepricing prospectussuch 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 Company or any amendment or supplement theretoof its controlling persons. In no event shall the liability of any selling Holder of Registrable Securities hereunder be greater in amount than the dollar amount of the proceeds received by such Holder upon the sale, pursuant to the Shelf Registration Statement, of the Registrable Securities giving rise to such indemnification obligation. (c) If any action, suit or proceeding shall be (each, a “Proceeding”) is brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this either Section 9(c5(a) or Section 5(b), such Holder 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 rights and duties given right to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof employ its own counsel in any such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereofcase, but the fees and expenses of such counsel shall be at the Holder's expenseexpense of such Indemnified Party unless the employment of such counsel shall have been authorized in writing by such Indemnifying Party in connection with the defense of such Proceeding or such Indemnifying Party shall not have employed counsel to have charge of the defense of such Proceeding within thirty (30) days of the receipt of notice thereof or such Indemnified Party shall have reasonably concluded upon the written advice of counsel that there may be one or more defenses available to it that are different from, additional to or in conflict with those available to such Indemnifying Party (in which case such Indemnifying Party shall not have the right to direct that portion of the defense of such Proceeding on behalf of the Indemnified Party, but such Indemnifying Party may employ counsel and participate in the defense thereof but the fees and expenses of such counsel shall be at the expense of such Indemnifying Party), in any of which events such reasonable fees and expenses shall be borne by such Indemnifying Party and paid as incurred (it being understood, however, that such Indemnifying Party shall not be liable for the Companyexpenses of more than one separate counsel in any one Proceeding or series of related Proceedings together with reasonably necessary local counsel representing the Indemnified Parties who are parties to such action). An Indemnifying Party shall not be liable for any settlement of such Proceeding effected without the written consent of such Indemnifying Party, its directorsbut 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 officersettlement. Notwithstanding the foregoing sentence, and if at any such controlling person 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 rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement second sentence of this paragraph, then such Indemnifying Party agrees that it shall be liable for any settlement of any Proceeding effected without its written consent if (i) such settlement is entered into more than sixty (60) Business Days after receipt by such Indemnifying Party of the aforesaid request, (ii) such Indemnifying Party shall not have fully reimbursed such Indemnified Party in addition accordance with such request prior to the date of such settlement and (iii) such Indemnified Party shall have given such Indemnifying Party at least thirty (30) days’ prior notice of its intention to settle. No Indemnifying Party shall, without the prior written consent of any Indemnified Party, effect any settlement of any pending or threatened Proceeding in respect of which such Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability which on claims that are the participating Holders may otherwise havesubject matter of such Proceeding and does not include an admission of fault or culpability or a failure to act by or on behalf of such Indemnified Party. (d) If the indemnification provided for in this Section 9 5 is unavailable to an indemnified party Indemnified Party under paragraphs (aSection 5(a) or (c) hereof Section 5(b), or insufficient to hold such Indemnified Party harmless, in respect of any losses, claims, damages, liabilities expenses, liabilities, claims or expenses actions referred to therein, then an 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, claims, damages, liabilities expenses, liabilities, claims or expenses actions (i) in such proportion as is appropriate to reflect the relative fault of the Company Company, on the one hand, and of the participating Holders Holders, on the other hand, in connection with the statements or omissions that which resulted in such losses, claims, damages, liabilities expenses, liabilities, claims or expensesactions, as well as any other relevant equitable considerations. The relative fault of the Company Company, on the one hand hand, and a participating Holder of the Holders, on the other hand hand, shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact omission relates to information supplied by the Company on the one hand or by such participating Holder on the other hand Holders and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, damages, expenses, liabilities, claims and actions referred to above shall be deemed to include any reasonable legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any Proceeding. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 5 were determined by a pro rata allocation or by any other method of allocation that which does not take account of the equitable considerations referred to in Section 9(d5(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 95, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds total price at which the Registrable Securities giving rise to such participating contribution obligation and sold by such Holder were offered to the public exceeds the amount of any damages which such participating Holder it 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 Holders’ respective obligations to contribute pursuant to this Section 5 are several in proportion to the respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint. The remedies provided for in this Section 5 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements provisions contained in this Section 9 5 shall remain operative and in full force and effect, effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of an Indemniteeany Holder or any person controlling any Holder, or the Company, its or the Company’s officers or directors or officers, or any person controlling the Company, Company and (iiiii) the sale of any termination of this AgreementRegistrable Security by any Holder.

Appears in 1 contract

Samples: Registration Rights Agreement (American Oil & Gas Inc)

Indemnification; Contribution. (a) Indemnification by the Company. The Company agrees to indemnify ------------------------------ and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementPerson who participates as an underwriter (any such Person being an "Underwriter"), each Stockholder and such seller's their respective partners, ----------- directors, officers, officers and employees and any Person each Person, if any, who controls such seller under any Stockholder or any Underwriter within the meaning of Section 15 of the Securities Act (each, an "Indemnitee") from and or Section 20 of the Exchange Act against any and all losses, liabilities, claims, damages, liabilities judgments and reasonable expenses (including reasonable costs of investigation) arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement Registration Statement (or prospectus or in any amendment or supplement thereto) pursuant to which Registrable Securities were registered under the Securities Act, including all documents incorporated therein by reference, or arising out of or based upon any the omission or alleged omission to state therein therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities misleading or expenses rise arising out of or are based upon any 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 untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating Holder expressly for use material fact necessary in connection therewith. The foregoing indemnity agreement shall be order to make the statements therein, in addition to any liability light of the circumstances under which the Company may otherwise have. (b) If any actionthey were made, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understoodmisleading; provided, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition this indemnity agreement does not apply to any local counsel) at -------- ------- Stockholder or any time for all such Indemnitees not having actual Underwriter or potential differing interests among themselvestheir respective partners, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statementand employees and each Person, and any person if any, who controls the Company any Stockholder or any Underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only Act with respect to any loss, liability, claim, damage, judgment or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission (A) made in reliance upon and in conformity with written information relating furnished to the Company by such Holder furnished in writing by Stockholder or on behalf of such Holder Underwriter expressly for use in the registration statement, prospectus a Registration Statement (or any prepricing prospectus, amendment thereto) or any Prospectus (or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (cB) hereof in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an indemnifying party, in lieu of indemnifying if such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission was corrected in an amended or alleged omission. No person guilty supplemented Registration Statement or Prospectus and the Company had furnished copies thereof to the selling Underwriter or the selling Stockholder prior to the relevant date of fraudulent misrepresentation sale by such Underwriter or such Stockholder to the Person asserting such loss, liability, claim, damage, judgment or expense (within provided, in the meaning case of Section 11(f) of an Underwritten Offering, the Securities Act-------- limitation in this clause (B) shall be entitled not apply to contribution from any person who was not guilty of such fraudulent misrepresentationa Participating Stockholder). (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Hilfiger Tommy Corp)

Indemnification; Contribution. (a) The Company and each Guarantor agrees to indemnify indemnify, defend and hold harmless each seller Initial Purchaser, each Notice Holder, each person (a “Controlling Person”), if any, who controls any Initial Purchaser or Notice Holder within the meaning of Registrable Section 15 of the Securities covered by a Registration Statement filed pursuant to this Agreement, Act or Section 20 of the Exchange Act and such seller's partnersthe respective officers, directors, officerspartners, employees employees, representatives and agents of any Initial Purchaser, the Notice Holders or any Controlling Person who controls such seller under the Securities Act (each, an "Indemnitee") “Indemnified Party”), from and against any and all lossesloss, claimsdamage, damagesexpense, liabilities and expenses liability, claim or any actions in respect thereof (including the reasonable costs cost of investigation) arising which such Indemnified Party may incur or become subject to under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectusShelf Registration Statement or Prospectus, registration statement or prospectus including any document incorporated by reference therein, or in any amendment or supplement theretothereto or in any preliminary prospectus, or arising arises out of or is based upon any omission or alleged omission to state therein a material fact required to be stated therein in any Shelf Registration Statement or in any amendment or supplement thereto or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise arises out of or are is based upon any omission or alleged omission to state a material fact necessary in order to make the statements made in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which such statements were made, not misleading; provided, however, that the Company and the Guarantors shall not be required to provide any indemnification pursuant to this Section 6(a) in any such case insofar as any such loss, damage, expense, liability, claim or action arises out of or is based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein of a material fact contained in, or omitted therefrom in reliance upon from, and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of an Initial Purchaser or a participating Holder to the Company expressly for use in connection therewith. The foregoing in, any Shelf Registration Statement or any Prospectus; provided further, however, that this indemnity agreement shall will be in addition to any liability which the Company and the Guarantors may otherwise havehave to such Indemnified Party. (b) Each Holder, severally and not jointly, agrees to indemnify, defend and hold harmless the Company, and each Guarantor, its directors, officers, employees and any person who controls the Company or any Guarantor within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, a “Company 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 Company Indemnified Party may incur or become subject to under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in, and in conformity with information (the “Holder Information”) furnished in writing by or on behalf of such Holder to the Company expressly for use in, any Shelf Registration Statement or Prospectus, or arises out of or is based upon any omission or alleged omission to state a material fact in connection with such Holder Information required to be stated in any Shelf Registration Statement or Prospectus or necessary to make such Holder Information not misleading. This indemnity agreement will be in addition to any liability which such Holder may otherwise have to the Company and each Guarantor or any of its controlling persons. In no event shall the liability of any selling Holder of Registrable Securities hereunder be greater in amount than the dollar amount of the proceeds received by such Holder upon the sale, pursuant to the Shelf Registration Statement, of the Registrable Securities giving rise to such indemnification obligation. (c) If any action, suit or proceeding shall be (each, a “Proceeding”) is brought against an Indemnitee any person in respect of which indemnity may be sought against the Companypursuant to either Section 6(a) or Section 6(b), such Indemnitee person (the “Indemnified Party”) shall promptly notify the Company, person against whom such indemnity may be sought (the “Indemnifying Party”) in writing of the institution of such Proceeding and the Company Indemnifying Party shall assume the defense thereofof such Proceeding; provided, including however, that the employment omission to so notify such Indemnifying Party shall not relieve such Indemnifying Party from any liability which it may have to such Indemnified Party, except to the extent that the indemnifying party has been prejudiced in any material respect by such failure through the forfeiture of counsel and payment of all fees and expensessubstantive rights or defenses. The Indemnitee Such Indemnified Party shall have the right to employ separate its own counsel in any such action, suit or proceeding and to participate in the defense thereofcase, but the fees and expenses of such counsel shall be at the expense of such Indemnitee Indemnified Party unless (x) the Company has agreed in writing to pay employment of such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee counsel shall have been advised authorized in writing by its such Indemnifying Party in connection with the defense of such Proceeding or such Indemnifying Party shall not have employed counsel to have charge of the defense of such Proceeding within thirty (30) days of the receipt of notice thereof or such Indemnified Party shall have reasonably concluded upon the written advice of counsel that representation of there may be one or more defenses available to it that are different from, additional to or in conflict with those available to such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them Indemnifying Party (in which case the Company such Indemnifying Party shall not have the right to assume direct that portion of the defense of such action, suit or proceeding Proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consentIndemnified Party, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but Indemnifying Party may employ separate counsel therein and participate in the defense thereof, thereof but the fees and expenses of such counsel shall be at the Holder's expenseexpense of such Indemnifying Party), in any of which events such reasonable fees and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement expenses shall be borne by such Indemnifying Party and paid as incurred (it being understood, however, that such Indemnifying Party shall not be liable for the expenses of more than one separate counsel in addition any one Proceeding or series of related Proceedings together with reasonably necessary local counsel representing all the Indemnified Parties). An Indemnifying Party shall not be liable for any settlement of such Proceeding effected without the written consent of such Indemnifying Party, which consent shall not be unreasonably withheld or delayed, 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. No Indemnifying Party shall, without the prior written consent of any Indemnified Party, effect any settlement of any pending or threatened Proceeding in respect of which such Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the participating Holders may otherwise havesubject matter of such Proceeding and does not include an admission of fault or culpability or a failure to act by or on behalf of such Indemnified Party. (d) If the indemnification provided for in this Section 9 6 is unavailable to an indemnified party Indemnified Party under paragraphs (aSection 6(a) or (cSection 6(b) hereof or insufficient to hold such Indemnified Party harmless in respect of any losses, claims, damages, liabilities expenses, liabilities, claims or expenses actions referred to therein, then an 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, claims, damages, liabilities expenses, liabilities, claims or expenses actions (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Guarantors, 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 Company and the Guarantors, on the one hand, and of the participating Holders or the Initial Purchasers, on the other hand, in connection with the statements or omissions that which resulted in such losses, claims, damages, liabilities expenses, liabilities, claims or expensesactions, as well as any other relevant equitable considerations. The relative fault of the Company Company, on the one hand hand, and a participating Holder of the Holders or the Initial Purchasers, on the other hand hand, shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact omission relates to information supplied by the Company on the one hand or Guarantors or by such participating Holder on the other hand Holders or the Initial Purchasers and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, damages, expenses, liabilities, claims and actions referred to above shall be deemed to include any reasonable legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any Proceeding. (e) The Company Company, and each Guarantor, the Holders and the participating Holders Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 9 6 were determined by a pro rata allocation or by any other method of allocation that which does not take account of the equitable considerations referred to in Section 9(d6(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 96, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds total price at which the Registrable Securities giving rise to such participating contribution obligation and sold by such Holder were offered to the public exceeds the amount of any damages which such participating Holder it 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 Holders’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint. The remedies provided for in this Section 6 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements provisions contained in this Section 9 6 shall remain operative and in full force and effect, effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of an Indemniteeany Holder or the Initial Purchasers or any person controlling any Holder or Initial Purchaser, or the Company or the Guarantors, or the Company, its ’s or any of the Guarantors’ officers or directors or officers, or any person controlling the Company, Company or any Guarantor and (iiiii) the sale of any termination of this AgreementRegistrable Security by any Holder.

Appears in 1 contract

Samples: Registration Rights Agreement (Arvinmeritor Inc)

Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each seller Holder of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementSecurities, and such seller's partnersthe Affiliates, directors, officers, employees employees, members, managers and any agents of each such Holder and each Person who controls any such seller under Holder within the meaning of either the Securities Act (eachor the Exchange Act, an "Indemnitee") to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, expenses and actions to which they or any of them may become subject insofar as such losses, claims, damages, liabilities and expenses (including reasonable costs of investigationor actions in respect thereof) arising arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement or prospectus 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 arising arise out of or are based upon any the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration Statement (in light of the circumstances under which they were made) not misleading, except insofar and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such lossesloss, claimsclaim, damagesdamage, liabilities liability, expense or expenses rise 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 to the extent that any such loss, claim, damage, liability or expense arises (i) out of or are is based upon any such untrue statement or alleged untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the written information relating to a participating 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 (ii) out of sales of Registrable Securities made during a participating Holder expressly for use in connection therewithSuspension Period after notice is given pursuant to Section 1(f)(ii) hereof. The foregoing This indemnity agreement shall clause will be in addition to any liability which the Company may otherwise have. (b) If Each Holder severally (and not jointly) agrees to indemnify and hold harmless the Company and each of its Affiliates, directors, employees, members, managers and agents and each Person who controls the Company within the meaning of either the Securities Act or the Exchange Act, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages or liabilities to which they or any of them may become subject insofar as such losses, claims, damages or liabilities arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement as originally filed or in any amendment thereof, or in the Disclosure Package or any Holder Free Writing Prospectus, preliminary, final or summary Prospectus included in any such Registration Statement, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration Statement, in light of the circumstances under which they were made) not misleading, to the extent, but only to the extent, that any such untrue statement or alleged untrue statement or omission or alleged omission is contained in any written information relating to such Holder furnished to the Company by or on behalf of such Holder specifically for inclusion therein; provided, however, that the total amount to be indemnified by such Holder pursuant to this Section 5(b) shall be limited to the net proceeds (after deducting underwriters’ discounts and commissions) received by such Holder in the offering to which such Registration Statement, Disclosure Package, Prospectus or Holder Free Writing Prospectus relates. This indemnity clause will be in addition to any liability which any such Holder may otherwise have. (c) Promptly after receipt by an indemnified party under this Section 5 of notice of the commencement of any action, suit such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 5, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or proceeding (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 brought against an Indemnitee in respect of which indemnity may be sought against entitled to participate therein and, to the Companyextent that it shall wish, such Indemnitee shall promptly notify the Companyjointly with any other indemnifying party similarly notified, and the Company shall to assume the defense thereof, including with counsel reasonably satisfactory to such indemnified party, and, except as provided in the employment next sentence, after notice from the indemnifying party to such indemnified party of its election to so assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel and payment of all fees and expensesor any other expenses subsequently incurred by such indemnified party in connection with the defense thereof. The Indemnitee Notwithstanding the indemnifying party’s rights in the prior sentence, the indemnified party shall have the right to employ separate its own counsel in any such action, suit or proceeding (and to participate in the defense thereofone local counsel), but the fees indemnified party shall bear the reasonable fees, costs and expenses of such separate counsel unless (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would be inappropriate due to a conflict of interest in the reasonable judgment of the indemnified party; (ii) the indemnifying party shall be authorize the indemnified party in writing to employ separate counsel at the expense of the indemnifying party; provided, however, in the event that there are multiple indemnified parties, such Indemnitee unless indemnified parties shall in no case be entitled to more than two counsels; or (xiii) the Company has agreed in writing to pay such fees and expenses, (y) the Company indemnifying party has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee)action within a reasonable time following notice from the indemnified party. It is understood, however, that the Company No indemnifying party shall, in connection with any one such action, suit or proceeding action or separate but substantially similar or related actions, suits or proceedings actions in the same jurisdiction arising out of the same general allegations circumstances or circumstancesallegations, be liable for the reasonable fees and expenses of only more than one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall indemnified parties unless the use of only one firm of attorneys would be reimbursed as they are incurredinappropriate due to a conflict of interest in the reasonable judgment of the indemnified party. The Company An indemnifying party shall not be liable for under this Section 5 to any indemnified party regarding any settlement or compromise or consent to the entry of any such judgment with respect to any pending or threatened claim, action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity indemnification or contribution may be sought against any Holder pursuant hereunder (whether or not the indemnified parties are actual or potential parties to this Section 9(c)such claim or action) unless such settlement, compromise or consent is consented to in writing by such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereofindemnifying party. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an No indemnifying party, in lieu the defense of indemnifying any such claim or litigation, shall, except with the consent of each indemnified party, shall contribute consent to the amount paid or payable by such indemnified party as a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount entry of any damages which such participating Holder has otherwise been required to pay by reason of such untrue judgment or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect enter into any settlement of or compromise if any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement or compromise includes an-an unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (gd) Any In the event that the indemnity provided in Section 5(a) or Section 5(b) above is held by a court of competent jurisdiction to be unavailable to or insufficient to hold harmless an indemnified party with respect to any loss, claim, damage, liability, expense or action referred to herein, then each applicable indemnifying party agrees to contribute to the aggregate losses, claims, damagesdamages and liabilities (including, liabilities without limitation, legal or other expenses for reasonably incurred in connection with investigating or defending same) (collectively, “Losses”) to which an indemnified parry such indemnifying party may be subject in such proportion as is entitled appropriate to indemnification or contribution under this Section 9 shall be paid by reflect the relative benefits received from the offering of the New Common Stock, as applicable, and relative fault of the indemnifying party to on the one hand and the indemnified party as on the other in connection with the statements or omissions which resulted in such losses, claims, damagesdamages or liabilities (or actions in respect thereof), liabilities or expenses are incurredas well as any other relevant equitable considerations. The indemnity relative benefit received by the Company shall be deemed to be equal to the total value received or proposed to be received (after deducting expenses) by the Company pursuant to the sale of New Common Stock in an offering, if any. The relative benefit received by the Holders shall be deemed to be equal to the value of having the Registrable Securities registered under the Securities Act. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party on the one hand or the indemnified party on the other and contribution agreements contained in this Section 9 shall remain operative the parties’ relative intent, knowledge, access to information and in full force and effect, regardless of (i) any investigation made by opportunity to correct or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.prevent such statement or

Appears in 1 contract

Samples: Registration Rights Agreement (Dynegy Inc.)

Indemnification; Contribution. (a) The Company agrees to indemnify indemnify, defend and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this Agreement, Holder and such seller's partners, directors, officers, employees and any Person each person who controls such seller under any Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, an "Indemnitee") a “Holder Indemnified Party”), from and against any and all lossesloss, claimsdamage, damagesexpense, liabilities and expenses liability or claim (including the reasonable costs cost of investigation) arising which such Holder Indemnified Party may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement Shelf Registration Statement or prospectus Prospectus or in any amendment or supplement theretothereto or in any preliminary prospectus, or arising arises out of or is based upon any omission or alleged omission to state therein a material fact required to be stated therein in any Shelf Registration Statement or in any amendment or supplement thereto or necessary to make the statements 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 statements made in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which they were made, not misleading, except insofar as any such lossesloss, claimsdamage, damagesexpense, liabilities liability or expenses rise claim arises out of or are is based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein of a material fact contained in, or omitted therefrom in reliance upon from, and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating any Holder to the Company expressly for use therein, provided that the foregoing indemnity shall not apply to any sales of Registrable Securities by a Holder if, in connection therewith. The foregoing indemnity agreement shall be in addition with such sale, such Holder fails to any liability which comply with the Company may otherwise haveProspectus delivery requirements under the Securities Act or initiates such sale during a Suspension Period. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating HoldersHolder, severally and not jointly, agree agrees to indemnify indemnify, defend and hold harmless the Company, its directors, its directors and officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, a “Company Indemnified Party”) from and against any loss, damage, expense, liability or claim (including the reasonable cost of investigation) which such Company Indemnified Party may incur under the Securities Act, to the same extent Exchange Act or otherwise, insofar as the foregoing indemnity from the Company to an Indemniteesuch loss, but only with respect to damage, expense, liability or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in information relating to such Holder furnished in writing by or on behalf of such Holder to the Company expressly for use in the registration statement, prospectus any Shelf Registration Statement or any prepricing prospectus, Prospectus or in any amendment or supplement theretothereto or in any preliminary prospectus, or arises out of or is based upon any omission or alleged omission to state a material fact required to be stated in any Shelf Registration Statement or in any amendment or supplement 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 statements in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which they were made, not misleading, in connection with such information. 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 of the Registrable Securities pursuant to the Shelf Registration Statement giving rise to such indemnification obligation. (c) If any action, suit or proceeding shall be (each, a “Proceeding”) is brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to either subsection (a) or (b) of this Section 9(c)6, such Holder 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 notify such Indemnifying Party shall not relieve such Indemnifying Party from any liability which it may have to such Indemnified Party or otherwise unless, and only to the extent that, the Indemnifying Party is materially prejudiced thereby. Such Indemnified Party shall have the rights and duties given right to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof employ its own counsel in any such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereofcase, but the fees and expenses of such counsel shall be at the Holder's expenseexpense of such Indemnified Party unless the employment of such counsel shall have been authorized in writing by such Indemnifying Party in connection with the defense of such Proceeding or such Indemnifying Party shall not have employed counsel to have charge of the defense of such Proceeding within 30 days of the receipt of notice thereof or such Indemnified Party shall have reasonably concluded upon the written advice of counsel that there may be one or more defenses available to it that are different from, additional to or in conflict with those available to such Indemnifying Party (in which case such Indemnifying Party shall not have the right to direct that portion of the defense of such Proceeding on behalf of the Indemnified Party, but such Indemnifying Party may employ counsel and participate in the defense thereof but the reasonable fees and expenses of such counsel shall be at the expense of such Indemnifying Party), in any of which events such reasonable fees and expenses shall be borne by such Indemnifying Party and paid as incurred (it being understood, however, that such Indemnifying Party shall not be liable for the Companyexpenses of more than one separate counsel in any one Proceeding or series of related Proceedings together with reasonably necessary local counsel representing the Indemnified Parties who are parties to such action). An Indemnifying Party shall not be liable for any settlement of such Proceeding effected without the written consent of such Indemnifying Party, its directorsbut 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 officersettlement. Notwithstanding the foregoing sentence, and if at any such controlling person time an Indemnified Party shall have requested an Indemnifying Party to reimburse such Indemnified Party for reasonable fees and expenses of counsel as contemplated by the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement 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 90 Business Days after receipt by such Indemnifying Party of the aforesaid request, (ii) such Indemnifying Party shall not have reimbursed such Indemnified Party in addition accordance with such request prior to the date of such settlement and (iii) such Indemnified Party shall have given such Indemnifying Party at least 30 days’ prior notice of its intention to settle. No Indemnifying Party shall, without the prior written consent of any Indemnified Party, effect any settlement of any pending or threatened Proceeding in respect of which such Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability which on claims that are the participating Holders may otherwise havesubject matter of such Proceeding and does not include an admission of fault, culpability or a failure to act, by or on behalf of such Indemnified Party. (d) If the indemnification provided for in this Section 9 6 is unavailable to an indemnified party Indemnified Party under paragraphs subsections (a) or and (cb) hereof of this Section 6 in respect of any losses, claimsdamages, damagesexpenses, liabilities or expenses claims referred to therein, then an 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, claimsdamages, damagesexpenses, liabilities or expenses claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Holders 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 Company on the one hand and of the participating Holders on the other in connection with the statements or omissions that which resulted in such losses, claimsdamages, damagesexpenses, liabilities or expensesclaims, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and a participating Holder of the Holders on the other hand shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact omission relates to information supplied by the Company on the one hand or by such participating Holder on the other hand Holders and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, damages, expenses, liabilities and claims referred to above shall be deemed to include any reasonable legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any Proceeding. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 6 were determined by a pro rata allocation or by any other method of allocation that which does not take account of the equitable considerations referred to in Section 9(dsubsection (d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 96, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds total price at which the Registrable Securities sold by it were offered to such participating Holder the public exceeds the amount of any damages which such participating Holder it 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 Holders’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint. The remedies provided for in this Section 6 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements provisions contained in this Section 9 6 shall remain operative and in full force and effect, effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of an Indemniteeany Holder or any person controlling any Holder, or the Company, its or the Company’s officers or directors or officers, or any person controlling the Company, Company and (iiiii) the sale of any termination of this AgreementRegistrable Security by any Holder.

