Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from and after the Effective Time, CSLC and the Surviving Entity shall, indemnify, defend and hold harmless each person who is now, or at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, director or employee of the Company or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of or in connection with this Agreement, the Merger or any of the transactions contemplated hereby or thereby, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties. (b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur in excess of $400,000 in the aggregate under this Section 5.9(b). (c) The provisions of this Section 5.9 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representatives.
Appears in 6 contracts
Samples: Merger Agreement (Ilm Ii Senior Living Inc /Va), Agreement and Plan of Merger (Capital Senior Living Corp), Agreement and Plan of Merger (Capital Senior Living Corp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from and after the Effective Time, CSLC and the Surviving Entity Corporation and Parent shall, indemnify, defend and hold harmless each person who is now, or has been at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, director director, employee or employee agent of the Company or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses (including attorneys' fees and expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not be unreasonably be withheld) of or in connection with any threatened or actual claim, action, suit, proceeding, case proceeding or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer officer, employee or employee agent of the Company or any Subsidiaryof its Subsidiaries or is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, employee benefit plan, trust or other enterprise or by reason of anything done or not done by such person in any such capacity whether pertaining to any matter existing or occurring at or prior to the Effective Time or any acts or omissions occurring or existing at or prior to the Effective Time and whether asserted or claimed prior to, or at or after after, the Effective Time ("Indemnified Liabilities") and (ii) ), including all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, or in connection with pertaining to this Agreement, the Merger Agreement or any of the transactions contemplated hereby or therebyhereby, in each case to the fullest full extent a corporation is permitted under by applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC (and the Company, the Surviving EntityCorporation, and Parent, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest full extent permitted by law). In determining whether an Indemnified Party is entitled to indemnification under applicable law upon receipt of any undertaking contemplated this Section 6.6, if requested by applicable lawsuch Indemnified Party, such determination shall be made by special, independent counsel selected by the Surviving Corporation and Parent and approved by the Indemnified Party (which approval shall not be unreasonably withheld), and who has not otherwise performed services for the Surviving Corporation, Parent or their respective affiliates within the last three years (other than in connection with such matters). Without limiting the foregoing, if in the event any such claim, action, suit, proceeding or investigation is commenced or instituted brought against any Indemnified Party Parties (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain the Company's regularly engaged independent legal counsel or counsel satisfactory to them and reasonably satisfactory to the Company (or satisfactory to them and CSLC and reasonably satisfactory to the Surviving Entity Corporation and Parent after the Effective Time); (ii) , and the Company (or after the Effective Time, CSLC and the Surviving EntityCorporation and Parent) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties as promptly as reasonably itemized statements therefor are received; and (iiiii) the Company (or after the Effective Time, CSLC and the Surviving EntityCorporation and Parent) shall will use all reasonable best efforts to assist in the vigorous defense of any such matter, provided that neither none of the Company, CSLC nor the Surviving Entity Corporation or Parent shall be liable for any settlement of any claim effected without its prior written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing wishing to claim indemnification under this Section 5.96.6, upon learning of any such Actionclaim, action, suit, proceeding or investigation, shall promptly notify the CompanyCompany (or after the Effective Time, CSLC or the Surviving Entity of such election Corporation and Parent) (but the failure so to notify the Company shall not relieve it a party from any liability which it may have under this Section 5.9, 6.6 except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), party's position with respect to such claims) and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving EntityCorporation and Parent) the undertaking contemplated by applicable lawSection 145(e) of the DGCL, but without any requirement for the posting of a bond. The Indemnified Parties as a group may retain only one law firm of legal counsel (plus one local counsel, if necessary) to represent them with respect to each such matter unless there is, under applicable standards the use of professional conduct, counsel chosen to represent the Indemnified Parties would present such counsel with a conflict of interest, or the representation of all of the Indemnified Parties by the same counsel would be inappropriate due to actual or potential differing interests between them, in which case such additional counsel as may be required (as shall be reasonably determined by the Indemnified Parties and the Company, the Surviving Corporation or Parent, as the case may be) may be retained by the Indemnified Parties at the cost and expense of the Company, Surviving Corporation or Parent, as the case may be. The Company and Sub agree that the foregoing rights to indemnification, including provisions relating to advances of expenses incurred in defense of any action or suit, existing in favor of the Indemnified Parties with respect to matters occurring through the Effective Time, shall survive the Merger and shall continue in full force and effect for a period of not less than six years from the Effective Time; provided, however, that all rights to indemnification (including rights relating to advances of expenses) in respect of any significant issue between Indemnified Liabilities asserted or made within such period shall continue until the positions disposition of such Indemnified Liabilities. Furthermore, the provisions with respect to indemnification set forth in the Certificate of Incorporation or Bylaws of the Surviving Corporation shall not be amended for a period of six years following the Effective Time if such amendment would adversely affect the rights thereunder of individuals who at any two time prior to the Effective Time were directors, officers, employees or more Indemnified Partiesagents of the Company in respect of actions or omissions occurring at or prior to the Effective Time.
(b) The Company (or after the Effective Time, the Surviving Corporation and Parent) shall indemnify any Indemnified Party against all reasonable costs and expenses (including attorney's fees and expenses), such amounts to be payable in advance upon request as provided in Section 6.6(a), relating to the enforcement of such Indemnified Party's rights under this Section 6.6 or under the documents referred to in this Section 6.6 regardless of whether or not such Indemnified Party is ultimately determined to be entitled to indemnification hereunder or thereunder. Any amounts due pursuant to the preceding sentence shall be payable upon request by the Indemnified Party and shall bear interest from the date that such were originally due and payable at a rate equal to the prime rate of interest as announced by The Chase Manhattan Bank plus 1% as in effect on the date of such initial request.
(c) For a period of seven six years after the Effective Time, CSLC the Surviving Corporation shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC Parent may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageousadvantageous to the Indemnified Parties) with respect to claims matters arising from facts before and acts or events which occurred before omissions occurring or existing at or prior to the Effective Time to including the extent available on commercially reasonable terms; providedtransactions contemplated by this Agreement, however, provided that CSLC Parent shall not be obligated required to incur pay an annual premium for such insurance in excess of 125% of the last annual premium paid by the Company prior to the date hereof, but in such case shall purchase as much coverage as possible for such amount. The last annual premium paid by the Company was $400,000 in the aggregate under this Section 5.9(b)523,720.
(cd) For a period of 6 years after the Effective Time, the Surviving Corporation shall cause to be maintained in effect the current policies of fiduciary liability insurance maintained by the Company and its Subsidiaries (provided that Parent may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous to the Indemnified Parties who are covered thereby) with respect to matters arising before and acts or omissions occurring or existing at or prior to the Effective Time, provided that Parent shall not be required to pay an annual premium for such insurance in excess of 200% of the last annual premium paid by the Company prior to the date hereof, but in such case shall purchase as much coverage as possible for such amount. The last annual premium paid by the Company was $13,500. Furthermore, the provisions with respect to indemnification provided for under any Benefit Plan or Employee Arrangement shall not be amended for a period of six years following the Effective Time if such amendment would adversely affect the rights thereunder of individuals who at any time prior to the Effective Time were directors, officers, employees or agents of the Company in respect of actions or omissions occurring at or prior to the Effective Time.
(e) The provisions of this Section 5.9 6.6 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representativespersonal representatives and shall be binding on all successors and assigns of Sub, the Company and the Surviving Corporation.
(f) The Company will honor the indemnification agreements identified in Schedule 4.1(w), except for the provisions relating to the establishment of trusts. The Company may enter into substantially similar indemnification agreements with other directors of the Company, provided that such agreements shall not contain any provisions for the establishment of trusts.
(g) Nothing in this Section 6.6 shall be interpreted as obligating the Company (or from and after the Effective Time, the Surviving Corporation), Parent, Sub or any of their respective successors or assigns, to pay, make reimbursement for or otherwise assume responsibility for any Taxes or penalties imposed on any officer, director, employee or agent or for any other amount relating to any of such Person's Tax obligations or liabilities.
Appears in 5 contracts
Samples: Merger Agreement (Nortek Inc), Merger Agreement (Ply Gem Industries Inc), Merger Agreement (Ply Gem Industries Inc)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallWithout limiting any other rights that any Indemnified Person may have pursuant to any employment agreement or indemnification agreement in effect on the date hereof or otherwise, and from and after the Effective Time, CSLC Parent and the Surviving Entity Corporation shall, jointly and severally, indemnify, defend and hold harmless harmless, in the same manner as provided by the Company immediately prior to the date of this Agreement, each person Person who is now, or has been at any time prior to the date hereof has been of this Agreement or who becomes prior to the Effective Time, an officer, a director or employee officer of the Company or any of its Subsidiaries or who acts as a fiduciary under any Company Benefit Plan, in each case, when acting in such capacity (the "“Indemnified Parties"Persons”) from and against (i) all losses, claims, damages, costs, fines, penalties, expenses (including attorneys’ and other professionals’ fees and expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) settlement, of or incurred in connection with any claimthreatened or actual Proceeding to which such Indemnified Person is a party or is otherwise involved (including as a witness) based, action, suit, proceeding, case or investigation ("Action") based in whole or in part part, on or arising arising, in whole or in part part, out of or in connection with the fact that such person Person is or was a director, director or officer or employee of the Company or any Subsidiaryof its Subsidiaries, a fiduciary under any Company Benefit Plan or is or was serving at the request of the Company or any of its Subsidiaries as a director, officer, employee or fiduciary of another corporation, partnership, limited liability company, joint venture, Employee Benefit Plan, trust or other enterprise, as applicable, or by reason of anything done or not done by such Person in any such capacity, whether pertaining to any matter act or omission occurring or existing or occurring at or prior to to, but not after, the Effective Time and whether asserted or claimed prior to, at or after but not after, the Effective Time ("“Indemnified Liabilities") and (ii) ”), including all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, or in connection with pertaining to, this Agreement, Agreement or the Merger or any of the transactions contemplated hereby or therebyTransactions, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers Law (and employees, as the case may be and CSLC Parent and the Surviving EntityCorporation shall, as the case may bejointly and severally, shall pay expenses incurred in connection therewith, including but not limited to expenses for the retention of the Company’s regularly engaged legal counsel or other counsel satisfactory to them, in advance of the final disposition of any such action or proceeding Proceeding to each Indemnified Party Person to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable lawLaw). Without limiting the foregoing, if in the event any such claim, action, suit, proceeding Proceeding is brought or investigation is commenced or instituted threatened to be brought against any Indemnified Party Persons (whether arising before or after the Effective Time), (i) the Indemnified Parties Persons may retain the Company’s regularly engaged legal counsel or other counsel satisfactory to them them, and the Company (or satisfactory to them and CSLC Parent and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) Corporation shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties Persons as promptly as reasonably itemized statements therefor are received; , and (iiiii) the Company (or after the Effective Time, CSLC Parent and the Surviving Entity) Corporation shall use its best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing Person wishing to claim indemnification or advancement of expenses under this Section 5.96.10, upon learning of any such ActionProceeding, shall promptly notify the Company, CSLC or the Surviving Entity of such election Corporation (but the failure so to notify the Company shall not relieve it a Party from any liability which obligations that it may have under this Section 5.9, 6.10 except to the extent such failure materially prejudices it such Party’s position with respect to such claims). With respect to any determination of whether any Indemnified Person is entitled to indemnification by Parent or if it otherwise forfeits substantive rights Surviving Corporation under this Section 6.10, such Indemnified Person shall have the right, as contemplated by the DGCL, to require that such determination be made by special, independent legal counsel selected by the Indemnified Person and defenses approved by Parent or Surviving Corporation, as a result of such failureapplicable (which approval shall not be unreasonably withheld or delayed), and shall deliver to who has not otherwise performed material services for Parent, Surviving Corporation or the Company Indemnified Person within the last three (or after the Effective Time, to CSLC and the Surviving Entity3) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Partiesyears.
(b) For a period Parent and the Surviving Corporation agree that, until the six (6) year anniversary date of seven years after the Effective Time, CSLC that neither Parent nor the Surviving Corporation shall amend, repeal or otherwise modify any provision in the Organizational Documents of the Surviving Corporation or its Subsidiaries in any manner that would affect (or manage the Surviving Corporation or its Subsidiaries, with the intent to or in a manner that would) adversely the rights thereunder or under the Organizational Documents of the Surviving Corporation or any of its Subsidiaries of any Indemnified Person to indemnification, exculpation and advancement except to the extent required by applicable Law. Parent shall, and shall cause the Surviving Corporation and its Subsidiaries to, fulfill and honor any indemnification, expense advancement or exculpation agreements between the Company or any of its Subsidiaries and any of its directors or officers existing and in effect immediately prior to the Effective Time.
(c) Parent and the Surviving Corporation shall indemnify any Indemnified Person against all reasonable costs and expenses (including reasonable attorneys’ fees and expenses), such amounts to be payable in advance upon request as provided in Section 6.10(a), relating to the enforcement of such Indemnified Person’s rights under this Section 6.10 or under any charter, bylaw or Contract regardless of whether such Indemnified Person is ultimately determined to be entitled to indemnification hereunder or thereunder.
(d) Parent and the Surviving Corporation will cause to be maintained put in effect place, and Parent shall fully prepay immediately prior to the current Effective Time, “tail” insurance policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies with a claims reporting or discovery period of at least six (6) years from the Effective Time (the “Tail Period”) from an insurance carrier with the same coverage and amounts containing terms and conditions which are no less advantageous) or better credit rating as the Company’s current insurance carrier with respect to claims arising from facts directors’ and officers’ liability insurance (“D&O Insurance”) in an amount and scope at least as favorable as the Company’s existing policies with respect to matters, acts or events which occurred before omissions existing or occurring at, prior to, or after, the Effective Time to the extent available on commercially reasonable termsTime; provided, however, that CSLC in no event shall the aggregate cost of the D&O Insurance exceed during the Tail Period 300% of the current aggregate annual premium paid by the Company for such purpose; and provided, further, that if the cost of such insurance coverage exceeds such amount, the Surviving Corporation shall obtain a policy with the greatest coverage available for a cost not exceeding such amount.
(e) In the event that Parent, the Surviving Corporation or any of their Subsidiaries or any of their respective successors or assignees (i) consolidates with or merges into any other Person and shall not be obligated the continuing or surviving corporation or entity of such consolidation or merger or (ii) transfers all or substantially all of its properties and assets to incur any Person, then, in excess each such case, proper provisions shall be made so that the successors and assigns of $400,000 Parent or the Surviving Corporation, as the case may be, shall assume the obligations set forth in the aggregate under this Section 5.9(b).
(c) 6.10. The provisions of this Section 5.9 6.10 are intended to be for the benefit of, and shall be enforceable by, the Parties and each Indemnified PartyPerson entitled to indemnification or insurance coverage or expense advancement pursuant to this Section 6.10, and his heirs and his representativesRepresentatives. The rights of the Indemnified Persons under this Section 6.10 are in addition to any rights such Indemnified Persons may have under the Organizational Documents of the Company or any of its Subsidiaries, or under any applicable Contracts or Law. Parent and the Surviving Corporation shall pay all expenses, including reasonable and documented attorneys’ fees, that may be incurred by any Indemnified Person in enforcing the indemnity and other obligations provided in this Section 6.10.
Appears in 4 contracts
Samples: Merger Agreement (Bonanza Creek Energy, Inc.), Merger Agreement (HighPoint Resources Corp), Transaction Support Agreement (Bonanza Creek Energy, Inc.)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallWithout limiting any other rights that any Indemnified Person (as defined below) may have pursuant to the Company’s Organizational Documents, any employment agreement or any indemnification agreement in effect on the date hereof or otherwise (which agreements shall be assumed by Parent and the Surviving Company), from and after the Effective Time, CSLC and the Surviving Entity Company shall, and Parent shall cause the Surviving Company to, indemnify, defend and hold harmless each person Person who is now, or has been at any time prior to the date hereof has been of this Agreement or who becomes prior to the Effective Time, an officer, a director or employee officer of the Company or any of its Subsidiaries or is or was serving at the request of the Company or any of its Subsidiaries as a director, officer, employee or agent of another corporation, partnership, limited liability company, joint venture, trust or other enterprise (the "“Indemnified Parties"Persons”) against and from and against (i) all losses, claims, damages, costs, fines, penalties, expenses (including attorneys’ and other professionals’ fees and expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of of, or incurred in connection with any claimthreatened or actual Proceeding to which such Indemnified Person is a party or is otherwise involved (including as a witness) based, action, suit, proceeding, case or investigation ("Action") based in whole or in part part, on or arising arising, in whole or in part part, out of or in connection with the fact that such person Person is or was a director, director or officer or employee of the Company or any Subsidiaryof its Subsidiaries or is or was serving at the request of the Company or any of its Subsidiaries as a director, officer, employee or agent of another corporation, partnership, limited liability company, joint venture, Employee Benefit Plan, trust or other enterprise or by reason of anything done or not done by such Person in any such capacity, whether pertaining to any matter act or omission occurring or existing or occurring prior to, at or prior to after the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("“Indemnified Liabilities") and (ii) ”), including all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, or in connection with pertaining to, this Agreement, Agreement or the Merger or any of the transactions contemplated hereby or therebyTransactions, in each case case, to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action Indemnified Person is entitled to be so indemnified by the Company or proceeding to each Indemnified Party to its Subsidiaries on the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable lawdate hereof. Without limiting the foregoing, if in the event any such claim, action, suit, proceeding Proceeding is brought or investigation is commenced or instituted threatened to be brought against any Indemnified Party Persons (whether arising before or after the Effective Time), (i) the Indemnified Parties Persons may retain the Company’s regularly engaged legal counsel or other counsel satisfactory to them such Indemnified Person, and the Company (or satisfactory to them and CSLC Parent and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties Persons as promptly as reasonably itemized statements therefor are received; , and (iiiii) the Surviving Company (or after the Effective Time, CSLC and the Surviving Entity) shall use its best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing Person wishing to claim indemnification or advancement of expenses under this Section 5.96.10, upon learning of any such ActionProceeding, shall promptly notify the CompanySurviving Company (provided, CSLC or the Surviving Entity of such election (but that the failure so to notify the Company shall not relieve it a party from any liability which obligations that it may have under this Section 5.9, 6.10 except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them party’s position with respect to each such matter unless there isclaims). Notwithstanding anything to the contrary set forth in this Agreement, under Parent or the Surviving Company, as applicable, (i) shall not be liable for any settlement effected without their prior written consent (which consent shall not be unreasonably withheld, delayed or conditioned) and (ii) shall not have any obligation hereunder to any Indemnified Person to the extent that a court of competent jurisdiction shall determine in a final and non-appealable order that such indemnification is prohibited by applicable standards Law, in which case the Indemnified Person shall promptly refund to Parent or the Surviving Company the amount of professional conductall such expenses theretofore advanced pursuant hereto, a conflict in respect of any significant issue between the positions of any two or more Indemnified Partiesif any.
(b) For Parent and the Surviving Company shall not amend, repeal or otherwise modify any provision in the Organizational Documents of the Surviving Company or its Subsidiaries in any manner that would affect (or manage the Surviving Company or its Subsidiaries, with the intent to or in a period manner that would affect) adversely the rights thereunder or under the Organizational Documents of seven years after the Effective TimeSurviving Company or any of its Subsidiaries of any Indemnified Person to indemnification, CSLC exculpation and advancement except to the extent required by applicable Law. Parent shall, and shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Surviving Company and its Subsidiaries (provided that CSLC may substitute therefor policies to, fulfill and honor any indemnification, expense advancement or exculpation agreements between the Company or any of at least its Subsidiaries and any of its directors, officers or employees existing on the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur in excess date of $400,000 in the aggregate under this Section 5.9(b)Agreement.
(c) The Company shall put in place, and fully prepay immediately prior to the Effective Time, “tail” insurance policies with a claims period of at least six years from the Effective Time from an insurance carrier with the same or better credit rating as the Company’s current insurance carrier with respect to directors’ and officers’ liability insurance in an amount and scope at least as favorable as the Company’s existing policies with respect to matters, acts or omissions existing or occurring at or prior to the Effective Time.
(d) In the event that Parent, the Surviving Company or any Subsidiary of the Surviving Company, or any of their respective successors or assigns (i) consolidates with or merges into any other Person and shall not be the continuing or surviving corporation or entity of such consolidation or merger or (ii) transfers all or substantially all of its properties and assets to any Person, then, in each such case, proper provisions shall be made so that the successors and assigns of Parent, the Surviving Company or such Subsidiary of the Surviving Company, as the case may be, shall assume the obligations set forth in this Section 6.10. Parent and the Surviving Company shall not sell, transfer, distribute or otherwise dispose of any of their assets or the assets of any Subsidiary in a manner that would reasonably be expected to render Parent or the Surviving Company unable to satisfy their obligations under this Section 6.10. The provisions of this Section 5.9 6.10 are intended to be for the benefit of, and shall be enforceable by, the parties and each Indemnified PartyPerson entitled to indemnification or insurance coverage or expense advancement pursuant to this Section 6.10, his and his, her or its heirs and his representatives. The rights of the Indemnified Persons under this Section 6.10 are in addition to any rights such Indemnified Persons may have under the Organizational Documents of the Company or any of its Subsidiaries, or under any applicable contracts or Law. Parent and the Surviving Company shall pay all expenses, including attorneys’ fees, that may be incurred by any Indemnified Person in enforcing the indemnity and other obligations provided in this Section 6.10.