Appears in 1 contract

Samples: Registration Rights Agreement (Red Hat Inc)

Indemnification; Contribution. (a) The Company In connection with any registration of Registrable Securities pursuant to Section 2.01, Section 2.02 or Section 2.03 hereof, Parent agrees to indemnify and hold harmless each seller of Registrable Securities covered harmless, to the fullest extent permitted by a Registration Statement filed pursuant to this AgreementLaw, and such seller's partnersStockholder, its Affiliates, directors, officers, employees officers and any stockholders and each Person who controls such seller under Stockholder within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act (eachcollectively, an "Indemnitee"the “Indemnified Persons”) from and against any and all losses, claims, damages, liabilities liabilities, judgments, actions and expenses (including reasonable costs of investigationattorneys’ fees) arising out of joint or based upon several caused by any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement part of any Registration Statement or any preliminary or final prospectus used in connection with the Registrable Securities or in any amendment or supplement theretoIssuer FWP, or arising out of or based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a prospectus, in the light of the circumstances under which they were made) not misleading, except insofar as such ; provided that Parent will not be required to indemnify any Indemnified Person for any losses, claims, damages, liabilities liabilities, judgments, actions or expenses rise out of or are based upon resulting from any such untrue statement or omission or alleged if such untrue statement or omission which has been was made therein or omitted therefrom in reliance upon on and in conformity with the information relating with respect to a participating Holder any Indemnified Person furnished to Parent in writing to the Company by or on behalf of a participating Holder Stockholder expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise havetherein. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in In connection with any one such actionRegistration Statement, suit preliminary or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consentfinal prospectus, or if them be a final judgment for the plaintiff in any such actionIssuer FWP, suit or proceeding, the Company Stockholder agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the CompanyParent, its directorsDirectors, its officers who sign the registration statementsuch Registration Statement and each Person, and any person if any, who controls the Company Parent (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, ) to the same extent as the foregoing indemnity from the Company Parent to an IndemniteeStockholder, but only with respect to information relating with respect to such Holder any Indemnified Person furnished to Parent in writing by or on behalf of such Holder Stockholder expressly for use in the registration statementsuch Registration Statement, prospectus preliminary or any prepricing final prospectus, or Issuer FWP. (c) In case any amendment or supplement thereto. If any actionclaim, suit action or proceeding shall be brought against the Company, (including any of its directors, governmental investigation) is instituted involving any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and Person in respect of which indemnity may be sought pursuant to Section 2.08(a) or (b), such Person (hereinafter called the “indemnified party”) will (i) promptly notify the Person against any Holder whom such indemnity may be sought (hereinafter called the “indemnifying party”) in writing; provided that the failure to give such notice shall not relieve the indemnifying party of its obligations pursuant to this Section 9(c)Agreement except to the extent such indemnifying party has been prejudiced in any material respect by such failure; (ii) permit the indemnifying party to assume the defense of such claim, action or proceeding with counsel reasonably satisfactory to the indemnified party; and (iii) pay the fees and disbursements of such Holder shall counsel related to such claim, action or proceeding. In any such claim, action or proceeding, any indemnified party will have the rights and duties given right to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereofretain its own counsel, but the fees and expenses of such counsel shall will be at the Holder's expense), expense of such indemnified party unless (A) the indemnifying party and the Companyindemnified party have mutually agreed to the retention of such counsel, its directors, (B) the named parties to any such officerclaim, action or proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and the indemnified party has been advised in writing by counsel, with a copy provided to Parent, that representation of both parties by the same counsel would be inappropriate due to actual or potential conflicting interests between them or (C) the indemnifying party has failed to assume the defense of such claim and employ counsel reasonably satisfactory to the indemnified party. It is understood that the indemnifying party will not, in connection with any such controlling person shall have claim, action or proceeding or related claims, actions or proceedings in the rights same jurisdiction, be liable for the reasonable fees and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be expenses of more than one separate firm of attorneys (in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided local counsel at any time for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an indemnifying party, in lieu of indemnifying all such indemnified party, shall contribute to the amount paid or payable by parties) and that all such indemnified party as reasonable fees and expenses will be reimbursed reasonably promptly following a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable written request by an indemnified party as a result 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 lossesretention of any such separate firm for the indemnified parties, claimssuch firm will be designated in writing by the indemnified parties. The indemnifying party will not be liable for any settlement of any claim, damagesaction or proceeding effected without its written consent (which consent shall not be unreasonably withheld), liabilities and expenses referred 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 in Section 9(d) hereof shall be deemed to include, subject to indemnify the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating from and against any claim loss or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay liability by reason of such untrue settlement or alleged untrue statement or omission or alleged omissionjudgment. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shallwill, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-an unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (gd) Any If the indemnification provided for in this Section 2.08 from the indemnifying party is unavailable to an indemnified party hereunder in respect of any losses, claims, damages, liabilities liabilities, judgments, actions or expenses for which an indemnified parry is entitled referred to indemnification or contribution under in this Section 9 shall be 2.08, then the indemnifying party, in lieu of indemnifying such indemnified party, will contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages, liabilities, judgments, actions or expenses (i) in such proportion as is appropriate to reflect the relative fault of the indemnifying party to the and indemnified party as in connection with the actions that resulted in such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effectexpenses, regardless of as well as any other relevant equitable considerations, or (ii) if the allocation provided by clause (i) is not permitted by applicable Law, in such proportion as is appropriate to reflect not only the relative fault referred to in clause (i) but also the relative benefit of Parent, on the one hand, and Stockholder, on the other, in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities, judgments, actions or expenses, as well as any other relevant equitable considerations. The relative fault of such indemnifying party and indemnified party will be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been 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, claims, damages, liabilities and expenses referred to above will be deemed to include, subject to the limitations set forth in Section 2.08(c), any legal or other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding. (e) The parties agree that it would not be just and equitable if contribution pursuant to Section 2.08(d) 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 2.08(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 2.08(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 2.08 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 2.08, 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 Parent within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act shall have the same rights to contribution as Parent, subject in each case to the limitations set forth in the immediately preceding paragraph. Any party entitled to contribution will, promptly after receipt of notice of commencement of any action, suit or proceeding against such party in respect of which a claim for contribution may be made against another party or parties under this Section 2.08, notify such party or parties from whom contribution may be sought, but the 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 2.08 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 on behalf of an Indemniteeclaim settled without its written consent; provided, however, that such written consent was not unreasonably withheld. (g) If indemnification is available under this Section 2.08, the Company, its directors indemnifying party will indemnify each indemnified party to the full extent provided in Sections 2.08(a) and (b) without regard to the relative fault of said indemnifying party or officers, indemnified party or any person controlling the Company, and other equitable consideration provided for in Section 2.08(d) or (ii) any termination of this Agreemente).

Appears in 1 contract

Samples: Stockholder Agreement (Pathmark Stores Inc)

Indemnification; Contribution. (a) The Company agrees shall indemnify, to indemnify and hold harmless the fullest extent permitted by Applicable Law, each seller holder of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementSecurities, and such seller's partnersits officers, directors, officerspartners, employees and any Person agents, if any, and each Person, if any, who controls such seller under holder within the meaning of Section 15 of the Securities Act (eachAct, an "Indemnitee") from and against any and all losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (including reasonable costs under the Securities Act or common law or otherwise), joint or several, resulting from any violation by the Company of investigation) arising out the provisions of the Securities Act or based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement or prospectus (and as amended or in supplemented if amended or supplemented) or any amendment preliminary prospectus or supplement thereto, or arising out of or based upon 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 insofar as to the extent that such losses, claims, damages, liabilities (or proceedings in respect thereof) or expenses rise out of or are based upon caused by any untrue statement or alleged untrue statement contained in or by any omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the from information relating to a participating Holder concerning any holder of Registrable Securities furnished in writing to the Company by or on behalf of a participating Holder such holder expressly for use in connection therewiththerein. The foregoing indemnity agreement shall be in addition If the Public Offering pursuant to any liability which registration statement provided for under this Article III is made through underwriters, no action or failure to act on the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses part of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct underwriters (whether or not such representation by underwriter is an Affiliate of any holder of Registrable Securities) shall affect the same counsel has been proposed) due to actual or potential differing interests between them (in which case obligations of the Company shall not have to indemnify any holder of Registrable Securities or any other Person pursuant to the right to assume preceding sentence. If the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition Public Offering pursuant to any local counsel) at any time registration statement provided for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceedingunder this Article III is made through underwriters, the Company agrees to indemnify enter into an underwriting agreement in customary form with such underwriters and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree Company agrees to indemnify and hold harmless the Companysuch underwriters, its their officers, directors, its officers who sign the registration statementemployees and agents, if any, and any person each Person, if any, who controls the Company such underwriters within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only herein before provided with respect to information relating to such Holder furnished in writing by or on behalf the indemnification of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any holders of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to Registrable Securities; provided that the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do soindemnify any such underwriter, but may employ separate counsel therein and participate in the defense thereofor any officer, but the fees and expenses director or employee of such counsel 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 be at indemnify, to the Holder's expense)fullest extent permitted by Applicable Law, and the Company, its each underwriter and their respective officers, directors, any such officeremployees and agents, if any, and any each Person, if any, who controls the Company or such controlling person shall have underwriter within the rights and duties given to an Indemnitee by meaning of Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which 15 of the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect of Securities Act, against any losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses referred resulting from any untrue statement or alleged untrue statement of a material fact, or any omission or alleged omission of a material fact required to therein, then an indemnifying partybe stated in the registration statement or prospectus or preliminary prospectus or any amendment thereof or supplement thereto or necessary to make the statements therein (in the case of any prospectus, in lieu light of the circumstances under which they were made) not misleading, but only to the extent that such untrue statement is contained in or such omission is from information so concerning a holder furnished in writing by such holder expressly for use therein; provided that such holder’s obligations hereunder shall be limited to an amount equal to the net proceeds to such holder of the Registrable Securities sold pursuant to such registration statement. (c) Any Person entitled to indemnification under the provisions of this Section 3.7 shall (i) give prompt notice to the indemnifying party of any claim with respect to which it seeks indemnification and (ii) unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist in respect of such claim, permit such indemnifying party to assume the defense of such claim, with counsel reasonably satisfactory to the indemnified party; and if such defense is so assumed, such indemnifying party shall not enter into any settlement without the consent of the indemnified party if such settlement attributes liability to the indemnified party and such indemnifying party shall not be subject to any liability for any settlement made without its consent (which shall not be unreasonably withheld); and any underwriting agreement entered into with respect to any registration statement provided for under this Article III shall so provide. In the event an indemnifying party shall not be entitled, or elects not, to assume the defense of a 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 in respect of such claim, unless in the reasonable judgment of any such indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties in respect to such claim. (d) If for any reason the foregoing indemnity is unavailable, then the indemnifying party shall contribute to the amount paid or payable by such the indemnified party as a result of such losses, claims, damages, liabilities or expenses (i) in such proportion as is appropriate to reflect the relative fault of benefits received by the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company indemnifying party on the one hand and a participating Holder the indemnified party on the other hand shall be determined or (ii) if the allocation provided by reference toclause (i) above is not permitted by Applicable Law or provides a lesser sum to the indemnified party than the amount hereinafter calculated, among other things, whether in such proportion as is appropriate to reflect not only the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied relative benefits received by the Company indemnifying party on the one hand or by such participating Holder and the indemnified party on the other hand but also the relative fault of the indemnifying party and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, well as any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceedingrelevant equitable considerations. Notwithstanding the provisions of this Section 9foregoing, no participating Holder holder of Registrable Securities shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise holder would have been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omissionto an indemnified party if the indemnity under Section 3.7(b) was available. 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 obligation of any Person to contribute pursuant to this Section 3.7 shall be several and not joint. (e) An indemnifying party shall make payments of all amounts required to be made pursuant to the foregoing provisions of this Section 3.7 to 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) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 3.7 shall remain operative and in full force and effect, effect regardless of (i) any investigation made by or on behalf of an Indemnitee, the Companya participating holder of Registrable Securities, its directors or officers, directors, agents or any person controlling the CompanyPerson, if any, who controls such holder as aforesaid, and (ii) any 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 agrees to indemnify and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this Agreement, Sandler X’Xxxxx and such seller's its affiliates and their respective partners, directors, officers, employees employees, agents and any Person who controls controlling persons (Sandler X’Xxxxx and each such seller under the Securities Act (each, person being an "IndemniteeIndemnified Party") harmless from and against any and all losses, claims, damagesdamages and liabilities, liabilities joint or several, to which such Indemnified Party may become subject under applicable federal or state law, or otherwise, related to or arising out of any actual or proposed Business Combination or alternative transaction or the engagement of Sandler X’Xxxxx pursuant to, or the performance by Sandler X’Xxxxx of the services contemplated by, this letter (collectively, the “Losses”), and will reimburse any Indemnified Party for all expenses (including reasonable costs counsel fees and expenses) as they are incurred, including expenses incurred in connection with the investigation of, preparation for or defense of investigationany pending or threatened claim or any action or proceeding arising therefrom, whether or not such Indemnified Party is a party (collectively, the “Expenses”). The Company will not be liable under the foregoing indemnification provision to the extent that any Loss is found in a final judgment by a court of competent jurisdiction to have resulted proximately from (1) arising out the bad faith of or based upon any untrue statement or alleged untrue statement of (2) a material fact contained breach of this Agreement or (3) gross negligence or (4) or reckless or willful misconduct or (5) violation of law or regulation by the Indemnified Party. The Company further agrees that no Indemnified Party shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the Company or any prepricing prospectusof its affiliates, registration statement creditors or prospectus security holders for or in any amendment or supplement theretoconnection with the engagement of Sandler X’Xxxxx pursuant to, or arising out the performance by Sandler X’Xxxxx of the services contemplated by, this letter or based upon any omission actual or alleged omission proposed Business Combination, alternative transaction or other conduct in connection therewith except with respect to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such those losses, claims, damagesdamages and liabilities, liabilities or expenses rise out joint and several, incurred by the Company that are found in a final judgment by a court of competent jurisdiction to have resulted proximately from the (1) bad faith of or are based upon (2) a breach of this Agreement or (3) gross negligence or (4) or reckless or willful misconduct or (5) violation of law or regulation by the Indemnified Party. In the event a court finds that any untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon losses, claims damages and in conformity with the information relating to a participating Holder furnished in writing to liabilities of the Company by or on behalf resulted from any of a participating Holder expressly for use the acts of Sandler O’Neil enumerated in connection therewith. The foregoing indemnity agreement shall be the preceding sentence, the Company, in addition to any liability which other rights it may have under this agreement, expressly reserves its rights to pursue any remedy in law or equity against Sandler X’Xxxxx for breach of contract, for indemnification and otherwise to the fullest extent provided by California law. In the event Sandler X’Xxxxx appears as a witness in any action brought against the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall an Indemnified Party is not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed named as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceedingdefendant, the Company agrees to indemnify reimburse Sandler X’Xxxxx for all reasonable expenses incurred and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense time expended by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an 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, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company and of the participating Holders it in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expensesits appearing as a witness. The relative fault Company agrees to notify Sandler X’Xxxxx promptly of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue assertion against it or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method person of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount commencement of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit action or proceeding in respect of which relating to any indemnified party is or could have been a party and indemnity could have been sought hereunder transaction contemplated by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurredagreement. The indemnity and contribution agreements contained As used in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemniteeletter, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.term:

Appears in 1 contract

Samples: Engagement Letter (Northern Empire Bancshares)

Indemnification; Contribution. (a) The Company agrees HTCC shall indemnify, to indemnify the fullest extent permitted by applicable law, each Shareholder and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this Agreementits delegee, and such seller's partnersofficers, directors, officersemployees, employees agents, and any Person who controls such seller under a party within the meaning of Section 15 of the Securities Act (eachAct, an "Indemnitee") from and against any and all losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (including reasonable costs under the Securities Act or common law or otherwise), joint or several, resulting from any violation by HTCC of investigation) arising out the provisions of the Securities Act, or based upon any untrue statement or alleged untrue statement of a material fact contained in (i) any prepricing prospectus, registration statement or prospectus (and as amended or in supplemented if amended or supplemented) or any amendment preliminary prospectus; or supplement thereto, (ii) any application or arising out other documentation or communication executed by or on behalf of HTCC or based upon written information furnished by or on behalf of HTCC filed in any jurisdiction in order to qualify any securities covered by such registration under the “blue sky” or securities laws thereof, 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 insofar as to the extent that such losses, claims, damages, liabilities (or proceedings in respect thereof) or expenses rise out of or are based upon caused by any untrue statement or omission statement, or alleged untrue statement contained in or by any omission which has been made therein or omitted therefrom in reliance upon and in conformity with the alleged omission from information relating to concerning a participating Holder Shareholder furnished in writing to the Company HTCC by or on behalf of a participating Holder such Shareholder expressly for use in connection therewiththerein. The foregoing indemnity agreement shall be in addition If the Public Offering pursuant to any liability which registration statement provided for under this Agreement is made through underwriters, no action or failure to act on the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses part of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct underwriters (whether or not such representation by underwriter is an affiliate of any Shareholder) shall affect the same counsel has been proposed) due obligations of HTCC to actual indemnify Shareholders or potential differing interests between them (in which case any other Person pursuant to the Company shall not have preceding sentence. If the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition Public Offering pursuant to any local counsel) at any time registration statement provided for all such Indemnitees not having actual or potential differing interests among themselvesunder this Agreement is made through underwriters, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled HTCC agrees to enter into an underwriting agreement in customary form with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company underwriters and HTCC agrees to indemnify and hold harmless such Indemniteeunderwriters, to the extent provided in the preceding paragraphtheir officers, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statementemployees and agents, if any, and any person each Person, if any, who controls the Company such underwriters within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only herein before provided with respect to information relating to such Holder furnished in writing by or on behalf the indemnification of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any holders of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except Registrable Securities; provided that if the Company shall have assumed the defense thereof such Holder HTCC shall not be required to do soindemnify any such underwriter, but may employ separate counsel therein and participate in the defense thereofor any officer, but the fees and expenses director or employee of such counsel shall be 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 Holder's expense), 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 Company, its directors, any underwriter was provided with such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveamended or supplemented final prospectus. (db) If In connection with any registration statement in which any Shareholder, to the indemnification provided for extent it is a holder of Registrable Securities, is participating, each Shareholder, severally and not jointly with each other holder of Registrable Securities who is participating in this such registration statement, shall indemnify, to the fullest extent permitted by applicable law, HTCC, each underwriter and their respective officers, directors, employees and agents, if any, and each Person, if any, who controls HTCC or such underwriter within the meaning of Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect 15 of the Securities Act, against any losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses referred resulting from any untrue statement or alleged untrue statement of a material fact, or any omission or alleged omission of a material fact required to therein, then an indemnifying partybe stated in the registration statement or prospectus or preliminary prospectus or any amendment thereof or supplement thereto or necessary to make the statements therein (in the case of any prospectus, in lieu light of the circumstances under which they were made) not misleading, but only to the extent that such untrue statement is contained in or such omission is from information so concerning a Shareholder furnished in writing by such Shareholder expressly for use therein; provided that such Shareholder’s obligations hereunder shall be limited to an amount equal to the net proceeds to Shareholder of the Registrable Securities sold pursuant to such registration statement. (c) Any Person entitled to indemnification under the provisions of this Agreement shall (i) give prompt notice to the indemnifying party of any claim with respect to which it seeks indemnification and (ii) unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist in respect of such claim, permit such indemnifying party to assume the defense of such claim, with counsel reasonably satisfactory to the indemnified party; and if such defense is so assumed, such indemnifying party shall not enter into any settlement without the consent of the indemnified party if such settlement attributes liability to the indemnified party and such indemnifying party shall not be subject to any liability for any settlement made without its consent (which shall not be unreasonably withheld); and any underwriting agreement entered into with respect to any registration statement provided for under this Agreement shall so provide. In the event an indemnifying party shall not be entitled, or elects not, to assume the defense of a claim, such indemnifying party shall not be obligated to pay the fees and expenses of more than one counsel or firm of counsel (in addition to any required local counsel) for all parties indemnified by such indemnifying party in respect of such claim, unless in the reasonable judgment of any such indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties in respect to such claim. (d) If for any reason the foregoing indemnity is unavailable, then the indemnifying party shall contribute to the amount paid or payable by such the indemnified party as a result of such losses, claims, damages, liabilities or expenses (i) in such proportion as is appropriate to reflect the relative fault of benefits received by the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company indemnifying party on the one hand and a participating Holder the indemnified party on the other hand shall be determined or (ii) if the allocation provided by reference toclause (i) above is not permitted by applicable law or provides a lesser sum to the indemnified party than the amount hereinafter calculated, among other things, whether in such proportion as is appropriate to reflect not only the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied relative benefits received by the Company indemnifying party on the one hand or by such participating Holder and the indemnified party on the other hand but also the relative fault of the indemnifying party and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, well as any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceedingrelevant equitable considerations. Notwithstanding the provisions of this Section 9foregoing, no participating Holder each Shareholder shall not be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise holder would have been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omissionto an indemnified party if the indemnity under Paragraph 7(b) was available. 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 obligation of any Person to contribute pursuant to this Paragraph 7(d) shall be several and not joint. (e) An indemnifying party shall make payments of all amounts required to be made pursuant to the foregoing provisions of this Paragraph 7 to 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) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 Paragraph 7 shall remain operative and in full force and effect, effect regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, any Shareholder or its directors or officers, agents or any person controlling the CompanyPerson, if any, who controls such holder as aforesaid, and (ii) any shall survive the transfer of the Common Stock by Shareholders and the termination of this AgreementAgreement for any reason.

Appears in 1 contract

Samples: Registration Rights Agreement (Hungarian Telephone & Cable Corp)

Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless the Dealer Manager, each seller of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementHolder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an “Underwriter”) and such seller's partnersthe affiliates, directors, officers, agents, representatives and employees of the Dealer Manager, any Holder, Participating Broker-Dealer or Underwriter and any Person each Person, if any, who controls such seller under the Dealer Manager, any Holder, Participating Broker-Dealer or Underwriter (each an “Indemnified Person”) with respect to the Securities Act and Exchange Notes as follows: (each, an "Indemnitee"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 costs of investigationcounsel fees) arising as they are incurred by such Indemnified Person in connection with investigating, preparing to defend or defending any such action or claim insofar as such losses, actions, claims, damages or liabilities arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement Registration Statement (or prospectus or in any amendment or supplement thereto) pursuant to which Exchange Notes or Transfer Restricted Securities were registered under the 1933 Act, or arising out of or based upon any the omission or alleged omission to state therein therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such lossesor (ii) any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (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 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 rise 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 effected with the written consent of the Company; provided, however, that the Company will not be liable to any 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 have resulted primarily from the gross negligence, bad faith or willful misconduct of such Indemnified Person or (B) arise out of or are based upon (x) any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement or any Prospectus, (y) any omission or alleged untrue omission to state in any Registration Statement a material fact required to be stated therein or necessary to make the statements therein not misleading, or (z) any omission or alleged omission to state in 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 omission which has been relates solely to a Holder, Participating Broker-Dealer, Underwriter or the Dealer Manager and was made therein or omitted therefrom in reliance upon and in conformity with the information relating to a participating Holder furnished in writing by such Holder, Participating Broker-Dealer, Underwriter or the Dealer Manager to the Company expressly for use therein. The Company shall not be liable under this Section 4 for any settlement of any claim or action effected without its prior written consent, which shall not be unreasonably withheld. (b) Each Holder severally, but not jointly, agrees to indemnify and hold harmless the Company, 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, any Underwriter or any other selling Holder, against any and all losses, actions, claims, damages, liabilities and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Shelf Registration Statement (or any amendment thereto) or any Prospectus included therein (or any amendment or supplement thereto) in reliance upon and in conformity with written information with respect to such Holder furnished to the Company by or on behalf of a participating such Holder expressly for use in connection therewith. The foregoing indemnity agreement the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that no such Holder shall be liable for any claims hereunder in addition excess of the amount of net proceeds received by such Holder from the sale of Transfer Restricted Securities pursuant to any liability which the Company may otherwise havesuch Shelf Registration Statement. (bc) If The Company will not, without the prior written consent of a Holder, Participating Broker-Dealer, Underwriter or the Dealer Manager, as the case may be, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity indemnification or contribution may be sought against 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 CompanyIndemnified Persons) of the Indemnified Persons from all liability arising out of such claim, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and (ii) does not include a statement as to, or an admission of, fault, culpability or a failure to act by or on behalf of an Indemnified Person. (d) Promptly after receipt by an Indemnified Person under this Section 4 of notice of the commencement of any action, such Indemnified Person will, if a claim in respect thereof is to be made against the Company under this Section 4, notify the Company in writing of the 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 4 unless and to the extent such failure results in the forfeiture by the Company of substantial 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 is brought against any Indemnified Person, and it notifies the Company of the commencement thereof, the Company will be entitled to participate in therein and, to the extent they may wish to, may assume the defense thereof, but with counsel satisfactory to such Indemnified Person; provided, however, that if the fees defendants in any such action include both the Indemnified Person and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing and the Indemnified Person shall have concluded that there may be one or more legal defenses available to pay such fees and expenses, (y) the Company has failed it and/or other Indemnified Persons that are different from or additional to assume the defense and employ counsel, or (z) the named parties those available to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case then the Company shall not have the right to assume direct the defense of such action, suit or proceeding action on behalf of such IndemniteeIndemnified 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). It is After notice from the Company to such 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 retention of such counsel by the Company in a timely manner, the Company will not be liable to such Indemnified Person under this Section 4 for any legal or other expenses, other than reasonable costs of investigation 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 proviso to the immediately preceding sentence (it being understood, however, that the Company shall, in connection with such action the Company shall not be liable for the expenses of more than one separate counsel (in addition to local counsel) in any one such action, suit or proceeding action or separate but substantially similar or related actions, suits or proceedings actions in the same jurisdiction arising out of the same general allegations or circumstancescircumstances representing the Indemnified Persons who are parties to such action or actions) or (ii) the Company has authorized the employment of counsel for the Indemnified Person at the expense of the Company. After such notice from the Company to such Indemnified Person, approved by such Indemnified Person and retention of such counsel by the Company, the Company will not be liable for the reasonable fees losses, costs and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such actionaction effected by such Indemnified Person without the consent of the Company, suit or proceeding effected 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 its written such consent, but if settled with such written consent, or if them be a final judgment . (e) In circumstances in which the indemnity agreement provided for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability paragraphs of this Section 4 is unavailable or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree insufficient to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof Indemnified Person in respect of any losses, claims, damagesdamages or liabilities (or actions in respect thereof), liabilities or expenses referred to therein, then an indemnifying partythe Company, in lieu of indemnifying such indemnified partyorder to provide for just and equitable contribution, shall contribute to the amount paid or payable by such indemnified party Indemnified Person as a result of such losses, claims, damages, damages or liabilities (or expenses 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 Company on the one hand and of the participating Holders Indemnified Person(s) on the other hand in connection with the statements or omissions that resulted in such losses, claims, damagesdamages or liabilities (or actions in respect thereof). The relative benefits received by the Company on the one hand and the Indemnified Person(s) on the other hand shall be deemed to be in the same proportion as (i) the relative benefits received by the Company from the initial offering and sale of the Securities, liabilities or expenseson one hand, bears to (ii) the relative benefit received by a Holder from receiving securities registered under the 1933 Act, on the other. The relative fault of the Company on the one hand and a participating Holder the Holders on the other hand shall be determined by reference to, among other things, whether the any such untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company on Company, the one hand or by such participating Holder on the other hand Holders and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) . The indemnity, reimbursement and contribution obligations of the Company under this Agreement shall be in addition to any rights that a Holder or any other Indemnified Person may have at common law or otherwise, including any other agreements by and among the parties hereto. The Company and the participating Holders agree that it would not be just and equitable if the amount of such contribution pursuant to this Section 9 were determined by a 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 of the equitable considerations referred to in this Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding4. Notwithstanding the provisions of this Section 94, no participating Holder shall be required to contribute any amount in excess of the amount by which the net proceeds to received by such participating Holder from the exchange of the Transfer Restricted Securities exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No omission with respect to the Securities or Exchange Notes from the exchange of the Transfer Restricted Securities, and no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall. For purposes of this Section 4, without each Person, if any, who controls the prior written consent Dealer Manager, any Holder, each Participating Broker-Dealer or Underwriter within the meaning of Section 15 of the indemnified party1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Dealer Manager, effect any settlement such Holder, each Participating Broker-Dealer or Underwriter and each director of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination each Person, if any, who controls the Company within the meaning of this AgreementSection 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) Indemnification by the Company. The Company agrees to indemnify --------------------------------- and hold harmless each seller Holder of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementSecurities, and such seller's partnersits officers, directors, officersshareholders, employees partners, trustees, beneficiaries and any Person agents, and each person or entity, if any, who controls such seller under Holder within the meaning of Section 15 of the Securities Act (eachor Section 20 of the Exchange Act, an "Indemnitee") from and against any and all losses, claims, damages, liabilities and expenses (including reasonable costs of investigation) arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement or prospectus relating to the Registrable Securities or in any amendment or supplement theretothereto or in any preliminary prospectus, or arising out of or based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities liabilities, or expenses rise arise out of of, or are based upon, any such untrue statement or omission or allegation thereof based upon information furnished in writing to the 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 which has been made therein or omitted therefrom in reliance upon and in conformity with any preliminary prospectus, the information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating Holder expressly for use in connection therewith. The foregoing indemnity agreement shall be contained in addition to any liability which the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company this subsection shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, apply to the extent provided in that any such loss, claim, damage, liability, or expense results from the preceding paragraphfact that a current copy of the prospectus was not sent or given to the person asserting any such loss, from claim, damage, liability, or expense at or prior to the written confirmation of the sale of the Registrable Securities to such person and against any such current copy of the prospectus would have cured the defect giving rise to such loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each expense. The Company also agrees to indemnify any Underwriters of the participating HoldersRegistrable Securities, severally their officers and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any each person who controls such Underwriters on substantially the Company within the meaning of Section 15 same basis as that of the Securities Act or Section 20 indemnification of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an 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, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission6(a). (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Safeguard Health Enterprises Inc)

Indemnification; Contribution. (a) The Company agrees Strategic REIT and the Issuer agree to indemnify indemnify, defend and hold harmless each seller Initial Purchaser, each Holder, each person (a “Controlling Person”), if any, who controls any Initial Purchaser or Holder within the meaning of Registrable Section 15 of the Securities covered by a Registration Statement filed pursuant to this Agreement, Act or Section 20 of the Exchange Act and such seller's partnersthe respective officers, directors, officerspartners, employees employees, representatives and agents of any Initial Purchaser, the Holders or any Controlling Person who controls such seller under the Securities Act (each, an "Indemnitee") “Indemnified Party”), from and against any and all lossesloss, claimsdamage, damagesexpense, liabilities and expenses liability, claim or any actions in respect thereof (including the reasonable costs cost of investigation) arising which such Indemnified Party may incur or become subject to under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectusShelf Registration Statement or Prospectus, registration statement or prospectus including any document incorporated by reference therein, or in any amendment or supplement theretothereto or in any preliminary prospectus, or arising arises out of or is based upon any omission or alleged omission to state therein a material fact required to be stated therein in any Shelf Registration Statement or in any amendment or supplement thereto or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise arises out of or are is based upon any omission or alleged omission to state a material fact necessary in order to make the statements made in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which such statements were made, not misleading, and Strategic REIT and the Issuer shall reimburse, as incurred, the Indemnified Parties for any legal or other expenses reasonably incurred by them in 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 loss, damage, expense, liability, claim or action arises out of or is based upon (i) any untrue statement or omission or alleged untrue statement or omission which has been made therein of a material fact contained in, or omitted therefrom in reliance upon from, and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of an Initial Purchaser or a participating Holder to Strategic REIT expressly for use in connection therewith. The foregoing 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 Suspension Period; provided further, however, that this indemnity agreement shall will be in addition to any liability which Strategic REIT and the Company Issuer may otherwise havehave 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 who controls Strategic REIT and the Issuer within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (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 Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or is based upon (A) any untrue statement or alleged untrue statement of a material fact contained in, and in conformity with information (the “Holder Information”) furnished in writing by or on behalf of such Holder to 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 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 any Shelf Registration Statement or Prospectus or necessary to make such Holder Information not misleading, (B) a sale, by such Holder pursuant to a Shelf Registration Statement in or with respect to which such Holder 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 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 controlling persons. In no event shall the liability of any selling Holder of Registrable Securities hereunder be greater in amount than the dollar amount of the proceeds received by such Holder upon the sale, pursuant to the Shelf Registration Statement, of the Registrable Securities giving rise to such indemnification obligation. (c) If any action, suit or proceeding shall be (each, a “Proceeding”) is brought against an Indemnitee any person in respect of which indemnity may be sought against the Companypursuant to either Section 6(a) or Section 6(b), such Indemnitee person (the “Indemnified Party”) shall promptly notify the Company, person against whom such indemnity may be sought (the “Indemnifying Party”) in writing of the institution of such Proceeding and the Company Indemnifying Party shall assume the defense thereofof such Proceeding; provided, including however, that the employment of counsel and payment of all fees and expensesomission 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. The Indemnitee Such Indemnified Party shall have the right to employ separate its own counsel in any such action, suit or proceeding and to participate in the defense thereofcase, but the fees and expenses of such counsel shall be at the expense of such Indemnitee Indemnified Party unless (x) the Company has agreed in writing to pay employment of such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee counsel shall have been advised authorized in writing by its such Indemnifying Party in connection with the defense of such Proceeding or such Indemnifying Party shall not have employed counsel to have charge of the defense of such Proceeding within thirty (30) days of the receipt of notice thereof or such Indemnified Party shall have reasonably concluded upon the written advice of counsel that representation of there may be one or more defenses available to it that are different from, additional to or in conflict with those available to such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them Indemnifying Party (in which case the Company such Indemnifying Party shall not have the right to assume direct that portion of the defense of such action, suit or proceeding Proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consentIndemnified Party, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but Indemnifying Party may employ separate counsel therein and participate in the defense thereof, thereof but the fees and expenses of such counsel shall be at the Holder's expenseexpense of such Indemnifying Party), in any of which events such reasonable fees and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement expenses shall be borne by such Indemnifying Party and paid as incurred (it being understood, however, that such Indemnifying Party shall not be liable for the expenses of more than one separate counsel in addition any one Proceeding or series of related Proceedings together with reasonably necessary local counsel representing the Indemnified Parties who are parties to such action). An Indemnifying Party shall not be liable for any settlement of such Proceeding effected without the written consent of such Indemnifying Party, but if settled with the written consent of such Indemnifying Party, such Indemnifying Party agrees to indemnify and hold harmless an Indemnified Party from and against any loss or liability by reason of such settlement. No Indemnifying Party shall, without the prior written consent of any Indemnified Party, effect any settlement of any pending or threatened Proceeding in respect of which such Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the participating Holders may otherwise havesubject matter of such Proceeding and does not include an admission of fault or culpability or a failure to act by or on behalf of such Indemnified Party. (d) If the indemnification provided for in this Section 9 6 is unavailable to an indemnified party Indemnified Party under paragraphs (aSection 6(a) or (c) hereof Section 6(b), or insufficient to hold such Indemnified Party harmless, in respect of any losses, claims, damages, liabilities expenses, liabilities, claims or expenses actions referred to therein, then an 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, claims, damages, liabilities expenses, liabilities, claims or expenses 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 Company Issuer, on the one hand, and of the participating Holders or the Initial Purchasers, on the other hand, in connection with the statements or omissions that which resulted in such losses, claims, damages, liabilities expenses, liabilities, claims or expensesactions, as well as any other relevant equitable considerations. The relative fault of Strategic REIT and the Company Issuer, on the one hand hand, and a participating Holder of the Holders or the Initial Purchasers, on the other hand hand, shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact omission relates to information supplied by Strategic REIT and the Company on the one hand Issuer or by such participating Holder on the other hand Holders or the Initial Purchasers and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, damages, expenses, liabilities, claims and actions referred to above shall be deemed to include any reasonable legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any Proceeding. (e) The Company Strategic REIT, the Issuer, the Holders and the participating Holders Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 9 6 were determined by a pro rata allocation or by any other method of allocation that which does not take account of the equitable considerations referred to in Section 9(d6(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 96, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds total price at which the Registrable Securities giving rise to such participating contribution obligation and sold by such Holder were offered to the public exceeds the amount of any damages which such participating Holder it 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 Holders’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint. The remedies provided for in this Section 6 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements provisions contained in this Section 9 6 shall remain operative and in full force and effect, effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of an Indemnitee, any Holder or the Company, its directors or officers, Initial Purchasers or any person controlling any Holder or Initial Purchaser, or Strategic REIT, or the CompanyIssuer, or Strategic REIT’s or the Issuer’s officers or directors or any person controlling Strategic REIT or the Issuer and (iiiii) the sale of any termination of this AgreementRegistrable Security by any Holder.

Appears in 1 contract

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

Indemnification; Contribution. (a) The Company agrees shall indemnify, to indemnify and hold harmless the fullest extent permitted by law, each seller holder of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementSecurities, and such seller's partnersits officers, directors, officerspartners, employees and any Person agents, if any, and each Person, if any, who controls such seller under holder within the meaning of Section 15 of the Securities Act (eachAct, an "Indemnitee") from and against any and all losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (including reasonable costs under the Securities Act or common law or otherwise), joint or several, resulting from any violation by the Company of investigation) arising out the provisions of the Securities Act or based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement or prospectus (and as amended or in supplemented if amended or supplemented) or any amendment preliminary prospectus or supplement thereto, or arising out of or based upon 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 insofar as to the extent that such losses, claims, damages, liabilities (or proceedings in respect thereof) or expenses rise out of or are based upon caused by any untrue statement or alleged untrue statement contained in or by any omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the from information relating to a participating Holder concerning any holder of Registrable Securities furnished in writing to the Company by or on behalf of a participating Holder such holder expressly for use in connection therewiththerein. The foregoing indemnity agreement shall be in addition If the Public Offering pursuant to any liability which registration statement provided for under this Article III is made through underwriters, no action or failure to act on the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses part of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct underwriters (whether or not such representation by underwriter is an Affiliate of any holder of Registrable Securities) shall affect the same counsel has been proposed) due to actual or potential differing interests between them (in which case obligations of the Company shall not have to indemnify any holder of Registrable Securities or any other Person pursuant to the right to assume preceding sentence. If the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition Public Offering pursuant to any local counsel) at any time registration statement provided for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceedingunder this Article III is made through underwriters, the Company agrees to indemnify enter into an underwriting agreement in customary form with such underwriters and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree Company agrees to indemnify and hold harmless the Companysuch underwriters, its their officers, directors, its officers who sign the registration statementemployees and agents, if any, and any person each Person, if any, who controls the Company such underwriters within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only herein before provided with respect to information relating to such Holder furnished in writing by or on behalf the indemnification of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any holders of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to Registrable Securities; provided that the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do soindemnify any such underwriter, but may employ separate counsel therein and participate in the defense thereofor any officer, but the fees and expenses director or employee of such counsel 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 be at indemnify, to the Holder's expense)fullest extent permitted by law, and the Company, its each underwriter and their respective officers, directors, any such officeremployees and agents, if any, and any each Person, if any, who controls the Company or such controlling person shall have underwriter within the rights and duties given to an Indemnitee by meaning of Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which 15 of the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect of Securities Act, against any losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses referred resulting from any untrue statement or alleged untrue statement of a material fact, or any omission or alleged omission of a material fact required to therein, then an indemnifying partybe stated in the registration statement or prospectus or preliminary prospectus or any amendment thereof or supplement thereto or necessary to make the statements therein (in the case of any prospectus, in lieu light of the circumstances under which they were made) not misleading, but only to the extent that such untrue statement is contained in or such omission is from information so concerning a holder furnished in writing by such holder expressly for use therein; provided that such holder's obligations hereunder shall be limited to an amount equal to the net proceeds to such holder of the Registrable Securities sold pursuant to such registration statement. (c) Any Person entitled to indemnification under the provisions of this Section 3.7 shall (i) give prompt notice to the indemnifying party of any claim with respect to which it seeks indemnification and (ii) unless in such indemnified party's reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist in respect of such claim, permit such indemnifying party to assume the defense of such claim, with counsel reasonably satisfactory to the indemnified party; and if such defense is so assumed, such indemnifying party shall not enter into any settlement without the consent of the indemnified party if such settlement attributes liability to the indemnified party and such indemnifying party shall not be subject to any liability for any settlement made without its consent (which shall not be unreasonably withheld); and any underwriting agreement entered into with respect to any registration statement provided for under this Article III shall so provide. In the event an indemnifying party shall not be entitled, or elects not, to assume the defense of a 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 in respect of such claim, unless in the reasonable judgment of any such indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties in respect to such claim. (d) If for any reason the foregoing indemnity is unavailable, then the indemnifying party shall contribute to the amount paid or payable by such the indemnified party as a result of such losses, claims, damages, liabilities or expenses (i) in such proportion as is appropriate to reflect the relative fault of benefits received by the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company indemnifying party on the one hand and a participating Holder the indemnified party on the other hand shall be determined or (ii) if the allocation provided by reference toclause (i) above is not permitted by Applicable Law or provides a lesser sum to the indemnified party than the amount hereinafter calculated, among other things, whether in such proportion as is appropriate to reflect not only the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied relative benefits received by the Company indemnifying party on the one hand or by such participating Holder and the indemnified party on the other hand but also the relative fault of the indemnifying party and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, well as any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceedingrelevant equitable considerations. Notwithstanding the provisions of this Section 9foregoing, no participating Holder holder of Registrable Securities shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise holder would have been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omissionto an indemnified party if the indemnity under Section 3.7(b) was available. 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 obligation of any Person to contribute pursuant to this Section 3.8 shall be several and not joint. (e) An indemnifying party shall make payments of all amounts required to be made pursuant to the foregoing provisions of this Section 3.7 to 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) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 3.7 shall remain operative and in full force and effect, effect regardless of (i) any investigation made by or on behalf of an Indemnitee, the Companya participating holder of Registrable Securities, its directors or officers, directors, agents or any person controlling the CompanyPerson, if any, who controls such holder as aforesaid, and (ii) any 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 agrees to indemnify and hold harmless each seller of Buyer Party holding Registrable Securities covered by a Registration Statement filed pursuant to this AgreementSecurities, and such seller's partnersthe Affiliates, directors, officers, employees employees, stockholders, managers and any agents of each such Buyer Party and each Person who controls any such seller under Buyer Party within the Securities meaning of either the 1933 Act (eachor the 1934 Act, an "Indemnitee") 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 costs of investigationor actions in respect thereof) arising arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, a registration statement or prospectus 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 arising arise out of or are based upon any the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of the Disclosure Package, or any preliminary, final or summary prospectus or Free Writing Prospectus included in any such registration statement, in light of the circumstances under which they were made) not misleading, except insofar and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such lossesloss, claimsclaim, damagesdamage, liabilities liability or expenses rise 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 to the extent that any such loss, claim, damage, liability or expense arises (i) out of or are is based upon any such untrue statement or alleged untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the written information relating to a participating Holder furnished in writing to the Company by or on behalf of any such Buyer Party specifically for inclusion therein including, without limitation, any notice and questionnaire, (ii) out of or is based upon any Buyer Party’s failure to deliver a participating Holder expressly for use copy of the registration statement, the Disclosure Package, or any preliminary, final or summary prospectus or Free Writing Prospectus included in connection therewithany such registration statement or any amendments or supplements thereto (if the same was required by applicable law to be so delivered) after the Company has furnished such Buyer Party with a sufficient number of copies of the same prior to any written confirmation of the sale of Registrable Securities or (iii) out of sales of Registrable Securities made during a Suspension Period after notice is given pursuant to Section 5.3(c) hereof. The foregoing This indemnity agreement shall will be in addition to any liability which the Company may otherwise have. (b) If Each Buyer Party severally (and not jointly) agrees to indemnify and hold harmless the Company and each of its Affiliates, directors, employees, stockholders, managers and agents and each Person who controls the Company within the meaning of either the 1933 Act or the 1934 Act, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages or liabilities to which they or any of them may become subject insofar as such losses, claims, damages or liabilities arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in a registration statement as originally filed or in any amendment thereof, or in the Disclosure Package or any Buyer Party Free Writing Prospectus, preliminary, final or summary prospectus included in any such registration statement, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of the Disclosure Package, or any preliminary, final or summary prospectus or Free Writing Prospectus included in any such registration statement, in light of the circumstances under which they were made) not misleading, to the extent, but only to the extent, that any such untrue statement or alleged untrue statement or omission or alleged omission is contained in any written information relating to such Buyer Party furnished to the Company by or on behalf of such Buyer Party specifically for inclusion therein or (ii) Buyer Party’s failure to deliver a copy of the registration statement, the Disclosure Package, or any preliminary, final or summary prospectus or Free Writing Prospectus included in any such registration statement or any amendments or supplements thereto (if the same was required by applicable law to be so delivered) after the Company has furnished such Buyer Party with a sufficient number of copies of the same prior to any written confirmation of the sale of Registrable Securities; provided, however, that the total amount to be indemnified by such Buyer Party pursuant to this Section 5.8(b) shall be limited to the net proceeds (after deducting underwriters’ discounts and commissions) received by such Buyer Party in the offering to which such registration statement or prospectus relates. (c) Promptly after receipt by an indemnified party under this Section 5.8 of notice of the commencement of any action, suit such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 5.8, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or proceeding (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 brought against an Indemnitee in respect of which indemnity may be sought against entitled to participate therein and, to the Companyextent that it shall wish, such Indemnitee shall promptly notify the Companyjointly with any other indemnifying party similarly notified, and the Company shall to assume the defense thereof, including with counsel satisfactory to such indemnified party (who shall not, except with the employment consent of the indemnified party, be counsel and payment to the indemnifying party), and, except as provided in the next sentence, after notice from the indemnifying party to such indemnified party of all fees and expensesits election to so assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The Indemnitee Notwithstanding the indemnifying party’s rights in the prior sentence, the indemnified party shall have the right to employ separate its own counsel in any such action(and one local counsel), suit or proceeding and to participate in the defense thereofindemnifying party shall bear the reasonable fees, but the fees costs and expenses of such separate counsel if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest; (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party; (iii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee)indemnifying party. It is understood, however, that the Company No indemnifying party shall, in connection with any one such action, suit or proceeding action or separate but substantially similar or related actions, suits or proceedings actions in the same jurisdiction arising out of the same general allegations circumstances or circumstancesallegations, be liable for the reasonable fees and expenses of only more than one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurredindemnified parties. The Company An indemnifying party shall not be liable for under this Section 5.8 to any indemnified party regarding any settlement or compromise or consent to the entry of any such judgment with respect to any pending or threatened claim, action, suit or proceeding effected without its written consentin respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, but if settled with compromise or consent is consented to by such written consentindemnifying party. No indemnifying party, or if them be a final judgment for in the plaintiff in defense of any such actionclaim or litigation, suit shall, except with the consent of each indemnified party, consent to entry of any judgment or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against enter into any loss, claim, damage, liability settlement or expense by reason of compromise unless such settlement or judgment. compromise (ci) Each includes an unconditional release of such indemnified party from all liability on claims that are the participating Holderssubject matter of such proceeding and (ii) does not include any statement as to or any admission of fault, severally and not jointly, agree culpability or a failure to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing act by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveindemnified party. (d) If In the indemnification event that the indemnity provided for in this Section 9 5.8(a) or 5.8(b) above is unavailable to or insufficient to hold harmless an indemnified party under paragraphs (a) or (c) hereof in respect of for any reason, then each applicable indemnifying party agrees to contribute to the aggregate losses, claims, damagesdamages and liabilities (including, liabilities without limitation, legal or other expenses referred reasonably incurred in connection with investigating or defending same) to therein, then an which such 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, claims, damages, liabilities or expenses may be subject in such proportion as is appropriate to reflect the relative fault of the Company indemnifying party on the one hand and of the participating Holders indemnified party on the other hand in connection with the statements or omissions that which resulted in such losses, claims, damagesdamages or liabilities (or actions in respect thereof), liabilities or expensesas well as any other relevant equitable considerations. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company indemnifying party on the one hand or by such participating Holder the indemnified party on the other hand and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) . The Company and the participating Holders parties agree that it would not be just and equitable if contribution pursuant to this Section 9 5.8(d) were determined by a pro rata allocation (even if the Buyer Parties holding Registrable Securities or any agents or underwriters or all of them were treated as one entity for such purpose) or by any other method of allocation that which does not take account of the equitable considerations referred to above in this Section 9(d) hereof5.8(d). The amount paid or payable by an indemnified party as a result of the losses, claims, damages, damages or liabilities and expenses (or actions in respect thereof) referred to above in Section 9(d) hereof this Article V shall be deemed to include, subject to the limitations set forth above, include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit action or proceedingclaim. Notwithstanding the provisions of this Section 95.8(d), no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder 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 Act0000 Xxx) shall be entitled to contribution from any person Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 5.8, each Person who controls any Buyer Party holding Registrable Securities, agent or underwriter within the meaning of either the 1933 Act or the 1934 Act and each director, officer, employee and agent of any such Buyer Party, agent or underwriter shall have the same rights to contribution as such Buyer Party, agent or underwriter, and each Person who controls the Company within the meaning of either the 1933 Act or the 1934 Act and each officer and director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this Section 5.8(d). Notwithstanding the foregoing, the total amount to be contributed by any Buyer Party pursuant to this Section 5.8(d) shall be limited to the net proceeds (after deducting underwriters’ discounts and commissions) received by such Buyer Party in the offering to which such registration statement or prospectus relates. (fe) No indemnifying party shall, without the prior written consent The provisions of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall 5.8 will remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of any Buyer Party holding Registrable Securities or the Company or any of the officers, directors or controlling Persons referred to in this Section 5.8, and will survive the transfer of Registrable Securities. (f) To the extent any indemnification by an Indemniteeindemnifying party is prohibited or limited by law, the Companyindemnifying party agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under this Section 5.8 to the fullest extent permitted by Applicable Law; provided, its directors or officershowever, or 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 controlling the Company, Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any termination seller of this AgreementRegistrable Securities shall be limited in amount to the net amount of proceeds received by such seller from the sale of such Registrable Securities pursuant to such Shelf Registration.

Appears in 1 contract

Samples: Stockholders' Agreement (Professional Diversity Network, Inc.)

Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementHolder, and such seller's partnersthe Affiliates, directors, officers, employees employees, members, managers and any agents of each such Holder and each Person who controls any such seller under Holder within the meaning of either the Securities Act (eachor the Exchange Act, an "Indemnitee") 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 costs of investigationor actions in respect thereof) 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 in any prepricing prospectus, registration statement or prospectus 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 arising arise out of or are based upon any the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration Statement, in light of the circumstances under which they were made) not misleading, except insofar and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such lossesloss, claimsclaim, damagesdamage, liabilities liability or expenses rise 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 to the extent that any such loss, claim, damage, liability or expense arises (i) out of or are is based upon any such untrue statement or alleged untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the written information relating to a participating 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 (ii) out of sales of Registrable Securities made during a participating Holder expressly for use in connection therewithBlackout Period after notice is given pursuant to the definition thereof. The foregoing This indemnity agreement shall will be in addition to any liability which the Company may otherwise have. (b) If Each Holder severally (and not jointly) agrees to indemnify and hold harmless the Company and each of its Affiliates, directors, employees, members, managers and agents and each Person who controls the Company within the meaning of either the Securities Act or the Exchange Act, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages or liabilities to which they or any of them may become subject insofar as such losses, claims, damages or liabilities arise out of or are based upon any violation of the Securities Act, Exchange Act or state securities laws, upon any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement as originally filed or in any amendment thereof, or in the Disclosure Package or any Holder Free Writing Prospectus, preliminary, final or summary Prospectus included in any such Registration Statement, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration Statement, in light of the circumstances under which they were made) not misleading, to the extent, but only to the extent, that any such untrue statement or alleged untrue statement or omission or alleged omission is contained in any written information relating to such Holder furnished to the Company by or on behalf of such Holder specifically for inclusion therein; provided, however, that the total amount to be indemnified by such Holder pursuant to this Section 7(b) shall be limited to the net proceeds (after deducting underwriters’ discounts and commissions) received by such Holder in the offering to which such Registration Statement or Prospectus relates. (c) Promptly after receipt by an indemnified party under this Section 7 of notice of the commencement of any action, suit such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 7, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or proceeding (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 brought against an Indemnitee in respect of which indemnity may be sought against entitled to participate therein and, to the Companyextent that it shall wish, such Indemnitee shall promptly notify the Companyjointly with any other indemnifying party similarly notified, and the Company shall to assume the defense thereof, including with counsel satisfactory to such indemnified party (who shall not, except with the employment consent of the indemnified party, be counsel and payment to the indemnifying party), and, except as provided in the next sentence, after notice from the indemnifying party to such indemnified party of all fees and expensesits election to so assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The Indemnitee Notwithstanding the indemnifying party’s rights in the prior sentence, the indemnified party shall have the right to employ separate its own counsel in any such action(and one local counsel), suit or proceeding and to participate in the defense thereofindemnifying party shall bear the reasonable fees, but the fees costs and expenses of such separate counsel if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest; (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party; (iii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee)indemnifying party. It is understood, however, that the Company No indemnifying party shall, in connection with any one such action, suit or proceeding action or separate but substantially similar or related actions, suits or proceedings actions in the same jurisdiction arising out of the same general allegations circumstances or circumstancesallegations, be liable for the reasonable fees and expenses of only more than one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurredindemnified parties. The Company An indemnifying party shall not be liable for under this Section 7 to any indemnified party regarding any settlement or compromise or consent to the entry of any such judgment with respect to any pending or threatened claim, action, suit or proceeding effected without its written consentin respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, but if settled with compromise or consent is consented to by such written consentindemnifying party. No indemnifying party, or if them be a final judgment for in the plaintiff in defense of any such actionclaim or litigation, suit shall, except with the consent of each indemnified party, consent to entry of any judgment or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against enter into any loss, claim, damage, liability settlement or expense by reason of compromise unless such settlement or judgment. compromise (ci) Each includes an unconditional release of such indemnified party from all liability on claims that are the participating Holderssubject matter of such proceeding and (ii) does not include any statement as to or any admission of fault, severally and not jointly, agree culpability or a failure to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing act by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveindemnified party. (d) If In the indemnification event that the indemnity provided for in this Section 9 7(a) or Section 7(b) above is unavailable to or insufficient to hold harmless an indemnified party under paragraphs (a) or (c) hereof in respect of for any reason, then each applicable indemnifying party agrees to contribute to the aggregate losses, claims, damagesdamages and liabilities (including, liabilities without limitation, legal or other expenses referred reasonably incurred in connection with investigating or defending same) (collectively, “Losses”) to therein, then an which such 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, claims, damages, liabilities or expenses may be subject in such proportion as is appropriate to reflect the relative fault of the Company indemnifying party on the one hand and of the participating Holders indemnified party on the other in connection with the statements or omissions that which resulted in such losses, claims, damagesdamages or liabilities (or actions in respect thereof), liabilities or expensesas well as any other relevant equitable considerations. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company indemnifying party on the one hand or by such participating Holder the indemnified party on the other hand and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) . The Company and the participating Holders parties agree that it would not be just and equitable if contribution pursuant to this Section 9 7(d) were determined by a pro rata allocation (even if the Holders or any agents or underwriters or all of them were treated as one entity for such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to above in this Section 9(d) hereof7(d). The amount paid or payable by an indemnified party as a result of the losses, claims, damages, damages or liabilities and expenses (or actions in respect thereof) referred to above in this Section 9(d7(d) hereof shall be deemed to include, subject to the limitations set forth above, include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit action or proceedingclaim. Notwithstanding the provisions of this Section 97(d), no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder 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. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.such

Appears in 1 contract

Samples: Registration Rights Agreement (Red Lion Hotels CORP)

Indemnification; Contribution. (a) Indemnification by the Company. The Company agrees to indemnify ------------------------------ and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this Agreement, the Shareholders' Representative and such seller's partners, directors, officers, employees and any Person who controls such seller under the Securities Act (each, an "Indemnitee") Shareholders from and against any and all losses, claims, damages, liabilities and expenses (including reasonable costs of investigation) arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement the Registration Statement or prospectus contained therein or in any amendment or supplement theretothereto or in any preliminary prospectus, or arising out of or based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise arise out of of, or are based upon, any such untrue statement or omission or allegation thereof based upon information furnished in writing to the Company by the Shareholders' Representative or any Shareholder or on the Shareholders' behalf expressly for use therein and; provided, further, that with respect to any -------- ------- untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with any preliminary prospectus, the information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating Holder expressly for use in connection therewith. The foregoing indemnity agreement shall be contained in addition to any liability which the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company this subsection shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, apply to the extent provided in the preceding paragraph, from and against that any such loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each results from the fact that a current copy of the participating Holders, severally and prospectus was not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act sent or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, person asserting any such officerloss, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any claim, damage, liability which the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, claims, damages, liabilities expense at or expenses referred to therein, then an indemnifying party, in lieu of indemnifying such indemnified party, shall contribute prior to the amount paid or payable by such indemnified party as a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault written confirmation of the Company and sale of the participating Holders in connection with Registrable Securities to such person if it is determined that it was the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault responsibility of the Company on the one hand and Shareholders to provide such person with a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account current copy of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result prospectus and such current copy of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to prospectus would have cured the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds defect giving rise to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue loss, claim, damage, liability 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 misrepresentationexpense. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Metasolv Inc)

Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each seller Holder of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementSecurities, and such seller's partnersthe Affiliates, directors, officers, employees employees, members, managers and any agents of each such Holder and each Person who controls any such seller under Holder within the meaning of either the Securities Act (eachor the Exchange Act, an "Indemnitee") 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 costs of investigationor actions in respect thereof) arising arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement or prospectus 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 arising arise out of or are based upon any the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such lossesloss, claimsclaim, damagesdamage, liabilities liability or expenses rise 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 to the extent that any such loss, claim, damage, liability or expense arises (i) out of or are is based upon any such untrue statement or alleged untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the written information relating to a participating 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 (ii) out of sales of Registrable Securities made during a participating Holder expressly for use in connection therewithSuspension Period after notice is given pursuant to Section 2(e)(iii) hereof. The foregoing This indemnity agreement shall will be in addition to any liability which the Company may otherwise have. (b) If Each Holder severally (and not jointly) agrees to indemnify and hold harmless the Company and each of its Affiliates, directors, employees, members, managers and agents and each Person who controls the Company within the meaning of either the Securities Act or the Exchange Act, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages or liabilities to which they or any of them may become subject insofar as such losses, claims, damages or liabilities arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement as originally filed or in any amendment thereof, or in the Disclosure Package or any Holder Free Writing Prospectus, preliminary, final or summary Prospectus included in any such Registration Statement, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, to the extent, but only to the extent, that any such untrue statement or alleged untrue statement or omission or alleged omission is contained in any written information relating to such Holder furnished to the Company by or on behalf of such Holder specifically for inclusion therein; provided, however, that the total amount to be indemnified by such Holder pursuant to this Section 8(b) shall be limited to the net proceeds (after deducting underwriters’ discounts and commissions) received by such Holder in the offering to which such Registration Statement or Prospectus relates. This indemnity agreement will be in addition to any liability which any such Holder may otherwise have. (c) Promptly after receipt by an indemnified party under this Section 8 of notice of the commencement of any action, suit such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 8, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or proceeding (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 brought against an Indemnitee in respect of which indemnity may be sought against entitled to participate therein and, to the Companyextent that it shall wish, such Indemnitee shall promptly notify the Companyjointly with any other indemnifying party similarly notified, and the Company shall to assume the defense thereof, including with counsel satisfactory to such indemnified party (who shall not, except with the employment consent of the indemnified party, be counsel and payment to the indemnifying party), and, except as provided in the next sentence, after notice from the indemnifying party to such indemnified party of all fees and expensesits election to so assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The Indemnitee Notwithstanding the indemnifying party’s rights in the prior sentence, the indemnified party shall have the right to employ separate its own counsel in any such action(and one local counsel), suit or proceeding and to participate in the defense thereofindemnifying party shall bear the reasonable fees, but the fees costs and expenses of such separate counsel if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest; (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party; (iii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee)indemnifying party. It is understood, however, that the Company No indemnifying party shall, in connection with any one such action, suit or proceeding action or separate but substantially similar or related actions, suits or proceedings actions in the same jurisdiction arising out of the same general allegations circumstances or circumstancesallegations, be liable for the reasonable fees and expenses of only more than one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurredindemnified parties. The Company 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 entry of any such judgment with respect to any pending or threatened claim, action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity indemnification or contribution may be sought against any Holder pursuant hereunder (whether or not the indemnified parties are actual or potential parties to this Section 9(c)such claim or action) unless such settlement, compromise or consent is consented to by such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder indemnifying party, which consent shall not be required to do sounreasonably withheld. No indemnifying party, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officerclaim or litigation, shall, except with the consent of each indemnified party, consent to entry of any judgment or enter into any settlement or compromise that does not include as an unconditional term thereof the giving by the claimant or plaintiff therein, to such indemnified party, of a full and any final release from all liability in respect to such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveclaim or litigation. (d) If In the indemnification event that the indemnity provided for in this Section 9 8(a) or Section 8(b) above is unavailable to or insufficient to hold harmless an indemnified party under paragraphs (a) or (c) hereof in respect of for any reason, then each applicable indemnifying party agrees to contribute to the aggregate losses, claims, damagesdamages and liabilities (including, liabilities without limitation, legal or other expenses referred reasonably incurred in connection with investigating or defending same) (collectively, “Losses”) to therein, then an which such 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, claims, damages, liabilities or expenses may be subject in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party on the one hand and by the indemnified party on the other from the offering of the Class A Common Stock. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, then each indemnifying party shall contribute to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company indemnifying party on the one hand and of the participating Holders indemnified party on the other in connection with the statements or omissions that which resulted in such losses, claims, damagesdamages or liabilities (or actions in respect thereof), liabilities or expensesas well as any other relevant equitable considerations. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company indemnifying party on the one hand or by such participating Holder the indemnified party on the other hand and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) . The Company and the participating Holders parties agree that it would not be just and equitable if contribution pursuant to this Section 9 8(d) were determined by a 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 that which does not take account of the equitable considerations referred to above in this Section 9(d) hereof8(d). The amount paid or payable by an indemnified party as a result of the losses, claims, damages, damages or liabilities and expenses (or actions in respect thereof) referred to above in this Section 9(d8(d) hereof shall be deemed to include, subject to the limitations set forth above, include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit action or proceedingclaim. Notwithstanding the provisions of this Section 98(d), no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder 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. 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). (fe) No indemnifying party shall, without the prior written consent The provisions of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall 8 will remain operative and in full force and effect, regardless of (i) 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 Indemniteeindemnifying party is prohibited or limited by law, the Companyindemnifying 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, its directors or officershowever, or 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 controlling the Company, Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any termination seller of this AgreementRegistrable Securities shall be limited in amount to the net amount of proceeds received by such seller from the sale of such Registrable Securities pursuant to such Shelf Registration.

Appears in 1 contract

Samples: Registration Rights Agreement (Select Energy Services, Inc.)

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 agrees to indemnify and hold harmless each seller of Registrable Securities covered harmless, to the fullest extent permitted by a Registration Statement filed pursuant to this AgreementLaw, and such seller's partnersStockholder, its Affiliates, directors, officers, employees officers and any stockholders and each Person who controls such seller under Stockholder within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act (eachcollectively, an "Indemnitee"the “Indemnified Persons”) from and against any and all losses, claims, damages, liabilities liabilities, judgments, actions and expenses (including reasonable costs of investigationattorneys’ fees) arising out of joint or based upon several caused by any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement part of any Registration Statement or any preliminary or final prospectus used in connection with the Registrable Securities or in any amendment or supplement theretoIssuer FWP, or arising out of or based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a prospectus, in the light of the circumstances under which they were made) not misleading, except insofar as such ; provided that the Company will not be required to indemnify any Indemnified Person for any losses, claims, damages, liabilities liabilities, judgments, actions or expenses rise out of or are based upon resulting from any such untrue statement or omission or alleged if such untrue statement or omission which has been was made therein or omitted therefrom in reliance upon on and in conformity with the information relating with respect to a participating Holder any Indemnified Person furnished in writing to the Company in writing by or on behalf of a participating Holder Stockholder expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise havetherein. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in In connection with any one such actionRegistration Statement, suit preliminary or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consentfinal prospectus, or if them be a final judgment for the plaintiff in any such actionIssuer FWP, suit or proceeding, the Company Stockholder agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directorsDirectors, its officers who sign the registration statementsuch Registration Statement and each Person, and any person if any, who controls the Company (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, ) to the same extent as the foregoing indemnity from the Company to an IndemniteeStockholder, but only with respect to information relating with respect to such Holder any Indemnified Person furnished to the Company in writing by or on behalf of such Holder Stockholder expressly for use in the registration statementsuch Registration Statement, prospectus preliminary or any prepricing final prospectus, or Issuer FWP. (c) In case any amendment or supplement thereto. If any actionclaim, suit action or proceeding shall be brought against the Company, (including any of its directors, governmental investigation) is instituted involving any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and Person in respect of which indemnity may be sought pursuant to Section 3.08(a) or (b), such Person (hereinafter called the “indemnified party”) will (i) promptly notify the Person against any Holder whom such indemnity may be sought (hereinafter called the “indemnifying party”) in writing; provided that the failure to give such notice shall not relieve the indemnifying party of its obligations pursuant to this Section 9(c)Agreement except to the extent such indemnifying party has been prejudiced in any material respect by such failure; (ii) permit the indemnifying party to assume the defense of such claim, action or proceeding with counsel reasonably satisfactory to the indemnified party to represent the indemnified party; and (iii) pay the fees and disbursements of such Holder shall counsel related to such claim, action or proceeding. In any such claim, action or proceeding, any indemnified party will have the rights and duties given right to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereofretain its own counsel, but the fees and expenses of such counsel shall will be at the Holder's expense)expense of such indemnified party (without prejudice to such indemnified party’s indemnity and other rights under the Charter, By-Laws and applicable Law, if any) unless (A) the indemnifying party and the indemnified party have mutually agreed to the retention of such counsel, (B) the named parties to any such claim, action or proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and the indemnified party has been advised in writing by counsel, with a copy provided to the Company, its directorsthat representation of both parties by the 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 such claim and employ counsel reasonably satisfactory to the indemnified party. It is understood that the indemnifying party will not, in connection with any such officerclaim, action or proceeding or related claims, actions or proceedings in the same jurisdiction, be liable for the reasonable fees and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be expenses of more than one separate firm of attorneys (in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided local counsel at any time for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an indemnifying party, in lieu of indemnifying all such indemnified party, shall contribute to the amount paid or payable by parties) and that all such indemnified party as reasonable fees and expenses will be reimbursed reasonably promptly following a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable written request by an indemnified party as a result 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 lossesretention of any such separate firm for the indemnified parties, claimssuch firm will be designated in writing by the indemnified parties. The indemnifying party will not be liable for any settlement of any claim, damagesaction or proceeding effected without its written consent (which consent shall not be unreasonably withheld), liabilities and expenses referred 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 in Section 9(d) hereof shall be deemed to include, subject to indemnify the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating from and against any claim loss or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay liability by reason of such untrue settlement or alleged untrue statement or omission or alleged omissionjudgment. No person guilty 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 fraudulent misrepresentation 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 (within the meaning of Section 11(fi) such settlement is entered into more than 45 days after receipt by such indemnifying party of the Securities Actaforesaid request and (ii) shall be entitled such indemnifying party will not have reimbursed the indemnified party in accordance with such request or reasonably objected in writing, on the basis of the standards set forth herein, to contribution from any person who was not guilty the propriety of such fraudulent misrepresentation. (f) reimbursement prior to the date of such settlement. No indemnifying party shallwill, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-an unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (gd) Any If the indemnification provided for in this Section 3.08 from the indemnifying party is unavailable to an indemnified party hereunder in respect of any losses, claims, damages, liabilities liabilities, judgments, actions or expenses for which an indemnified parry is entitled referred to indemnification or contribution under in this Section 9 shall be 3.08, then the indemnifying party, in lieu of indemnifying such indemnified party, will contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages, liabilities, judgments, actions or expenses (i) in such proportion as is appropriate to reflect the relative fault of the indemnifying party to the and indemnified party as in connection with the actions that resulted in such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effectexpenses, regardless of as well as any other relevant equitable considerations, or (ii) if the allocation provided by clause (i) any investigation made is not permitted by or on behalf 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 an Indemnitee, the Company, its directors on the one hand, and Stockholder, on the other, in connection with the statements or officersomissions that resulted in such losses, claims, damages, liabilities, judgments, actions or expenses, as well as any other relevant equitable considerations. The relative fault of such indemnifying party and indemnified party will be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been 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, claims, damages, liabilities and expenses referred to above will be deemed to include, subject to the limitations set forth in Section 3.08(c), any person legal or other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding. (e) The parties agree that it would not be just and equitable if contribution pursuant to Section 3.08(d) 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 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 3.08(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 3.08, the indemnifying party will indemnify each indemnified party to the full extent provided in Sections 3.08(a) and (iib) without regard to the relative fault of said indemnifying party or indemnified party or any termination of this Agreementother equitable consideration provided for in Section 3.08(d) or (e).

Appears in 1 contract

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

Indemnification; Contribution. (a) The Company agrees to shall indemnify and hold harmless harmless, to the fullest extent permitted by law, each seller Stockholder in any offering or sale of Registrable Securities covered by a Registration Statement filed 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 seller's partnersStockholder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, directorstrustees, officers, partners, agents, employees and any Person who controls such seller under the Securities Act (each, an "Indemnitee") from and affiliates against any and all losses, claims, damages, liabilities and expenses (including reasonable costs of investigationattorneys’ 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 upon: (i) any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement or prospectus or in any amendment or supplement theretoin, or arising out of or based upon any omission or alleged omission to state therein of a material fact required to be stated therein 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 losses, claims, damages, liabilities statements or expenses rise omissions arise out of or are based upon (A) any such untrue statement or alleged untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon on and in conformity with the information relating with respect to a participating Holder 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 12(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 12(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 a participating Holder expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise havewith 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) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in In connection with any one such actionRegistration Statement filed pursuant to this Agreement, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, each Stockholder holding Registrable Common Shares to be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holderscovered thereby shall, severally and not jointlyjointly with any other Stockholders, agree to indemnify and hold harmless harmless, to the fullest extent permitted by law, the Company, its directorseach Person, its officers if any, who sign the registration statementparticipates as an underwriter in any such offering and sale of Registrable Common Shares and each Person, and any person if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and affiliates, against all Losses incurred by such party pursuant to the same extent as the foregoing indemnity from the Company to an Indemniteeany actual action, but only with respect to information relating to such Holder furnished in writing by suit, proceeding or on behalf investigation arising out of such Holder expressly for use in the registration statementor based upon any untrue or alleged untrue statement of a material fact contained in, prospectus or any prepricing prospectusomission or alleged omission of a material fact required to be stated in, the Registration Statement, Prospectus or preliminary Prospectus or any amendment or supplement thereto. If to any of the foregoing, any Issuer Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, preliminary Prospectus or 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 Stockholder furnished in writing to the Company by such Stockholder or its counsel specifically for use therein; provided, however, that no Stockholder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the total net proceeds received by such Stockholder from sales of the Registrable Common Shares of 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 suit, proceeding or proceeding 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 12 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 Companyindemnifying party of the commencement thereof, any of its directorsthe indemnifying party shall be entitled to participate therein and, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except extent that if the Company it shall have assumed the defense thereof such Holder shall not be required wish, jointly with any other indemnifying party similarly notified, to do so, but may employ separate counsel therein and participate in 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 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 Stockholders holding Registrable Common Shares who are indemnified parties, selected by the Stockholders holding a Majority of the Registrable 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 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 Stockholders holding Registrable Common Shares who are indemnified parties, selected by the Stockholders holding a Majority of the Registrable Common Shares who are indemnified parties (which selection shall be at reasonably satisfactory to the Holder's expenseCompany), and (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, its directorsin each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such officeraction, and 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 controlling person 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 12. No indemnified party shall have consent to entry of any judgment or entry into any settlement without the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveconsent of each indemnifying party. (d) If the indemnification from the indemnifying party provided for in this Section 9 12 is unavailable to an indemnified party under paragraphs (a) or (c) hereof hereunder in respect of any losses, claims, damages, liabilities or expenses referred to thereinLosses, then an 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, claims, damages, liabilities or expenses Losses in such proportion as is appropriate to reflect the relative fault of the Company indemnifying party and of the participating Holders indemnified party in connection with the statements or omissions that actions which resulted in such lossesLosses, claimsas well as any other relevant equitable considerations; provided, damageshowever, liabilities or expensesthat no Stockholder shall be required to contribute any amount in excess of the amount of the total net proceeds received by such Stockholder from sales of the Registrable Common Shares of the Stockholder under the applicable Registration Statement. The relative fault of the Company on the one hand such indemnifying party and a participating Holder on the other hand indemnified party shall be determined by reference to, among other things, whether the any action in question, including any untrue statement or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact fact, has been made by, or relates to information supplied by the Company on the one hand by, such indemnifying party or by such participating Holder on the other hand indemnified party, and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereofaction. The amount paid or payable by an indemnified a party as a result of the losses, claims, damages, liabilities and expenses Losses referred to in Section 9(d) hereof above shall be deemed to include, subject to the limitations set forth abovein Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit investigation or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder 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 pursuant to this Section 12(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 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(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 12(d). (e) The provisions of this Section 12 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) No indemnifying party shall, without the prior written consent The indemnification and contribution required by this Section 12 shall be made by periodic payments of the indemnified party, effect any settlement amount thereof during the course of any pending or threatened action, suit suit, proceeding or proceeding in respect of which any indemnified party is investigation, as and when invoices are received or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses Losses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (PAETEC Holding Corp.)

Indemnification; Contribution. (a) The Company agrees to will indemnify and hold harmless each seller of Registrable Securities covered harmless, to the fullest extent permitted by a Registration Statement filed pursuant to this Agreementlaw, any Holder and any underwriter for such Holder, and such seller's partnerseach person, directorsif any, officers, employees and any Person who controls the Holder or such seller under the Securities Act (eachunderwriter, an "Indemnitee") from and against any and all losses, damages, claims, damagesliabilities, liabilities joint or several, costs and expenses (including reasonable any amounts paid in any settlement effected with Company's consent) to which the Holder or any such underwriter or controlling person may become subject under applicable law or otherwise, insofar as such losses, damages, claims, liabilities (or actions or proceedings in respect thereof), costs of investigation) arising or expenses arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained in any prepricing prospectus, the registration statement or prospectus included in the prospectus, as amended or in any amendment or supplement theretosupplemented, or arising out of or based upon any (ii) the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein therein, in the light of the circumstances under which they are made, not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise out of or are based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with Company will reimburse the information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating Holder expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the CompanyHolder, such Indemnitee shall underwriter and each such controlling person of the Holder or the underwriter, promptly notify the Companyupon demand, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in for any such action, suit reasonable legal or proceeding and to participate in the defense thereof, but the fees and any other expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised incurred by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such actioninvestigating, suit preparing to defend or proceeding defending against or separate but substantially similar or related actions, suits or proceedings appearing as a third party witness in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled connection with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability liability, action or proceeding; provided, however, that Company will not be liable in any such case to the extent that any such loss, damage, liability, cost or expense by reason arises out of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to is based upon an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an 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, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating 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 omission so made in strict conformity with written information furnished by a Holder to the meaning of Section 11(f) of managing underwriter specifically for inclusion therein; provided, further, that the Securities Actindemnity agreement contained in this subsection 2.6(a) shall be entitled not apply to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any amounts paid in settlement of any pending such claim, loss, damage, liability or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless action if such settlement includes an-unconditional release is effected without the consent of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.which consent shall not be unreasonably withheld. Such indemnity

Appears in 1 contract

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

Indemnification; Contribution. (a) The In the case of any offering registered pursuant to this Article 5, the Company hereby indemnifies and agrees to indemnify and hold harmless each seller selling Holder (and its officers and directors), any underwriter (as defined in the Securities Act) of Registrable Securities covered offered by a Registration Statement filed pursuant to this Agreementsuch Holders, and such seller's partnerseach Person, directorsif any, officers, employees and any Person who controls such seller Holder or any such underwriter within the meaning of Section 15 of the Securities Act against any losses, claims, damages or liabilities, joint or several, to which any such Persons may be subject, under the Securities Act (eachor otherwise, an "Indemnitee") from and to reimburse any of such Persons for any legal or other expenses reasonably incurred by them in connection with investigating any claims or defending against any and all actions, insofar as such losses, claims, damages, damages or liabilities and expenses (including reasonable costs of investigation) arising arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, 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 prospectus or in any amendment or supplement thereto, or arising out of or based upon any the omission or alleged omission to state therein (if so used) a material fact required to be stated therein or necessary to make the statements therein therein, in the light of the circumstances in which they were made, not misleading, except insofar as such losses, claims, damages, damages or liabilities or expenses rise arise out of or are based upon any such untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the information relating to a participating Holder furnished in writing to the Company in writing by any Holder or on behalf of a participating any underwriter for such Holder expressly specifically for use in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise havetherein. (b) If any actionBy requesting registration under this Article 5, suit or proceeding shall be brought against an Indemnitee each Holder agrees, if Registrable Securities held by such Holder are included in respect of the securities as to which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Companyregistration is being effected, and the Company each underwriter shall assume the defense thereofagree, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of manner and to the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed extent as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided set forth in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and to hold harmless the CompanyCompany and its directors and officers and each Person, its directorsif any, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 the 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 Section 20 otherwise, and to reimburse any of the Exchange Actsuch Persons for any legal or other expenses incurred in connection with investigating or defending against any such losses, to the same extent as the foregoing indemnity from the Company to an Indemniteeclaims, damages or liabilities, but only with respect to information relating the extent it arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission of a material fact in any registration statement under which the Registrable Securities were registered under the Securities Act pursuant to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Companythis Article 5, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectuscontained therein, or any amendment or supplement thereto, which was based upon and made in respect conformity with information furnished to the Company in writing by such Holder or such underwriter expressly for use therein. (c) Each party entitled to indemnification under this Section 5.4 (the “Indemnified Party”) shall give notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought against any Holder pursuant sought, and shall permit the Indemnifying Party to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed assume the defense thereof of any such Holder claim or any litigation resulting therefrom, provided that counsel for the Indemnifying Party, who shall conduct the defense of such claim or litigation, shall be approved by the Indemnified Party (whose approval shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expenseunreasonably withheld), and the CompanyIndemnified Party may participate in such defense at its own expense, and provided, further that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its directorsobligations under this Article 5 unless such failure resulted in actual detriment to the Indemnifying Party. No Indemnifying Party, (i) in the defense of any such officerclaim or litigation, and shall, except with the consent of each Indemnified Party, which consent shall not be unreasonably withheld, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such controlling person shall have the rights and duties given Indemnified Party of a release from all liability in respect to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (a) such claim or litigation, or (c) hereof in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an 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, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating 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 Actii) shall be entitled to contribution from liable for amounts paid in any person who was not guilty of settlement if such fraudulent misrepresentation. (f) No indemnifying party shall, settlement is effected without the prior written consent of the indemnified partyIndemnifying Party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceedingconsent shall not be unreasonably withheld. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.