Appears in 4 contracts
Samples: Merger Agreement (Anworth Mortgage Asset Corp), Merger Agreement (Ready Capital Corp), Merger Agreement (Ready Capital Corp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallWithout limiting any additional rights that any director, and officer, trustee, employee, agent, or fiduciary may have under any employment or indemnification agreement or under the Partnership Agreement or this Agreement or the similar organizational documents or agreements of the GP or Abraxas Operating, from and after the Effective Time, CSLC and the Surviving Entity Abraxas shall, indemnify, defend : (i) indemnify and hold harmless each person who is now, or at any time prior to the date hereof has been or who becomes prior during the period from the date hereof through the date of the Effective Time serving as a director or officer of the GP or Abraxas Operating or as a fiduciary under or with respect to any employee benefit plan (within the meaning of Section 3(3) of ERISA) (each an “Indemnified Party” and, collectively, the “Indemnified Parties”) to the Effective Timefullest extent authorized or permitted by applicable Law, an officeras now or hereafter in effect, director or employee of the Company or in connection with any of its Subsidiaries (the "Indemnified Parties") from Claim and against (i) all any losses, claims, damages, liabilities, costs, expensesIndemnification Expenses, liabilities or judgments or judgments, fines, penalties and amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of including all interest, assessments and other charges paid or payable in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out respect of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities"thereof) resulting therefrom; and (ii) all Indemnified Liabilities based in whole or in part onpromptly pay on behalf of or, or arising in whole or in part out of or in connection with this Agreementwithin ten (10) days after any request for advancement, the Merger or any advance to each of the transactions contemplated hereby Indemnified Parties, any Indemnification Expenses incurred in defending, serving as a witness with respect to or thereby, in each case otherwise participating with respect to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses any Claim in advance of the final disposition of any such action Claim, including payment on behalf of or proceeding advancement to each the Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated Indemnification Expenses incurred by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them connection with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur in excess of $400,000 in the aggregate under this Section 5.9(b).
(c) The provisions of this Section 5.9 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representatives.enforcing any
Appears in 4 contracts
Samples: Merger Agreement (Abraxas Petroleum Corp), Merger Agreement (Abraxas Petroleum Corp), Merger Agreement (Abraxas Petroleum Corp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallWithout limiting any additional rights that any director, and officer, trustee, employee, agent, or fiduciary may have under any employment or indemnification agreement or under the Existing Partnership Agreement, this Agreement or, if applicable, similar organizational documents or agreements of any of the Partnership’s Subsidiaries, from and after the Effective Time, CSLC Parent and the Surviving Entity shallEntity, indemnifyjointly and severally, defend will: (i) indemnify and hold harmless each person Person who is now, or has been or becomes at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, director or employee of the Company or any of its Subsidiaries the Retained Companies and also with respect to any such Person, in their capacity as a director, officer, employee, member, trustee or fiduciary of another corporation, foundation, partnership, joint venture, trust, pension or other employee benefit plan or enterprise (whether or not such other entity or enterprise is affiliated with the "Partnership) serving at the request of or on behalf of any of the Retained Companies and together with such Person’s heirs, executors or administrators (collectively, the “Indemnified Parties"”) from and to the fullest extent authorized or permitted by applicable Law in connection with any Claim or Action against (i) all any losses, claims, damages, liabilities, costs, expensesIndemnification Expenses, liabilities or judgments or judgments, fines, penalties and amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of including all interest, assessments and other charges paid or payable in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out respect of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities"thereof) resulting therefrom; and (ii) all Indemnified Liabilities based in whole or in part onpromptly pay on behalf of or, or arising in whole or in part out of or in connection with this Agreementwithin 15 days after any request for advancement, the Merger or any advance to each of the transactions contemplated hereby Indemnified Parties, any Indemnification Expenses incurred in defending, serving as a witness with respect to or thereby, in each case otherwise participating with respect to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses any Claim or Action in advance of the final disposition of any such action Claim or proceeding Action, including payment on behalf of or advancement to each the Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated Indemnification Expenses incurred by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of connection with enforcing any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to such indemnification or advancement, in each such matter unless there is, under applicable standards of professional conduct, a conflict in respect case without the requirement of any significant issue between the positions of any two bond or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur in excess of $400,000 in the aggregate under this Section 5.9(b).
(c) The provisions of this Section 5.9 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representatives.other
Appears in 3 contracts
Samples: Merger Agreement (Targa Resources Corp.), Merger Agreement (Atlas Energy, L.P.), Merger Agreement (Atlas Pipeline Partners Lp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Without limiting any other rights that any Indemnified Person may have pursuant to any employment agreement, organizational document or indemnification agreement in effect on the date hereof or otherwise, and to the fullest extent permitted by applicable Law, from the Closing, Parent and the Surviving Company shall, jointly and from and after the Effective Time, CSLC and the Surviving Entity shallseverally, indemnify, defend and hold harmless each person Person who is now, or has been at any time prior to the date hereof has been of this Agreement or who becomes prior to the Effective TimeClosing, an officer, a director or employee officer of the Company or any of its Subsidiaries or who acts as a fiduciary under any Company Benefit Plan, in each case, when acting in such capacity (the "“Indemnified Parties"Persons”) from and against (i) all losses, claims, damages, costs, fines, penalties, expenses (including attorneys’ and other professionals’ fees and expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) settlement, of or incurred in connection with any claim, action, suit, proceeding, case threatened or investigation ("Action") based in whole actual Proceeding to which such Indemnified Person is or in part on or arising in whole or in part out is threatened to be made a party by reason of or in connection with the fact that such person Person is or was a director or officer of the Company or any of its Subsidiaries, a fiduciary under any Company Benefit Plan or, while a director or officer of the Company or any of its Subsidiaries, is or was serving at the request of the Company or any of its Subsidiaries as a director, officer or employee fiduciary of the Company another corporation, partnership, limited liability company, joint venture, Employee Benefit Plan, trust or any Subsidiaryother enterprise, as applicable, whether pertaining to any matter act or omission occurring or existing or occurring at or prior to or at, but not after, the Effective Time Closing and whether asserted or claimed prior to, at or after the Effective Time Closing ("“Indemnified Liabilities") and (ii) ”), including all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, or in connection with pertaining to, this Agreement, Agreement or the Merger or any of the transactions contemplated hereby or therebyTransactions, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers Law (and employees, as the case may be and CSLC Parent and the Surviving EntityCompany shall, as the case may bejointly and severally, shall pay expenses incurred in connection therewith in defending any such Proceeding in advance of the final disposition of any such action or proceeding Proceeding to each Indemnified Party Person to the fullest extent permitted under applicable law Law upon receipt of any an undertaking contemplated by applicable law. Without limiting the foregoing, if from such Person to repay any such claim, action, suit, proceeding amounts so advanced if it shall ultimately be determined that such Person is not entitled to indemnification from Parent or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheldtherefor). Any Indemnified Party electing Person wishing to claim indemnification or advancement of expenses under this Section 5.96.9, upon learning of any such ActionProceeding, shall promptly notify the Company, CSLC or the Surviving Entity of such election Company (but the failure so to notify the Company shall not relieve it a Party from any liability which obligations that it may have under this Section 5.9, 6.9 except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure)Parent, and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them Company or such Party’s position with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two claims or more Indemnified Partiesliability therefor).
(b) For Parent and the Surviving Company agree that, until the six (6) year anniversary date of the Closing, neither Parent nor the Surviving Company shall amend, repeal or otherwise modify any provision in the Organizational Documents of the Surviving Company or its Subsidiaries in any manner that would affect (or manage the Surviving Company or its Subsidiaries, with the intent to or in a period manner that would) adversely the rights thereunder or under the Organizational Documents of seven years after the Effective TimeSurviving Company or any of its Subsidiaries of any Indemnified Person to indemnification, CSLC exculpation and advancement except to the extent required by applicable Law. Parent shall, and shall cause its Subsidiaries to, fulfill and honor any indemnification, expense advancement or exculpation agreements between Parent, the Company or any of their respective Subsidiaries and any of their respective directors or officers existing and in effect immediately prior to the date hereof.
(c) Parent and the Surviving Company shall indemnify any Indemnified Person against all reasonable costs and expenses (including reasonable attorneys’ fees and expenses), such amounts to be payable in advance upon request as provided in Section 6.9(a), relating to the enforcement of such Indemnified Person’s rights under this Section 6.9 or under any charter, bylaw or Contract; provided, that if any such payment is for costs or expenses relating to a loss or liability that is determined by a court of competent jurisdiction to have resulted primarily from the fraud, bad faith, willful misconduct or gross negligence of such Indemnified Person, such Indemnified Person shall promptly repay such amount to Parent or the Surviving Company, as applicable.
(d) Parent and the Surviving Company will cause to be maintained put in effect place, and Parent shall fully prepay immediately prior to the current Closing, “tail” insurance policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies with a claims period of at least six (6) years from the Closing (the “Tail Period”) from an insurance carrier with the same coverage and amounts containing terms and conditions which are no less advantageous) or better credit rating as the Company’s current insurance carrier with respect to claims arising from facts directors’ and officers’ liability insurance (“D&O Insurance”) in an amount and scope at least as favorable as the Company’s existing policies with respect to matters, acts or events which occurred before omissions existing or occurring at, prior to, or after, the Effective Time to the extent available on commercially reasonable termsClosing; provided, however, that CSLC in no event shall the aggregate cost of the D&O Insurance exceed during the Tail Period 300% of the current aggregate annual premium paid by the Company for such purpose; and provided, further, that if the cost of such insurance coverage exceeds such amount, the Surviving Company shall obtain a policy with the greatest coverage available for a cost not exceeding such amount.
(e) In the event that Parent, the Surviving Company or any of their respective successors or assignees (i) consolidates with or merges into any other Person and shall not be obligated the continuing or surviving company or entity of such consolidation or merger or (ii) transfers all or substantially all of its properties and assets to incur any Person, then, in excess each such case, proper provisions shall be made so that the successors and assigns of $400,000 Parent or the Surviving Company, as the case may be, shall assume the obligations set forth in this Section 6.9. Parent and the aggregate Surviving Company shall not sell, transfer, distribute or otherwise dispose of any of their assets in a manner that would reasonably be expected to render Parent or the Surviving Company unable to satisfy their obligations under this Section 5.9(b).
(c) 6.9. The provisions of this Section 5.9 6.9 are intended to be for the benefit of, and shall be enforceable by, the Parties and each Indemnified PartyPerson entitled to indemnification or insurance coverage or expense advancement pursuant to this Section 6.9, and his heirs and his representativesRepresentatives. The rights of the Indemnified Persons under this Section 6.9 are in addition to any rights such Indemnified Persons may have under the Organizational Documents of Parent, the Company or any of their respective Subsidiaries, or under any applicable contracts or Law.
Appears in 3 contracts
Samples: Merger Agreement (Vine Energy Inc.), Merger Agreement (Chesapeake Energy Corp), Merger Agreement (Chesapeake Energy Corp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallWithout limiting any additional rights that any director, and officer, trustee, employee, agent, or fiduciary may have under any employment or indemnification agreement or under the Existing Partnership Agreement, this Agreement or, if applicable, similar organizational documents or agreements of any of the Partnership’s Subsidiaries, from and after the Effective Time, CSLC Parent and the Surviving Entity shallEntity, indemnifyjointly and severally, defend will: (i) indemnify and hold harmless each person Person who is now, or has been or becomes at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, director or employee of Partnership GP, the Company Partnership or any of its Subsidiaries and also with respect to any such Person, in such Person’s capacity as a director, officer, employee, member, trustee or fiduciary of another corporation, foundation, partnership, joint venture, trust, pension or other employee benefit plan or enterprise (whether or not such other entity or enterprise is affiliated with the "Partnership) serving at the request of or on behalf of Partnership GP, the Partnership or any of its Subsidiaries and together with such Person’s heirs, executors or administrators (collectively, the “Indemnified Parties"”) from and to the fullest extent authorized or permitted by applicable Law in connection with any Claim or Action against (i) all any losses, claims, damages, liabilities, costs, expensesIndemnification Expenses, liabilities or judgments or judgments, fines, penalties and amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of including all interest, assessments and other charges paid or payable in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out respect of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities"thereof) resulting therefrom; and (ii) all Indemnified Liabilities based in whole or in part onpromptly pay on behalf of or, or arising in whole or in part out of or in connection with this Agreementwithin 15 days after any request for advancement, the Merger or any advance to each of the transactions contemplated hereby Indemnified Parties, any Indemnification Expenses incurred in defending, serving as a witness with respect to or thereby, in each case otherwise participating with respect to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses any Claim or Action in advance of the final disposition of any such action Claim or proceeding Action, including payment on behalf of or advancement to each the Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated Indemnification Expenses incurred by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before in connection with enforcing any rights with respect to such indemnification or after advancement, in each case without the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them requirement of any bond or other security. The indemnification and the Company (or satisfactory to them and CSLC advancement obligations of Parent and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts pursuant to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC 7.10(a) extend to acts or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it omissions occurring at or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time and any Claim or Action relating thereto (including with respect to any acts or omissions occurring in connection with the approval of this Agreement and the consummation of the Merger and the transactions contemplated by this Agreement and the ATLS Merger Agreement, including the consideration and approval thereof and the process undertaken in connection therewith and any Claim or Action relating thereto), and all rights to indemnification and advancement conferred hereunder continue as to any Indemnified Party who has ceased to be a director or officer of the Partnership or any of its Subsidiaries after the date of this Agreement and inure to the extent available on commercially reasonable terms; providedbenefit of such Person’s heirs, however, that CSLC shall not be obligated to incur executors and personal and legal representatives. As used in excess of $400,000 in the aggregate under this Section 5.9(b).
7.10: (cx) The provisions of this Section 5.9 are intended to be for the benefit ofterm “Claim” means any threatened, and shall be enforceable byasserted, each Indemnified Party, his heirs and his representatives.pending or completed action or proceeding,
Appears in 3 contracts
Samples: Merger Agreement (Targa Resources Corp.), Merger Agreement (Atlas Pipeline Partners Lp), Merger Agreement (Atlas Energy, L.P.)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective Time, CSLC and Holdco shall, to the Surviving Entity shallfullest extent permitted by applicable law, indemnify, defend and hold harmless harmless, and provide advancement of expenses to, each person who is now, or has been at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, director or employee of the Company or any of its Subsidiaries (the "“Company Indemnified Parties"”) from and against (i) all losses, claims, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case proceeding or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any SubsidiarySubsidiary of the Company, whether and pertaining to any matter existing or occurring occurring, or any acts or omissions occurring, at or prior to the Effective Time and Time, whether asserted or claimed prior to, or at or after after, the Effective Time ("including matters, acts or omissions occurring in connection with the approval of this Agreement and the consummation of the transactions contemplated hereby) to the same extent such persons are indemnified or have the right to advancement of expenses as of the date hereof by the Company pursuant to the Company’s Amended and Restated Certificate of Incorporation, bylaws and indemnification agreements, if any, in existence on the date hereof with any directors, officers and employees of the Company and its Subsidiaries.
(b) From and after the Effective Time, Holdco shall, to the fullest extent permitted by applicable law, indemnify, defend and hold harmless, and provide advancement of expenses to, each person who is now, or has been at any time prior to the date hereof or becomes prior to the Effective Time, an officer, director or employee of GameStop or any of its Subsidiaries (the “GameStop Indemnified Liabilities"Parties” and, together with the Company Indemnified Parties, the “Indemnified Parties”) and (ii) against all Indemnified Liabilities losses, claims, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement of or in connection with any claim, action, suit, proceeding or investigation based in whole or in part on, on or arising in whole or in part out of the fact that such person is or was a director, officer or employee of GameStop or any Subsidiary of GameStop, and pertaining to any matter existing or occurring, or any acts or omissions occurring, at or prior to the Effective Time, whether asserted or claimed prior to, or at or after, the Effective Time (including matters, acts or omissions occurring in connection with the approval of this Agreement, Agreement and the Merger or any consummation of the transactions contemplated hereby hereby) to the same extent such persons are indemnified or therebyhave the right to advancement of expenses as of the date hereof by GameStop pursuant to GameStop’s Amended and Restated Certificate of Incorporation, bylaws and indemnification agreements, if any, in each case to existence on the fullest extent a corporation is permitted under applicable law to indemnify its own date hereof with any directors, officers and employees, as the case may be employees of GameStop and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified PartiesSubsidiaries.
(bc) For a period of seven six years after the Effective Time, CSLC Holdco shall cause to be maintained in effect the current policies of directors' ’ and officers' ’ liability insurance maintained by the Company and its Subsidiaries (provided that CSLC Holdco may substitute therefor policies with a substantially comparable insurer of at least the same coverage and amounts containing terms and conditions which that are no less advantageousadvantageous to the insured) with respect to claims arising from facts or events which that occurred at or before the Effective Time to the extent available on commercially reasonable termsTime; provided, however, that CSLC Holdco shall not be obligated to incur make annual premium payments for such insurance to the extent such premiums exceed 300% of the premiums paid as of the date hereof by the Company for such insurance (“Company’s Current Premium”), and if such premiums for such insurance would at any time exceed 300% of the Company’s Current Premium, then Holdco shall cause to be maintained policies of insurance that, in excess Holdco’s good faith determination, provide the maximum coverage available at an annual premium equal to 300% of $400,000 in the aggregate under this Section 5.9(b)Company’s Current Premium.
(cd) For a period of six years after the Effective Time, Holdco shall cause to be maintained in effect the current policies of directors’ and officers’ liability insurance maintained by GameStop (provided that Holdco may substitute therefor policies with a substantially comparable insurer of at least the same coverage and amounts containing terms and conditions that are no less advantageous to the insured) with respect to claims arising from facts or events that occurred at or before the Effective Time; provided, however, that Holdco shall not be obligated to make annual premium payments for such insurance to the extent such premiums exceed 300% of the premiums paid as of the date hereof by GameStop for such insurance (“GameStop’s Current Premium”), and if such premiums for such insurance would at any time exceed 300% of the GameStop’s Current Premium, then Holdco shall cause to be maintained policies of insurance that, in Holdco’s good faith determination, provide the maximum coverage available at an annual premium equal to 300% of GameStop’s Current Premium.
(e) Holdco shall pay (as incurred) all expenses, including reasonable fees and expenses of counsel, that an Indemnified Person may incur in enforcing the indemnity and other obligations provided for in this Section 6.10.
(f) If Holdco or any of its successors or assigns (i) consolidates with or merges into any other Person and shall not be the continuing or surviving corporation or entity of such consolidation or merger, or (ii) transfers or conveys all or substantially all of its properties and assets to any Person, then, and in each such case, to the extent necessary, proper provision shall be made so that the successors and assigns of Holdco, as the case may be, shall assume the obligations set forth in this Section 6.10.
(g) The provisions of this Section 5.9 6.10 (i) are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his or her heirs and his representativesrepresentatives and (ii) are in addition to, and not in substitution for, any other rights to indemnification or contribution that any such Person may have by contract or otherwise.
Appears in 3 contracts
Samples: Agreement and Plan of Merger (Electronics Boutique Holdings Corp), Agreement and Plan of Merger (Electronics Boutique Holdings Corp), Agreement and Plan of Merger (Electronics Boutique Holdings Corp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective Time, CSLC and the Surviving Entity shall, indemnify, defend Parent agrees that it will indemnify and hold harmless each person who is nowpresent and former director and officer of the Company, or at any time prior to the date hereof has been or who becomes prior to (when acting in such capacity) determined as of the Effective TimeTime (each, an officerIndemnified Party and, director or employee of the Company or any of its Subsidiaries (collectively, the "Indemnified Parties") from ), against any costs or expenses (including reasonable attorneys' fees and against (i) all expenses), judgments, fines, losses, claims, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party claims, damages or liabilities (which approval shall not unreasonably be withheldcollectively, "Costs") of or incurred in connection with any claim, action, suit, proceedingproceeding or investigation, case actual or investigation ("Action") based threatened, whether civil, criminal, administrative or investigative, in whole or in part based on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter matters existing or occurring at or prior to the Effective Time and Time, whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part onTime, or arising in whole or in part out of or in connection with this Agreement, the Merger or any of the transactions contemplated hereby or thereby, in each case to the fullest extent a corporation is that the Company would have been permitted under applicable Maryland law and its charter or by-laws in effect on the date hereof to indemnify its own directors, officers such Person (and employees, Parent shall also advance expenses as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party incurred to the fullest extent permitted under applicable law upon receipt provided the Person to whom expenses are advanced provides (x) a written affirmation of any undertaking contemplated by applicable law. Without limiting his or her good faith belief that the foregoingstandard of conduct necessary for indemnification has been met, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iiiy) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts an undertaking to assist in the vigorous defense of any repay such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or advances if it otherwise forfeits substantive rights and defenses as a result of is ultimately determined that such failurePerson is not entitled to indemnification), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For Parent shall cause to be maintained, for a period of seven not less than six years after from the Effective Time, CSLC shall cause to be maintained in effect the Company's current policies of directors' and officers' liability insurance policy to the extent that it provides coverage for events occurring prior to the Effective Time (the "D&O Insurance") for all present and former directors and officers of the Company or any subsidiary thereof, so long as the annual premium therefor would not be in excess of 200% of the last annual premium paid for the D&O Insurance prior to the date of this Agreement (200% of such premium, the "Maximum Premium"); provided that Parent may, in lieu of maintaining such existing D&O Insurance as provided above, cause no less favorable coverage to be provided under any policy maintained for the benefit of the directors and officers of Parent or a separate policy provided by the Company same insurer. If the existing D&O Insurance expires, is terminated or canceled by the insurer or if the annual premium would exceed the Maximum Premium during such six-year period, Parent shall obtain, in lieu of such D&O Insurance, such comparable directors' and its Subsidiaries (provided that CSLC may substitute therefor policies officers' liability insurance as can be obtained for the remainder of at least such period for an annualized premium not in excess of the same coverage Maximum Premium and amounts containing on terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before advantageous than the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur in excess of $400,000 in the aggregate under this Section 5.9(b)existing D&O Insurance.
(c) The provisions of this Section 5.9 are in addition to the rights that an Indemnified Party may have under the certificate of incorporation, bylaws or agreements of or with the Company or any of its Subsidiaries or under applicable law. Parent agrees to pay all costs and expenses (including fees and expenses of counsel) that may be incurred by any Indemnified Party in successfully enforcing the indemnity or other obligations under this Section. The provisions of this Section shall survive the Merger and are intended to be for the benefit of, and shall be enforceable by, each of the Indemnified PartyParties, his their heirs and his their representatives.
Appears in 3 contracts
Samples: Merger Agreement (St Paul Companies Inc /Mn/), Merger Agreement (St Paul Companies Inc /Mn/), Merger Agreement (Usf&g Corp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Without limiting any other rights that any Indemnified Person may have pursuant to any employment agreement or indemnification agreement in effect on the date hereof or otherwise, from the Company shall, and from and after the Merger Effective Time, CSLC Ohm and the Surviving Entity Corporation shall, jointly and severally, indemnify, defend and hold harmless harmless, in the same manner as provided by Ohm or Firefly, as applicable, immediately prior to the date of this Agreement, each person Person who is now, or has been at any time prior to the date hereof has been of this Agreement or who becomes prior to the Company Merger Effective Time, an officer, a director or employee officer of the Company Ohm, Firefly or any of its their respective Subsidiaries or who acts as a fiduciary under any Ohm Benefit Plan or Firefly Benefit Plan or is or was serving at the request of Ohm, Firefly or any of their respective Subsidiaries as a director, officer or fiduciary of another corporation, partnership, limited liability company, joint venture, Employee Benefit Plan, trust or other enterprise, in each case, when acting in such capacity (the "“Indemnified Parties"Persons”) from and against (i) all losses, claims, damages, costs, fines, penalties, expenses (including attorneys’ and other professionals’ fees and expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) settlement, of or incurred in connection with any claimthreatened or actual Proceeding to which such Indemnified Person is a party or is otherwise involved (including as a witness) based, action, suit, proceeding, case or investigation ("Action") based in whole or in part part, on or arising arising, in whole or in part part, out of or in connection with the fact that such person Person is or was a director or officer of Ohm, Firefly or any of their respective Subsidiaries, a fiduciary under any Ohm Benefit Plan or Firefly Benefit Plan or is or was serving at the request of Ohm, Firefly or any of their respective Subsidiaries as a director, officer or employee fiduciary of the Company another corporation, partnership, limited liability company, joint venture, Employee Benefit Plan, trust or other enterprise, as applicable, or by reason of anything done or not done by such Person in any Subsidiarysuch capacity, whether pertaining to any matter act or omission occurring or existing or occurring at or prior to to, but not after, the Company Merger Effective Time and whether asserted or claimed prior to, at or after the Company Merger Effective Time ("“Indemnified Liabilities") and (ii) ”), including all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, or in connection with pertaining to, this Agreement, Agreement or the Merger or any of the transactions contemplated hereby or therebyTransactions, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers Law (and employees, as the case may be and CSLC Ohm and the Surviving EntityCorporation shall, as the case may bejointly and severally, shall pay expenses incurred in connection therewith, including but not limited to expenses for the retention of Firefly’s regularly engaged legal counsel or other counsel satisfactory to them, in advance of the final disposition of any such action or proceeding Proceeding to each Indemnified Party Person to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable lawLaw). Without limiting the foregoing, if in the event any such claim, action, suit, proceeding Proceeding is brought or investigation is commenced or instituted threatened to be brought against any Indemnified Party Persons (whether arising before or after the Company Merger Effective Time), (i) the Indemnified Parties Persons may retain Firefly’s regularly engaged legal counsel or other counsel satisfactory to them them, and the Company (or satisfactory to them and CSLC Ohm and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) Corporation shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties Persons as promptly as reasonably itemized statements therefor are received; , and (iiiii) the Company (or after the Effective Time, CSLC Ohm and the Surviving Entity) Corporation shall use their best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing Person wishing to claim indemnification or advancement of expenses under this Section 5.96.10, upon learning of any such ActionProceeding, shall promptly notify the Company, CSLC or Ohm and the Surviving Entity of such election Corporation (but the failure so to notify the Company shall not relieve it a Party from any liability which obligations that it may have under this Section 5.9, 6.10 except to the extent such failure materially prejudices it such Party’s position with respect to such claims). With respect to any determination of whether any Indemnified Person is entitled to indemnification by Ohm or if it otherwise forfeits substantive rights Surviving Corporation under this Section 6.10, such Indemnified Person shall have the right, as contemplated by the DGCL, to require that such determination be made by special, independent legal counsel selected by the Indemnified Person and defenses approved by Ohm or Surviving Corporation, as a result of such failureapplicable (which approval shall not be unreasonably withheld or delayed), and shall deliver to who has not otherwise performed material services for Ohm, Surviving Corporation or the Company Indemnified Person within the last three (or after the Effective Time, to CSLC and the Surviving Entity3) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Partiesyears.
(b) For a period Ohm, the Surviving Corporation and LLC Sub agree that, until the six (6) year anniversary date of seven years after the Company Merger Effective Time, CSLC that none of Ohm, the Surviving Corporation nor LLC Sub shall amend, repeal or otherwise modify any provision in the Organizational Documents of the Surviving Corporation, LLC Sub or their Subsidiaries in any manner that would affect adversely the rights thereunder or under the Organizational Documents of the Surviving Corporation, LLC Sub or any of their Subsidiaries of any Indemnified Person to indemnification, exculpation and advancement except to the extent required by applicable Law. Ohm shall, and shall cause the Surviving Corporation and its Subsidiaries to, fulfill and honor any indemnification, expense advancement or exculpation agreements between Ohm, Firefly or any of their respective Subsidiaries and any of their respective directors or officers existing and in effect immediately prior to the Company Merger Effective Time.
(c) Ohm, the Surviving Corporation and LLC Sub shall indemnify any Indemnified Person against all reasonable costs and expenses (including reasonable attorneys’ fees and expenses), such amounts to be payable in advance upon request as provided in Section 6.10(a), relating to the enforcement of such Indemnified Person’s rights under this Section 6.10 or under any charter, bylaw or Contract regardless of whether such Indemnified Person is ultimately determined to be entitled to indemnification hereunder or thereunder.
(d) Ohm and the Surviving Corporation will cause to be maintained put in effect the current policies of directors' place, and officers' liability insurance maintained by Ohm shall fully prepay immediately prior to the Company and its Subsidiaries (provided that CSLC may substitute therefor Merger Effective Time, “tail” insurance policies with a claims reporting or discovery period of at least six (6) years from the Company Merger Effective Time (the “Tail Period”) from an insurance carrier with the same coverage and amounts containing terms and conditions which are no less advantageous) or better credit rating as Firefly’s current insurance carrier with respect to claims arising from facts directors’ and officers’ liability insurance (“D&O Insurance”) in an amount and scope at least as favorable as Firefly’s existing policies with respect to matters, acts or events which occurred before omissions existing or occurring at, prior to, or after, the Company Merger Effective Time to the extent available on commercially reasonable termsTime; provided, however, that CSLC in no event shall the aggregate cost of the D&O Insurance exceed during the Tail Period 300% of the current aggregate annual premium paid by Ohm or Firefly, as applicable, for such purpose; and provided, further, that if the cost of such insurance coverage exceeds such amount, the Surviving Corporation shall obtain a policy with the greatest coverage available for a cost not exceeding such amount.
(e) In the event that Ohm, the Surviving Corporation, LLC Sub or any of their Subsidiaries or any of their respective successors or assignees (i) consolidates with or merges into any other Person and shall not be obligated the continuing or surviving corporation or entity of such consolidation or merger or (ii) transfers all or substantially all of its properties and assets to incur any Person, then, in excess each such case, proper provisions shall be made so that the successors and assigns of $400,000 Ohm, the Surviving Corporation or LLC Sub, as the case may be, shall assume the obligations set forth in the aggregate under this Section 5.9(b).
(c) 6.10. The provisions of this Section 5.9 6.10 are intended to be for the benefit of, and shall be enforceable by, the Parties and each Indemnified PartyPerson entitled to indemnification or insurance coverage or expense advancement pursuant to this Section 6.10, and his heirs and his representativesRepresentatives. The rights of the Indemnified Persons under this Section 6.10 are in addition to any rights such Indemnified Persons may have under the Organizational Documents of Ohm, Firefly or any of their respective Subsidiaries, or under any applicable Contracts or Law. Ohm, the Surviving Corporation and LLC Sub shall pay all expenses, including reasonable and documented attorneys’ fees, that may be incurred by any Indemnified Person in enforcing the indemnity and other obligations provided in this Section 6.10.
Appears in 3 contracts
Samples: Merger Agreement (Oasis Petroleum Inc.), Merger Agreement (Oasis Petroleum Inc.), Merger Agreement (Whiting Petroleum Corp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallwill, and from and after the Effective Time, CSLC and the Surviving Entity shallCorporation will, indemnify, defend and hold harmless each person who is now, or has been at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, director director, employee or employee agent of the Company or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses (including reasonable attorneys' fees and expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any threatened or actual claim, action, suit, proceeding, case proceeding or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was (i) serving in such person's capacity as a director, officer officer, employee or employee agent of the Company or any Subsidiaryof its Subsidiaries, or a person serving at the request of the Company or any of its Subsidiaries as a trustee of a trust or (ii) serving in such person's capacity as a trustee or member of an administrative committee, or in any other Company fiduciary capacity with respect to any employee benefit or stock plan maintained or sponsored by the Company or any of its Subsidiaries, whether pertaining to any matter existing or occurring at or prior to the Effective Time or any acts or omissions occurring or existing at or prior to the Effective Time and whether asserted or claimed prior to, or at or after after, the Effective Time ("Indemnified Liabilities") and (ii) ), including all Indemnified Liabilities based in whole or in part on, or arising in whole out of, or in part out of pertaining to this Agreement or in connection with this Agreement, the Merger or any of the transactions transaction contemplated hereby or therebyhereby, in each case to the fullest extent a corporation is permitted under applicable law the DGCL to indemnify its own directors, officers such persons (and employees, as the case may be and CSLC Company and the Surviving EntityCorporation, as the case may be, shall will pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt by law, subject to delivery of any the undertaking contemplated by applicable lawdescribed below). Without limiting the foregoing, if in the event any such claim, action, suit, proceeding or investigation is commenced or instituted brought against any Indemnified Party (whether arising before or after the Effective Time), (i) such Indemnified Party may retain the Company's regularly engaged independent legal counsel or, in the event that a conflict of interest precludes using such counsel in the reasonable judgment of the Indemnified Parties may retain Party, counsel satisfactory to them it and reasonably satisfactory to the Company (or and reasonably satisfactory to them and CSLC and the Surviving Entity Corporation after the Effective Time); (ii) and the Company (or after the Effective Time, CSLC and the Surviving EntityCorporation) shall will pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iiiii) the Company (or after the Effective Time, CSLC and the Surviving EntityCorporation) shall will use all reasonable best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC Company nor the Surviving Entity shall Corporation will be liable for any settlement of any claim effected without its prior written consent (which consent shall will not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9Party, upon learning of any such Actionclaim, shall promptly action, suit, proceeding or investigation, will notify the CompanyCompany (or after the Effective Time, CSLC or the Surviving Entity of such election Corporation) promptly (but the failure so to notify the Company shall will not relieve it a party from any liability which it may have under this Section 5.9, 6.4 except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failureparty's position with respect to such claims), and shall will deliver to the Company (or after the Effective Time, to CSLC and the Surviving EntityCorporation) the undertaking contemplated by applicable lawSection 145(e) of the DGCL. The Indemnified Parties as a group may retain only one law firm of legal counsel (and one local counsel) to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of on any significant issue between the positions of any two or more Indemnified PartiesParties in which case such additional counsel reasonably acceptable to the Company as may be required (as will be reasonably determined by the Indemnified Parties and the Company or the Surviving Corporation, as the case may be) may be retained by the Indemnified Parties at the cost and expense of the Company (or Surviving Corporation). Furthermore, the provisions with respect to indemnification set forth in the certificate of incorporation of the Surviving Corporation will not be amended following the Effective Time if such amendment would materially and adversely affect the rights thereunder of individuals who at any time prior to the Effective Time were directors, officers, employees or agents of the Company in respect of actions or omissions occurring at or prior to the Effective Time.
(b) For a period of seven years after the Effective Time, CSLC shall The Surviving Corporation will cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies providing coverage for a period of at least six years after the same coverage and amounts containing terms and conditions which are no less advantageous) Effective Time with respect to claims matters arising from facts before and acts or events which occurred before omissions occurring or existing at or prior to the Effective Time Time, including the transaction contemplated by this Agreement; provided that in no event shall the Surviving Corporation be required to expend an amount prorated over the extent available on commercially reasonable termsnumber of years covered in excess of 150% of the annual premiums currently paid by the Company for such insurance; provided, howeverand provided further, that CSLC if the premiums of such insurance coverage exceed such amount, the Surviving Corporation shall not be obligated to incur in excess of $400,000 in obtain a policy with the aggregate under this Section 5.9(b)greatest coverage available for a cost not exceeding such amount.
(c) The provisions of this Section 5.9 6.4 are intended to be for the benefit of, and shall will be enforceable by, each Indemnified Party, his heirs and his representativespersonal representatives and will be binding on all successors and assigns of Parent, Sub, the Company and the Surviving Corporation.
Appears in 3 contracts
Samples: Merger Agreement (Res Acquisition Corp), Merger Agreement (Republic Engineered Steels Inc), Merger Agreement (Republic Engineered Steels Inc)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from and after the Effective Time, CSLC Parent and the Surviving Entity Corporation shall, indemnify, defend and hold harmless each person who is now, or has been at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, officer or director of the Company or any of its Subsidiaries or an employee of the Company or any of its Subsidiaries who acts as a fiduciary under any Company Employee Benefit Plans or Company Pension Plans (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expensesexpenses (including attorneys' fees), liabilities or judgments or amounts that are paid in 42 52 settlement with the approval of the indemnifying party (which approval shall not be unreasonably be withheld) of or in connection with any threatened or actual claim, action, suit, proceeding, case proceeding or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer officer, or such employee of the Company or any Subsidiary, Subsidiary whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, or at or after after, the Effective Time ("Indemnified Liabilities") and (ii) ), including all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, or in connection with pertaining to this Agreement, the Merger Agreement or any of the transactions contemplated hereby or therebyhereby, in each case to the fullest full extent a corporation is permitted under applicable Delaware law to indemnify its own directors, officers (and employees, as the case may be and CSLC Parent and the Surviving EntityCorporation, as the case may be, shall will pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest full extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law). Without limiting the foregoing, if in the event any such claim, action, suit, proceeding or investigation is commenced or instituted brought against any Indemnified Party Parties (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC Parent and the Surviving Entity Corporation after the Effective Time)) and the Company (or after the Effective Time, Parent and the Surviving Corporation) shall pay all fees and expenses of such counsel for the Indemnified Parties promptly as statements therefor are received; and (ii) the Company (or after the Effective Time, CSLC Parent and the Surviving EntityCorporation) shall pay will use all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC Parent nor the Surviving Entity Corporation shall be liable for any settlement of any claim effected without its written consent (consent, which consent consent, however, shall not be unreasonably be withheld). Any Indemnified Party electing wishing to claim indemnification under this Section 5.95.11, upon learning of any such Actionclaim, action, suit, proceeding or investigation, shall promptly notify the CompanyCompany (or after the Effective Time, CSLC or Parent and the Surviving Entity of such election (Corporation), but the failure so to notify the Company shall not relieve it a party from any liability which that it may have under this Section 5.95.11, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable lawparty. The Indemnified Parties as a group may retain only one law firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of or a potential conflict on any significant issue between the positions of any two or more Indemnified Parties. The Company, Parent and Merger Sub agree that all rights to indemnification, including provisions relating to advances of expenses incurred in defense of any action or suit, existing in favor of the Indemnified Parties (including in the Restated Certificate of Incorporation or Bylaws of the Company) with respect to matters occurring through the Effective Time, shall survive the Merger and shall continue in full force and effect.
(b) For a period of seven six years after the Effective Time, CSLC Parent shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC Parent may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which that are no less advantageousadvantageous in any material respect to the Indemnified Parties) with respect to claims matters arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; providedTime, however, provided that CSLC Parent shall not be obligated required to incur pay an annual premium for such insurance in excess of $400,000 two times the last annual premium paid by the Company prior to the date hereof, but in the aggregate under this Section 5.9(b)such case shall purchase as much coverage as possible for such amount.
(c) The provisions of this Section 5.9 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representatives.
Appears in 3 contracts
Samples: Merger Agreement (Lennox International Inc), Merger Agreement (Service Experts Inc), Merger Agreement (Lennox International Inc)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from and after the Effective Time, CSLC the Parent and the Surviving Entity Corporation shall, indemnify, defend and hold harmless each person who is now, or has been at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, director director, employee or employee agent of the Company or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses (including reasonable attorneys' fees and expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any threatened or actual claim, action, suit, proceeding, case proceeding or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer officer, employee or employee agent of the Company or any Subsidiary, of its Subsidiaries whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, or at or after after, the Effective Time ("Indemnified Liabilities") and (ii) ), including all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, or in connection with pertaining to this Agreement, the Merger Agreement or any of the transactions contemplated hereby or therebyhereby, in each case to the fullest full extent a corporation is permitted under applicable law the DGCL to indemnify its own directors, directors or officers and employees, as the case may be (and CSLC Parent and the Surviving EntityCorporation, as the case may be, shall will pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur in excess of $400,000 in the aggregate under this Section 5.9(b).
(c) The provisions of this Section 5.9 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representatives.in
Appears in 3 contracts
Samples: Merger Agreement (Continental Circuits Corp), Merger Agreement (Hadco Acquisition Corp Ii), Merger Agreement (Hadco Acquisition Corp Ii)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallIn the event of any threatened or actual claim, action, suit, proceeding or investigation, whether civil, criminal, or administrative (a “Claim”), including any such Claim in which any individual who is now, or has been at any time before the date of this Agreement, or who becomes before the Effective Time, a director or officer of CFC or any of the CFC Subsidiaries (each, an “Indemnified Party”), is, or is threatened to be, made a party based in whole or in part on, or arising in whole or in part out of, or pertaining to this Agreement or any of the transactions contemplated by this Agreement, whether asserted or arising before or after the Effective Time, the Parties shall cooperate and use reasonable best efforts to defend against and respond thereto. All rights to indemnification (including advancement of expenses) and exculpation from liabilities for acts or omissions occurring at or before the Effective Time now existing in favor of any Indemnified Party as provided in the CFC Certificate and/or the CFC Bylaws shall survive the Merger and shall continue in full force and effect in accordance with their terms, and shall not be amended, repealed, or otherwise modified for a period of six years from and after the Effective Time in any manner that would adversely affect the rights thereunder of such individuals for acts or omissions occurring at or before the Effective Time or taken at the request of Buyer pursuant to Section 6.7, it being understood that nothing in this sentence shall require any amendment to the Articles of Incorporation or Bylaws of the Surviving Corporation.