Appears in 1 contract

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

Indemnification; Contribution. (a) Indemnification by the Company. The Company agrees shall indemnify, to indemnify and hold harmless ------------------------------- the fullest extent permitted by law, each seller holder of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementSecurities, its officers, directors and agents, if any, and such seller's partnerseach Person, directorsif any, officers, employees and any Person who controls such seller under holder within the meaning of Section 15 of the Securities Act (eachAct, an "Indemnitee") from and against any and all losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (including reasonable costs under the Securities Act or common law or otherwise), joint or several, resulting from any violation by the Company of investigation) arising out the provisions of the Securities Act or based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement or prospectus (and as amended or in supplemented if amended or supplemented) or any amendment preliminary prospectus or supplement thereto, or arising out of or based upon 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 insofar as to the extent that such losses, claims, damages, liabilities (or proceedings in respect thereof) or expenses rise out of or are based upon caused by any untrue statement or alleged untrue statement contained in or by any omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the from information relating to a participating Holder concerning any holder furnished in writing to the Company by or on behalf of a participating Holder such holder expressly for use in connection therewiththerein. The foregoing indemnity agreement shall be in addition If the offering pursuant to any liability which registration statement provided for under this Section 2 is made through underwriters, no action or failure to act on the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses part of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct underwriters (whether or not such representation by underwriter is an affiliate of any holder of Registrable Securities) shall affect the same counsel has been proposed) due to actual or potential differing interests between them (in which case obligations of the Company shall not have to indemnify any holder of Registrable Securities or any other Person pursuant to the right to assume preceding sentence. If the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition offering pursuant to any local counsel) at any time registration statement provided for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceedingunder this Section 2 is made through underwriters, the Company agrees to indemnify and hold harmless such Indemniteeagrees, to the extent provided required by such underwriters, to enter into an underwriting agreement in the preceding paragraph, from customary form with such underwriters and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify such underwriters, their officers, directors and hold harmless the Companyagents, its directors, its officers who sign the registration statementif any, and any person each Person, if any, who controls the Company such underwriters within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only hereinbefore provided with respect to information relating to such Holder furnished in writing by or on behalf the indemnification of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any holders of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to Registrable Securities; provided that the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do soindemnify any such underwriter, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses or any officer or director of such counsel shall be at underwriter or any Person who controls such underwriter within the Holder's expense)meaning of Section 15 of the Securities Act, and to the Companyextent that the loss, its directorsclaim, any such officerdamage, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be liability (or proceedings in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (arespect thereof) or (c) hereof in respect expense for which indemnification is claimed results from such underwriter's failure to send or give a copy of any losses, claims, damages, liabilities an amended or expenses referred to therein, then an indemnifying party, in lieu of indemnifying such indemnified party, shall contribute supplemented final prospectus to the amount paid or payable by such indemnified party as a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged Person asserting an untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating 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 omission at or prior to the meaning of Section 11(f) written confirmation of the sale of Registrable Securities Act) shall be entitled to contribution from any person who such Person if such statement or omission was not guilty of corrected in such fraudulent misrepresentationamended or supplemented final prospectus prior to such written confirmation and the underwriter was provided with such amended or supplemented final prospectus. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Trex Co Inc)

Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each seller of the broker-dealers whose Registrable Securities covered by are included in an Exchange Registration Statement, each Electing Holder whose Registrable Securities are included in a Shelf Registration Statement filed pursuant to this Agreementand each person, and such seller's partnersif any, directors, officers, employees and any Person who controls any such seller under Electing Holder, or such broker dealer within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act as follows: (each, an "Indemnitee"i) from and against any and all lossesloss, claimsliability, damagesclaim, liabilities damage and expenses (including reasonable costs of investigation) expense whatsoever, as incurred, arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectusExchange Registration Statement or Shelf Registration Statement, registration statement as the case may be, or prospectus or in any amendment or supplement thereto, pursuant to which Exchange Securities or arising out of Registrable Securities were registered under the Securities Act, including all documents incorporated therein by reference, or based upon any the omission or alleged omission to state therein therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise arising out of any untrue statement or are alleged untrue statement of a material fact contained in any prospectus contained in any such Exchange Registration Statement or Shelf Registration Statement, as the case may be, or any amendment or supplement thereto, or in any Issuer Free Writing Prospectus (when taken together with the related prospectus, prospectus supplement and related documents) related 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 such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the prior 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 the Company shall not be liable to any such person to the extent such loss, liability, claim, damage or expense arises out of any untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the written information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating Holder such person expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to an Exchange Registration Statement or Shelf Registration Statement (or any liability which the Company may otherwise haveamendment thereto), any related prospectus (or any amendment or supplement thereto), or any Issuer Free Writing Prospectus related thereto. (b) If any actionEach Electing Holder, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereofseverally, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree agrees to (i) indemnify and hold harmless the Company, its directors, its officers who sign the registration statementGuarantors and the other Electing Holders, and any person each of their respective directors and officers, and each person, if any, who controls the Company Company, the Guarantors or any other Electing Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to against any and all loss, liability, claim, damage and expense described in the same extent indemnity contained in Section 5(a) hereof, as the foregoing indemnity from the Company to an Indemniteeincurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in any Shelf Registration Statement (or any amendment thereto), or any prospectus included therein (or any amendment or supplement thereto) or any related Issuer Free Writing Prospectus in reliance upon and in conformity with written information relating furnished to such Holder furnished in writing the Company by or on behalf of such Electing Holder expressly for use in the registration statement, prospectus Shelf Registration Statement (or any prepricing prospectus, amendment thereto) or such prospectus (or any amendment or supplement thereto. If ) or any actionrelated Issuer Free Writing Prospectus, suit and (ii) reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending any such action or claim as such expenses are incurred; provided, however, that no such holder shall be liable for any claims hereunder in excess of the amount of net proceeds received by such Electing Holder from the sale of Registrable Securities pursuant to such Shelf Registration Statement. (c) Each indemnified party shall give written notice promptly to each indemnifying party of any action or proceeding shall be brought commenced against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and 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 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. In case any such action shall be brought against any Holder pursuant to this Section 9(c)indemnified party and it shall notify an indemnifying party of the commencement thereof, such Holder indemnifying party shall have the rights and duties given be entitled to participate therein and, to the Company by Section 9(b) hereof (except extent that if the Company it shall have assumed the defense thereof such Holder shall not be required wish, jointly with any other indemnifying party similarly notified, to do so, but may employ separate counsel therein and participate in assume the defense thereof, but 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, such 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). To the extent that an indemnifying party does not assume the defense of any such action, in no event shall such indemnifying party be liable for the fees and expenses of such more than one counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be (in addition to any local counsel) separate from its own counsel for all indemnified parties in connection with any one action or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances. 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 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 5 (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 which the participating Holders may otherwise havearising 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 the indemnification provided for in this Section 9 5 is for any reason unavailable to or insufficient to hold harmless an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, liabilities, claims, damages, liabilities damages or expenses referred to therein, then an each indemnifying partyparty shall contribute to the aggregate 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 lossesincurred, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company indemnifying party and of the participating Holders indemnified party in connection with the statements or omissions that which resulted in such losses, liabilities, claims, damages, liabilities damages or expenses, as well as any other relevant equitable considerations. The relative fault of the Company on indemnifying party and the one hand and a participating Holder on the other hand indemnified party shall be determined by reference to, among other things, whether the any such untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company on the one hand such indemnifying party or by such participating Holder on the other hand indemnified party and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) . The Company and the participating Holders parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 9 5(d) were determined by a pro rata allocation or by any other method of allocation that which does not take account of the equitable considerations referred to above in this Section 9(d) hereof5(d). The aggregate amount paid or payable of losses, liabilities, claims, damages and expenses incurred by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to above in this Section 9(d5(d) hereof shall be deemed to include, subject to the limitations set forth above, include any reasonable out-of-pocket legal or other expenses reasonably incurred by such indemnified party in connection with investigating investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim or defending whatsoever based upon any such action, suit untrue or proceedingalleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 95(d), no participating Electing Holder shall be required to contribute any amount in excess of the amount by which the dollar amount of the proceeds to received by such participating Holder holder from the sale of any Registrable Securities exceeds the amount of any damages which such participating the Electing Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall. For purposes of this Section 5(d), without each person, if any, who controls any Electing Holder within the prior written consent meaning of Section 15 of the indemnified party, effect any settlement Securities Act or Section 20 of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could the Exchange Act shall have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled same rights to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such lossesElecting Holder, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless each director of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (iieach 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 Electing Holders’ obligation in this Section 5(d) any termination to contribute shall be several in proportion to the principal amount of this AgreementRegistrable Securities registered by them and not joint.

Appears in 1 contract

Samples: Exchange and Registration Rights Agreement (Johnsondiversey Holdings Inc)

Indemnification; Contribution. (ai) The In connection with any Shelf Registration Statement, the Company agrees to indemnify and hold harmless each seller Holder of Registrable Securities Notes or Common Stock issued upon conversion thereof covered by a Registration Statement filed pursuant to this Agreementthereby, and such seller's partners, the directors, officers, employees and any Person agents of each such Holder and each person who controls any such seller under Holder within the Securities meaning of either the Act (each, an "Indemnitee") from and or the Exchange Act against any and all losses, claims, damagesdamages or liabilities, joint or several, to which they or any of them may become subject under the Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities and expenses (including reasonable costs of investigationor actions in respect thereof) arising (i) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement or prospectus the Shelf Registration Statement as originally filed or in any amendment thereof, or in any preliminary Prospectus or Prospectus, or in any amendment thereof or supplement thereto, or arising (ii) arise out of or are based upon any the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such lossesloss, claimsclaim, damagesdamage, liabilities liability or expenses rise action; provided, however, that the Company will not be liable in any case to the extent that any such loss, claim, damage or liability arises out of or are is based upon (i) any such untrue statement or alleged untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the written information relating to a participating Holder furnished in writing to the Company by or on behalf of any such Holder specifically for inclusion therein, (ii) use of a participating Shelf Registration Statement or the related Prospectus during a period when a stop order has been issued in respect of such Shelf Registration or any proceedings for that purpose have been initiated or use of a Prospectus when use of such Prospectus has been deferred pursuant to Section 2(c); provided, further, in each case, that the Company has delivered prior notice, and the Holders have received such prior notice, in accordance with Section 7(c) hereof of such stop order, initiation of proceedings or deferral or (iii) if the Holder expressly for use in connection therewithfails to deliver a Prospectus or the then current Prospectus. The foregoing This indemnity agreement shall will be in addition to any liability which the Company may otherwise have. (ii) The Company also agrees to indemnify or contribute to Losses, as provided in Section 5(d), of any Underwriters of the Notes or the Common Stock issued upon conversion thereof registered under a Shelf Registration Statement, their officers and directors and each person who controls such Underwriters on terms that are customarily made by issuers to Underwriters and shall, if requested by any Holder, enter into an underwriting agreement reflecting such agreement, as provided in Section 3(n) hereof. (b) If any action, suit Each Holder of Notes or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised Common Stock issued upon conversion thereof covered by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company Shelf Registration Statement severally agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (ci) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, (ii) each of its directors, (iii) each of its officers who sign the registration statement, signs such Shelf Registration Statement and any (iv) each person who controls the Company within the meaning of Section 15 of either the Securities Act or Section 20 of the Exchange Act, Act to the same extent as the foregoing indemnity from the Company to an Indemniteeeach such Holder, but only with respect reference to written information relating to such Holder furnished in writing to the Company by or on behalf of such Holder expressly specifically for use inclusion in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant documents referred to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereofforegoing indemnity. The foregoing This indemnity agreement shall will be in addition to any liability which the participating Holders any such Holder may otherwise have. (dc) If the indemnification provided for in this Section 9 is unavailable to Promptly after receipt by an indemnified party under paragraphs this Section 5 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 5, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or (cb) hereof above unless and to the extent it did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in paragraph (a) or (b) above. The indemnifying party shall be entitled to appoint counsel of the indemnifying party's choice at the indemnifying party's expense to represent the indemnified party in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be responsible for the fees and expenses of any separate counsel retained by the indemnified party or parties except as set forth below); provided, however, that such counsel shall be reasonably satisfactory to the indemnified party. Notwithstanding the indemnifying party's election to appoint counsel to represent the indemnified party in an action, the indemnified party shall have the right to employ separate counsel (including local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of such separate counsel (and local counsel) if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest, (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, (iii) the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action, or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of the indemnifying party; provided further, that the indemnifying party shall not be responsible for the fees and expenses of more than one separate counsel (together with appropriate local counsel) representing all the indemnified parties under paragraph (a)(i), paragraph (a)(ii) or paragraph (b) above. An indemnifying party will not, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding and does not include an admission of fault. (d) In the event that the indemnity provided in Section 5(a) or (b) is unavailable to or insufficient to hold harmless an indemnified party for any losses, claims, damages, liabilities or expenses referred to thereinreason, then an each applicable indemnifying party, in lieu of indemnifying such indemnified party, shall have a joint and several obligation to contribute to the amount paid or payable by such indemnified party as a result of such aggregate losses, claims, damages, damages and liabilities (including legal or other expenses reasonably incurred in connection with investigating or defending same) (collectively "Losses") to which such indemnified party may be subject in such proportion as is appropriate to reflect the relative benefits received by such indemnifying party, on the one hand, and such indemnified party, on the other hand, from the Initial Placement and the Shelf Registration Statement which resulted in such Losses; provided, however, that in no case shall any Underwriter be responsible for any amount in excess of the underwriting discount or commission applicable to the Notes and the Common Stock issued upon conversion thereof purchased by such Underwriter under the Shelf Registration Statement which resulted in such Losses. If the allocation provided by the immediately preceding sentence is unavailable for any reason, the indemnifying party and the indemnified party shall contribute in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of such indemnifying party, on the Company one hand, and of such indemnified party, on the participating Holders other hand, in connection with the statements or omissions that which resulted in such lossesLosses as well as any other relevant equitable considerations. Benefits received by the Company shall be deemed to be equal to the sum of (x) the total net proceeds from the Initial Placement (before deducting expenses) and (y) the total amount of additional interest which the Company was not required to pay as a result of registering the Notes and the Common Stock issued upon conversion thereof covered by the Shelf Registration Statement which resulted in such Losses. Benefits received by any other Holders shall be deemed to be equal to the value of receiving the Notes or the Common Stock issuable upon conversion thereof registered under the Act. Benefits received by any Underwriter shall be deemed to be equal to the total underwriting discounts and commissions, claims, damages, liabilities or expenses. The relative fault as set forth on the cover page of the Company on Prospectus forming a part of the one hand and a participating Holder on the other hand Shelf Registration Statement which resulted in such Losses. Relative fault shall be determined by reference to, among other things, to whether the untrue or any alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied provided by the Company indemnifying party, on the one hand hand, or by such participating Holder the indemnified party, on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) hand. The Company and the participating Holders parties agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that which does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 95(d), no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 5, each person who controls a Holder within the meaning of either the Act or the Exchange Act and each director, officer, employee and agent of such Holder shall have the same rights to contribution as such Holder, and each person who controls the Company within the meaning of either the Act or the Exchange Act, each officer of the Company who shall have signed the Shelf Registration Statement and each director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this Section 5(d). (fe) No indemnifying party shall, without the prior written consent The provisions of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall 5 will remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemniteeany Holder or the Company or any of the officers, the Company, its directors or officers, or any person controlling the Companypersons referred to in Section 5 hereof, and (ii) any termination will survive the sale by a Holder of this AgreementNotes or Common Stock issuable upon conversion thereof covered by a Shelf Registration Statement.

Appears in 1 contract

Samples: Registration Rights Agreement (Angeion Corp/Mn)

Indemnification; Contribution. (a) The Company agrees to indemnify indemnify, defend and hold harmless each seller Initial Purchaser, each Holder and each person, if any, who controls any Initial Purchaser or Holder (a “Controlling Person”) within the meaning of Registrable Section 15 of the Securities covered by a Registration Statement filed pursuant to this Agreement, Act or Section 20 of the Exchange Act and such seller's partnersthe respective officers, directors, officerspartners, employees employees, representatives and agents of any Initial Purchaser, the Holders or any Controlling Person who controls such seller under the Securities Act (each, an "Indemnitee") a “Holder Indemnified Party”), from and against any and all lossesloss, claimsdamage, damagesexpense, liabilities and expenses liability, claim or any action in respect thereof (including the reasonable costs cost of investigation) arising which such Holder Indemnified Party may incur or become subject to under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectusShelf Registration Statement or Prospectus, registration statement or prospectus including any document incorporated by reference therein, or in any amendment or supplement theretothereto or in any preliminary prospectus, or arising arises out of or is based upon any omission or alleged omission to state therein a material fact required to be stated therein in any Shelf Registration Statement or in any amendment or supplement thereto or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise arises out of or are is based upon any omission or alleged omission to state a material fact necessary in order to make the statements made in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which such statements were made, not misleading, and the Company shall reimburse, as incurred, the Holder Indemnified Parties for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, damage, expense, liability, claim or action in respect thereof; provided, however, that the indemnity agreement contained in this subsection (a) shall not inure to the benefit of any Holder Indemnified Party insofar as any such loss, damage, expense, liability, claim or action arises out of or is based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein of a material fact contained in, or omitted therefrom in reliance upon from, and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating such Holder Indemnified Party to the Company expressly for use in connection therewithwith any Shelf Registration Statement or Prospectus; provided further, that no Holder Indemnified Party shall be entitled to indemnity pursuant to this Section 6(a) to the extent, and only to the extent, such loss, damage, expense, liability, claim or action arises out of (1) a disposition, pursuant to a Shelf Registration Statement, of Registrable Securities by such Holder Indemnified Party during a Suspension Period, provided such Holder Indemnified Party received, prior to such disposition, a Suspension Notice with respect to such Suspension Period or (2) such Holder Indemnified Party’s failure to deliver, if required pursuant to the Securities Act, the most recent applicable Prospectus provided to such Holder by the Company or on file with the SEC. The foregoing This indemnity agreement shall will be in addition to any liability which the Company may otherwise havehave to any Holder or any of its Controlling Persons. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating HoldersHolder, severally and not jointly, agree agrees to indemnify indemnify, defend and hold harmless the Company, its directors, its officers who sign the registration statementofficers, employees, representatives, agents and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, a “Company 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 Company Indemnified Party may incur or become subject to under the Securities Act, to the same extent Exchange Act or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or is based upon (A) any untrue statement or alleged untrue statement of a material fact contained in, and in conformity with information (the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder Information”) furnished in writing by or on behalf of such Holder to the Company expressly for use in any Shelf Registration Statement or Prospectus, or arises out of or is based upon any omission or alleged omission 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 any Shelf Registration Statement or Prospectus or necessary to make such Holder Information not misleading; (B) a sale, by such Holder, pursuant to a Shelf Registration Statement, of Registrable Securities during a Suspension Period, provided that the registration statementCompany shall have theretofore provided such Holder with a Suspension Notice; or (C) a public sale of Registrable Securities by such Holder without delivery, prospectus if required by the Securities Act, of the most recent applicable Prospectus provided to such Holder by the Company or on file with the SEC; and, subject to the limitation set forth in the immediately preceding clause, each Holder shall reimburse, as incurred, the Company for any legal or other expenses reasonably incurred by the Company or any prepricing prospectussuch other 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 Company or any amendment or supplement theretoCompany Indemnified Party. 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 of the Registrable Securities pursuant to the Shelf Registration Statement giving rise to such indemnification obligation. (c) If any action, suit or proceeding shall be (each, a “Proceeding”) is brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to either subsection (a) or (b) of this Section 9(c)6, such Holder 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 notify such Indemnifying Party, or the delay of such notification, shall not relieve such Indemnifying Party from any liability which it may have to such Indemnified Party under this Section 6 except to the extent such Indemnifying Party is materially prejudiced by such omission or delay. Such Indemnified Party shall have the rights and duties given right to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof employ its own counsel in any such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereofcase, but the fees and expenses of such counsel shall be at the Holder's expenseexpense of such Indemnified Party unless the employment of such counsel shall have been authorized in writing by such Indemnifying Party in connection with the defense of such Proceeding or such Indemnifying Party shall not have employed counsel to have charge of the defense of such Proceeding within thirty (30) days of the receipt of notice thereof or such Indemnified Party shall have reasonably concluded upon the written advice of counsel that there may be one or more defenses available to it that are different from, additional to or in conflict with those available to such Indemnifying Party (in which case such Indemnifying Party shall not have the right to direct that portion of the defense of such Proceeding on behalf of the Indemnified Party, but such Indemnifying Party may employ counsel and participate in the defense thereof but the fees and expenses of such counsel shall be at the expense of such Indemnifying Party), in any of which events such reasonable fees and expenses shall be borne by such Indemnifying Party and paid as incurred (it being understood, however, that such Indemnifying Party shall not be liable for the Companyexpenses of more than one separate counsel in any one Proceeding or series of related Proceedings together with reasonably necessary local counsel representing the Indemnified Parties who are parties to such action). An Indemnifying Party shall not be liable for any settlement of such Proceeding effected without the written consent of such Indemnifying Party, its directorsbut 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 officersettlement. Notwithstanding the foregoing sentence, and if at any such controlling person 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 rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement second sentence of this paragraph, then such Indemnifying Party agrees that it shall be liable for any settlement of any Proceeding effected without its written consent if (i) such settlement is entered into more than sixty (60) Business Days after receipt by such Indemnifying Party of the aforesaid request, (ii) such Indemnifying Party shall not have reimbursed such Indemnified Party in addition accordance with such request prior to the date of such settlement and (iii) such Indemnified Party shall have given such Indemnifying Party at least forty-five (45) days prior notice of its intention to settle. No Indemnifying Party shall, without the prior written consent of any Indemnified Party, effect any settlement of any pending or threatened Proceeding in respect of which such Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability which on claims that are the participating Holders may otherwise havesubject matter of such Proceeding and does not include an admission of fault, culpability or a failure to act, by or on behalf of such Indemnified Party. (d) If the indemnification provided for in this Section 9 6 is unavailable to an indemnified party Indemnified Party under paragraphs subsections (a) and (b) of this Section 6, or (c) hereof insufficient to hold such Indemnified Party harmless, in respect of any losses, claims, damages, liabilities expenses, liabilities, claims or expenses actions referred to therein, then an 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, claims, damages, liabilities expenses, liabilities, claims or expenses actions in such proportion as is appropriate to reflect the relative fault of the Company on the one hand and of the participating Holders or the Initial Purchasers, on the other hand, in connection with the statements or omissions that which resulted in such losses, claims, damages, liabilities expenses, liabilities, claims or expensesactions, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and a participating Holder of the Holders or the Initial Purchasers, on the other hand hand, shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact omission relates to information supplied by the Company on the one hand or by such participating Holder on the other hand Holders and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, damages, expenses, liabilities, claims and actions referred to above shall be deemed to include any reasonable legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any Proceeding. (e) The Company Company, the Holders and the participating Holders Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 9 6 were determined by a pro rata allocation or by any other method of allocation that which does not take account of the equitable considerations referred to in Section 9(dsubsection (d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 96, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds total price at which the Registrable Securities giving rise to such participating contribution obligation and sold by such Holder were offered to the public exceeds the amount of any damages which such participating Holder it 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 Holders’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint. The remedies provided for in this Section 6 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements provisions contained in this Section 9 6 shall remain operative and in full force and effect, effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of an Indemniteeany Holder or the Initial Purchasers or any person controlling any Holder, or the Company or the Company’s directors, its directors or officers, employees, representatives, agents or any person controlling the Company, Company and (iiiii) the sale of any termination of this AgreementRegistrable Security by any Holder.