(b) For a period of six years from and after the Effective Time, CSLC the Surviving Corporation shall, to the fullest extent permitted by applicable Law and in each case to the extent such persons are indemnified as of the date of this Agreement by CFC pursuant to the CFC Certificate, the CFC Bylaws and the Surviving Entity shallgoverning or organizational documents of any Subsidiary of CFC, indemnify, defend defend, and hold harmless harmless, and provide advancement of reasonable expenses to, each person who is now, or at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, director or employee of the Company or any of its Subsidiaries (the "Indemnified Parties") from and Party against (i) all losses, claims, damages, costs, expenses, liabilities liabilities, or judgments judgments, or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") Claim based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is Person was a director or officer of CFC or any CFC Subsidiary (or was serving at the request of CFC or any of its Subsidiaries as a director, officer officer, employee, or employee trustee of the Company or any Subsidiary, whether another Person) and pertaining to any matter existing or occurring occurring, or any acts or omissions occurring, at or prior to before the Effective Time and Time, whether asserted or claimed prior tobefore, or at or after after, the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole including matters, acts or in part on, or arising in whole or in part out of or omissions occurring in connection with the approval of this Agreement, Agreement and the Merger or any consummation of the transactions contemplated hereby hereby) or thereby, in each case taken at the request of Buyer pursuant to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties6.7.
(bc) For a period of seven six years after from the Effective Time, CSLC the Surviving Corporation shall cause to be maintained in effect the current policies provide that portion of directors' director’s and officers' officer’s liability insurance maintained by that serves to reimburse the Company present and its former officers and directors of CFC or any CFC Subsidiaries (provided that CSLC may substitute therefor policies determined as of at least the same coverage and amounts containing terms and conditions which are no less advantageousEffective Time) (as opposed to CFC) with respect to claims against such directors and officers arising from facts or events which occurred before the Effective Time, which insurance shall contain at least the same coverage and amounts, and contain terms and conditions no less advantageous, as that coverage currently provided by CFC; provided, that in no event shall the Surviving Corporation be required to expend, on an annual basis, more than 250% of the current annual amount expended by CFC (the “Insurance Amount”) to maintain or procure such directors and officers insurance coverage; provided, further, that if the Surviving Corporation is unable to maintain or obtain the insurance called for by this Section 6.6(c), the Surviving Corporation shall use its reasonable best efforts to obtain as much comparable insurance as is available for the Insurance Amount; provided, further, that officers and directors of CFC or any CFC Subsidiary may be required to make application and provide customary representations and warranties to the Surviving Corporation’s insurance carrier for the purpose of obtaining such insurance. In lieu of the foregoing, Buyer may obtain at or prior to the Effective Time a six-year “tail” policy under CFC’s existing directors’ and officers’ insurance policy providing equivalent coverage to that described in the preceding sentence if and to the extent available on commercially reasonable terms; providedthat the same may be obtained for an amount that, however, that CSLC shall not be obligated to incur in excess of $400,000 in the aggregate under this Section 5.9(b)aggregate, does not exceed the Insurance Amount.
(cd) Any Indemnified Party wishing to claim indemnification under Section 6.6(b), upon learning of any claim, action, suit, proceeding or investigation described above, shall promptly notify the Surviving Corporation thereof; provided that the failure so to notify shall not affect the obligations of the Surviving Corporation under Section 6.6(b) unless and to the extent that the Surviving Corporation is actually prejudiced as a result of such failure.
(e) The provisions of this Section 5.9 6.6 shall survive the Effective Time and are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives. The obligations of the Surviving Corporation under this Section 6.6 shall not be terminated or modified after the Effective Time in a manner so as to adversely affect any Indemnified Party or any other person entitled to the benefit of this Section 6.6 without the prior written consent of the affected Indemnified Party. If the Surviving Corporation or any of its successors or assigns will consolidate with or merge into any other entity and not be the continuing or surviving entity of such consolidation or merger, transfer all or substantially all of its assets or deposits to any other entity or engage in any similar transaction, then in each case to the extent the obligations set forth in this Section 6 are not otherwise transferred and assumed by such successors and assigns by operation of law or otherwise, the Surviving Corporation will cause proper provision to be made so that the successors and assigns of the Surviving Corporation will expressly assume the obligations set forth in this Section 6.6.
Appears in 3 contracts
Samples: Merger Agreement (Carolina Financial Corp), Merger Agreement (United Bankshares Inc/Wv), Merger Agreement (Carolina Financial Corp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallUntil six years from the Effective Time, unless otherwise required by Law, the certificate of incorporation and from by-laws of the Surviving Corporation shall contain provisions no less favorable with respect to the elimination of liability of directors and the indemnification of (and advancement of expenses to) directors, officers, employees and agents that are set forth in the certificate of incorporation and by-laws of the Company, as in effect on the date hereof.
(b) From and after the Effective Time, CSLC IHF and the Surviving Entity Corporation shall, jointly and severally, indemnify, defend and hold harmless each person who is now, or has been at any time prior to the date hereof has been of this Agreement or who becomes prior to the Effective Time, an officer, director director, employee or employee agent of the Company or any of its Subsidiaries (collectively, the "Indemnified Parties") from and against (i) all losses, reasonable expenses (including reasonable attorneys' fees), claims, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of of, or otherwise in connection with with, any threatened or actual claim, action, suit, proceeding, case proceeding or investigation (a "ActionClaim") ), based in whole or in part on or arising in whole or in part out of or in connection with the fact that such the Indemnified Party (or the person controlled by the Indemnified Party) is or was a director, officer officer, employee or employee agent of the Company or any Subsidiary, whether of its Subsidiaries and pertaining to any matter existing or arising out of actions or omissions occurring at or prior to the Effective Time and (including, without limitation, any Claim arising out of this Agreement or any of the transactions contemplated hereby), whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of or in connection with this Agreement, the Merger or any of the transactions contemplated hereby or therebyTime, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directorsDelaware law, officers and employeesshall pay any expenses, as the case may be and CSLC and the Surviving Entityincurred, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable Delaware law. Without limiting the foregoing, if in the event any such claim, action, suit, proceeding or investigation Claim is commenced or instituted brought against any of the Indemnified Party (whether arising before or after the Effective Time)Parties, (i) the such Indemnified Parties may retain counsel (including local counsel) satisfactory to them and the Company (or which shall be reasonably satisfactory to them and CSLC Parent and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC Corporation and IHF and the Surviving Entity) Corporation shall pay pay, jointly and severally, all reasonable fees and expenses of such counsel for the such Indemnified Parties promptly as reasonably itemized statements therefor are receivedParties; and (iiiii) the Company (or after the Effective Time, CSLC IHF and the Surviving Entity) Corporation shall use best all reasonable efforts to assist in the vigorous defense of any such matterClaim, provided that neither the Company, CSLC nor IHF and the Surviving Entity Corporation shall not be liable for any settlement of any claim effected without its their written consent (consent, which consent consent, however, shall not be unreasonably withheld. Notwithstanding the foregoing, nothing contained in this Section 6.5 shall be withheld). Any deemed to grant any right to any Indemnified Party electing which is not permitted to claim indemnification be granted to an officer, director, employee or agent of the Company under this Section 5.9Delaware law, upon learning of any assuming for such Action, shall promptly notify purposes that the Company, CSLC or 's certificate of incorporation and by-laws provide for the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated maximum indemnification permitted by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(bc) For a period of seven years after the Effective Time, CSLC shall IHF and Parent will cause to be maintained in effect for a period of not less than six years from the Effective Time the Company's current policies of directors' and officers' liability insurance maintained by and indemnification policy to the Company and its Subsidiaries (provided extent that CSLC may substitute therefor policies of at least the same it provides coverage and amounts containing terms and conditions which are no less advantageous) with respect for events occurring prior to claims arising from facts or events which occurred before the Effective Time ("D&O Insurance") for all persons who are directors and officers of the Company on the date of this Agreement and for all former directors and officers of the Company, so long as the annual premium therefor would not be in excess of 150% of the last annual premium therefor paid prior to the extent available on commercially reasonable termsdate of this Agreement (the "Maximum Premium"); provided, however, that CSLC shall not be obligated to incur Parent may, in excess lieu of $400,000 in the aggregate under this Section 5.9(b).
(c) The provisions of this Section 5.9 are intended maintaining such existing D&O Insurance as provided above, cause coverage to be provided under any policy maintained for the benefit ofof Parent or any of its affiliates, and shall be enforceable by, each Indemnified Party, his heirs and his representatives.so long as the
Appears in 2 contracts
Samples: Merger Agreement (International Home Foods Inc), Merger Agreement (International Home Foods Inc)
Indemnification; Directors’ and Officers’ Insurance. (a) The Without limiting any additional rights that any director, officer, trustee, employee, agent, or fiduciary may have under any employment or indemnification agreement or under the Company shallArticles of Incorporation, and the Company Bylaws, or this Agreement or, if applicable, similar organizational documents or agreements of any of the Company’ Subsidiaries, from and after the Effective Time, CSLC Partners and the Surviving Entity Entity, jointly and severally, shall, indemnify, defend : (i) indemnify and hold harmless each person Person who is now, or at any time prior to the date hereof has been or who becomes prior to during the period from the date hereof through the date of the Effective Time, an officer, Time serving as a director or employee officer of the Company or any of its Subsidiaries or as a fiduciary under or with respect to any employee benefit plan (within the "meaning of Section 3(3) of ERISA) (collectively, the “Indemnified Parties"”) from to the fullest extent authorized or permitted by applicable Law, as now or hereafter in effect, in connection with any Claim and against (i) all any losses, claims, damages, liabilities, costs, expensesIndemnification Expenses, liabilities or judgments or judgments, fines, penalties and amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of including all interest, assessments and other charges paid or payable in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out respect of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities"thereof) resulting therefrom; and (ii) all Indemnified Liabilities based in whole or in part onpromptly pay on behalf of or, or arising in whole or in part out of or in connection with this Agreementwithin ten (10) days after any request for advancement, the Merger or any advance to each of the transactions contemplated hereby Indemnified Parties, any Indemnification Expenses incurred in defending, serving as a witness with respect to or thereby, in each case otherwise participating with respect to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses any Claim in advance of the final disposition of any such action Claim, including payment on behalf of or proceeding advancement to each the Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated Indemnification Expenses incurred by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before in connection with enforcing any rights with respect to such indemnification and/or advancement, in each case without the requirement of any bond or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them other security. The indemnification and the Company (or satisfactory to them and CSLC advancement obligations of Partners and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entitypursuant to this Section 6.13(a) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (extend to acts or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC omissions occurring at or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur in excess of $400,000 in the aggregate under this Section 5.9(b).
(c) The provisions of this Section 5.9 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representatives.the
Appears in 2 contracts
Samples: Merger Agreement (Capital Product Partners L.P.), Merger Agreement (Crude Carriers Corp.)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from and after the Effective Time, CSLC and the Surviving Entity Corporation shall, indemnify, defend and hold harmless each person who is now, or has been at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, director director, employee or employee agent of the Company or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses (including attorneys' fees and expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not be unreasonably be withheld) of or in connection with any threatened or actual claim, action, suit, proceeding, case proceeding or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer officer, employee or employee agent of the Company or any Subsidiaryof its Subsidiaries or is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, employee benefit plan, trust or other enterprise or by reason of anything done or not done by such person in any such capacity whether pertaining to any matter existing or occurring at or prior to the Effective Time or any acts or omissions occurring or existing at or prior to the Effective Time and whether asserted or claimed prior to, or at or after after, the Effective Time ("Indemnified Liabilities") and (ii) ), including all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, or in connection with pertaining to this Agreement, the Merger Agreement or any of the transactions contemplated hereby or therebyhereby, in each case to the fullest full extent a corporation is permitted under applicable law the DGCL to indemnify its own directors, directors or officers and employees, as the case may be (and CSLC the Company and the Surviving EntityCorporation, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest full extent permitted by law). In determining whether an Indemnified Party is entitled to indemnification under applicable law upon receipt of any undertaking contemplated this Section 6.6, if requested by applicable lawsuch Indemnified Party, such determination shall be made by special, independent counsel selected by the Surviving Corporation and approved by the Indemnified Party (which approval shall not be unreasonably withheld), and who has not otherwise performed services for the Surviving Corporation or its affiliates within the last three years (other than in connection with such matters). Without limiting the foregoing, if in the event any such claim, action, suit, proceeding or investigation is commenced or instituted brought against any Indemnified Party Parties (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain the Company's regularly engaged independent legal counsel or counsel satisfactory to them and reasonably satisfactory to the Company (or satisfactory to them and CSLC and reasonably satisfactory to the Surviving Entity Corporation after the Effective Time); (ii) , and the Company (or after the Effective Time, CSLC and the Surviving EntityCorporation) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties as promptly as reasonably itemized statements therefor are received; and (iiiii) the Company (or after the Effective Time, CSLC and the Surviving EntityCorporation) shall will use all reasonable best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC Company nor the Surviving Entity Corporation shall be liable for any settlement of any claim effected without its prior written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing wishing to claim indemnification under this Section 5.96.6, upon learning of any such Actionclaim, action, suit, proceeding or investigation, shall promptly notify the CompanyCompany (or after the Effective Time, CSLC or the Surviving Entity of such election Corporation) (but the failure so to notify the Company shall not relieve it a party from any liability which it may have under this Section 5.9, 6.6 except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), party's position with respect to such claims) and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving EntityCorporation) the undertaking contemplated by applicable lawSection 145(e) of the DGCL, but without any requirement for the posting of a bond. The Indemnified Parties as a group may retain only one law firm of legal counsel (plus one local counsel, if necessary) to represent them with respect to each such matter unless there is, under applicable standards the use of professional conduct, counsel chosen to represent the Indemnified Parties would present such counsel with a conflict of interest, or the representation of all of the Indemnified Parties by the same counsel would be inappropriate due to actual or potential differing interests between them, in which case such additional counsel as may be required (as shall be reasonably determined by the Indemnified Parties and the Company or the Surviving Corporation, as the case may be) may be retained by the Indemnified Parties at the cost and expense of the Company (or Surviving Corporation). The Company and Sub agree that the foregoing rights to indemnification, including provisions relating to advances of expenses incurred in defense of any action or suit, existing in favor of the Indemnified Parties with respect to matters occurring through the Effective Time, shall survive the Merger and shall continue in full force and effect for a period of not less than six years from the Effective Time; provided, however, that all rights to indemnification (including rights relating to advances of expenses) in respect of any significant issue between Indemnified Liabilities asserted or made within such period shall continue until the positions disposition of such Indemnified Liabilities. Furthermore, the provisions with respect to indemnification set forth in the Certificate of Incorporation or Bylaws of the Surviving Corporation shall not be amended for a period of six years following the Effective Time if such amendment would adversely affect the rights thereunder of individuals who at any two time prior to the Effective Time were directors, officers, employees or more Indemnified Partiesagents of the Company in respect of actions or omissions occurring at or prior to the Effective Time.
(b) The Company (or after the Effective Time, the Surviving Corporation) shall indemnify any Indemnified Party against all reasonable costs and expenses (including attorney's fees and expenses), such amounts to be payable in advance upon request as provided in Section 6.6(a), relating to the enforcement of such Indemnified Party's rights under this Section 6.6 or under the documents referred to in this Section 6.6 regardless of whether or not such Indemnified Party is ultimately determined to be entitled to indemnification hereunder or thereunder. Any amounts due pursuant to the preceding sentence shall be payable upon request by the Indemnified Party and shall bear interest from the date that such were originally due and payable at a rate equal to the prime rate of interest as announced by The Chase Manhattan Bank plus 1% as in effect on the date of such initial request.
(c) For a period of seven six years after the Effective Time, CSLC the Surviving Corporation shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC Parent may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageousadvantageous to the Indemnified Parties) with respect to claims matters arising from facts before and acts or events which occurred before omissions occurring or existing at or prior to the Effective Time to including the extent available on commercially reasonable terms; providedtransactions contemplated by this Agreement, however, provided that CSLC Parent shall not be obligated required to incur pay an annual premium for such insurance in excess of 125% of the last annual premium paid by the Company prior to the date hereof, but in such case shall purchase as much coverage as possible for such amount. The last annual premium paid by the Company was $400,000 in the aggregate under this Section 5.9(b)523,720.
(cd) For a period of 6 years after the Effective Time, the Surviving Corporation shall cause to be maintained in effect the current policies of fiduciary liability insurance maintained by the Company and its Subsidiaries (provided that Parent may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous to the Indemnified Parties who are covered thereby) with respect to matters arising before and acts or omissions occurring or existing at or prior to the Effective Time, provided that Parent shall not be required to pay an annual premium for such insurance in excess of 200% of the last annual premium paid by the Company prior to the date hereof, but in such case shall purchase as much coverage as possible for such amount. The last annual premium paid by the Company was $13,500. Furthermore, the provisions with respect to indemnification provided for under any Benefit Plan or Employee Arrangement shall not be amended for a period of six years following the Effective Time if such amendment would adversely affect the rights thereunder of individuals who at any time prior to the Effective Time were directors, officers, employees or agents of the Company in respect of actions or omissions occurring at or prior to the Effective Time.
(e) The provisions of this Section 5.9 6.6 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representativespersonal representatives and shall be binding on all successors and assigns of Sub, the Company and the Surviving Corporation.
(f) The Company will honor the indemnification agreements identified in Schedule 4.1(w), except for the provisions relating to the establishment of trusts. The Company may enter into substantially similar indemnification agreements with other directors of the Company, provided that such agreements shall not contain any provisions for the establishment of trusts.
Appears in 2 contracts
Samples: Merger Agreement (Silverman Jeffrey S), Merger Agreement (Ply Gem Industries Inc)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective Time, CSLC and in the Surviving Entity shallevent of any claim, indemnifyaction, defend and hold harmless each suit, proceeding or investigation, whether civil, criminal or administrative, in which any person who is now, or has been at any time prior to the date hereof has been of this Agreement, or who becomes prior to the Effective Time, an officer, a director or employee officer of the Company or any of its Subsidiaries (the "“Indemnified Parties"”) from and against (i) all lossesis, claimsor is threatened to be, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying made a party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that he or she is or was a director or officer of the Company, any of its Subsidiaries or in connection with any of their respective predecessors or (ii) this Agreement, the Merger Agreement or any of the transactions contemplated hereby or therebythereby and all actions taken by an Indemnified Party in connection herewith or therewith, in each case in his or her capacity as a director or officer of the Company or any of its Subsidiaries, whether in any case asserted or arising before or after the Effective Time, Acquiror shall cause the Surviving Company to indemnify and hold harmless, as and to the fullest extent a corporation is provided in the certificate of incorporation and bylaws of the Company as in effect on the date of this Agreement and permitted under by applicable law to indemnify its own directorsLaw, officers each such Indemnified Party against any losses, claims, damages, liabilities, costs, expenses (including reasonable attorneys’ fees and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action claim, suit, proceeding or proceeding investigation to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of an undertaking from such Indemnified Party to repay such advanced expenses if it is determined by a final and nonappealable judgment of a court of competent jurisdiction that such Indemnified Party was not entitled to indemnification hereunder), judgments, fines and amounts paid in settlement in connection with any undertaking contemplated by applicable lawsuch actual or threatened claim, action, suit, proceeding or investigation, whether civil, criminal, administrative or investigative. Without limiting the foregoingAny Indemnified Party wishing to claim indemnification under this Section 7.8, if upon learning of any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Actioninvestigation, shall promptly notify the CompanyAcquiror in writing thereof, CSLC or the Surviving Entity of such election (but provided, that the failure to so to notify the Company shall not relieve it from any liability which it may have affect the obligations of Acquiror under this Section 5.9, 7.8 except (and only) to the extent such failure to notify materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified PartiesAcquiror.
(b) For a period of seven three (3) years after the Effective Time, CSLC Acquiror shall use its reasonable best efforts to cause the persons serving as officers and directors of the Company immediately prior to the Effective Time to be maintained in effect covered by the current policies of directors' ’ and officers' ’ liability insurance policy or policies maintained by the Company and Acquiror or one of its Subsidiaries (provided provided, that CSLC may substitute therefor Acquiror’s directors’ and officers’ liability insurance policy or policies of provide at least the same coverage and amounts containing terms and conditions which are no are, in the aggregate, not materially less advantageousadvantageous to such directors and officers of the Company than the terms and conditions of the existing directors’ and officers’ liability insurance policy of the Company) with respect to claims arising from facts or events that existed or occurred at or prior to the Effective Time. Notwithstanding the foregoing, in no event will Acquiror be required to expend, in the aggregate and on an annual basis, an amount (the “Insurance Amount”) in excess of 200% of the annual premiums currently paid by the Company for such insurance, which occurred before current premiums are set forth in Section 7.8(b) of the Company Disclosure Letter, and if Acquiror is unable to maintain or obtain the insurance called for by this Section 7.8(b) for an amount per year equal to or less than the Insurance Amount, Acquiror shall use its reasonable best efforts to obtain as much comparable insurance as may be available for the Insurance Amount. The provisions of this Section 7.8(b) shall be deemed to have been satisfied if prepaid policies have been obtained by Acquiror or by the Company (with Acquiror’s consent), which policies provide the persons covered by the Company’s directors’ and officers’ liability insurance policy immediately prior to the Effective Time with coverage for a period of not less than three (3) years after the Effective Time with respect to claims arising from facts or events that occurred at or prior to the extent available on commercially reasonable terms; providedEffective Time. If such prepaid policies have been obtained by the Company prior to the Effective Time with Acquiror’s consent, however, that CSLC Acquiror shall not be obligated maintain such policies in full force and effect and continue to incur in excess of $400,000 in the aggregate under this Section 5.9(b)honor all obligations thereunder.
(c) The provisions of this Section 5.9 7.8 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives.
Appears in 2 contracts
Samples: Merger Agreement (Ediets Com Inc), Merger Agreement (As Seen on TV, Inc.)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company From and after the consummation of the Offer, Parent shall, and from and after agrees to cause the Effective Time, CSLC and Company or the Surviving Entity shallCorporation to, indemnifyexculpate, defend indemnify and hold harmless each person who is nowall past and present officers, or at any time prior to the date hereof has been or who becomes prior to the Effective Timedirectors, an officer, director or employee employees and agents of the Company or any of and its Subsidiaries (the "Indemnified Parties") from to the same extent such persons are currently exculpated and against indemnified by the Company or any of its Subsidiaries pursuant to the Company's or any such Subsidiary's Articles of Incorporation or By-Laws (i) all lossesor similar organizational documents), claims, damages, costs, expenses, liabilities or judgments or amounts that are paid agreements in settlement with the approval effect as of the indemnifying party date hereof or applicable law for acts or omissions, or alleged acts or omissions, occurring at or prior to the Effective Time, and Parent shall, and shall cause the Company or the Surviving Corporation to, honor all such obligations of the Company (which approval including, if necessary, providing the Company or the Surviving Corporation sufficient funds), including, without limitation, obligations to advance expenses to such Indemnified Parties arising pursuant to the Company's or any such Subsidiary's Articles of Incorporation or By-laws (or similar organizational documents), agreements in effect as of the date 38 hereof or applicable law; provided, however, that Parent shall not unreasonably be withheld) obligated to exculpate, indemnify or hold harmless any Indemnified Party who shall become an employee of the Private Buyer or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or its Subsidiaries in connection with the fact that such person is Asset Purchase Agreement, or was a directorthe transactions contemplated thereby, officer for any acts or employee of the Company or any Subsidiary, whether pertaining to any matter existing or omissions occurring at or prior to the Effective Time in respect of the business previously conducted by the Company using the TPG Assets (the "Excluded Matters"); and, provided, further, that this Section 7.8 shall not be deemed to limit, modify or affect any rights of indemnification, including the advancement of expenses, under any provisions of the Company's or any of its Subsidiaries' Articles of Incorporation or By-laws (or similar organizational documents), any agreements in effect on the date hereof or applicable law with respect to the Excluded Matters. Parent shall cause the Surviving Corporation to provide, for an aggregate period of not less than six years from the Effective Time, the Company's current directors and whether asserted or claimed officers an insurance and indemnification policy that provides coverage for events occurring prior to, at or after to the Effective Time (the "Indemnified LiabilitiesD&O Insurance") and (ii) all Indemnified Liabilities based in whole or in part on), or arising in whole or in part out of or in connection with this Agreementthat is no less favorable than the Company's existing policy or, if substantially equivalent insurance coverage is unavailable, the Merger or any of the transactions contemplated hereby or thereby, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable termscoverage; provided, however, that CSLC the Surviving Corporation shall not be obligated required to incur pay an annual premium for the D&O Insurance in excess of $400,000 200 percent of the last annual premium paid prior to the date hereof, but in the aggregate under this Section 5.9(b)such case shall purchase as much coverage as possible for such amount.
(c) The provisions of this Section 5.9 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representatives.
Appears in 2 contracts
Samples: Merger Agreement (Scotsman Industries Inc), Merger Agreement (Kysor Industrial Corp /Mi/)
Indemnification; Directors’ and Officers’ Insurance. (ai) The Company shall, and from From and after the Effective Time, CSLC and the Surviving Entity shall, Parent shall indemnify, defend and hold harmless each any person who is now, or has been at any time prior to the date hereof has been hereof, or who becomes prior to the Effective Time, an a director, officer, director employee or employee agent (an “Indemnified Person”) of the Company or any of its Subsidiaries (the "Indemnified Parties") from and subsidiaries against (i) all losses, claims, damages, costsliabilities, expensescosts and expenses (including reasonable fees and expenses of legal counsel selected by the Indemnified Person with the consent of Parent, liabilities or judgments or which consent will not be unreasonably withheld), judgments, fines and amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any claim, actual or threatened action, suit, proceedingclaim, case proceeding or investigation ("Action"each a “Claim”) to the extent such Indemnified Person acted in good faith and in a manner reasonably believed to be in the best interest of the Company and, in the case of a criminal proceeding, to the extent such Indemnified Person had no reasonable cause to believe such Indemnified Person’s conduct was unlawful and to the extent that any such Claim is based in whole on, or in part on or arising in whole or in part arises out of or in connection with of: (x) the fact that such person Indemnified Person is or was a director, director or officer or employee of the Company or any Subsidiaryof its subsidiaries or is or was serving at the request of the Company or any of its subsidiaries as a director or officer of another corporation, whether pertaining partnership, joint venture, trust or other enterprise; or (y) this Agreement or any of the transactions contemplated hereby, in each case to the extent that any such Claim pertains to any matter or fact arising, existing or occurring at or prior to or at the Effective Time and Time, regardless of whether such Claim is asserted or claimed prior to, at or after the Effective Time Time, to the full extent permitted under the CGCL, the Company Certificate or the Company Bylaws or any indemnification agreement in effect prior to the date hereof and listed in Section 5.2(c) to the Company Disclosure Schedule ("complete and correct copies of which have been previously provided to Parent), including provisions relating to advancement of expenses incurred in the defense of any such Claim. Without limiting the generality of the preceding sentence, in the event any Indemnified Liabilities") Person becomes involved in any Claim, after the Effective Time, Parent shall periodically advance to such Indemnified Person its legal and other expenses (including the cost of any investigation and preparation incurred in connection therewith), subject to the provisions of paragraph (ii) of this Section 5.2(b), and subject to the providing by such Indemnified Person of an undertaking to reimburse all amounts so advanced in the event of a final non-appealable determination by a court of competent jurisdiction that such Indemnified Person is not entitled thereto.
(ii) The Indemnified Person shall control the defense of any Claim with counsel selected by the Indemnified Person, which counsel shall be reasonably acceptable to Parent, provided that Parent shall be permitted to participate in the defense of such Claim at its own expense. Parent shall not be obligated to pay the fees and expenses of more than one counsel for all Indemnified Liabilities based Persons in whole any single Claim except to the extent that, in the opinion of independent legal counsel selected by the Indemnified Person, which counsel shall be reasonably acceptable to Parent, representation of two or more of such Indemnified Persons would present a conflict of interest under applicable standards of conduct in part onthe legal profession. Parent shall not be liable for any settlement effected without its written consent, which consent shall not unreasonably be withheld.
(iii) Parent and the Company agree that all rights to indemnification of liabilities, and all limitations with respect thereto, existing in favor of any Indemnified Person, as provided in the Company Certificate or arising the Company Bylaws and any indemnification agreement in whole effect at the date hereof and listed in Section 5.2(b) to the Company Disclosure Schedule, shall survive the Mergers and shall continue in full force and effect, without any amendment thereto; provided, however, that in the event any Claim is asserted or in part out of or in connection made, any determination required to be made with this Agreementrespect to whether an Indemnified Person’s conduct complies with the standards set forth under the CGCL, the Merger Company Certificate or the Company Bylaws or any of the transactions contemplated hereby or thereby, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entitysuch agreement, as the case may be, shall pay expenses be made as permitted by the CGCL; and provided further that nothing in advance this Section 5.2(c) shall impair any rights or obligations of any current or former director or officer of the final disposition of any such action Company or proceeding to each Indemnified Party its subsidiaries, including pursuant to the fullest extent permitted under applicable law upon receipt respective certificates of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding incorporation or investigation is commenced bylaws of Parent or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there istheir respective subsidiaries, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two CGCL or more Indemnified Partiesotherwise.
(biv) For a period of seven six years after the Effective Time, CSLC Parent shall cause to be maintained in effect the current policies of directors' ’ and officers' ’ and fiduciary liability insurance maintained by the Company and its Subsidiaries (provided that CSLC Parent may substitute therefor policies of at least the same coverage and amounts containing with terms and conditions which that are no less advantageousadvantageous to former officers and directors of the Company) only with respect to claims arising from facts or events which occurred at or before the Effective Time to the extent available on commercially reasonable termsTime; provided, however, provided that CSLC Parent shall not be obligated required to incur pay in the aggregate for D&O Insurance in excess of $400,000 750% of the last annual premium paid prior to the date hereof, but in the aggregate under this Section 5.9(b)such case shall purchase as much coverage as possible for such amount.
(cv) The provisions of this Section 5.9 5.2(b) are intended to be for the benefit of, and shall be enforceable by, each Indemnified PartyPerson, his or her heirs and his or her personal representatives. Parent will not, nor will Parent permit the Surviving Corporation to, merge or consolidate with any other Person or sell all or substantially all of Parent’s or such subsidiary’s assets unless Parent or the Surviving Corporation ensures that the surviving or resulting entity assumes the obligations imposed by this Section 5.2(b).
Appears in 2 contracts
Samples: Merger Agreement (Intersil Corp/De), Merger Agreement (Intersil Corp/De)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallWithout limiting any other rights that any Indemnified Person may have pursuant to any employment agreement or indemnification agreement in effect on the date hereof or otherwise, and from and after the Effective Time, CSLC Parent and the Surviving Entity Corporation shall, jointly and severally, indemnify, defend and hold harmless each person Person who is now, or has been at any time prior to the date hereof has been of this Agreement or who becomes prior to the Effective Time, an officer, a director or employee officer of the Company or any of its Subsidiaries or who acts as a fiduciary under any Company Plan, in each case, when acting in such capacity (the "“Indemnified Parties"Persons”) from and against (i) all losses, claims, damages, costs, fines, penalties, expenses (including attorneys’ and other professionals’ fees and expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) settlement, of or incurred in connection with any claimthreatened or actual Proceeding to which such Indemnified Person is a party or is otherwise involved (including as a witness) based, action, suit, proceeding, case or investigation ("Action") based in whole or in part part, on or arising arising, in whole or in part part, out of or in connection with the fact that such person Person is or was a director or officer of the Company or any of its Subsidiaries, a fiduciary under any Company Plan or is or was serving at the request of the Company or any of its Subsidiaries as a director, officer or employee fiduciary of the Company another corporation, partnership, limited liability company, joint venture, Employee Benefit Plan, trust or other enterprise, as applicable, or by reason of anything done or not done by such Person in any Subsidiarysuch capacity, whether pertaining to any matter act or omission occurring or existing or occurring at or prior to or at, but not after, the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("“Indemnified Liabilities") and (ii) ”), including all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, or in connection with pertaining to, this Agreement, Agreement or the Merger or any of the transactions contemplated hereby or therebyTransactions, in each case to the fullest same extent a corporation such Indemnified Person is permitted under applicable law indemnified as of the date of this Agreement by the Company or its Subsidiaries pursuant to indemnify the Organizational Documents of the Company or the Organizational Documents of any of its own directors, officers and employeesSubsidiaries, as the case may be applicable (and CSLC Parent and the Surviving EntityCorporation shall, as the case may bejointly and severally, shall pay expenses incurred in connection therewith in advance of the final disposition of any such action or proceeding Proceeding to each Indemnified Party Person to the fullest same extent permitted under applicable law upon receipt such Indemnified Person is indemnified as of the date of this Agreement by the Company or its Subsidiaries pursuant to the Organizational Documents of the Company or the Organizational Documents of any undertaking contemplated by applicable lawof its Subsidiaries, as applicable). Without limiting the foregoing, if in the event any such claim, action, suit, proceeding Proceeding is brought or investigation is commenced or instituted threatened to be brought against any Indemnified Party Persons (whether arising before or after the Effective Time), (i) the Indemnified Parties Persons may retain the Company’s regularly engaged legal counsel or other counsel satisfactory to them them, and the Company (or satisfactory to them and CSLC Parent and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective TimeCorporation shall, CSLC jointly and the Surviving Entity) shall severally, pay all reasonable fees and expenses of such counsel for the Indemnified Parties Persons as promptly as reasonably itemized statements therefor are received; , and (iiiii) the Company (or after the Effective Time, CSLC each of Parent and the Surviving Entity) Corporation shall use its best efforts to assist cooperate in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing Person wishing to claim indemnification or advancement of expenses under this Section 5.96.10, upon learning of any such ActionProceeding, shall promptly notify the Company, CSLC or the Surviving Entity of such election Parent (but the failure so to notify the Company shall not relieve it a Party from any liability which obligations that it may have under this Section 5.9, 6.10 except to the extent such failure materially prejudices it such Party’s position with respect to such claims). With respect to any determination of whether any Indemnified Person is entitled to indemnification by Parent or if it otherwise forfeits substantive rights the Surviving Corporation under this Section 6.10, such Indemnified Person shall have the right, as contemplated by the DGCL, to require that such determination be made by special, independent legal counsel selected by the Indemnified Person and defenses as a result of such failureapproved by Parent (which approval shall not be unreasonably withheld or delayed), and shall deliver to the Company (or after the Effective Timewho has not otherwise performed material services for Parent, to CSLC and the Surviving EntityCorporation or the Indemnified Person within the last three (3) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Partiesyears.
(b) For Parent and the Surviving Corporation shall not amend, repeal or otherwise modify any provision in the Organizational Documents of the Surviving Corporation in any manner that would affect (or manage the Surviving Corporation or its Subsidiaries, with the intent to or in a period manner that would) adversely the rights thereunder or under the Organizational Documents of seven years after the Surviving Corporation or any of its Subsidiaries of any Indemnified Person to indemnification, exculpation and advancement except to the extent required by applicable Law. Parent shall, and shall cause the Surviving Corporation to, fulfill and honor any indemnification, expense advancement or exculpation agreements between the Company or any of its Subsidiaries and any of its directors, officers or employees existing and in effect prior to the date of this Agreement.
(c) Parent and the Surviving Corporation shall, jointly and severally, indemnify any Indemnified Person against all reasonable costs and expenses (including reasonable attorneys’ fees and expenses), such amounts to be payable in advance upon request as provided in Section 6.10(a), relating to the enforcement of such Indemnified Person’s rights under this Section 6.10 or under any charter, bylaw or contract regardless of whether such Indemnified Person is ultimately determined to be entitled to indemnification hereunder or thereunder.
(d) Parent shall obtain or cause the Surviving Corporation to obtain, and Parent shall fully prepay immediately prior to the Effective Time, CSLC shall cause to be maintained in effect the current “tail” insurance policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies with a claims period of at least six (6) years from the Effective Time (the “Tail Period”) from an insurance carrier with the same coverage and amounts containing terms and conditions which are no less advantageous) or better credit rating as the Company’s current insurance carrier with respect to claims arising from facts directors’ and officers’ liability insurance (“D&O Insurance”) in an amount and scope at least as favorable as the Company’s existing policies with respect to matters, acts or events which occurred before omissions existing or occurring at or prior to, but not after, the Effective Time to the extent available on commercially reasonable termsTime; provided, however, that CSLC in no event shall the aggregate cost of the D&O Insurance exceed during the Tail Period 300% of the current aggregate annual premium paid by the Company for such purpose; and provided, further, that if the cost of such insurance coverage exceeds such amount, Parent shall obtain or cause the Surviving Corporation to obtain a policy with the greatest coverage available for a cost not exceeding such amount.
(e) In the event that Parent or the Surviving Corporation or any of its successors or assignees (i) consolidates with or merges into any other Person and shall not be obligated the continuing or surviving corporation or entity of such consolidation or merger or (ii) transfers all or substantially all of its properties and assets to incur any Person, then, in excess each such case, proper provisions shall be made so that the successors and assigns of $400,000 Parent or the Surviving Corporation, as the case may be, shall assume the obligations set forth in this Section 6.10. Parent and the aggregate Surviving Corporation shall not sell, transfer, distribute or otherwise dispose of any of their assets in a manner that would reasonably be expected to render Parent or Surviving Corporation unable to satisfy their obligations under this Section 5.9(b).
(c) 6.10. The provisions of this Section 5.9 6.10 are intended to be for the benefit of, and shall be enforceable by, the Parties and each Indemnified PartyPerson entitled to indemnification or insurance coverage or expense advancement pursuant to this Section 6.10, and his heirs and his representativesRepresentatives. The rights of the Indemnified Persons under this Section 6.10 are in addition to any rights such Indemnified Persons may have under the Organizational Documents of the Company or any of its Subsidiaries, or under any applicable contracts or Law. Parent and the Surviving Corporation shall pay all expenses, including attorneys’ fees, that may be incurred by any Indemnified Person in enforcing the indemnity and other obligations provided in this Section 6.10.
Appears in 2 contracts
Samples: Voting Agreement (Eclipse Resources Corp), Merger Agreement (Eclipse Resources Corp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from and after the Effective Time, CSLC and the Surviving Entity Corporation shall, indemnify, defend and hold harmless each person who is now, or has been at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, officer or director or employee of the Company or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses (including attorneys' fees and expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not be unreasonably be withheld) of or in connection with any threatened or actual claim, action, suit, proceeding, case proceeding or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, director or officer or employee of the Company or any Subsidiary, of its Subsidiaries whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, or at or after after, the Effective Time ("Indemnified Liabilities") and (ii) ), including all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, or in connection with pertaining to this Agreement, the Merger Agreement or any of the transactions contemplated hereby or therebyhereby, in each case to the fullest full extent a corporation is permitted under applicable law the DGCL to indemnify its own directors, directors or officers and employees, as the case may be (and CSLC Parent and the Surviving EntityCorporation, as the case may be, shall will pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest full extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law). Without limiting the foregoing, if in the event any such claim, action, suit, proceeding or investigation is commenced or instituted brought against any Indemnified Party Parties (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity Corporation after the Effective Time)) and the Company (or after the Effective Time, the Surviving Corporation) shall pay all fees and expenses of such counsel for the Indemnified Parties promptly as statements therefor are received; and (ii) the Company (or after the Effective Time, CSLC and the Surviving EntityCorporation) shall pay will use all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC Company nor the Surviving Entity Corporation shall be liable for any settlement of any claim effected without its prior written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing wishing to claim indemnification under this Section 5.96.6, upon learning of any such Actionclaim, action, suit, proceeding or investigation, shall promptly notify the CompanyCompany (or after the Effective Time, CSLC or the Surviving Entity of such election Corporation) (but the failure so to notify the Company shall not relieve it a party from any liability which it may have under this Section 5.9, 6.6 except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failureparty), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving EntityCorporation) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur in excess of $400,000 in the aggregate under this Section 5.9(b).
(c) The provisions of this Section 5.9 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representatives.the
Appears in 2 contracts
Samples: Merger Agreement (Cooperative Computing Inc /De/), Merger Agreement (Triad Systems Corp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallIn the event of any threatened or actual claim, and from and after the Effective Timeaction, CSLC and the Surviving Entity shallsuit, indemnifyproceeding or investigation, defend and hold harmless each person whether civil, criminal or administrative, including any such claim, action, suit, proceeding or investigation in which any individual who is now, or has been at any time prior to the date hereof has been of this Agreement, or who becomes prior to the Effective Time, an officer, a director or employee officer of the Company or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person who is or was a director, officer or employee serving at the request of the Company or any Subsidiaryof its Subsidiaries as a director or officer of, whether pertaining to or in any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior other fiduciary capacity with respect to, at any Employee Benefit Plan or after other another person (the Effective Time ("“Indemnified Liabilities") and (ii) all Indemnified Liabilities Parties”), is, or is threatened to be, made a party based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that he is or was a director or officer of the Company or any of its Subsidiaries or served in connection with said fiduciary capacity or (ii) this Agreement, the Merger Agreement or any of the transactions contemplated hereby by this Agreement, whether asserted before or therebyafter the Effective Time, in each case the parties shall cooperate and use their reasonable best efforts to defend against and respond thereto. From and after the Effective Time, Parent shall indemnify and hold harmless, as and to the fullest extent a corporation is permitted under applicable law to indemnify its own directorsby law, officers each such Indemnified Party against any losses, claims, damages, liabilities, costs, expenses (including reimbursement for reasonable fees and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses incurred in advance of the final disposition of any such action claim, suit, proceeding or proceeding to each Indemnified Party to the fullest extent permitted under applicable law investigation upon receipt of any undertaking contemplated required by applicable law. Without limiting the foregoing), if judgments, fines and amounts paid in settlement in connection with any such threatened or actual claim, action, suit, proceeding or investigation is commenced investigation.