Appears in 1 contract

Samples: Registration Rights Agreement (Medimmune Inc /De)

Indemnification; Contribution. (a) The Company agrees to indemnify shall indemnify, defend and hold harmless the Holder and each seller of Registrable Securities covered by a Registration Statement filed pursuant to this Agreement, and such seller's partnersits officers, directors, officersemployees, employees and any Person who controls such seller under agents, partners or controlling persons (within the meaning of the Securities Act Act) (each, an "Indemniteeindemnified party") from and against against, and shall reimburse such indemnified party with respect to, any and all claims, suits, demands, causes of action, losses, claims, damages, liabilities and liabilities, costs or expenses (including reasonable costs of investigation"Liabilities") to which such indemnified party may become subject under the Securities Act or otherwise, arising out of from or based upon relating to (A) any untrue statement or alleged untrue statement of a any material fact contained in such registration statement, any prepricing prospectus, registration statement prospectus contained therein or prospectus or in any amendment or supplement thereto, or arising out of or based upon any (B) the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein therein, in light of the circumstances in which they were made, not misleading; PROVIDED, except insofar as HOWEVER, that the Company shall not be liable in any such losses, claims, damages, liabilities or expenses rise case to the extent that any such Liability arises out of or are is based upon an untrue statement or omission so made in conformity with written information furnished by or on behalf of such indemnified party specifically for use in the registration statement; PROVIDED FURTHER, that the Company shall not be liable in any such case to the extent that any such Liability arising out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any preliminary prospectus if (i) the Holder under an obligation to send or deliver a copy of the prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities failed to deliver such prospectus to the person asserting such Liability who purchased such Registrable Securities which are the subject thereof from such Holder and (ii) the prospectus would have corrected such untrue statement or omission; and PROVIDED FURTHER, that the Company shall not be liable in any such case to the extent that any Liability arises out of or is based upon an untrue statement or alleged untrue statement or omission which has been made therein or omitted therefrom alleged omission in reliance upon and the prospectus, if such untrue statement or alleged untrue statement, omission or alleged omission is corrected in conformity with the information relating to a participating Holder furnished in writing an amendment or supplement to the Company prospectus and if, having previously been furnished by or on behalf of a participating Holder expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise havewith copies of the prospectuses so amended or supplemented and having been obligated to deliver such prospectuses, the Holder thereafter failed to deliver such prospectus as so amended or supplemented, prior to or concurrently with the sale of Registrable Securities to the person asserting such Liability who purchased such Registrable Securities which are the subject thereof from such Holder. (b) If any actionEach Holder shall indemnify, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify defend and hold harmless the Company, and its officers, directors, its officers who sign the registration statementemployees, and any person who controls the Company agents, partners, or controlling persons (within the meaning of Section 15 of the Securities Act) (each, an "indemnified party") from and against, and shall reimburse such Company:________ Holder:________ 5 indemnified party with respect to, any and all Liabilities to which such indemnified party may become subject under the Securities Act or Section 20 of the Exchange Actotherwise, to the same extent as the foregoing indemnity arising from the Company to an Indemnitee, but only with respect to information or relating to (A) any untrue statement or alleged untrue statement of any material fact contained in such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, any prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, contained therein or any amendment or supplement thereto, or (B) the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading; PROVIDED, that the Holder will be liable in any such case to the extent, and only to the extent, that any such Liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, prospectus or amendment or supplement thereto in reliance upon written information furnished by or on behalf of the Holder specifically for use in the registration statement. (c) Promptly after receipt by any indemnified party of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against another party (the "indemnifying party") hereunder, notify such party in writing thereof, but the omission so to notify shall not relieve the indemnifying party from any Liability which it may have to the indemnified party other than under this section and shall only relieve it from any Liability which it may have to the indemnified party under this section if and to the extent it is actually prejudiced by such omission. In case any such action shall be brought against any indemnified party and such indemnified party shall notify the indemnifying party of which indemnity the commencement thereof, the indemnifying party shall be entitled to participate in and to the extent it shall wish, to assume and undertake the defense thereof with counsel reasonably satisfactory to such indemnified party, and, after notice from the indemnifying party to the indemnified party of its election so to assume and undertake the defense thereof, the indemnifying party shall not be liable to the indemnified party under this section for any legal expenses subsequently incurred by the indemnified party in connection with the defense thereof other than reasonable costs of investigation and of liaison with counsel so selected, PROVIDED, HOWEVER, that if the defendants in any such action include both the indemnifying party and such indemnified party and the indemnified party shall have reasonably concluded based upon a written opinion of counsel that there may be sought against any Holder pursuant reasonable defenses available to this Section 9(c)it which are different from those available to the indemnifying party or if the interests of the indemnified party reasonably may be deemed to conflict with the interests of the indemnifying party, such Holder the indemnified party shall have the rights and duties given right to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ select a separate counsel therein and to assume such legal defenses and otherwise to participate in the defense thereof, but the fees and expenses of such action, with (subject to the following sentence) the reasonable expenses and fees of such separate counsel and other reasonable expenses related to such participation to be reimbursed by the indemnifying party as incurred. If the Company is the indemnifying party it shall pay the reasonable expenses and fees of only one separate counsel whose selection is approved by the largest group of similarly situated indemnified parties as measured by the aggregate value of securities registered by such group. Any indemnified party who chooses not to be represented by the foregoing separate counsel shall be entitled, at the Holder's its own expense), and the Company, to be represented by counsel of its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveown selection. (d) If In order to provide for just and equitable contribution, if a claim for indemnification is made pursuant to the provisions of this Section, but is found in a final judgment by a court of competent jurisdiction (not subject to further appeal) that such indemnification provided is not available (except for the reasons set forth in this Section 9 is unavailable to an indemnified party under paragraphs Sections 8(a) and (a) or (c) hereof in respect of any losses, claims, damages, liabilities or expenses referred to thereinb)), then an the indemnifying party, in lieu of indemnifying such the indemnified party, shall contribute to the Company:________ Holder:________ 6 amount paid or payable by such the indemnified party as a result of such losses, claims, damages, liabilities liabilities, or expenses in such proportion as is appropriate to reflect the relative fault of the Company benefit and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand indemnifying party and the parties' relative intentindemnified party, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) as well as any other relevant equitable considerations. The Company and the participating Holders Holder agree that it would not be just and equitable if contribution pursuant to this Section 9 were was determined by a pro rata allocation or by any other method of allocation that does not take account of the such equitable considerations referred to in Section 9(d) hereofconsiderations. The amount paid or payable by an indemnified party as a result of shall also include expenses incurred by the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, indemnified party that would otherwise have been subject to reimbursement or indemnification by the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified indemnifying party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding pursuant to the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omissionSection. No person party 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 misrepresentationthe other party. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Empire Financial Holding Co)

Indemnification; Contribution. (a) Indemnification by the Company. The Company agrees shall indemnify, to indemnify and hold harmless ------------------------------ the fullest extent permitted by law, each seller holder of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementSecurities, its officers, directors and agents, if any, and such seller's partnerseach Person, directorsif any, officers, employees and any Person who controls such seller under holder within the meaning of Section 15 of the Securities Act (eachAct, an "Indemnitee") from and against any and all losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (including reasonable costs under the Securities Act or common law or otherwise), joint or several, resulting from any violation by the Company of investigation) arising out the provisions of the Securities Act or based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement or prospectus (and as amended or in supplemented if amended or supplemented) or any amendment preliminary prospectus or supplement thereto, or arising out of or based upon 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 insofar as to the extent that such losses, claims, damages, liabilities (or proceedings in respect thereof) or expenses rise out of or are based upon caused by any untrue statement or alleged untrue statement contained in or by any omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the from information relating to a participating Holder concerning any holder furnished in writing to the Company by or on behalf of a participating Holder such holder expressly for use in connection therewiththerein. The foregoing indemnity agreement shall be in addition If the offering pursuant to any liability which registration statement provided for under this Section 2 is made through underwriters, no action or failure to act on the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses part of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct underwriters (whether or not such representation 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 offering pursuant to any registration statement provided for under this Section 2 is made through underwriters, the Company agrees, to the 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 counsel has been proposed) due extent as hereinbefore provided with respect to actual or potential differing interests between them (in which case the indemnification of the holders of Registrable Securities; provided that the Company shall not have the right be required to assume the defense indemnify any such underwriter, or any officer or director of such action, suit underwriter or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person Person who controls the Company such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as that the foregoing indemnity from the Company to an Indemniteeloss, but only with respect to information relating to such Holder furnished in writing by claim, damage, liability (or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and proceedings in respect thereof) or expense for which indemnification is claimed results from such underwriter's failure to send or give a copy of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given an amended or supplemented final prospectus to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to Person asserting an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an 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, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating 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 omission at or prior to the meaning of Section 11(f) written confirmation of the sale of Registrable Securities Act) shall be entitled to contribution from any person who such Person if such statement or omission was not guilty of corrected in such fraudulent misrepresentationamended or supplemented final prospectus prior to such written confirmation and the underwriter was provided with such amended or supplemented final prospectus. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreement.

Appears in 1 contract

Samples: Registration Rights Agreement (Trex Co Inc)

Indemnification; Contribution. (a) The Company In connection with any registration of Registrable Securities or Takedown Offering pursuant to Section 2.01 or Section 2.02 hereof, RealNetworks agrees to indemnify and hold harmless each seller of Registrable Securities covered harmless, to the fullest extent permitted by a Registration Statement filed pursuant to this AgreementLaw, and such seller's partnersMTVN, its Affiliates, directors, officers, employees officers and any stockholders and each Person who controls such seller under MTVN within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act (eachcollectively, an "Indemnitee"the “Indemnified Persons”) from and against any and all losses, claims, damages, liabilities and expenses expenses, joint or several (including reasonable costs of investigationattorneys’ fees) arising out of or based upon caused by any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectuspart of any Registration Statement, registration statement any preliminary or final prospectus used in connection with the Registrable Securities or in any amendment or supplement theretoIssuer FWP, or arising out of or based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a prospectus, in the light of the circumstances under which they were made) not misleading, except insofar as such ; provided that RealNetworks will not be required to indemnify any Indemnified Persons for any losses, claims, damages, liabilities or expenses rise out of or are based upon resulting from any such untrue statement or omission or alleged if such untrue statement or omission which has been was made therein or omitted therefrom in reliance upon on and in conformity with the any information relating with respect to a participating Holder any Indemnified Person furnished to RealNetworks in writing to the Company by or on behalf of a participating Holder MTVN expressly for use in therein. In connection therewith. The foregoing indemnity agreement shall be in addition with an underwritten offering (including any Takedown Offering), RealNetworks will indemnify each Underwriter, the officers and directors of such Underwriter, and each Person who controls such Underwriter (within the meaning of either the Securities Act or the Exchange Act) to any liability which the Company may otherwise havesame extent as provided above with respect to the indemnification of MTVN; provided that such Underwriter agrees to indemnify RealNetworks to the same extent as provided below with respect to the indemnification of RealNetworks by MTVN. (b) If In connection with any actionRegistration Statement, suit preliminary or final prospectus or Issuer FWP, MTVN agrees to indemnify RealNetworks, the Directors, its officers who sign such Registration Statement and each Person, if any, who controls RealNetworks (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act) to the same extent as the foregoing indemnity from RealNetworks to MTVN, but only with respect to information with respect to any Indemnified Person furnished to RealNetworks in writing by MTVN expressly for use in such Registration Statement, preliminary or final prospectus, or Issuer FWP. (c) In case any proceeding shall (including any governmental investigation) will be brought against an Indemnitee instituted involving any Person in respect of which indemnity may be sought against the Companypursuant to Section 2.08(a) or (b), such Indemnitee shall Person (hereinafter called the “indemnified party”) will promptly notify the Company, Person against whom such indemnity may be sought (hereinafter called the “indemnifying party”) in writing and the Company shall assume indemnifying party, upon request of the defense thereofindemnified party, including will retain counsel reasonably satisfactory to the employment of counsel indemnified party to represent the indemnified party and payment of all will pay the fees and expensesdisbursements of such counsel related to such proceeding; provided that failure to so notify an indemnifying party shall not relieve it from any liability which it may have hereunder, except to the extent that the indemnifying party is materially prejudiced by such failure to give notice. The Indemnitee shall In any such proceeding, any indemnified party will have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereofretain its own counsel, but the fees and expenses of such counsel shall will be at the expense of such Indemnitee indemnified party unless (xi) the Company has indemnifying party and the indemnified party will have mutually agreed in writing to pay the retention of such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, counsel or (zii) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee the indemnifying party and the Company, indemnified party and such Indemnitee shall the indemnified party will have been advised in writing by its counsel that representation of such Indemnitee and the Company both parties by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing conflicting interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee)them. It is understood, however, understood that the Company shallindemnifying party will not, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstancesjurisdiction, be liable for the reasonable fees and expenses of only more than one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselvesindemnified parties, and that all such reasonable fees and expenses shall will be reimbursed as they are incurred. In the case of the retention of any such separate firm for the indemnified parties, such firm will be designated in writing by the indemnified parties. The Company shall indemnifying party will not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, consent or if them be there has been a final judgment for the plaintiff in any such action, suit or proceedingplaintiff, the Company indemnifying party agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, indemnified party from and against any loss, claim, damage, loss or liability or expense by reason of such settlement or judgment. . Notwithstanding the foregoing sentence, if at any time an indemnified party will have requested an indemnifying party to reimburse the indemnified party for reasonable fees and expenses of counsel as contemplated by the third sentence of this Section 2.08(c), the indemnifying party agrees that it will be liable for any settlement of any proceeding effected without its written consent if (ci) Each such settlement is entered into more than 15 days after receipt by such indemnifying party of the participating Holdersaforesaid request and (ii) such indemnifying party will not have reimbursed the indemnified party in accordance with such request or reasonably objected in writing, severally and not jointly, agree to indemnify and hold harmless on the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 basis of the Securities Act or Section 20 of the Exchange Actstandards set forth herein, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf propriety of such Holder expressly for use in reimbursement prior to the registration statementdate of such settlement. No indemnifying party will, prospectus without the prior written consent of the indemnified party, effect any settlement of any pending or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or threatened proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which any indemnified party is or could have been a party and indemnity may be could have been sought against any Holder pursuant to this Section 9(c)hereunder by such indemnified party, unless such settlement is of a claim for monetary damages only, such Holder shall have claim has been settled by the rights payment of money only and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses settlement includes an unconditional release of such counsel shall be at indemnified party from all liability on claims that are the Holder's expense), and the Company, its directors, any subject matter of such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveproceeding. (d) If the indemnification provided for in this Section 9 2.08 from the indemnifying party is unavailable to an indemnified party under paragraphs (a) or (c) hereof hereunder in respect of any losses, claims, damages, liabilities or expenses referred to thereinin this Section 2.08, then an 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, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company indemnifying party and of the participating Holders indemnified party in connection with the statements or omissions actions that resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand such indemnifying party and a participating Holder on the other hand shall indemnified party will be determined by reference to, among other things, whether the any action in question, including any untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact fact, has been made by, or relates to information supplied by the Company on the one hand by, such indemnifying party or by such participating Holder on the other hand indemnified party, and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereofaction. The amount paid or payable by an indemnified a party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall above will be deemed to include, subject to the limitations set forth abovein Section 2.08(c), any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit investigation or proceeding. Notwithstanding . (e) The parties agree that it would not be just and equitable if contribution pursuant to Section 2.08(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the provisions of this equitable considerations referred to in Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission2.08(d). No person Person guilty of fraudulent misrepresentation misrepresentation” (within the meaning of Section 11(f) of the Securities Act) shall will be entitled to contribution from any person Person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shallNotwithstanding the provisions of this Section 2.08, without MTVN shall not be required to make any indemnification or contribution payment, in the prior written consent aggregate, in any amount in excess of the indemnified party, effect any settlement amount of any pending or threatened action, suit or proceeding in the net proceeds received by MTVN with respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are to the subject matter of such action, suit or proceedingRegistrable Securities. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry If indemnification is entitled to indemnification or contribution available under this Section 9 shall be paid by 2.08, the indemnifying party will indemnify each indemnified party to the full extent provided in Sections 2.08(a) and (b) without regard to the relative fault of said indemnifying party or indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and other equitable consideration provided for in Section 2.08(d) or (ii) any termination of this Agreemente).

Appears in 1 contract

Samples: Stockholder Agreement (Realnetworks Inc)

Indemnification; Contribution. (a) The Company agrees to indemnify indemnify, defend and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this Agreement, Holder and such seller's partners, directors, officers, employees and any Person each person who controls such seller under any Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, an a "IndemniteeHolder Indemnified Party") ), from and against any and all lossesloss, claimsdamage, damagesexpense, liabilities and expenses liability or claim (including the reasonable costs cost of investigation) arising which such Holder Indemnified Party may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement Shelf Registration Statement or prospectus Prospectus or in any amendment or supplement theretothereto or in any preliminary prospectus, or arising arises out of or is based upon any omission or alleged omission to state therein a material fact required to be stated therein in any Shelf Registration Statement or in any amendment or supplement thereto or necessary to make the statements 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 statements made in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which they were made, not misleading, except insofar as any such lossesloss, claimsdamage, damagesexpense, liabilities liability or expenses rise claim arises out of or are is based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein of a material fact contained in, or omitted therefrom in reliance upon from, and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating any Holder to the Company expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understoodtherein; provided, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition as to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselvespreliminary prospectus, and that all such fees and expenses shall be reimbursed as they are incurred. The Company this indemnity agreement shall not be liable for any settlement inure to the benefit of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against Holder Indemnified Party on account of any loss, claim, damage, liability or expense action arising from the sale of the Registrable Securities sold pursuant to the Shelf Registration Statement to any person by reason such Holder Indemnified Party if (i) that Holder Indemnified Party failed to send or give a copy of the Prospectus, as the same may be amended or supplemented, to that person within the time required by the Securities Act (other than as a result of a failure by the Company to deliver copies of the Prospectus to such settlement Holder Indemnified Party) and (ii) the untrue statement or judgmentalleged untrue statement of a material fact or omission or alleged omission to state a material fact in such preliminary prospectus was corrected in the Prospectus or a supplement or amendment thereto, as the case may be. (cb) Each of the participating HoldersHolder, severally and not jointly, agree agrees to indemnify indemnify, defend and hold harmless the Company, its directors, its directors and officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, a "Company Indemnified Party") from and against any loss, damage, expense, liability or claim (including the reasonable cost of investigation) which such Company Indemnified Party may incur under the Securities Act, to the same extent Exchange Act or otherwise, insofar as the foregoing indemnity from the Company to an Indemniteesuch loss, but only with respect to damage, expense, liability or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in information relating to such Holder furnished in writing by or on behalf of such Holder to the Company expressly for use in the registration statement, prospectus any Shelf Registration Statement or any prepricing prospectus, Prospectus or in any amendment or supplement theretothereto or in any preliminary prospectus, or arises out of or is based upon any omission or alleged omission to state a material fact required to be stated in any Shelf Registration Statement or in any amendment or supplement 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 statements in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which they were made, not misleading, in connection with such information. 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 of the Registrable Securities pursuant to the Shelf Registration Statement giving rise to such indemnification obligation. (c) If any action, suit or proceeding shall be (each, a "Proceeding") is brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to either subsection (a) or (b) of this Section 9(c)6, such Holder 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 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 rights and duties given right to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof employ its own counsel in any such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereofcase, but the fees and expenses of such counsel shall be at the Holder's expenseexpense of such Indemnified Party unless the employment of such counsel shall have been authorized in writing by such Indemnifying Party in connection with the defense of such Proceeding or such Indemnifying Party shall not have employed counsel to have charge of the defense of such Proceeding within 30 days of the receipt of notice thereof or such Indemnified Party shall have reasonably concluded upon the written advice of counsel that there may be one or more defenses available to it that are different from, additional to or in conflict with those available to such Indemnifying Party (in which case such Indemnifying Party shall not have the right to direct that portion of the defense of such Proceeding on behalf of the Indemnified Party, but such Indemnifying Party may employ counsel and participate in the defense thereof but the fees and expenses of such counsel shall be at the expense of such Indemnifying Party), in any of which events such reasonable fees and expenses shall be borne by such Indemnifying Party and paid as incurred (it being understood, however, that such Indemnifying Party shall not be liable for the Companyexpenses of more than one separate counsel in any one Proceeding or series of related Proceedings together with reasonably necessary local counsel representing the Indemnified Parties who are parties to such action). An Indemnifying Party shall not be liable for any settlement of such Proceeding effected without the written consent of such Indemnifying Party, its directorsbut 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 officersettlement. Notwithstanding the foregoing sentence, and if at any such controlling person 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 rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement 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 75 Business Days after receipt by such Indemnifying Party of the aforesaid request, (ii) such Indemnifying Party shall not have reimbursed such Indemnified Party in addition accordance with such request prior to the date of such settlement and (iii) such Indemnified Party shall have given such Indemnifying Party at least 30 days' prior notice of its intention to settle. No Indemnifying Party shall, without the prior written consent of any Indemnified Party, effect any settlement of any pending or threatened Proceeding in respect of which such Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability which on claims that are the participating Holders may otherwise havesubject matter of such Proceeding and does not include an admission of fault, culpability or a failure to act, by or on behalf of such Indemnified Party. (d) If the indemnification provided for in this Section 9 6 is unavailable to an indemnified party Indemnified Party under paragraphs subsections (a) or and (cb) hereof of this Section 6 in respect of any losses, claimsdamages, damagesexpenses, liabilities or expenses claims referred to therein, then an 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, claimsdamages, damagesexpenses, liabilities or expenses claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Holders 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 Company on the one hand and of the participating Holders on the other in connection with the statements or omissions that which resulted in such losses, claimsdamages, damagesexpenses, liabilities or expensesclaims, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and a participating Holder of the Holders on the other hand shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact omission relates to information supplied by the Company on the one hand or by such participating Holder on the other hand Holders and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, damages, expenses, liabilities and claims referred to above shall be deemed to include any reasonable legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any Proceeding. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 6 were determined by a pro rata allocation or by any other method of allocation that which does not take account of the equitable considerations referred to in Section 9(dsubsection (d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 96, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds total price at which the Registrable Securities sold by it were offered to such participating Holder the public exceeds the amount of any damages which such participating Holder it 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 Holders' respective obligations to contribute pursuant to this Section 6 are several in proportion to the respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint. The remedies provided for in this Section 6 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements provisions contained in this Section 9 6 shall remain operative and in full force and effect, effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of an Indemniteeany Holder or any person controlling any Holder, or the Company, its or the Company's officers or directors or officers, or any person controlling the Company, Company and (iiiii) the sale of any termination of this AgreementRegistrable Security by any Holder.

Appears in 1 contract

Samples: Registration Rights Agreement (Cooper Companies Inc)

Indemnification; Contribution. (a) The Company agrees to indemnify indemnify, defend and hold harmless each seller Initial Purchaser, each Notice Holder, each person (a “Controlling Person”), if any, who controls any Initial Purchaser or Notice Holder within the meaning of Registrable Section 15 of the Securities covered by a Registration Statement filed pursuant to this Agreement, Act or Section 20 of the Exchange Act and such seller's partnersthe respective officers, directors, officerspartners, employees employees, representatives and agents of any Initial Purchaser, the Notice Holders or any Controlling Person who controls such seller under the Securities Act (each, an "Indemnitee") “Indemnified Party”), from and against any and all lossesloss, claimsdamage, damagesexpense, liabilities and expenses liability, claim or any actions in respect thereof (including the reasonable costs cost of investigation) arising which such Indemnified Party may incur or become subject to under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectusShelf Registration Statement or Prospectus, registration statement or prospectus including any document incorporated by reference therein, or in any amendment or supplement theretothereto or in any preliminary prospectus, or arising arises out of or is based upon any omission or alleged omission to state therein a material fact required to be stated therein in any Shelf Registration Statement or in any amendment or supplement thereto or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise arises out of or are is based upon any omission or alleged omission to state a material fact necessary in order to make the statements made in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which such statements were made, not misleading, and the Company shall reimburse, as incurred, the Indemnified Parties for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, damage, expense, liability, claim or action in respect thereof; provided, however, that the Company shall not be required to provide any indemnify pursuant to this Section 6(a) in any such case insofar as any such loss, damage, expense, liability, claim or action arises out of or is based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein of a material fact contained in, or omitted therefrom in reliance upon from, and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of an Initial Purchaser or a participating Holder to the Company expressly for use in, any Shelf Registration Statement or any Prospectus; provided further that, with respect to any untrue statement or omission or alleged untrue statement or omission made in any preliminary prospectus relating to a Shelf Registration Statement, the indemnity agreement contained in this Section 6(a) shall not inure to the benefit of any Notice Holder from whom the person asserting any such losses, damages, expenses, liabilities, claims or actions purchased the Registrable Securities concerned, to the extent that a prospectus relating to such Registrable Securities was required to be delivered by such Notice Holder under the Securities Act in connection therewith. The foregoing with such purchase and any such loss, damage, expense, liability, claim or action of such Notice Holder results from the fact that there was not sent or given to such person, at or prior to the written confirmation of the sale of such Registrable Securities to such person, a copy of the final prospectus, provided the Company had previously furnished (whether physically or by public access through the SEC’s Electronic Data Gathering And Retrieval (XXXXX) system) sufficient copies of such final prospectus to such Holder in a timely manner as to reasonably permit such Holder to send or give a copy of such final prospectus to such person at or prior to the written confirmation of such sale; provided further, however, that this indemnity agreement shall will be in addition to any liability which the Company may otherwise havehave to such Indemnified Party. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating HoldersHolder, severally and not jointly, agree agrees to indemnify indemnify, defend and hold harmless the Company, its directors, its officers who sign the registration statementofficers, employees and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, a “Company 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 Company Indemnified Party may incur or become subject to under the Securities Act, to the same extent Exchange Act or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in, and in conformity with information (the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder Information”) furnished in writing by or on behalf of such Holder to the Company expressly for use in, any Shelf Registration Statement or Prospectus, or arises out of or is based upon any omission or alleged omission to state a material fact in connection with such Holder Information required to be stated in any Shelf Registration Statement or Prospectus or necessary to make such Holder Information not misleading; and, subject to the limitation set forth in the registration statementimmediately preceding clause, prospectus each Holder shall reimburse, as incurred, the Company for any legal or other expenses reasonably incurred by the Company or any prepricing prospectussuch 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 Company or any amendment or supplement theretoof its controlling persons. In no event shall the liability of any selling Holder of Registrable Securities hereunder be greater in amount than the dollar amount of the proceeds received by such Holder upon the sale, pursuant to the Shelf Registration Statement, of the Registrable Securities giving rise to such indemnification obligation. (c) If any action, suit or proceeding shall be (each, a “Proceeding”) is brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this either Section 9(c6(a) or Section 6(b), such Holder 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 rights and duties given right to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof employ its own counsel in any such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereofcase, but the fees and expenses of such counsel shall be at the Holder's expenseexpense of such Indemnified Party unless the employment of such counsel shall have been authorized in writing by such Indemnifying Party in connection with the defense of such Proceeding or such Indemnifying Party shall not have employed counsel to have charge of the defense of such Proceeding within thirty (30) days of the receipt of notice thereof or such Indemnified Party shall have reasonably concluded upon the written advice of counsel that there may be one or more defenses available to it that are different from, additional to or in conflict with those available to such Indemnifying Party (in which case such Indemnifying Party shall not have the right to direct that portion of the defense of such Proceeding on behalf of the Indemnified Party, but such Indemnifying Party may employ counsel and participate in the defense thereof but the fees and expenses of such counsel shall be at the expense of such Indemnifying Party), in any of which events such reasonable fees and expenses shall be borne by such Indemnifying Party and paid as incurred (it being understood, however, that such Indemnifying Party shall not be liable for the Companyexpenses of more than one separate counsel in any one Proceeding or series of related Proceedings together with reasonably necessary local counsel representing the Indemnified Parties who are parties to such action). An Indemnifying Party shall not be liable for any settlement of such Proceeding effected without the written consent of such Indemnifying Party, its directorsbut 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 officersettlement. Notwithstanding the foregoing sentence, and if at any such controlling person 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 rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement second sentence of this paragraph, then such Indemnifying Party agrees that it shall be liable for any settlement of any Proceeding effected without its written consent if (i) such settlement is entered into more than sixty (60) Business Days after receipt by such Indemnifying Party of the aforesaid request, (ii) such Indemnifying Party shall not have fully reimbursed such Indemnified Party in addition accordance with such request prior to the date of such settlement and (iii) such Indemnified Party shall have given such Indemnifying Party at least thirty (30) days’ prior notice of its intention to settle. No Indemnifying Party shall, without the prior written consent of any Indemnified Party, effect any settlement of any pending or threatened Proceeding in respect of which such Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability which on claims that are the participating Holders may otherwise havesubject matter of such Proceeding and does not include an admission of fault or culpability or a failure to act by or on behalf of such Indemnified Party. (d) If the indemnification provided for in this Section 9 6 is unavailable to an indemnified party Indemnified Party under paragraphs (aSection 6(a) or (c) hereof Section 6(b), or insufficient to hold such Indemnified Party harmless, in respect of any losses, claims, damages, liabilities expenses, liabilities, claims or expenses actions referred to therein, then an 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, claims, damages, liabilities expenses, liabilities, claims or expenses actions (i) in such proportion as is appropriate to reflect the relative benefits received by the Company, 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 Company Company, on the one hand, and of the participating Holders or the Initial Purchasers, on the other hand, in connection with the statements or omissions that which resulted in such losses, claims, damages, liabilities expenses, liabilities, claims or expensesactions, as well as any other relevant equitable considerations. The relative fault of the Company Company, on the one hand hand, and a participating Holder of the Holders or the Initial Purchasers, on the other hand hand, shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact omission relates to information supplied by the Company on the one hand or by such participating Holder on the other hand Holders or the Initial Purchasers and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, damages, expenses, liabilities, claims and actions referred to above shall be deemed to include any reasonable legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any Proceeding. (e) The Company Company, the Holders and the participating Holders Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 9 6 were determined by a pro rata allocation or by any other method of allocation that which does not take account of the equitable considerations referred to in Section 9(d6(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 96, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds total price at which the Registrable Securities giving rise to such participating contribution obligation and sold by such Holder were offered to the public exceeds the amount of any damages which such participating Holder it 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 Holders’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint. The remedies provided for in this Section 6 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements provisions contained in this Section 9 6 shall remain operative and in full force and effect, effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of an Indemniteeany Holder or the Initial Purchasers or any person controlling any Holder or Initial Purchaser, or the Company, its or the Company’s officers or directors or officers, or any person controlling the Company, Company and (iiiii) the sale of any termination of this AgreementRegistrable Security by any Holder.