(b) Parent agrees that all rights to exculpation, indemnification and advancement of expenses for acts or instituted against any Indemnified Party (whether arising before omissions occurring at or after prior to the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (whether asserted or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (claimed prior to, at or after the Effective Time, CSLC and now existing in favor of the Surviving Entity) shall pay all reasonable fees and expenses current or former directors, officers or employees, as the case may be, of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company or its Subsidiaries as provided in their respective certificates of incorporation or by-laws or similar organizational documents shall survive the Merger and shall continue in full force and effect. For a period of six (or after 6) years from the Effective Time, CSLC and Parent shall cause the Surviving Entity) shall use best efforts Corporation to assist maintain in the vigorous defense effect any and all exculpation, indemnification and advancement of any such matter, provided that neither expenses provisions of the Company, CSLC nor ’s and any of its Subsidiaries’ articles of incorporation and by-laws or similar organizational documents in effect immediately prior to the Surviving Entity shall be liable for Effective Time or in any settlement indemnification agreements of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from or its Subsidiaries with any liability which it may have under this Section 5.9of their respective current or former directors, except to officers, or employees in effect as of the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure)date hereof, and shall deliver to not amend, repeal or otherwise modify any such provisions in any manner that would adversely affect the rights thereunder of any individuals who at the Effective Time were current or former directors, officers or employees of the Company (or after the Effective Timeany of its Subsidiaries; provided, however, that all rights to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict indemnification in respect of any significant issue between action pending or asserted or any claim made within such period shall continue until the positions disposition of any two such action or more Indemnified Partiesresolution of such claim.
(bc) For Parent shall cause the individuals serving as officers and directors of the Company or any of its Subsidiaries or serving at the request of the Company or any of its subsidiaries as a director or officer of, or in any other fiduciary capacity with respect to, any Employee Benefit Plan or other person, in each case immediately prior to the Effective Time to be covered for a period of seven six years after from the Effective Time, CSLC shall cause to be maintained in effect Time by the current policies of directors' ’ and officers' ’ liability insurance policy maintained by the Company and its Subsidiaries (provided that CSLC Parent may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which that are no not less advantageousadvantageous in the aggregate than such policy) with respect to claims arising from facts acts or events which occurred before omissions occurring prior to the Effective Time to the extent available on commercially reasonable termsthat were committed by such officers and directors in their capacity as such; provided, however, that CSLC (i) in no event shall Parent be required to expend more than 250% per year of coverage of the amount currently expended by the Company per year of coverage (which current amount is set forth in Section 6.8(c) of the Company Disclosure Schedule) as of the date of this Agreement (the “Maximum Amount”) to maintain or procure insurance coverage pursuant hereto, and (ii) if notwithstanding the use of reasonable best efforts to do so, Parent is unable to maintain or obtain the insurance called for by this Section 6.8, Parent shall obtain as much comparable insurance as is available for the Maximum Amount; provided, further, that in lieu of the foregoing insurance coverage, Parent may direct the Company to purchase “tail” insurance coverage that provides coverage no less favorable than the coverage described above.
(d) In the event Parent or any of its successors or assigns (i) consolidates with or merges into any other person and shall not be obligated the continuing or surviving corporation or entity of such consolidation or merger, or (ii) transfers or conveys all or substantially all of its properties and assets to incur any person, then and in excess each such case, to the extent necessary, proper provision shall be made so that the successors and assigns of $400,000 Parent assume the obligations set forth in the aggregate under this Section 5.9(b)6.8.
(ce) The provisions of this Section 5.9 6.8 shall survive the Effective Time and are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives.
Appears in 2 contracts
Samples: Merger Agreement (Tierone Corp), Merger Agreement (Tierone Corp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallWithout limiting any other rights that any Indemnified Person may have pursuant to any employment agreement or indemnification agreement in effect on the date hereof or otherwise, and from and after the Effective Time, CSLC Parent and the Surviving Entity Corporation shall, jointly and severally, indemnify, defend and hold harmless harmless, in the same manner as provided by Parent or the Company, as applicable, immediately prior to the date of this Agreement, each person Person who is now, or has been at any time prior to the date hereof has been of this Agreement or who becomes prior to the Effective Time, an officer, a director or employee officer of Parent, the Company or any of its their respective Subsidiaries or who acts as a fiduciary under any Parent Benefit Plan or Company Benefit Plan, in each case, when acting in such capacity (the "“Indemnified Parties"Persons”) from and against (i) all losses, claims, damages, costs, fines, penalties, expenses (including attorneys’ and other professionals’ fees and expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) settlement, of or incurred in connection with any claimthreatened or actual Proceeding to which such Indemnified Person is a party or is otherwise involved (including as a witness) based, action, suit, proceeding, case or investigation ("Action") based in whole or in part part, on or arising arising, in whole or in part part, out of or in connection with the fact that such person Person is or was a directordirector or officer of Parent, officer or employee of the Company or any Subsidiaryof their respective Subsidiaries, a fiduciary under any Parent Benefit Plan or Company Benefit Plan or is or was serving at the request of Parent, the Company or any of their respective Subsidiaries as a director, officer, employee or fiduciary of another corporation, partnership, limited liability company, joint venture, Employee Benefit Plan, trust or other enterprise, as applicable, or by reason of anything done or not done by such Person in any such capacity, whether pertaining to any matter act or omission occurring or existing or occurring at or prior to to, but not after, the Effective Time and whether asserted or claimed prior to, at or after but not after, the Effective Time ("“Indemnified Liabilities") and (ii) ”), including all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, or in connection with pertaining to, this Agreement, Agreement or the Merger or any of the transactions contemplated hereby or therebyTransactions, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers Law (and employees, as the case may be and CSLC Parent and the Surviving EntityCorporation shall, as the case may bejointly and severally, shall pay expenses incurred in connection therewith, including but not limited to expenses for the retention of the Company’s regularly engaged legal counsel or other counsel satisfactory to them, in advance of the final disposition of any such action or proceeding Proceeding to each Indemnified Party Person to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable lawLaw). Without limiting the foregoing, if in the event any such claim, action, suit, proceeding Proceeding is brought or investigation is commenced or instituted threatened to be brought against any Indemnified Party Persons (whether arising before or after the Effective Time), (i) the Indemnified Parties Persons may retain the Company’s regularly engaged legal counsel or other counsel satisfactory to them them, and the Company (or satisfactory to them and CSLC Parent and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) Corporation shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties Persons as promptly as reasonably itemized statements therefor are received; , and (iiiii) the Company (or after the Effective Time, CSLC Parent and the Surviving Entity) Corporation shall use its best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing Person wishing to claim indemnification or advancement of expenses under this Section 5.96.10, upon learning of any such ActionProceeding, shall promptly notify the Company, CSLC or the Surviving Entity of such election Corporation (but the failure so to notify the Company shall not relieve it a Party from any liability which obligations that it may have under this Section 5.9, 6.10 except to the extent such failure materially prejudices it such Party’s position with respect to such claims). With respect to any determination of whether any Indemnified Person is entitled to indemnification by Parent or if it otherwise forfeits substantive rights Surviving Corporation under this Section 6.10, such Indemnified Person shall have the right, as contemplated by the DGCL, to require that such determination be made by special, independent legal counsel selected by the Indemnified Person and defenses approved by Parent or Surviving Corporation, as a result of such failureapplicable (which approval shall not be unreasonably withheld or delayed), and shall deliver to who has not otherwise performed material services for Parent, Surviving Corporation or the Company Indemnified Person within the last three (or after the Effective Time, to CSLC and the Surviving Entity3) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Partiesyears.
(b) For a period Parent and the Surviving Corporation agree that, until the six (6) year anniversary date of seven years after the Effective Time, CSLC that neither Parent nor the Surviving Corporation shall amend, repeal or otherwise modify any provision in the Organizational Documents of the Surviving Corporation or its Subsidiaries in any manner that would affect (or manage the Surviving Corporation or its Subsidiaries, with the intent to or in a manner that would) adversely the rights thereunder or under the Organizational Documents of the Surviving Corporation or any of its Subsidiaries of any Indemnified Person to indemnification, exculpation and advancement except to the extent required by applicable Law. Parent shall, and shall cause the Surviving Corporation and its Subsidiaries to, fulfill and honor any indemnification, expense advancement or exculpation agreements between Parent, the Company or any of their respective Subsidiaries and any of their respective directors or officers existing and in effect immediately prior to the Effective Time.
(c) Parent and the Surviving Corporation shall indemnify any Indemnified Person against all reasonable costs and expenses (including reasonable attorneys’ fees and expenses), such amounts to be payable in advance upon request as provided in Section 6.10(a), relating to the enforcement of such Indemnified Person’s rights under this Section 6.10 or under any charter, bylaw or Contract regardless of whether such Indemnified Person is ultimately determined to be entitled to indemnification hereunder or thereunder.
(d) Parent and the Surviving Corporation will cause to be maintained put in effect place, and Parent shall fully prepay immediately prior to the current Effective Time, “tail” insurance policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies with a claims reporting or discovery period of at least six (6) years from the Effective Time (the “Tail Period”) from an insurance carrier with the same coverage and amounts containing terms and conditions which are no less advantageous) or better credit rating as Parent’s or the Company’s current insurance carrier, as applicable, with respect to claims arising from facts directors’ and officers’ liability insurance (“D&O Insurance”) in an amount and scope at least as favorable as Parent’s or events which occurred before the Company’s existing policies, as applicable, with respect to matters, acts or omissions existing or occurring at, prior to, or after, the Effective Time to the extent available on commercially reasonable termsTime; provided, however, that CSLC in no event shall the aggregate cost of the D&O Insurance exceed during the Tail Period 300% of the current aggregate annual premium paid by Parent or the Company, as applicable, for such purpose; and provided, further, that if the cost of such insurance coverage exceeds such amount, the Surviving Corporation shall obtain a policy with the greatest coverage available for a cost not exceeding such amount.
(e) In the event that Parent, the Surviving Corporation or any of their Subsidiaries or any of their respective successors or assignees (i) consolidates with or merges into any other Person and shall not be obligated the continuing or surviving corporation or entity of such consolidation or merger or (ii) transfers all or substantially all of its properties and assets to incur any Person, then, in excess each such case, proper provisions shall be made so that the successors and assigns of $400,000 Parent or the Surviving Corporation, as the case may be, shall assume the obligations set forth in the aggregate under this Section 5.9(b).
(c) 6.10. The provisions of this Section 5.9 6.10 are intended to be for the benefit of, and shall be enforceable by, the Parties and each Indemnified PartyPerson entitled to indemnification or insurance coverage or expense advancement pursuant to this Section 6.10, and his heirs and his representativesRepresentatives. The rights of the Indemnified Persons under this Section 6.10 are in addition to any rights such Indemnified Persons may have under the Organizational Documents of Parent, the Company or any of their respective Subsidiaries, or under any applicable Contracts or Law. Parent and the Surviving Corporation shall pay all expenses, including reasonable and documented attorneys’ fees, that may be incurred by any Indemnified Person in enforcing the indemnity and other obligations provided in this Section 6.10.
Appears in 2 contracts
Samples: Merger Agreement (Extraction Oil & Gas, Inc.), Merger Agreement (Bonanza Creek Energy, Inc.)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallIn the event of any threatened or actual claim, and from and after the Effective Timeaction, CSLC and the Surviving Entity shallsuit, indemnifyproceeding or investigation, defend and hold harmless each whether civil, criminal or administrative, in which any person who is now, or has been at any time prior to the date hereof has been hereof, or who becomes prior to the Effective Time, an officer, director or employee of the Company or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company VFSC or any Subsidiaryof its Subsidiaries or of Xxxxxxxxxx or any of its Subsidiaries is, whether pertaining or is threatened to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior tobe, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities made a party based in whole or in part on, or arising in whole or in part out of of, or in connection with pertaining to this Agreement, the VFSC Stock Option Agreement, the Bank Merger Agreements, or any of the transactions contemplated hereby or therebythereby or any actions taken by any such person in connection herewith or therewith, whether in each any case asserted or arising before or after the Effective Time, the parties hereto agree to cooperate and use their best efforts to defend against and respond thereto. It is understood and agreed that after the Effective Time, Xxxxxxxxxx shall indemnify and hold harmless, as and to the fullest extent permitted by Vermont law, each person who is now, or has been at any time prior to the date hereof, or who becomes prior to the Effective Time, a corporation is permitted under applicable law to indemnify director or officer of VFSC or any of its own directorsSubsidiaries (the "Indemnified Parties") against any losses, officers claims, damages, liabilities, costs, expenses (including advancing reasonable attorney's fees and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action claim, suit, proceeding or proceeding investigation to each Indemnified Party to the fullest extent permitted under applicable by law upon receipt of any an undertaking contemplated by applicable law. Without limiting the foregoingfrom such Indemnified Party to repay such advanced expenses if it is finally and unappealably determined that such Indemnified Party was not entitled to indemnification hereunder), if judgments, fines and amounts paid in settlement in connection with any such threatened or actual claim, action, suit, proceeding or investigation, and in the event of any such threatened or actual claim, action, suit proceeding or investigation (whether asserted or arising before or after the Effective Time and including any such threatened or actual claim, action, suit, proceeding or investigation is commenced based in whole or instituted against any Indemnified Party (whether in part on, or arising before in whole or after the Effective Time)in part out of, or pertaining to (i) the fact that he or she is or was a director, officer or employee of VFSC, any of VFSC's Subsidiaries or any of their respective predecessors or was prior to the Effective Time serving at the request of any such party as a director, officer, employee, fiduciary or agent of another corporation, partnership, trust or other enterprise, or (ii) this Agreement, the VFSC Stock Option Agreement, the Bank Merger Agreements, or any of the transactions contemplated hereby or thereby and all actions taken by an Indemnified Party in connection herewith or therewith), and the Indemnified Parties may retain counsel after consultation with Xxxxxxxxxx; provided, however, that (1) Xxxxxxxxxx shall have the right to assume the defense thereof and upon such assumption Xxxxxxxxxx shall not be liable to any Indemnified Party for any legal expenses of other counsel or any other expenses subsequently incurred by any Indemnified Party in connection with the defense thereof, except that if Chittenden elects not to assume such defense, or counsel for the Indemnified Parties reasonably advises the Indemnified Parties that there are or may be (whether or not any have yet actually arisen) issues which raise conflicts of interest between Xxxxxxxxxx and the Indemnified Parties, the Indemnified Parties may retain counsel reasonably satisfactory to them them, and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) Xxxxxxxxxx shall pay all the reasonable fees and expenses of such counsel for the Indemnified Parties, (2) Xxxxxxxxxx shall be obligated pursuant to this paragraph to pay for only one firm of counsel for all Indemnified Parties promptly as reasonably itemized statements therefor are received; and unless such counsel shall determine that it would be inappropriate or inadvisable for such counsel to represent all Indemnified Parties, (iii3) the Company (or after the Effective Time, CSLC and the Surviving Entity) Xxxxxxxxxx shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall not be liable for any settlement of any claim effected without its prior written consent (which consent shall not be unreasonably be withheld). Any Indemnified Party electing to claim indemnification ) and (4) Xxxxxxxxxx shall have no A-26
(b) Without limiting any of the obligations under paragraph (a) of this Section 5.97.12, upon learning Xxxxxxxxxx agrees that all rights to indemnification and all limitations of liability existing in favor of the Indemnified Parties as provided in VFSC's charter or bylaws or in the similar governing documents of any such Action, shall promptly notify of VFSC's Subsidiaries as in effect as of the Company, CSLC date hereof with respect to matters occurring on or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except prior to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), Effective Time shall survive the Merger and shall deliver to the Company (or continue in full force and effect, without any amendment thereto, from and after the Effective Time; provided, however, that nothing contained in this Section 7.12(b) shall be deemed to CSLC preclude the liquidation, consolidation or merger of VFSC or any VFSC Subsidiary, in which case all of such rights to indemnification and limitations on liability shall be deemed to so survive and continue notwithstanding any such liquidation, consolidation or merger and shall constitute rights which may be asserted against Xxxxxxxxxx. Nothing contained in this Section 7.12(b) shall be deemed to preclude any rights to indemnification or limitations on liability provided in VFSC's charter or the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm similar governing documents of legal counsel to represent them any of VFSC's Subsidiaries with respect to each matters occurring subsequent to the Effective Time to the extent that the provisions establishing such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between rights or limitations are not otherwise amended to the positions of any two or more Indemnified Partiescontrary.
(bc) For Xxxxxxxxxx shall use its best efforts to cause the persons serving as officers and directors of VFSC immediately prior to the Effective Time to be covered for a period of seven six (6) years after from the Effective Time, CSLC shall cause to be maintained in effect Time by the current policies of directors' and officers' liability insurance policy maintained by the Company and its Subsidiaries VFSC (provided that CSLC Xxxxxxxxxx may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no not less advantageousadvantageous to such directors and officers of VFSC than the terms and conditions of such existing policy) with respect to claims arising from facts acts or events which occurred before omissions occurring prior to the Effective Time which were committed by such officers and directors in their capacity as such.
(d) In the event Xxxxxxxxxx or any of its successors or assigns (i) consolidates with or merges into any other person and shall not be the continuing or surviving corporation or entity of such consolidation or merger, or (ii) transfers or conveys all or substantially all of its properties and assets to any person, then, and in each such case, to the extent available on commercially reasonable terms; providednecessary, however, proper provision shall be made so that CSLC the successors and assigns of Xxxxxxxxxx shall not be obligated to incur assume the obligations set forth in excess of $400,000 in the aggregate under this Section 5.9(b)7.12.
(ce) The provisions of this Section 5.9 7.12 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives.
Appears in 2 contracts
Samples: Merger Agreement (Chittenden Corp /Vt/), Merger Agreement (Chittenden Corp /Vt/)
Indemnification; Directors’ and Officers’ Insurance. (a) The For a period of six years after the Effective Time, the provisions with respect to indemnification, exculpation and advancement of expenses set forth in Article V of the restated certificate of incorporation of the Company shallas in effect on the date of this Agreement (a true, correct and from complete copy of which has been made available to Parent), shall not be amended, repealed or otherwise modified in any manner that would adversely affect the rights thereunder of individuals who at any time prior to the Effective Time were directors or officers of the Company in respect of actions or omissions occurring at or prior to the Effective Time (including, without limitation, the transactions contemplated by this Agreement), unless such modification is required by law.
(b) From and after the Effective Time, CSLC and Parent shall cause the Surviving Entity shall, Corporation and its successors to indemnify, defend and hold harmless each person who is now, or has been at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, officer or director or employee of the Company or any of its Subsidiaries (the "Indemnified Covered Parties") from and against (i) all losses, claims, damages, costs, expenses (including reasonable attorneys' fees and expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not be unreasonably be withheldwithheld or delayed) of or incurred in connection with any claim, threatened or actual action, suit, proceeding, case suit or investigation ("Action") proceeding based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, director or officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) ), including all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, this Agreement or in connection with this Agreement, the Merger or any of the transactions contemplated hereby or therebyhereby, in each case case, to the fullest full extent that a corporation is permitted under applicable law the DGCL to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entitydirectors or officers, as the case may be, shall pay expenses in advance of . In the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if event any such claim, action, suit, proceeding or investigation is commenced or instituted brought against any Indemnified Party (whether arising before or after Covered Party, the Effective Time)indemnifying party shall assume and direct all aspects of the defense thereof, (i) the Indemnified Parties may retain counsel satisfactory to them including settlement, and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) Covered Party shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist cooperate in the vigorous defense of any such matter. The Covered Party shall have a right to participate in (but not control) the defense of any such matter with its own counsel and at its own expense. Notwithstanding the right of the indemnifying party to assume and control the defense of such litigation, provided claim or proceeding, such Covered Party shall have the right to employ separate counsel and to participate in the defense of such litigation, claim or proceeding, and the indemnifying party shall bear the fees, costs and expenses of such separate counsel and shall pay such fees, costs and expenses promptly after receipt of an invoice from such Covered Party if (i) the use of counsel chosen by the indemnifying party to represent such Covered Party would present such counsel with a conflict of interest, (ii) the defendants in, or targets of, any such litigation, claim or proceeding shall have been advised by counsel that neither there may be legal defenses available to it or to other Covered Parties which are different from or in addition to those available to the Companyindemnifying party, CSLC nor or (iii) the Surviving Entity indemnifying party shall not have employed counsel satisfactory to such Covered Party, in the exercise of the Covered Party's reasonable judgment, to represent such Covered Party within a reasonable time after notice of the institution of such litigation, claim or proceeding. The indemnifying party shall not settle any such matter unless (i) the Covered Party gives prior written consent, which shall not be unreasonably withheld or delayed, or (ii) the terms of the settlement provide that the Covered Party shall have no responsibility for the discharge of any settlement amount and impose no other obligations or duties on the Covered Party, and the settlement discharges all rights against Covered Party with respect to such matter. In no event shall the indemnifying party be liable for any settlement of any claim effected without its prior written consent (which consent shall not unreasonably be withheld)consent. Any Indemnified Covered Party electing wishing to claim indemnification under this Section 5.96.08(b), upon learning of any such Actionclaim, action, suit, proceeding or investigation, shall promptly notify the Company, CSLC or Parent and the Surviving Entity of such election Corporation (but the failure so to notify the Company shall not relieve it the indemnifying party from any liability which it may have under this Section 5.96.08(b), except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failureindemnifying party), and shall deliver to the Company (or after the Effective Time, to CSLC Parent and the Surviving Entity) Corporation the undertaking contemplated by applicable lawSection 145(e) of the DGCL. The Indemnified Covered Parties as a group may retain only will be represented by a single law firm (plus no more than one firm of legal local counsel to represent them in any jurisdiction) with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of on any significant issue between the positions of any two or more Indemnified Covered Parties.
(b. The rights to indemnification under this Section 6.08(b) For shall continue in full force and effect for a period of seven six years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur in excess of $400,000 in the aggregate under this Section 5.9(b).
(c) The provisions of this Section 5.9 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representatives.the
Appears in 2 contracts
Samples: Agreement and Plan of Merger (Vnu N V), Merger Agreement (Acnielsen Corp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and Until six years from and after the Effective Time, CSLC unless otherwise required by Law, the Certificate of Incorporation and By-laws of the Surviving Corporation shall contain provisions no less favorable with respect to the elimination of liability of directors and the indemnification of (and advancement of expenses to) directors, officers, employees and agents than as are set forth in the certificate of incorporation and by-laws of the Company, as in effect on the date hereof.
(b) As of the Effective Time and for a period of not less than six years thereafter, Parent and the Surviving Entity Corporation shall, jointly and severally, indemnify, defend and hold harmless each person who is now, or has been at any time prior to the date hereof has been of this Agreement or who becomes prior to the Effective Time, an officer, director director, employee or employee agent of the Company or any of its Subsidiaries (collectively, the "Indemnified Parties") from and against (i) all losses, reasonable expenses (including reasonable attorneys' fees), claims, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of of, or otherwise in connection with with, any threatened or actual claim, action, suit, proceeding, case proceeding or investigation (a "ActionClaim") ), based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person the Indemnified Party is or was a director, officer officer, employee or employee agent of the Company or any Subsidiary, whether and pertaining to any matter existing or arising out of actions or omissions occurring at or prior to the Effective Time and (including, without limitation, any Claim arising out of this Agreement or any of the transactions contemplated hereby), whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of or in connection with this Agreement, the Merger or any of the transactions contemplated hereby or therebyTime, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directorsDelaware law, officers and employeesshall pay any expenses, as the case may be and CSLC and the Surviving Entityincurred, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable Delaware law. Without limiting the foregoing, if in the event any such claim, action, suit, proceeding or investigation Claim is commenced or instituted brought against any of the Indemnified Party (whether arising before or after the Effective Time)Parties, (i) the such Indemnified Parties may retain counsel (including local counsel) satisfactory to them and the Company (or which shall be reasonably satisfactory to them and CSLC Parent and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC Corporation and the Surviving Entity) Corporation shall pay pay, jointly and severally, all reasonable fees and expenses of such counsel for the such Indemnified Parties promptly as reasonably itemized statements therefor are receivedParties; and (iiiii) the Company (or after the Effective Time, CSLC and the Surviving Entity) Corporation shall use best all reasonable efforts to assist in the vigorous defense of any such matterClaim, provided that neither the Company, CSLC nor the Surviving Entity Corporation shall not be liable for any settlement of any claim effected without its written consent (consent, which consent consent, however, shall not be unreasonably withheld. Notwithstanding the foregoing, nothing contained in this Section 6.5 shall be withheld). Any deemed to grant any right to any Indemnified Party electing which is not permitted to claim indemnification be granted to an officer, director, employee or agent of the Company under this Section 5.9Delaware law, upon learning of any assuming for such Action, shall promptly notify purposes that the Company, CSLC or 's certificate of incorporation and by-laws provide for the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated maximum indemnification permitted by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(bc) For a period of seven years after the Effective Time, CSLC shall Parent will cause to be maintained in effect for a period of not less than six years from the Effective Time the Company's current policies of directors' and officers' liability insurance maintained by and indemnification policy to the Company and its Subsidiaries (provided extent that CSLC may substitute therefor policies of at least the same it provides coverage and amounts containing terms and conditions which are no less advantageous) with respect for events occurring prior to claims arising from facts or events which occurred before the Effective Time ("D&O Insurance") for all persons who are directors and officers of the Company on the date of this Agreement and for all former directors and officers of the Company, so long as the annual premium therefor would not be in excess of 125% of the last annual premium therefor paid prior to the extent available on commercially reasonable termsdate of this Agreement (the "Maximum Premium"); provided, however, that CSLC shall Parent may, in lieu of maintaining such existing D&O Insurance as provided above, cause coverage to be provided under any policy maintained for the benefit of Parent or any of its affiliates, so long as the terms thereof are no less advantageous to the intended beneficiaries thereof than the existing D&O Insurance. If the existing D&O Insurance expires, is terminated or canceled during such six-year period, Parent will use all reasonable efforts to cause to be obtained as much D&O Insurance as can be obtained for the remainder of such period for an annualized premium not be obligated to incur in excess of the Maximum Premium, on terms and conditions no less advantageous to the covered persons than the existing D&O Insurance. The Company represents to Parent that the Maximum Premium is $400,000 in the aggregate under this Section 5.9(b)78,489.
(c) The provisions of this Section 5.9 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representatives.
Appears in 2 contracts
Samples: Merger Agreement (Hotel Reservations Network Inc), Merger Agreement (Travelnowcom Inc)
Indemnification; Directors’ and Officers’ Insurance. (a) The For a period of four years after the Effective Time, the provisions with respect to indemnification set forth in the certificate of incorporation and bylaws of Purchaser as in effect on the date of this Agreement (true, correct and complete copies of which have been provided to Company) shall not be amended, repealed or otherwise modified in any manner that would adversely affect the rights thereunder of individuals who at any time prior to the Effective Time were directors or officers of Company shallin respect of actions or omissions occurring at or prior to the Effective Time (including without limitation the transactions contemplated by this Agreement), and from unless such modification is required by law. (b) From and after the Effective Time, CSLC and Parent shall, or shall cause the Surviving Entity shallCorporation to, indemnify, defend and hold harmless each person who is now, or has been at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, officer or director or employee of the Company or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses (including reasonable attorneys' fees and expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not be unreasonably be withheld) of or incurred in connection with any claim, threatened or actual action, suit, proceeding, case suit or investigation ("Action") proceeding based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, director or officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) ), including all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, this Agreement or in connection with this Agreement, the Merger or any of the transactions contemplated hereby or therebyhereby, in each case case, to the fullest full extent that a corporation is permitted under applicable law the DGCL to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entitydirectors or officers, as the case may be, shall pay expenses in advance of . In the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if event any such claim, action, suit, proceeding or investigation is commenced or instituted brought against any Indemnified Party (whether arising before or after Party, the Effective Time)indemnifying party shall assume and direct all aspects of the defense thereof, (i) including settlement, and the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) Party shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist cooperate in the vigorous defense of any such matter. The Indemnified Party shall have a right to participate in (but not control) the defense of any such matter with its own counsel and at its own expense. The indemnifying party shall not settle any such matter unless (i) the Indemnified Party gives prior written consent, provided which shall not be unreasonably withheld, or (ii) the terms of the settlement provide that neither the Company, CSLC nor Indemnified Party shall have no responsibility for the Surviving Entity discharge of any settlement amount and impose no other obligations or duties on the Indemnified Party and the settlement discharges all rights against Indemnified Party with respect to such matter. In no event shall the indemnifying party be liable for any settlement of any claim effected without its prior written consent (which consent shall not unreasonably be withheld)consent. Any Indemnified Party electing wishing to claim indemnification under this Section 5.96.8(b), upon learning of any such Actionclaim, action, suit, proceeding or investigation, shall promptly notify the Company, CSLC or Parent and the Surviving Entity of such election Corporation (but the failure so to notify the Company shall not relieve it the indemnifying party from any liability which it may have under this Section 5.9, 6.8(b) except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failureindemnifying party), and shall deliver to the Company (or after the Effective Time, to CSLC Parent and the Surviving Entity) Corporation the undertaking contemplated by applicable lawSection 145(e) of the DGCL. The Indemnified Parties as a group may retain only one will be represented by a single law firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of on any significant issue between the positions of any two or more Indemnified Parties.
(b. The rights to indemnification under this Section 6.8(b) For shall continue in full force and effect for a period of seven four years after from the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC all rights to indemnification in respect of any Indemnified Liabilities asserted or made within such period shall not be obligated to incur in excess continue until the disposition of $400,000 in the aggregate under this Section 5.9(b)such Indemnified Liabilities.
(c) The provisions of this Section 5.9 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representatives.
Appears in 2 contracts
Samples: Merger Agreement (Sterling Software Inc), Merger Agreement (Interlink Computer Sciences Inc)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective Time, CSLC and Parent shall cause the Surviving Entity shall, Corporation to indemnify, defend and hold harmless each person who is now, or at any time prior to the date hereof has been or who becomes prior to the Effective Time, an present and former officer, director Director or employee of the Company or any of its Subsidiaries subsidiaries and any fiduciary under any Company Plan (in each case, when acting in such capacity), determined as of the Effective Time (the "“Indemnified Parties") from ”), against any costs or expenses (including reasonable attorneys’ fees and against (i) all disbursements), judgments, fines, losses, claims, damages, costs, expenses, damages or liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or incurred in connection with any claimActions, actioninquiries or investigations (whether civil, suitcriminal, proceedingadministrative or investigative), case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with pertaining to (i) the fact that such person the Indemnified Party is or was a directoran officer, officer Director, employee, fiduciary or employee agent of the Company or any Subsidiary, whether pertaining to any matter of its subsidiaries or (ii) matters existing or occurring at or prior to the Effective Time (including this Agreement and the transactions and actions contemplated hereby) whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities"a “Proceeding”) and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of or in connection with this Agreement, the Merger or any of the transactions contemplated hereby or thereby, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under by applicable law upon Law (and the Surviving Corporation within ten (10) business days of receipt by Parent from the Indemnified Party of a request therefor, shall advance reasonable expenses in connection with any Proceeding as incurred to the fullest extent permitted by applicable Law; provided that the person to whom expenses are advanced provides an undertaking, if and only to the extent required by applicable Law, to repay such advances if it is ultimately determined that such person is not entitled to indemnification). In the event of any undertaking contemplated Proceeding, (x) neither Parent nor the Surviving Corporation shall settle, compromise or consent to the entry of any judgment in any Action (and in which indemnification could be sought by applicable lawIndemnified Parties hereunder), whether pending or threatened, unless such settlement, compromise or consent includes an unconditional release of such Indemnified Party from all liability arising out of such Action or such Indemnified Party otherwise consents, and (y) the Surviving Corporation shall cooperate in the defense of such matter. Without limiting For the foregoingavoidance of doubt, if the parties agree that this Section 6.7 does not purport to limit any such claim, action, suit, proceeding or investigation is commenced or instituted against rights that any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it any employment agreement or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified PartiesPlan.
(b) For The certificate of incorporation and bylaws of the Surviving Corporation shall contain provisions no less favorable with respect to indemnification, advancement of expenses and exculpation of former or present Directors and officers than are set forth in the Company’s Certificate of Incorporation and Bylaws, which provisions shall not be amended, repealed or otherwise modified for a period of seven six (6) years after from the Effective Time in any manner that would adversely affect the rights thereunder of any such individuals.
(c) Prior to the Effective Time, CSLC the Company shall (and, if the Company is unable to, Parent shall cause the Surviving Corporation as of the Effective Time to) obtain and fully pay, at no expense to be maintained in effect the beneficiaries, for “tail” insurance policies with a claims period of at least six (6) years from and after the Effective Time from an insurance carrier with the same or better credit rating as the Company’s current policies of directors' insurance carrier with respect to Directors’ and officers' ’ liability insurance maintained and fiduciary liability insurance (collectively, “D&O Insurance”), for the persons who are covered by the Company’s existing D&O Insurance, with terms, conditions, retentions and levels of coverage at least as favorable as the Company’s existing D&O Insurance with respect to matters existing or occurring at or prior to the Effective Time (including in connection with this Agreement or the transactions or actions contemplated hereby), and Parent shall cause the Surviving Corporation to maintain such D&O Insurance in full force and effect for their full terms. If the Company and the Surviving Corporation for any reason fail to obtain such “tail” insurance policies as of the Effective Time, the Surviving Corporation shall, and Parent shall cause the Surviving Corporation to, continue to maintain in effect, at no expense to the beneficiaries, for a period of at least six years from and after the Effective Time for the persons who are covered by the Company’s D&O Insurance in place as of the date of this Agreement with terms, conditions, retentions and levels of coverage at least as favorable as provided in the Company’s existing policies as of the date of this Agreement, or, if such insurance is unavailable, the Surviving Corporation shall, and Parent shall cause the Surviving Corporation to, purchase the best available D&O Insurance for such six-year period from an insurance carrier with the same or better credit rating as the Company’s current insurance carrier with respect to the Company’s existing D&O Insurance with terms, conditions, retentions and with levels of coverage at least as favorable as provided in the Company’s existing policies as of the date of this Agreement. Notwithstanding anything in the foregoing, in no event shall Parent or the Surviving Corporation be required to expend for such policies an annual premium amount in excess of 300% of the annual premiums currently paid by the Company for such insurance; and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, howeverfurther, that CSLC if the annual premiums of such insurance coverage exceed such amount, the Surviving Corporation shall obtain a policy with the greatest coverage available for a cost not exceeding such amount.
(d) If Parent or the Surviving Corporation or any of their respective successors or assigns (i) shall consolidate with or merge into any other corporation or entity and shall not be obligated the continuing or surviving corporation or entity of such consolidation or merger or (ii) shall transfer all or a majority of its properties and assets to incur any individual, corporation or other entity, then, and in excess each such case, proper provisions shall be made so that the successors and assigns of $400,000 Parent or the Surviving Corporation shall assume all of the obligations set forth in the aggregate under Section 6.6 and this Section 5.9(b)6.7.
(ce) The provisions of this Section 5.9 6.7 are intended to be for the benefit of, and shall be enforceable by, each of the Indemnified PartyParties and their respective successors, his heirs and his representativeslegal Representatives, shall be binding on all successors and assigns of Parent and the Surviving Corporation and shall not be amended in any matter that is adverse to the Indemnified Parties (including their successors, heirs and legal Representatives) without the consent of the Indemnified Party (including the successors, heirs and legal Representatives) affected thereby.
(f) The rights of the Indemnified Parties under this Section 6.7 shall be in addition to any rights such Indemnified Parties may have under the certificate of incorporation or bylaws of the Company or any of its subsidiaries, or under any applicable Contracts or laws, and Parent shall, and shall cause the Surviving Corporation to, honor and perform under all indemnification agreements entered into by the Company or any of its subsidiaries.
Appears in 2 contracts
Samples: Merger Agreement (Phoenix Companies Inc/De), Merger Agreement
Indemnification; Directors’ and Officers’ Insurance. (a) The Without limiting any additional rights that any director, officer, trustee, employee, agent, or fiduciary may have under any employment or indemnification agreement or under the Company’s Organizational Documents, or, if applicable, the Company shallSubsidiaries’ Organizational Documents, and from and for a period of six (6) years after the Effective Time, CSLC Parent shall, and shall cause the Surviving Entity shall, indemnify, defend Corporation to: (i) indemnify and hold harmless each person who is now, or has been or becomes at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, officer or director or employee of the Company or any Company Subsidiary and also with respect to any such Person, by reason of its Subsidiaries the fact such Person is or was a director, officer, employee, member, trustee or fiduciary of another corporation, foundation, partnership, joint venture, trust, pension or other Benefit Plan or enterprise (regardless of whether such other entity or enterprise is affiliated with the "Company) serving at the request of or on behalf of the Company or any Company Subsidiary and together with such Person’s heirs, executors or administrators (collectively, the “Indemnified Parties"”) from to the fullest extent authorized or permitted by, and against (i) all subject to the conditions and procedures set forth in, applicable Law in connection with any Proceeding and any losses, claims, damages, liabilities, costs, expensesIndemnification Expenses, liabilities or judgments or Judgments, fines, penalties and amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of including all interest, assessments and other charges paid or payable in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out respect of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities"thereof) resulting therefrom; and (ii) all Indemnified Liabilities based in whole or in part onpromptly pay on behalf of or, or arising in whole or in part out of or in connection with this Agreementwithin ten (10) days after any request for advancement, the Merger or any advance to each of the transactions contemplated hereby Indemnified Parties, any Indemnification Expenses incurred in defending, serving as a witness with respect to or thereby, in each case otherwise participating with respect to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses any Proceeding in advance of the final disposition of such Proceeding, including payment on behalf of or advancement to the Indemnified Party of any Indemnification Expenses incurred by such action Indemnified Party in connection with enforcing any rights with respect to such indemnification or proceeding advancement, in each case without the requirement of any bond or other security ; provided, however, that, to each the extent required by applicable Law, the payment of any Indemnification Expenses incurred by an Indemnified Party in advance of the final disposition of a Proceeding shall be made only upon delivery to the Surviving Corporation of an undertaking by or on behalf of such Indemnified Party to repay all amounts so paid in advance if it shall ultimately be determined that such Indemnified Party is not entitled to be indemnified. The indemnification and advancement obligations of the fullest extent permitted under applicable law upon receipt Surviving Corporation pursuant to this Section 6.11 extend to acts or omissions occurring at or before the Effective Time and any Proceeding relating thereto (including with respect to any acts or omissions occurring in connection with the approval of this Agreement and the consummation of the Transactions, including the consideration and approval thereof and the process undertaken in connection therewith and any undertaking contemplated by applicable law. Without limiting the foregoingProceeding relating thereto), if any such claim, action, suit, proceeding or investigation is commenced or instituted against and all rights to indemnification and advancement conferred hereunder continue as to any Indemnified Party (whether arising before who has ceased to be a director or officer of the Company or any Company Subsidiary after the Effective Time), (i) date of this Agreement and inure to the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses benefit of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; person’s heirs, executors and (iii) the Company (or after the Effective Time, CSLC personal and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld)legal representatives. Any Indemnified Party electing wishing to claim indemnification or advancement of expenses under this Section 5.96.11(a), upon learning of any such ActionProceeding, shall promptly notify the Company, CSLC or the Surviving Entity of such election Corporation in writing (but the failure so to notify the Company shall not relieve it a party from any liability which obligations that it may have under this Section 5.96.11(a), except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them party’s position with respect to each such matter unless there isclaims). As used in this Section 6.11: the term “Indemnification Expenses” means reasonable and documented out-of-pocket attorneys’ fees and expenses and all other reasonable and documented out-of-pocket costs, under applicable standards expenses and obligations (including experts’ fees, travel expenses, court costs, retainers, transcript fees, duplicating, printing and binding costs, as well as telecommunications, postage and courier charges) paid or incurred in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to investigate, defend, be a witness in or participate in, any Proceeding for which indemnification is required to be provided pursuant to this Section 6.11(a), including any Proceeding relating to a claim for indemnification or advancement brought by an Indemnified Party. Neither Parent nor the Surviving Corporation will settle, compromise or consent to the entry of professional conduct, a conflict any Judgment in any actual or threatened Proceeding in respect of any significant issue between the positions which indemnification has been sought by such Indemnified Party hereunder unless such settlement, compromise or Judgment includes an unconditional release of any two such Indemnified Party from all liability arising out of such Proceeding without admission or more finding of wrongdoing, or such Indemnified PartiesParty otherwise consents thereto.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur in excess of $400,000 in the aggregate under this Section 5.9(b).
(c) The provisions of this Section 5.9 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representatives.