Appears in 1 contract

Samples: Registration Rights Agreement (Option Care Inc/De)

Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless the Dealer Manager, each seller of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementHolder, each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person being an “Underwriter”) and such seller's partnersthe affiliates, directors, officers, agents, representatives and employees of the Dealer Manager, any Holder, Participating Broker-Dealer or Underwriter and any Person each Person, if any, who controls such seller under the Dealer Manager, any Holder, Participating Broker-Dealer or Underwriter (each an “Indemnified Person”) with respect to the Securities Act and Exchange Notes as follows: (each, an "Indemnitee"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 costs of investigationcounsel fees) arising as they are incurred by such Indemnified Person in connection with investigating, preparing to defend or defending any such action or claim insofar as such losses, actions, claims, damages or liabilities arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement Registration Statement (or prospectus or in any amendment or supplement thereto) pursuant to which Exchange Notes or Transfer Restricted Securities were registered under the 1933 Act, or arising out of or based upon any the omission or alleged omission to state therein therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such lossesor (ii) any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (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 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 rise 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 effected with the written consent of the Company; provided, however, that the Company will not be liable to any 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 have resulted primarily from the gross negligence, bad faith or willful misconduct of such Indemnified Person or (B) arise out of or are based upon (x) any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement or any Prospectus, (y) any omission or alleged untrue omission to state in any Registration Statement a material fact required to be stated therein or necessary to make the statements therein not misleading, or (z) any omission or alleged omission to state in 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 omission which has been relates solely to a Holder, Participating Broker-Dealer, Underwriter or the Dealer Manager and was made therein or omitted therefrom in reliance upon and in conformity with the information relating to a participating Holder furnished in writing by such Holder, Participating Broker-Dealer, Underwriter or the Dealer Manager to the Company expressly for use therein. The Company shall not be liable under this Section 4 for any settlement of any claim or action effected without its prior written consent, which shall not be unreasonably withheld. (b) Each Holder severally, but not jointly, agrees to indemnify and hold harmless the Company, 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, any Underwriter or any other selling Holder, against any and all losses, actions, claims, damages, liabilities and expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Shelf Registration Statement (or any amendment thereto) or any Prospectus included therein (or any amendment or supplement thereto) in reliance upon and in conformity with written information with respect to such Holder furnished to the Company by or on behalf of a participating such Holder expressly for use in connection therewith. The foregoing indemnity agreement the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided, however, that no such Holder shall be liable for any claims hereunder in addition excess of the amount of net proceeds received by such Holder from the sale of Transfer Restricted Securities pursuant to any liability which the Company may otherwise havesuch Shelf Registration Statement. (bc) If The Company will not, without the prior written consent of a Holder, Participating Broker-Dealer, Underwriter or the Dealer Manager, as the case may be, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity indemnification or contribution may be sought against 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 CompanyIndemnified Persons) of the Indemnified Persons from all liability arising out of such claim, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and (ii) does not include a statement as to, or an admission of, fault, culpability or a failure to act by or on behalf of an Indemnified Person. (d) Promptly after receipt by an Indemnified Person under this Section 4 of notice of the commencement of any action, such Indemnified Person will, if a claim in respect thereof is to be made against the Company under this Section 4, notify the Company in writing of the 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 4 unless and to the extent such failure results in the forfeiture by the Company of substantial 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 is brought against any Indemnified Person, and it notifies the Company of the commencement thereof, the Company will be entitled to participate in therein and, to the extent they may wish to, may assume the defense thereof, but with counsel satisfactory to such Indemnified Person; provided, however, that if the fees defendants in any such action include both the Indemnified Person and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing and the Indemnified Person shall have concluded that there may be one or more legal defenses available to pay such fees and expenses, (y) the Company has failed it and/or other Indemnified Persons that are different from or additional to assume the defense and employ counsel, or (z) the named parties those available to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case then the Company shall not have the right to assume direct the defense of such action, suit or proceeding action on behalf of such IndemniteeIndemnified 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). It is After notice from the Company to such 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 retention of such counsel by the Company in a timely manner, the Company will not be liable to such Indemnified Person under this Section 4 for any legal or other expenses, other than reasonable costs of investigation 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 proviso to the immediately preceding sentence (it being understood, however, that the Company shall, in connection with such action the Company shall not be liable for the expenses of more than one separate counsel (in addition to local counsel) in any one such action, suit or proceeding action or separate but substantially similar or related actions, suits or proceedings actions in the same jurisdiction arising out of the same general allegations or circumstancescircumstances representing the Indemnified Persons who are parties to such action or actions) or (ii) the Company has authorized the employment of counsel for the Indemnified Person at the expense of the Company. After such notice from the Company to such Indemnified Person, approved by such Indemnified Person and retention of such counsel by the Company, the Company will not be liable for the reasonable fees losses, costs and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such actionaction effected by such Indemnified Person without the consent of the Company, suit or proceeding effected 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 its written such consent, but if settled with such written consent, or if them be a final judgment . (e) In circumstances in which the indemnity agreement provided for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability paragraphs of this Section 4 is unavailable or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree insufficient to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof Indemnified Person in respect of any losses, claims, damagesdamages or liabilities (or actions in respect thereof), liabilities or expenses referred to therein, then an indemnifying partythe Company, in lieu of indemnifying such indemnified partyorder to provide for just and equitable contribution, shall contribute to the amount paid or payable by such indemnified party Indemnified Person as a result of such losses, claims, damages, damages or liabilities (or expenses 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 Company on the one hand and of the participating Holders Indemnified Person(s) on the other hand in connection with the statements or omissions that resulted in such losses, claims, damagesdamages or liabilities (or actions in respect thereof). The relative benefits received by the Company on the one hand and the Indemnified Person(s) on the other hand shall be deemed to be in the same proportion as (i) the relative benefits received by the Company from the initial offering and sale of the Securities, liabilities or expenseson one hand, bears to (ii) the relative benefit received by a Holder from receiving securities registered under the 1933 Act, on the other. The relative fault of the Company on the one hand and a participating Holder the Holders on the other hand shall be determined by reference to, among other things, whether the any such untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company on Company, the one hand or by such participating Holder on the other hand Holders and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) . The indemnity, reimbursement and contribution obligations of the Company under this Agreement shall be in addition to any rights that a Holder or any other Indemnified Person may have at common law or otherwise, including any other agreements by and among the parties hereto. The Company and the participating Holders agree that it would not be just and equitable if the amount of such contribution pursuant to this Section 9 were determined by a 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 of the equitable considerations referred to in this Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding4. Notwithstanding the provisions of this Section 94, no participating Holder shall be required to contribute any amount in excess of the amount by which the net proceeds to received by such participating Holder from the exchange of the Transfer Restricted Securities exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No omission with respect to the Securities or Exchange Notes from the exchange of the Transfer Restricted Securities, and no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shall. For purposes of this Section 4, without each Person, if any, who controls the prior written consent Dealer Manager, any Holder, each Participating Broker-Dealer or Underwriter within the meaning of Section 15 of the indemnified party1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Dealer Manager, effect any settlement such Holder, each Participating Broker-Dealer or Underwriter and each director of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination each Person, if any, who controls the Company within the meaning of this AgreementSection 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 and each Guarantor agrees to indemnify indemnify, defend and hold harmless each seller Initial Purchaser, each Notice Holder, each person (a “Controlling Person”), if any, who controls any Initial Purchaser or Notice Holder within the meaning of Registrable Section 15 of the Securities covered by a Registration Statement filed pursuant to this Agreement, Act or Section 20 of the Exchange Act and such seller's partnersthe respective officers, directors, officerspartners, employees employees, representatives and agents of any Initial Purchaser, the Notice Holders or any Controlling Person who controls such seller under the Securities Act (each, an "Indemnitee") “Indemnified Party”), from and against any and all lossesloss, claimsdamage, damagesexpense, liabilities and expenses liability, claim or any actions in respect thereof (including the reasonable costs cost of investigation) arising which such Indemnified Party may incur or become subject to under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectusShelf Registration Statement or Prospectus, registration statement or prospectus including any document incorporated by reference therein, or in any amendment or supplement theretothereto or in any preliminary prospectus, or arising arises out of or is based upon any omission or alleged omission to state therein a material fact required to be stated therein in any Shelf Registration Statement or in any amendment or supplement thereto or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses rise arises out of or are is based upon any omission or alleged omission to state a material fact necessary in order to make the statements made in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances under which such statements were made, not misleading; provided, however, that the Company and the Guarantors shall not be required to provide any indemnification pursuant to this Section 6(a) in any such case insofar as any such loss, damage, expense, liability, claim or action arises out of or is based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein of a material fact contained in, or omitted therefrom in reliance upon from, and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of an Initial Purchaser or a participating Holder to the Company expressly for use in connection therewith. The foregoing in, any Shelf Registration Statement or any Prospectus; provided further, however, that this indemnity agreement shall will be in addition to any liability which the Company and the Guarantors may otherwise havehave to such Indemnified Party. (b) Each Holder, severally and not jointly, agrees to indemnify, defend and hold harmless the Company, and each Guarantor, its directors, officers, employees and any person who controls the Company or any Guarantor within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, a “Company 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 Company Indemnified Party may incur or become subject to under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in, and in conformity with information (the “Holder Information”) furnished in writing by or on behalf of such Holder to the Company expressly for use in, any Shelf Registration Statement or Prospectus, or arises out of or is based upon any omission or alleged omission to state a material fact in connection with such Holder Information required to be stated in any Shelf Registration Statement or Prospectus or necessary to make such Holder Information not misleading. This indemnity agreement will be in addition to any liability which such Holder may otherwise have to the Company and each Guarantor or any of its controlling persons. In no event shall the liability of any selling Holder of Registrable Securities hereunder be greater in amount than the dollar amount of the proceeds received by such Holder upon the sale, pursuant to the Shelf Registration Statement, of the Registrable Securities giving rise to such indemnification obligation. (c) If any action, suit or proceeding shall be (each, a “Proceeding”) is brought against an Indemnitee any person in respect of which indemnity may be sought against the Companypursuant to either Section 6(a) or Section 6(b), such Indemnitee person (the “Indemnified Party”) shall promptly notify the Company, person against whom such indemnity may be sought (the “Indemnifying Party”) in writing of the institution of such Proceeding and the Company Indemnifying Party shall assume the defense thereofof such Proceeding; provided, including however, that the employment omission to so notify such Indemnifying Party shall not relieve such Indemnifying Party from any liability which it may have to such Indemnified Party, except to the extent that the indemnifying party has been prejudiced in any material respect by such failure through the forfeiture of counsel and payment of all fees and expensessubstantive rights or defenses. The Indemnitee Such Indemnified Party shall have the right to employ separate its own counsel in any such action, suit or proceeding and to participate in the defense thereofcase, but the fees and expenses of such counsel shall be at the expense of such Indemnitee Indemnified Party unless (x) the Company has agreed in writing to pay employment of such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee counsel shall have been advised authorized in writing by its such Indemnifying Party in connection with the defense of such Proceeding or such Indemnifying Party shall not have employed counsel to have charge of the defense of such Proceeding within thirty (30) days of the receipt of notice thereof or such Indemnified Party shall have reasonably concluded upon the written advice of counsel that representation of there may be one or more defenses available to it that are different from, additional to or in conflict with those available to such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them Indemnifying Party (in which case the Company such Indemnifying Party shall not have the right to assume direct that portion of the defense of such action, suit or proceeding Proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consentIndemnified Party, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but Indemnifying Party may employ separate counsel therein and participate in the defense thereof, thereof but the fees and expenses of such counsel shall be at the Holder's expenseexpense of such Indemnifying Party), in any of which events such reasonable fees and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement expenses shall be borne by such Indemnifying Party and paid as incurred (it being understood, however, that such Indemnifying Party shall not be liable for the expenses of more than one separate counsel in addition any one Proceeding or series of related Proceedings together with reasonably necessary local counsel representing all the Indemnified Parties). An Indemnifying Party shall not be liable for any settlement of such Proceeding effected without the written consent of such Indemnifying Party, which consent shall not be unreasonably withheld or delayed, 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. No Indemnifying Party shall, without the prior written consent of any Indemnified Party, effect any settlement of any pending or threatened Proceeding in respect of which such Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the participating Holders may otherwise havesubject matter of such Proceeding and does not include an admission of fault or culpability or a failure to act by or on behalf of such Indemnified Party. (d) If the indemnification provided for in this Section 9 6 is unavailable to an indemnified party Indemnified Party under paragraphs (aSection 6(a) or (c) hereof Section 6(b), or insufficient to hold such Indemnified Party harmless, in respect of any losses, claims, damages, liabilities expenses, liabilities, claims or expenses actions referred to therein, then an 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, claims, damages, liabilities expenses, liabilities, claims or expenses actions (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Guarantors, 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 Company and the Guarantors, on the one hand, and of the participating Holders or the Initial Purchasers, on the other hand, in connection with the statements or omissions that which resulted in such losses, claims, damages, liabilities expenses, liabilities, claims or expensesactions, as well as any other relevant equitable considerations. The relative fault of the Company Company, on the one hand hand, and a participating Holder of the Holders or the Initial Purchasers, on the other hand hand, shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact omission relates to information supplied by the Company on the one hand or Guarantors or by such participating Holder on the other hand Holders or the Initial Purchasers and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, damages, expenses, liabilities, claims and actions referred to above shall be deemed to include any reasonable legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any Proceeding. (e) The Company Company, and each Guarantor, the Holders and the participating Holders Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 9 6 were determined by a pro rata allocation or by any other method of allocation that which does not take account of the equitable considerations referred to in Section 9(d6(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 96, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds total price at which the Registrable Securities giving rise to such participating contribution obligation and sold by such Holder were offered to the public exceeds the amount of any damages which such participating Holder it 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 Holders’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint. The remedies provided for in this Section 6 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. (f) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements provisions contained in this Section 9 6 shall remain operative and in full force and effect, effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of an Indemniteeany Holder or the Initial Purchasers or any person controlling any Holder or Initial Purchaser, or the Company or the Guarantors, or the Company, its ’s or any of the Guarantors’ officers or directors or officers, or any person controlling the Company, Company or any Guarantor and (iiiii) the sale of any termination of this AgreementRegistrable Security by any Holder.

Appears in 1 contract

Samples: Registration Rights Agreement (Arvinmeritor Inc)

Indemnification; Contribution. (a) The Company agrees to If any Registrable Securities are included in a registration statement under this Agreement: 7.1. To the extent permitted by applicable law, each of the Trust and the Corporation, severally and not jointly, shall indemnify and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementSelling Holder, and such seller's partnerseach Person, directorsif any, officers, employees and any Person who controls such seller under Selling Holder within the meaning of the Securities Act (eachAct, an "Indemnitee") from each Person who participates as a sales or placement agent or underwriter in any offering of the Registered Securities and each officer, director, partner and employee of such Selling Holder and such controlling Person, against any and all losses, claims, damages, liabilities and expenses (joint or several), including reasonable costs attorneys' fees and disbursements and reasonable expenses of investigation) arising , incurred by such party or to which such party may become subject pursuant to any actual or threatened action, suit, proceeding or investigation, or to which any of the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or other federal or state laws, insofar as such losses, claims, damages, liabilities and expenses arise out of or are based upon any 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 prepricing prospectus, registration statement preliminary Prospectus or prospectus or in any amendment or supplement thereto, or arising out of or based upon any final Prospectus (ii) the omission or alleged omission to state therein a material fact required to be stated therein therein, or necessary to make the statements therein not misleading; provided, except however, that the indemnification required by this Section 7.1 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or expense if such settlement is effected by the indemnified person without the consent of the Trust or the Corporation (which consent shall not be unreasonably withheld), nor shall the Trust or the Corporation 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 information furnished to the Trust or the Corporation by the indemnified party expressly for use in connection with such registration; and provided further that the indemnity agreement contained in this Section 7 shall not apply to the extent that any such loss is based on or arises out of an untrue statement or alleged untrue statement of 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 an underwriter, placement agent or Selling Holder was under an obligation to deliver such final Prospectus and failed to do so. 7.2. To the extent permitted by applicable law, each Selling Holder shall indemnify and hold harmless the Trust, the Corporation, each of the Trustees of the Trust, each of the directors of the Corporation, each of the officers of the Trust or the Corporation who shall have signed the registration statement, each Person, if any, who controls the Trust or the Corporation within the meaning of the Securities Act, any other Selling Holder, any controlling Person of any such other Selling Holder and each officer, director, partner, and 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 and disbursements and reasonable expenses of investigation, incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation, or to which any of the 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, claims, damages, liabilities or and expenses rise arise out of or are based upon any untrue statement Violation, in each case to the extent that, but only to the extent that, such Violation arises out of or omission or alleged untrue statement or omission which has been is based upon and was made therein or omitted therefrom in reliance upon and in conformity with the information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating such Selling Holder expressly for use in connection therewithwith such registration; provided, however, that (x) the indemnification 7.3. The foregoing indemnity agreement shall be in addition to any liability which Promptly after receipt by an indemnified party under this Section 7 of notice of the Company may otherwise have. (b) If commencement of any action, suit suit, proceeding, investigation or proceeding shall be brought against an Indemnitee threat thereof made in respect of writing for which indemnity such indemnified party may be sought against the Companymake a claim under this Section 7, such Indemnitee indemnified party shall promptly notify deliver to the Company, indemnifying party a written notice thereof and the Company indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereofthereof with nationally recognized counsel experienced in such matters reasonably satisfactory to the indemnified party; provided, including however, that an indemnified party shall have the employment of right to retain its own counsel and payment to not have the indemnifying party assume its defense, with the fees, disbursements and expenses to be paid by the indemnifying party, if representation of all 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 materially prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 7 to the extent of such prejudice but shall not relieve the indemnifying party of any liability that it may have to any indemnified party otherwise than pursuant to this Section 7. Any fees and expensesexpenses incurred by the indemnified party (including any fees and expenses incurred in connection with investigating or preparing to defend such action or proceeding) shall be paid to the indemnified party, as incurred, within thirty (30) days of written notice thereof to the indemnifying party (regardless of whether it is ultimately determined that an indemnified party is not entitled to indemnification hereunder). The Indemnitee Any such indemnified party shall have the right to employ separate counsel in any such action, suit claim or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense expenses of such Indemnitee indemnified party unless (xi) the Company indemnifying party has agreed in writing to pay such fees and expenses, expenses or (yii) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee)indemnifying 7.4. It is understood, however, that the Company shall, in connection with any one such action, suit or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided for in required by this Section 9 7 from the indemnifying party is unavailable to an indemnified party under paragraphs (a) or (c) hereof hereunder in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an 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, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company indemnifying party and of the participating Holders indemnified parties in connection with the statements or omissions that actions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand such indemnifying party and a participating Holder on the other hand indemnified parties shall be determined by reference to, among other things, whether the untrue any Violation has been committed by, or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand by, such indemnifying party or by such participating Holder on the other hand indemnified parties, and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereofViolation. The amount paid or payable by an indemnified a party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof above shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of in (ii) The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 9, no participating Holder shall be required 7.4 were determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omissionSection 7.4(i). 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. (f) No 7.5. If indemnification is available under this Section 7, the indemnifying parties shall indemnify each indemnified party to the full extent provided in this Section 7 without regard to the relative fault of such indemnifying party shall, without the prior written consent or indemnified party or any other equitable consideration referred to in Section 7.4 except that no Selling Holder shall be liable for any amount in excess of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding net proceeds it receives in respect of the offering which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or the indemnification proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution 7.6. The obligations of the Trust and the Corporation under this Section 9 7 shall be paid by in addition to any liability which the indemnifying party Trust and the Corporation may otherwise have to the indemnified party as persons specified in Section 7.1 and the obligations of the Selling Holders under this Section 7 shall be in addition to any liability which such losses, claims, damages, liabilities or expenses are incurredPersons may otherwise have to the Trust and the Corporation. The indemnity and contribution agreements contained remedies provided in this Section 9 7 are not exclusive and shall remain operative and not limit any rights or remedies which may otherwise be available to an indemnified party at law or in full force and effect, regardless equity. 7.7. The obligations of (i) any investigation made by or on behalf of an Indemniteethe Trust, the Company, its directors or officers, or Corporation and the Selling Holders of Registrable Securities under this Section 7 shall survive the completion of any person controlling the Companyoffering of Registrable Securities pursuant to a registration statement under this Agreement, and (ii) any termination of this Agreementotherwise.

Appears in 1 contract

Samples: Registration Rights Agreement (Starwood Hotel & Resorts Worldwide Inc)

Indemnification; Contribution. (a) The Company In connection with any registration of Registrable Securities pursuant to Section 2.01, Section 2.02 or Section 2.03 hereof, Parent agrees to indemnify and hold harmless each seller of Registrable Securities covered harmless, to the fullest extent permitted by a Registration Statement filed pursuant to this AgreementLaw, and such seller's partnersStockholder, its Affiliates, directors, officers, employees officers and any stockholders and each Person who controls such seller under Stockholder within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act (eachcollectively, an "Indemnitee"the “Indemnified Persons”) from and against any and all losses, claims, damages, liabilities liabilities, judgments, actions and expenses (including reasonable costs of investigationattorneys’ fees) arising out of joint or based upon several caused by any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement part of any Registration Statement or any preliminary or final prospectus used in connection with the Registrable Securities or in any amendment or supplement theretoIssuer FWP, or arising out of or based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a prospectus, in the light of the circumstances under which they were made) not misleading, except insofar as such ; provided that Parent will not be required to indemnify any Indemnified Person for any losses, claims, damages, liabilities liabilities, judgments, actions or expenses rise out of or are based upon resulting from any such untrue statement or omission or alleged if such untrue statement or omission which has been was made therein or omitted therefrom in reliance upon on and in conformity with the information relating with respect to a participating Holder any Indemnified Person furnished to Parent in writing to the Company by or on behalf of a participating Holder Stockholder expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise havetherein. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understood, however, that the Company shall, in In connection with any one such actionRegistration Statement, suit preliminary or proceeding or separate but substantially similar or related actions, suits or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consentfinal prospectus, or if them be a final judgment for the plaintiff in any such actionIssuer FWP, suit or proceeding, the Company Stockholder agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the CompanyParent, its directorsDirectors, its officers who sign the registration statementsuch Registration Statement and each Person, and any person if any, who controls the Company Parent (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, ) to the same extent as the foregoing indemnity from the Company Parent to an IndemniteeStockholder, but only with respect to information relating with respect to such Holder any Indemnified Person furnished to Parent in writing by or on behalf of such Holder Stockholder expressly for use in the registration statementsuch Registration Statement, prospectus preliminary or any prepricing final prospectus, or Issuer FWP. (c) In case any amendment or supplement thereto. If any actionclaim, suit action or proceeding shall be brought against the Company, (including any of its directors, governmental investigation) is instituted involving any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and Person in respect of which indemnity may be sought pursuant to Section 2.08(a) or (b), such Person (hereinafter called the “indemnified party”) will (i) promptly notify the Person against any Holder whom such indemnity may be sought (hereinafter called the “indemnifying party”) in writing; provided that the failure to give such notice shall not relieve the indemnifying party of its obligations pursuant to this Section 9(c)Agreement except to the extent such indemnifying party has been prejudiced in any material respect by such failure; (ii) permit the indemnifying party to assume the defense of such claim, action or proceeding with counsel reasonably satisfactory to the indemnified party; and (iii) pay the fees and disbursements of such Holder shall counsel related to such claim, action or proceeding. In any such claim, action or pro- ceeding, any indemnified party will have the rights and duties given right to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereofretain its own counsel, but the fees and expenses of such counsel shall will be at the Holder's expense), expense of such indemnified party unless (A) the indemnifying party and the Companyindemnified party have mutually agreed to the retention of such counsel, its directors, (B) the named parties to any such officerclaim, action or proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and the indemnified party has been advised in writing by counsel, with a copy provided to Parent, that representation of both parties by the same counsel would be inappropriate due to actual or potential conflicting interests between them or (C) the indemnifying party has failed to assume the defense of such claim and employ counsel reasonably satisfactory to the indemnified party. It is understood that the indemnifying party will not, in connection with any such controlling person shall have claim, action or proceeding or related claims, actions or proceedings in the rights same jurisdiction, be liable for the reasonable fees and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be expenses of more than one separate firm of attorneys (in addition to any liability which the participating Holders may otherwise have. (d) If the indemnification provided local counsel at any time for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an indemnifying party, in lieu of indemnifying all such indemnified party, shall contribute to the amount paid or payable by parties) and that all such indemnified party as reasonable fees and expenses will be reimbursed reasonably promptly following a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expenses. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable written request by an indemnified party as a result 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 lossesretention of any such separate firm for the indemnified parties, claimssuch firm will be designated in writing by the indemnified parties. The indemnifying party will not be liable for any settlement of any claim, damagesaction or proceeding effected without its written consent (which consent shall not be unreasonably withheld), liabilities and expenses referred 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 in Section 9(d) hereof shall be deemed to include, subject to indemnify the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating from and against any claim loss or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay liability by reason of such untrue settlement or alleged untrue statement or omission or alleged omissionjudgment. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shallwill, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-an unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (gd) Any If the indemnification provided for in this Section 2.08 from the indemnifying party is unavailable to an indemnified party hereunder in respect of any losses, claims, damages, liabilities liabilities, judgments, actions or expenses for which an indemnified parry is entitled referred to indemnification or contribution under in this Section 9 shall be 2.08, then the indemnifying party, in lieu of indemnifying such indemnified party, will contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages, liabilities, judgments, actions or expenses (i) in such proportion as is appropriate to reflect the relative fault of the indemnifying party to the and indemnified party as in connection with the actions that resulted in such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effectexpenses, regardless of as well as any other relevant equitable considerations, or (ii) if the allocation provided by clause (i) is not permitted by applicable Law, in such proportion as is appropriate to reflect not only the relative fault referred to in clause (i) but also the relative benefit of Parent, on the one hand, and Stockholder, on the other, in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities, judgments, actions or expenses, as well as any other relevant equitable considerations. The relative fault of such indemnifying party and indemnified party will be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been 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, claims, damages, liabilities and expenses referred to above will be deemed to include, subject to the limitations set forth in Section 2.08(c), any legal or other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding. (e) The parties agree that it would not be just and equitable if contribution pursuant to Section 2.08(d) 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 2.08(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 2.08(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 2.08 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 2.08, 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 Parent within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act shall have the same rights to contribution as Parent, subject in each case to the limitations set forth in the immediately preceding paragraph. Any party entitled to contribution will, promptly after receipt of notice of commencement of any action, suit or proceeding against such party in respect of which a claim for contribution may be made against another party or parties under this Section 2.08, notify such party or parties from whom contribution may be sought, but the 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 2.08 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 on behalf of an Indemniteeclaim settled without its written consent; provided, however, that such written consent was not unreasonably withheld. (g) If indemnification is available under this Section 2.08, the Company, its directors indemnifying party will indemnify each indemnified party to the full extent provided in Sections 2.08(a) and (b) without regard to the relative fault of said indemnifying party or officers, indemnified party or any person controlling the Company, and other equitable consideration provided for in Section 2.08(d) or (ii) any termination of this Agreemente).

Appears in 1 contract

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

Indemnification; Contribution. (a) The If any Registrable ----------------------------- Securities are included in a registration statement under this Agreement: 7.1. To the extent permitted by applicable law, the Company agrees to shall indemnify and hold harmless each seller of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementSelling Holder, and such seller's partners, its directors, officers, employees shareholders, employees, investment advisors, agents and any Person Affiliates, either direct or indirect (and each such Affiliate's directors, officers, shareholders, employees, investment advisors and agents) and each other Person, if any, who controls such seller under Selling Holder within the meaning of the Securities Act (each, an "Indemnitee") from and against any and all losses, claims, damages, liabilities and expenses, including attorneys' fees and disbursements and expenses (including reasonable costs of investigation) arising , incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation, 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 untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any prepricing prospectus, registration statement or preliminary prospectus or in final prospectus contained therein, or any amendment amendments or supplement supplements thereto, or arising out of or based upon any the omission or alleged omission to state therein a material fact required to be stated therein therein, or necessary to make the statements therein not misleadingmisleading (collectively, except a "Violation"); provided, however, that the indemnification required by this -------- ------- Section 7.1 shall not apply to amounts paid in settlement of any such loss, - ----------- claim, damage, liability or expense if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable 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. 7.2. To the extent permitted by applicable law, each Selling Holder shall indemnify and hold harmless the Company, its directors, officers, shareholders, employees, investment advisors, agents and Affiliates, either direct or indirect (and each such Affiliate's directors, officers, shareholders, employees, investment advisors and agents) and each other Person, if any, who controls the Company within the meaning of the Securities act, any other Selling Holder and any controlling Person or any such other Selling Holder against any and all losses, claims, damages, liabilities and expenses, including attorneys' fees and disbursements and expenses of investigation, incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation, to which any of the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or other federal or state laws, insofar as such losses, claims, damages, liabilities or and expenses rise arise out of or are based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with the written information relating to a participating Holder furnished in writing to the Company by or on behalf of a participating such Selling Holder expressly for use in connection therewith. The foregoing with such registration statement; provided, however, that (x) the indemnification -------- ------- required by this Section 7.2 shall not apply to amounts paid in settlement ----------- of any such loss, claim, damage, liability or expense if settlement is effected without the consent of the relevant Selling Holder of Registrable Securities, which consent shall not be unreasonably withheld, (y) in no event shall the amount of any indemnity agreement under this Section 7.2 and of the ----------- contribution obligation of a Selling Holder under Section 7.4 exceed the net ----------- proceeds from the applicable offering received by such Selling Holder, and (z) the obligation to provide indemnification hereunder shall be in addition to any liability which several, and not joint and several, among the Company may otherwise haveindemnifying parties. (b) If 7.3. Promptly after receipt by an indemnified party under this Section 7 of notice of the commencement of any action, suit suit, proceeding, - --------- investigation or proceeding threat thereof made in writing for which such indemnified party may make a claim under this Section 7, such indemnified party shall --------- deliver to the indemnifying party a written notice of the commencement thereof. The failure to deliver written notice to the indemnifying party within a reasonable time following the commencement of any such action , if and to the extent materially prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 7 but shall not relieve the indemnifying --------- party of any liability that it may have to any indemnified party otherwise than pursuant to this Section 7. Any fees and expenses incurred by the --------- indemnified party (including any fees and expenses incurred in connection with investigating or preparing to defend such action or proceeding) shall be brought against paid to the indemnified party, as incurred, within thirty days of written notice thereof to the indemnifying party (regardless of whether it is ultimately determined that an Indemnitee in respect of which indemnity may be sought against the Company, indemnified party is not entitled to indemnification hereunder). Any such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee indemnified party shall have the right to employ separate counsel in any such action, suit claim or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense expenses of such Indemnitee unless (xindemnified party unless(i) the Company has agreed in writing to pay such fees and expenses, (y) the Company has indemnifying party shall have failed to promptly assume the defense and employ counselof such action, claim or proceeding or (zii) the named parties to any such action, suit claim or proceeding (including any impleaded parties) include both such Indemnitee indemnified party and the Companyindemnifying party, and such Indemnitee indemnified party shall have been advised by its counsel that representation there may be one or more legal defenses available to it which are different from or in addition to those available to the indemnifying party and that the assertion of such Indemnitee and the Company defenses would create a conflict of interest such that counsel employed by the same counsel would be inappropriate under applicable standards of professional conduct (whether or indemnifying party could not such representation by represent the same counsel has been proposed) due to actual or potential differing interests between them indemnified party (in which case case, if such indemnified party notifies the Company indemnifying party in writing that it elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense of such action, suit claim or proceeding on behalf of such Indemnitee). It is indemnified party; it being understood, however, that the Company shallindemnifying party shall not, in connection with any one such action, suit claim or proceeding or separate but substantially similar or related actions, suits claims or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only more than one separate firm of attorneys (in addition to any together with appropriate local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselvesindemnified parties, unless the indemnified party shall have been advised by its counsel that a conflict of interest may exist between such indemnified party and that all any other of such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any indemnified parties with respect to such action, suit claim or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for that the plaintiff in counsel could not represent the indemnified party and any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason other of such settlement or judgment. (c) Each of indemnified parties, in which event the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding indemnifying party shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity may be sought against any Holder pursuant obligated to this Section 9(c), such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereof, but pay the fees and expenses of such additional counsel or counsels). No indemnifying party shall be at the Holder's expense), and the Company, its directors, any such officer, and any such controlling person shall have the rights and duties given liable to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement indemnified party for any settlement of any action, proceeding or claim without the written consent of the indemnifying party, which consent shall not be in addition to any liability which the participating Holders may otherwise haveunreasonably withheld. (d) 7.4. If the indemnification provided for in required by this Section 9 7 from the --------- indemnifying party is unavailable to an indemnified party under paragraphs (a) or (c) hereof hereunder in respect of any losses, claims, damages, liabilities or expenses referred to therein, then an 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, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company indemnifying party and of the participating Holders indemnified parties in connection with the statements or omissions that actions which resulted in such lossesloses, claims, damages, liabilities or expensesexpense, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand such indemnifying party and a participating Holder on the other hand indemnified parties shall be determined by reference to, among other things, whether the untrue any Violation has been committed by, or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand by, such indemnifying party or by such participating Holder on the other hand indemnified parties, and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereofViolation. The amount paid or payable by an indemnified a party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof above shall be deemed to include, subject to the limitations set forth abovein Section 7.1 and Section 7.2, ----------- ----------- any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit investigation or proceeding. Notwithstanding the provisions of . (ii) The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 9, no participating Holder shall be required 7.4 were determined ----------- by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omissionSection 7.4(i). -------------- 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. (f) No indemnifying party shall, without the prior written consent 7.5. The obligations of the indemnified party, effect any settlement Company and the Selling Holders of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution Registrable Securities under this Section 9 7 shall be paid by survive the indemnifying party completion of --------- any offering of Registrable Securities pursuant to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of a registration statement under this Agreement.

Appears in 1 contract

Samples: Stockholders Agreement (Davidson M H & Co Inc/)

Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each seller Holder of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementSecurities, and such seller's partnersthe Affiliates, directors, officers, employees employees, members, managers and any agents of each such Holder and each Person who controls any such seller under Holder within the meaning of either the Securities Act (eachor the Exchange Act, an "Indemnitee") 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 costs of investigationor actions in respect thereof) arising arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectus, registration statement or prospectus 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 arising arise out of or are based upon any the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such lossesloss, claimsclaim, damagesdamage, liabilities liability or expenses rise 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 to the extent that any such loss, claim, damage, liability or expense arises (i) out of or are is based upon any such untrue statement or alleged untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the written information relating to a participating 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 (ii) out of sales of Registrable Securities made during a participating Holder expressly for use in connection therewithSuspension Period after notice is given pursuant to Section 2(e)(ii) hereof. The foregoing This indemnity agreement shall will be in addition to any liability which the Company may otherwise have. (b) If Each Holder severally (and not jointly) agrees to indemnify and hold harmless the Company and each of its Affiliates, directors, employees, members, managers and agents and each Person who controls the Company within the meaning of either the Securities Act or the Exchange Act, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages or liabilities to which they or any of them may become subject insofar as such losses, claims, damages or liabilities arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement as originally filed or in any amendment thereof, or in the Disclosure Package or any Holder Free Writing Prospectus, preliminary, final or summary Prospectus included in any such Registration Statement, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, to the extent, but only to the extent, that any such untrue statement or alleged untrue statement or omission or alleged omission is contained in any written information relating to such Holder furnished to the Company by or on behalf of such Holder specifically for inclusion therein; provided, however, that the total amount to be indemnified by such Holder pursuant to this Section 8(b) shall be limited to the net proceeds (after deducting underwriters’ discounts and commissions) received by such Holder in the offering to which such Registration Statement or Prospectus relates. This indemnity agreement will be in addition to any liability which any such Holder may otherwise have. (c) Promptly after receipt by an indemnified party under this Section 8 of notice of the commencement of any action, suit such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 8, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or proceeding (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 brought against an Indemnitee in respect of which indemnity may be sought against entitled to participate therein and, to the Companyextent that it shall wish, such Indemnitee shall promptly notify the Companyjointly with any other indemnifying party similarly notified, and the Company shall to assume the defense thereof, including with counsel satisfactory to such indemnified party (who shall not, except with the employment consent of the indemnified party, be counsel and payment to the indemnifying party), and, except as provided in the next sentence, after notice from the indemnifying party to such indemnified party of all fees and expensesits election to so assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The Indemnitee Notwithstanding the indemnifying party’s rights in the prior sentence, the indemnified party shall have the right to employ separate its own counsel in any such action(and one local counsel), suit or proceeding and to participate in the defense thereofindemnifying party shall bear the reasonable fees, but the fees costs and expenses of such separate counsel if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest; (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party; (iii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee)indemnifying party. It is understood, however, that the Company No indemnifying party shall, in connection with any one such action, suit or proceeding action or separate but substantially similar or related actions, suits or proceedings actions in the same jurisdiction arising out of the same general allegations circumstances or circumstancesallegations, be liable for the reasonable fees and expenses of only more than one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurredindemnified parties. The Company 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 entry of any such judgment with respect to any pending or threatened claim, action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating Holders, severally and not jointly, agree to indemnify and hold harmless the Company, its directors, its officers who sign the registration statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to an Indemnitee, but only with respect to information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto. If any action, suit or proceeding shall be brought against the Company, any of its directors, any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and in respect of which indemnity indemnification or contribution may be sought against any Holder pursuant hereunder (whether or not the indemnified parties are actual or potential parties to this Section 9(c)such claim or action) unless such settlement, compromise or consent is consented to by such Holder shall have the rights and duties given to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder indemnifying party, which consent shall not be required to do sounreasonably withheld. No indemnifying party, but may employ separate counsel therein and participate in the defense thereof, but the fees and expenses of such counsel shall be at the Holder's expense), and the Company, its directors, any such officerclaim or litigation, shall, except with the consent of each indemnified party, consent to entry of any judgment or enter into any settlement or compromise that does not include as an unconditional term thereof the giving by the claimant or plaintiff therein, to such indemnified party, of a full and any final release from all liability in respect to such controlling person shall have the rights and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be in addition to any liability which the participating Holders may otherwise haveclaim or litigation. (d) If In the indemnification event that the indemnity provided for in this Section 9 8(a) or Section 8(b) above is unavailable to or insufficient to hold harmless an indemnified party under paragraphs (a) or (c) hereof in respect of for any reason, then each applicable indemnifying party agrees to contribute to the aggregate losses, claims, damagesdamages and liabilities (including, liabilities without limitation, legal or other expenses referred reasonably incurred in connection with investigating or defending same) (collectively, “Losses”) to therein, then an which such 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, claims, damages, liabilities or expenses may be subject in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party on the one hand and by the indemnified party on the other from the offering of the New Common Stock. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, then each indemnifying party shall contribute to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company indemnifying party on the one hand and of the participating Holders indemnified party on the other in connection with the statements or omissions that which resulted in such losses, claims, damagesdamages or liabilities (or actions in respect thereof), liabilities or expensesas well as any other relevant equitable considerations. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission omission to state a material fact relates to information supplied by the Company indemnifying party on the one hand or by such participating Holder the indemnified party on the other hand and the parties' relative intent, knowledge, access or to information and opportunity to correct or prevent such statement or omission. (e) . The Company and the participating Holders parties agree that it would not be just and equitable if contribution pursuant to this Section 9 8(d) were determined by a 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 that which does not take account of the equitable considerations referred to above in this Section 9(d) hereof8(d). The amount paid or payable by an indemnified party as a result of the losses, claims, damages, damages or liabilities and expenses (or actions in respect thereof) referred to above in this Section 9(d8(d) hereof shall be deemed to include, subject to the limitations set forth above, include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit action or proceedingclaim. Notwithstanding the provisions of this Section 98(d), no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount of any damages which such participating Holder 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. 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). (fe) No indemnifying party shall, without the prior written consent The provisions of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding. (g) Any losses, claims, damages, liabilities or expenses for which an indemnified parry is entitled to indemnification or contribution under this Section 9 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall 8 will remain operative and in full force and effect, regardless of (i) 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 Indemniteeindemnifying party is prohibited or limited by law, the Companyindemnifying 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, its directors or officershowever, or 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 1000 Xxx) in connection with such sale shall be entitled to contribution from any person controlling the Company, Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any termination seller of this AgreementRegistrable Securities shall be limited in amount to the net amount of proceeds received by such seller from the sale of such Registrable Securities pursuant to such Shelf Registration.

Appears in 1 contract

Samples: Registration Rights Agreement (Charter Communications Inc /Mo/)

Indemnification; Contribution. (a) The In connection with any registration of Registrable Securities or Takedown Offering pursuant to Sections 3.01 or 3.02, the Company agrees to indemnify and hold harmless harmless, to the fullest extent permitted by Law, each seller of Registrable Securities covered by a Registration Statement filed pursuant to this AgreementParticipating Stockholder, its affiliates, directors and such seller's partners, directors, officers, employees officers and any each Person who controls such seller under Participating Stockholder within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act (each, an "Indemnitee"“Indemnified Person”) from and against any and all losses, claims, damages, liabilities liabilities, judgments and expenses (including reasonable costs of investigationattorneys’ fees)(collectively, “Claims”), caused by (i) arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any prepricing prospectuspart of any Registration Statement or any preliminary or final prospectus used in connection with the Registrable Securities or any Issuer FWP, registration statement or prospectus or in any amendment or supplement thereto, or arising out of or based upon (ii) any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a prospectus, in the light of the circumstances under which they were made) not misleadingmisleading or (iii) any violation or alleged violation by the Company of the Securities Act, except insofar as such lossesthe Exchange Act, claimsany state securities Law or any rule or regulation promulgated under the Securities Act, damages, liabilities or expenses rise out the Exchange Act or any state securities Law and relating to action required of or are based upon any untrue statement or omission or alleged untrue statement or omission which has been made therein or omitted therefrom in reliance upon and in conformity with the information relating to a participating Holder furnished in writing to inaction by the Company by or on behalf of a participating Holder expressly for use in connection therewith. The foregoing indemnity agreement shall be in addition to any liability which the Company may otherwise have. (b) If any action, suit or proceeding shall be brought against an Indemnitee in respect of which indemnity may be sought against the Company, such Indemnitee shall promptly notify the Company, and the Company shall assume the defense thereof, including the employment of counsel and payment of all fees and expenses. The Indemnitee shall have the right to employ separate counsel in with any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee unless (x) the Company has agreed in writing to pay such fees and expenses, (y) the Company has failed to assume the defense and employ counsel, or (z) the named parties to any such action, suit or proceeding (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by its counsel that representation of such Indemnitee and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Company shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnitee). It is understoodregistration; provided, however, that the Company shall, will not be required to indemnify any Indemnified Person for any Claims resulting from any such untrue statement or omission if such untrue statement or omission was made in reliance on and in conformity with information with respect to any Indemnified Person furnished to the Company in writing by any Stockholder expressly for use therein. (b) In connection with any one such actionRegistration Statement, suit preliminary or proceeding final prospectus, or separate but substantially similar or related actionsIssuer FWP, suits or proceedings in the same jurisdiction arising out each of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnitees not having actual or potential differing interests among themselves, and that all such fees and expenses shall be reimbursed as they are incurred. The Company shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, or if them be a final judgment for the plaintiff in any such action, suit or proceeding, the Company agrees to indemnify and hold harmless such Indemnitee, to the extent provided in the preceding paragraph, from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. (c) Each of the participating HoldersParticipating Stockholders, severally and not jointly, agree in the offering to which such Registration Statement, preliminary or final prospectus, or Issuer FWP relates agrees to indemnify and hold harmless the Company, its directorsDirectors, its officers who sign the registration statementand each Person, and any person if any, who controls the Company (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act) from and against any and all Claims, caused by (i) any untrue or alleged untrue statement of material fact contained in any part of any Registration Statement or any preliminary or final prospectus used in connection with the Registrable Securities or any Issuer FWP, or (ii) any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the same extent as statements therein (in the case of a prospectus, in the light of the circumstances under which they were made) not misleading, provided that the foregoing indemnity from the Company to an Indemnitee, but indemnification shall only apply with respect to statements or omissions made in reliance on and in conformity with information relating with respect to such Holder Participating Stockholder furnished to the Company in writing by or on behalf of such Holder Participating Stockholder expressly for use in the registration statementsuch Registration Statement, prospectus preliminary or any prepricing final prospectus, or Issuer FWP; and provided, further, however, that in no event shall the liability of any amendment Participating Stockholder exceed the dollar amount of the proceeds (net of any underwriting discount or supplement thereto. If commission or other selling expenses) received by such Participating Stockholder from the sale of the Registrable Securities giving rise to such indemnification. (c) In case any actionclaim, suit action or proceeding shall be brought against the Company, (including any of its directors, governmental investigation) is instituted involving any such officer, or any such controlling person based on the registration statement, prospectus or any prepricing prospectus, or any amendment or supplement thereto, and Person in respect of which indemnity may be sought pursuant to Section 3.08(a) or (b), such Person (hereinafter called the “indemnified party”) will promptly notify the Person against any Holder whom such indemnity may be sought (hereinafter called the “indemnifying party”) in writing and the indemnifying party, upon request of the indemnified party, will retain counsel reasonably satisfactory to the indemnified party to represent the indemnified party and will pay the fees and disbursements of such counsel related to such proceeding; provided, however, that the failure or delay to give such notice shall not relieve the indemnifying party of its obligations pursuant to this Section 9(c)Agreement except to the extent such indemnifying party has been prejudiced in any material respect by such failure or delay. In any such claim, such Holder shall action or proceeding, any indemnified party will have the rights and duties given right to the Company by Section 9(b) hereof (except that if the Company shall have assumed the defense thereof such Holder shall not be required to do so, but may employ separate counsel therein and participate in the defense thereofretain its own counsel, but the fees and expenses of such counsel shall will be at the Holder's expense), expense of such indemnified party unless (i) the indemnifying party and the Company, its directors, indemnified party have mutually agreed to the retention of such counsel or (ii) the named parties to any such officerclaim, action or proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and the indemnified party has been advised in writing by counsel that representation of both parties by the same counsel would be inappropriate due to actual or potential conflicting interests between them. It is understood that the indemnifying party will not, in connection with any such controlling person shall have claim, action or proceeding or related claims, actions or proceedings in the rights same jurisdiction, be liable for the reasonable fees and duties given to an Indemnitee by Section 9(b) hereof. The foregoing indemnity agreement shall be expenses of more than one separate firm of attorneys (in addition to any liability which required local counsel) at any time for all such indemnified parties and that all such reasonable fees and expenses will be reimbursed as they are incurred. In the participating Holders may otherwise have. (d) If case of the indemnification provided for in this Section 9 is unavailable to an indemnified party under paragraphs (a) or (c) hereof in respect retention of any lossessuch separate firm for the indemnified parties, claims, damages, liabilities or expenses referred to therein, then an indemnifying party, such firm will be designated in lieu of indemnifying such writing by the indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company and of the participating Holders in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities or expensesparties. The relative fault of the Company on the one hand and a participating Holder on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged -omission to state a material fact relates to information supplied by the Company on the one hand or by such participating Holder on the other hand and the parties' relative intent, knowledge, access or information and opportunity to correct or prevent such statement or omission. (e) The Company and the participating Holders agree that it would indemnifying party will not be just and equitable if contribution pursuant to this Section 9 were determined by a pro rata allocation or by liable for any other method of allocation that does not take account of the equitable considerations referred to in Section 9(d) hereof. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities and expenses referred to in Section 9(d) hereof shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating any claim or defending any such action, suit or proceeding. Notwithstanding the provisions of this Section 9, no participating Holder shall be required to contribute any amount in excess of the amount by which the proceeds to such participating Holder exceeds the amount settlement of any damages claim, action or proceeding effected without its written consent, which such participating Holder has otherwise been required to pay by reason of such untrue consent may not be unreasonably withheld or alleged untrue statement or omission or alleged omissiondelayed). No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. (f) No indemnifying party shallwill, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an-an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceedings and unless such settlement does not include a statement to, or an admission of, fault, culpability or a failure to act, by or on behalf of the indemnified party. (d) If the indemnification provided for in this Section 3.08 from the indemnifying party is unavailable to an indemnified party hereunder in respect of any Claims referred to in this Section 3.08 (other than for Claims for which an indemnified party is expressly not entitled to indemnification pursuant to Section 3.08), then the indemnifying party, in lieu of indemnifying such indemnified party, will contribute to the amount paid or payable by such indemnified party as a result of such Claims (i) in such proportion as is appropriate to reflect the relative benefit of the Company, on the one hand, and the applicable Stockholder, on the other, in connection with the statements or omissions that resulted in such Claims 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 benefit to, but also the relative fault of the indemnifying party and indemnified party in connection with the actions that resulted in such Claims as well as any other relevant equitable considerations; provided, however, that in no event shall a Participating Stockholder be required to contribute an aggregate amount in excess of the lesser of (A) the amount that such Participating Stockholder would have been obligated to pay under Section 3.08(b) if such indemnity was available to the indemnified party and (B) the dollar amount of proceeds (net of underwriting discounts and commissions and other selling expenses) received by such Participating Stockholder from the sale of Registrable Securities giving rise to such contribution. The relative fault of such indemnifying party and indemnified party will be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been 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 Claims referred to above will be deemed to include, suit subject to the limitations set forth in Section 3.08(c), any legal or other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding. (e) The parties agree that it would not be just and equitable if contribution pursuant to Section 3.08(d) 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 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. (f) If indemnification is available under this Section 3.08, the indemnifying party will indemnify each indemnified party to the full extent provided in Sections 3.08(a) and (b) without regard to the relative fault of said indemnifying party or indemnified party or any other equitable consideration provided for in Section 3.08(d) or (e). (g) Any lossesNotwithstanding anything to the contrary in this Agreement, claimseach of the indemnified parties has relied on this Section 3.08, damages, liabilities or expenses for which is an indemnified parry express third party beneficiary of this Section 3.08 and is entitled to indemnification or contribution enforce the obligations of the applicable indemnified parties under this Section 9 shall be paid by the indemnifying party 3.08 directly against such indemnified parties to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 9 shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of an Indemnitee, the Company, its directors or officers, or any person controlling the Company, and (ii) any termination of this Agreementextent thereof.

Appears in 1 contract

Samples: Stockholders’ Agreement (Toreador Resources Corp)

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