Appears in 2 contracts
Samples: Merger Agreement (Qad Inc), Merger Agreement (Qad Inc)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallWithout limiting any other rights that any Indemnified Person may have pursuant to any employment agreement or indemnification agreement in effect on the date hereof or otherwise, and from and after the Effective Time, CSLC Parent and the Surviving Entity Corporation shall, jointly and severally, indemnify, defend and hold harmless each person Person who is now, or has been at any time prior to the date hereof has been of this Agreement or who becomes prior to the Effective Time, an officera director, director officer or employee of the Company or any of its Subsidiaries or who acts as a fiduciary under any Company Plan, in each case, when acting in such capacity (the "“Indemnified Parties"Persons”) from and against (i) all losses, claims, damages, costs, fines, penalties, expenses (including attorneys’ and other professionals’ fees and expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) settlement, of or incurred in connection with any claimthreatened or actual Proceeding to which such Indemnified Person is a party or is otherwise involved (including as a witness) based, action, suit, proceeding, case or investigation ("Action") based in whole or in part part, on or arising arising, in whole or in part part, out of or in connection with the fact that such person Person is or was a director, officer or employee of the Company or any Subsidiaryof its Subsidiaries, a fiduciary under any Company Plan or is or was serving at the request of the Company or any of its Subsidiaries as a director, officer, employee or fiduciary of another corporation, partnership, limited liability company, joint venture, Employee Benefit Plan, trust or other enterprise, as applicable, or by reason of anything done or not done by such Person in any such capacity, whether pertaining to any matter act or omission occurring or existing prior to, at, or occurring at or prior to after the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("“Indemnified Liabilities") and (ii) ”), including all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, or in connection with pertaining to, this Agreement, Agreement or the Merger or any of the transactions contemplated hereby or therebyTransactions, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers Law (and employees, as the case may be and CSLC Parent and the Surviving EntityCorporation shall, as the case may bejointly and severally, shall pay expenses incurred in connection therewith in advance of the final disposition of any such action or proceeding Proceeding to each Indemnified Party Person to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable lawLaw). Without limiting the foregoing, if in the event any such claim, action, suit, proceeding Proceeding is brought or investigation is commenced or instituted threatened to be brought against any Indemnified Party Persons (whether arising before or after the Effective Time), (i) the Indemnified Parties Persons may retain the Company’s regularly engaged legal counsel or other counsel satisfactory to them them, and the Company (or satisfactory to them and CSLC Parent and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) Corporation shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties Persons as promptly as reasonably itemized statements therefor are received; , and (iiiii) the Company (or after the Effective Time, CSLC Parent and the Surviving Entity) Corporation shall use its best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing Person wishing to claim indemnification or advancement of expenses under this Section 5.96.10, upon learning of any such ActionProceeding, shall promptly notify the Company, CSLC or the Surviving Entity of such election Corporation (but the failure so to notify the Company shall not relieve it a Party from any liability which obligations that it may have under this Section 5.9, 6.10 except to the extent such failure materially prejudices it such Party’s position with respect to such claims). With respect to any determination of whether any Indemnified Person is entitled to indemnification by Parent or if it otherwise forfeits substantive rights Surviving Corporation under this Section 6.10, such Indemnified Person shall have the right, as contemplated by the DGCL, to require that such determination be made by special, independent legal counsel selected by the Indemnified Person and defenses approved by Parent or Surviving Corporation, as a result of such failureapplicable (which approval shall not be unreasonably withheld or delayed), and who has not otherwise performed material services for Parent, Surviving Corporation or the Indemnified Person within the last three years.
(b) Parent and the Surviving Corporation shall deliver not amend, repeal or otherwise modify any provision in the Organizational Documents of the Surviving Corporation or its Subsidiaries in any manner that would affect (or manage the Surviving Corporation or its Subsidiaries, with the intent to or in a manner that would) adversely the rights thereunder or under the Organizational Documents of the Surviving Corporation or any of its Subsidiaries of any Indemnified Person to indemnification, exculpation and advancement except to the extent required by applicable Law. Parent shall, and shall cause the Surviving Corporation and its Subsidiaries to, fulfill and honor any indemnification, expense advancement or exculpation agreements between the Company or any of its Subsidiaries and any of its directors, officers or employees existing immediately prior to the Effective Time.
(c) Parent and the Surviving Corporation shall indemnify any Indemnified Person against all reasonable costs and expenses (including reasonable attorneys’ fees and expenses), such amounts to be payable in advance upon request as provided in Section 6.10(a), relating to the enforcement of such Indemnified Person’s rights under this Section 6.10 or under any charter, bylaw or contract regardless of whether such Indemnified Person is ultimately determined to be entitled to indemnification hereunder or thereunder.
(d) Parent and the Surviving Corporation will cause to be put in place, and Parent shall fully prepay immediately prior to the Effective Time, “tail” insurance policies with a claims reporting or discovery period of at least six years from the Effective Time (the “Tail Period”) from an insurance carrier with the same or better credit rating as the Company’s current insurance carrier with respect to directors’ and officers’ liability insurance (“D&O Insurance”) in an amount and scope at least as favorable as the Company’s existing policies with respect to matters, acts or omissions existing or occurring at, prior to, or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC in no event shall the aggregate cost of the D&O Insurance exceed during the Tail Period 300% of the current aggregate annual premium paid by the Company for such purpose; and provided, further, that if the cost of such insurance coverage exceeds such amount, the Surviving Corporation shall obtain a policy with the greatest coverage available for a cost not exceeding such amount.
(e) In the event that Parent, the Surviving Corporation or any of their Subsidiaries or any of their respective successors or assignees (i) consolidates with or merges into any other Person and shall not be obligated the continuing or surviving corporation or entity of such consolidation or merger or (ii) transfers all or substantially all of its properties and assets to incur any Person, then, in excess each such case, proper provisions shall be made so that the successors and assigns of $400,000 Parent or the Surviving Corporation, as the case may be, shall assume the obligations set forth in this Section 6.10. Parent and the aggregate Surviving Corporation shall not sell, transfer, distribute or otherwise dispose of any of their assets in a manner that would reasonably be expected to render Parent or Surviving Corporation unable to satisfy their obligations under this Section 5.9(b).
(c) 6.10. The provisions of this Section 5.9 6.10 are intended to be for the benefit of, and shall be enforceable by, the Parties and each Indemnified PartyPerson entitled to indemnification or insurance coverage or expense advancement pursuant to this Section 6.10, and his heirs and his representativesRepresentatives. The rights of the Indemnified Persons under this Section 6.10 are in addition to any rights such Indemnified Persons may have under the Organizational Documents of the Company or any of its Subsidiaries, or under any applicable contracts or Law. Parent and the Surviving Corporation shall pay all expenses, including attorneys’ fees, that may be incurred by any Indemnified Person in enforcing the indemnity and other obligations provided in this Section 6.10.
Appears in 2 contracts
Samples: Merger Agreement (Parsley Energy, Inc.), Merger Agreement (Jagged Peak Energy Inc.)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective TimeTime through the sixth anniversary of the date on which the Effective Time occurs, CSLC each of the Parent Entities and the Surviving Entity shall, indemnify, defend Corporation will jointly and severally indemnify and hold harmless each person who is nowIndemnified Party with respect to all claims, liabilities, losses, damages, judgments, fines, penalties, costs (including amounts paid in settlement or at compromise) and expenses (including fees and expenses of legal counsel) in connection with any time prior to Action or investigation (whether civil, criminal, administrative or investigative), whenever asserted, based on or arising out of, in whole or in part, (i) the date hereof has been or who becomes prior to the Effective Timefact that an Indemnified Party was a director, an officer, director employee or employee agent of the Company or any of its Subsidiaries (or a director, officer, employee, agent, trustee or fiduciary of another Person serving at the "request of the Company or any of its Subsidiaries) or (ii) acts or omissions by such Indemnified Parties"Party in the Indemnified Party’s capacity as a director, officer, employee or agent of the Company or a Subsidiary of the Company (or a director, officer, employee, agent, trustee or fiduciary of another Person serving at the request of the Company or any of its Subsidiaries) from and against or taken at the request of the Company or a Subsidiary of the Company (or any such other Person), in each case under (i) all lossesor (ii), claimsat, damagesor at any time prior to, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party Effective Time (which approval shall not unreasonably be withheld) of or in connection with including any claim, action, suit, proceeding, case or investigation ("Action") based Action relating in whole or in part on to the Merger or arising in whole the enforcement of this provision or in part out any other indemnification or advancement right of any Indemnified Party), to the fullest extent permitted or in connection with required by applicable Law.
(b) The Parent Entities guarantee, and the fact that such person is or was a directorSurviving Corporation will assume, officer or employee all obligations of the Company and any of its Subsidiaries in respect of rights of exculpation, indemnification and advancement of expenses for acts or any Subsidiary, whether pertaining to any matter existing or omissions occurring at or prior to the Effective Time and Time, whether asserted or claimed prior to, at or after the Effective Time ("Time, existing in favor of the Indemnified Liabilities") and (ii) all Indemnified Liabilities based Parties as provided in whole the respective constituent documents of the Company or any of its Subsidiaries or in part onany written Contract described on the Company Disclosure Letter or filed as an exhibit to any document filed with the SEC or available under applicable Law; provided, however, that all rights to indemnification in respect of any Action pending or arising asserted or any claim made within such period will continue until the disposition of such Action or resolution of such claim. Without limiting the foregoing, Parent, from and after the Effective Time until six years from the Effective Time, will cause, unless otherwise required by Law, the certificate of incorporation and bylaws or similar organizational documents of the Surviving Corporation and each of its Subsidiaries to contain provisions no less favorable to the Indemnified Parties with respect to limitation of liabilities of directors and officers, indemnification and advancement of expenses than are set forth as of the date of this Agreement in whole the Company’s constituent documents and/or available under applicable Law, which provisions will not be amended, repealed or otherwise modified in part out a manner that would adversely affect the rights thereunder of or the Indemnified Parties. In addition, from the Effective Time until six years from the Effective Time, Parent will, and will cause the Surviving Corporation to, advance any expenses (including fees and expenses of legal counsel) of any Indemnified Party under this Section 6.2 (including in connection with enforcing the indemnity and other obligations referred to in this Agreement, the Merger or any of the transactions contemplated hereby or thereby, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, Section 6.2) as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party incurred to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matterLaw, provided that neither the Company, CSLC nor the Surviving Entity individual to whom expenses are advanced provides an undertaking to repay such advances if it shall be liable for any settlement determined by a final, nonappealable judgment of any claim effected without its written consent (which consent shall a court of competent jurisdiction that such person is not unreasonably entitled to be withheld). Any Indemnified Party electing indemnified pursuant to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure6.2(b), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(bc) For a period of seven six years after from the Effective Time, CSLC shall Parent will either cause to be maintained in effect the current policies of directors' ’ and officers' ’ liability insurance and fiduciary liability insurance maintained by the Company and its Subsidiaries, or provide substitute policies or purchase or cause the Surviving Corporation to purchase, a “tail policy” with reputable insurers, in each case of at least the same coverage and scope, and in amounts, and containing terms and conditions, that are no less favorable to such individuals than such policy in effect on the date hereof, with respect to matters arising on or before the Effective Time covering without limitation the Transactions; provided, that Parent shall not be required to commit or spend on such “tail” policy, in the aggregate, more than three hundred percent (300%) of the last aggregate annual premium paid by the Company prior to the date hereof for the Company’s current policies of directors’ and officers’ liability insurance and fiduciary liability insurance (the “Base Amount”). The Company may prior to the Effective Time purchase a six-year prepaid “tail policy” on terms and conditions providing at least substantially equivalent benefits as the current policies of directors’ and officers’ liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts matters existing or events which occurred before occurring prior to the Effective Time to Time, covering without limitation the extent available on commercially reasonable termsTransactions; provided, however, that CSLC the Company shall not be obligated to incur in excess of $400,000 commit or spend on such “tail” policy, in the aggregate aggregate, more than the Base Amount, and if the cost of such “tail” policy would otherwise exceed the Base Amount, the Company shall be permitted to purchase as much coverage as reasonably practicable for the Base Amount. If such prepaid “tail policy” has been obtained by the Company, it will be deemed to satisfy all obligations to obtain insurance pursuant to this Section 6.2(c) and the Surviving Corporation will use its reasonable best efforts to cause such policy to be maintained in full force and effect, for its full term, and to honor all of its obligations thereunder.
(d) From and after the Effective Time, Parent or the Surviving Corporation will have the right, but not the obligation, to assume and control the defense of any threatened or actual Action relating to any acts or omissions covered under this Section 5.9(b)6.2, provided that none of Parent or the Surviving Corporation will settle, compromise or consent to the entry of any judgment in any such Action for which indemnification has been sought by an Indemnified Party hereunder, unless such settlement, compromise or consent includes an unconditional release of such Indemnified Party from all liability arising out of, and no admission of wrongdoing in respect of, such Action or such Indemnified Party otherwise consents in writing to such settlement, compromise or consent. Each of the Parent Entities, the Surviving Corporation and the Indemnified Parties will cooperate in the defense of any such Action and will provide access to properties and individuals as reasonably requested and furnish or cause to be furnished records, information and testimony, and attend such conferences, discovery proceedings, hearings, trials or appeals, as may be reasonably requested in connection therewith.
(ce) The provisions of this Section 5.9 6.2 will survive the consummation of the Merger and expressly are intended to be for the benefit ofbenefit, and shall be are enforceable by, each Indemnified Party, and his or her heirs and his or her representatives, and are in addition to, and not in substitution for, any other rights to indemnification or contribution that any such individual may have under the Company’s constituent documents, by Contract or otherwise. The obligations of the Parent Entities and the Surviving Corporation under this Section 6.2 (and the “tail policy” obtained pursuant thereto) may not be terminated, canceled or modified in such a manner as to adversely affect the rights of any Indemnified Party to whom this Section 6.2 applies unless (i) such termination or modification is required by applicable Law or (ii) the affected Indemnified Party shall have consented in writing to such termination or modification (it being expressly agreed that the Indemnified Parties to whom this Section 6.2 applies will be third party beneficiaries of this Section 6.2).
(f) In the event Top Parent, Parent, BBX Intermediate, the Surviving Corporation or any of their respective successors or assigns (i) consolidates with or merges into any other Person and is not the continuing or surviving corporation or entity in such consolidation or merger or (ii) transfers all or substantially all of its properties and assets to any Person, then, and in either such case, proper provision will be made so that the successors and assigns of Top Parent, Parent, BBX Intermediate or the Surviving Corporation, as the case may be, assume the obligations set forth in this Section 6.2.
Appears in 2 contracts
Samples: Agreement and Plan of Merger, Merger Agreement (Black Box Corp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallIn the event of any threatened or actual claim, and from and after the Effective Timeaction, CSLC and the Surviving Entity shallsuit, indemnifyproceeding or investigation, defend and hold harmless each person whether civil, criminal or administrative, including, without limitation, any such claim, action, suit, proceeding or investigation in which any individual who is now, or has been at any time prior to the date hereof has been of this Agreement, or who becomes prior to the Effective Time, an officer, a director or officer or employee of NCF or any of its Subsidiaries, or who is or was serving at the Company request of NCF or any of its Subsidiaries as a director, officer, employee or agent of another person, including any entity specified in the NCF Disclosure Schedule (the "Indemnified Parties") from and against (i) all losses), claimsis, damagesor is threatened to be, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying made a party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that he is or was a director, officer or employee of NCF or any of its Subsidiaries or any entity specified in connection with the NCF Disclosure Schedule or any of their respective predecessors or (ii) this Agreement, the Merger Agreement or any of the transactions contemplated hereby hereby, whether in any case asserted or therebyarising before or after the Effective Time, in each case the parties hereto agree to cooperate and use their best efforts to defend against and respond thereto. It is understood and agreed that after the Effective Time, STI shall indemnify and hold harmless, as and to the fullest extent a corporation is permitted under applicable law to indemnify its own directorsby law, officers each such Indemnified Party against any losses, claims, damages, liabilities, costs, expenses (including reasonable attorney's fees and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action claim, suit, proceeding or proceeding investigation to each Indemnified Party to the fullest extent permitted under applicable by law upon receipt of any undertaking contemplated required by applicable law. Without limiting the foregoing), if judgments, fines and amounts paid in settlement in connection with any such threatened or actual claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Partiesinvestigation.
(b) For STI shall use its reasonable best efforts to cause the individuals serving as officers and directors of NCF, its Subsidiaries or any entity specified in the NCF Disclosure Schedule immediately prior to the Effective Time to be covered for a period of seven six (6) years after from the Effective TimeTime (or the period of the applicable statute of limitations, CSLC shall cause to be maintained in effect if longer) by the current policies of directors' and officers' liability insurance policy maintained by the Company and its Subsidiaries NCF (provided that CSLC STI may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no not less advantageousadvantageous than such policy) with respect to claims arising from facts acts or events which occurred before omissions occurring prior to the Effective Time to the extent available on commercially reasonable termswhich were committed by such officers and directors in their capacity as such; provided, however, that CSLC in no event shall not STI be obligated required to incur in excess expend on an annual basis more than 250% of $400,000 in the aggregate under current amount expended by NCF (the "Insurance Amount") to maintain or procure insurance coverage, and further provided that if STI is unable to maintain or obtain the insurance called for by this Section 5.9(b)6.8(b) STI shall use all reasonable efforts to obtain as much comparable insurance as is available for the Insurance Amount.
(c) In the event STI or any of its successors or assigns (i) consolidates with or merges into any other person and shall not be the continuing or surviving corporation or entity of such consolidation or merger, or (ii) transfers or conveys all or substantially all of its properties and assets to any person, then, and in each such case, to the extent necessary, proper provision shall be made so that the successors and assigns of STI assume the obligations set forth in this Section 6.8.
(d) The provisions of this Section 5.9 6.8 shall survive the Effective Time and are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives.
Appears in 2 contracts
Samples: Merger Agreement (Suntrust Banks Inc), Merger Agreement (National Commerce Financial Corp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallIn the event of any threatened or actual claim, and from and after the Effective Timeaction, CSLC and the Surviving Entity shallsuit, indemnifyproceeding or investigation, defend and hold harmless each person whether civil, criminal or administrative, including, without limitation, any such claim, action, suit, proceeding or investigation in which any individual who is now, or has been at any time prior to the date hereof has been of this Agreement, or who becomes prior to the Effective Time, an officera director, director manager, officer or employee of Target or any of its Subsidiaries, or who is or was serving at the Company request of Target or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was as a director, officer manager, officer, employee or employee agent of another person, including any entity specified in the Company Target Disclosure Schedule (the “Indemnified Parties”), is, or any Subsidiaryis threatened to be, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities made a party based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that such person is or was a director, manager, officer or employee of Target or in connection with any of its Subsidiaries or any of their predecessors or is or was serving at the request of Target or any of its Subsidiaries or any of their predecessors as a director, manager, officer, employee or agent of another person or (ii) this Agreement, the Merger Agreement or any of the transactions contemplated hereby hereby, whether in any case asserted or therebyarising before or after the Effective Time, in each case the parties hereto agree to cooperate and use their best efforts to defend against and respond thereto. From and after the Effective Time, the Surviving Corporation shall indemnify, defend and hold harmless, to the fullest extent a corporation is permitted under by applicable law to indemnify its own directorslaw, officers each such Indemnified Party against any losses, claims, damages, liabilities, costs, expenses (including reasonable attorney’s fees and employees, as the case may be court costs and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any to each Indemnified Party upon receipt of an undertaking (whether arising before or after the Effective Timein reasonable and customary form) to repay such advances if it is ultimately determined that such Indemnified Party is not entitled to indemnification hereunder), (i) the Indemnified Parties may retain counsel satisfactory to them judgments, fines and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist amounts paid in the vigorous defense of settlement in connection with any such matterthreatened or actual claim, provided that neither the Companyaction, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9suit, upon learning of any such Action, shall promptly notify the Company, CSLC proceeding or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Partiesinvestigation.
(b) For Subject to the following sentence, for a period of seven six (6) years after the Effective Time, CSLC Parent shall cause to be maintained in effect the current policies of directors' ’ and officers' ’ liability insurance maintained by the Company and its Subsidiaries Target (provided provided, that CSLC Parent may substitute therefor policies with a substantially comparable insurer of at least the same coverage and amounts containing terms and conditions which are no less advantageousadvantageous to the insured) with respect to claims against the present and former officers and directors of Target and its Subsidiaries arising from facts or events which occurred at or before the Effective Time to (including the extent available on commercially reasonable termstransactions contemplated by this Agreement); provided, however, that CSLC Parent shall not be obligated to incur expend, on an annual basis, an amount in excess of $400,000 250% of the aggregate annual premium paid as of the date hereof by Target for such insurance (the “Premium Cap”), and if such premiums for such insurance would at any time exceed the Premium Cap, then Parent shall cause to be maintained policies of insurance which provide the maximum coverage available at an annual premium equal to the Premium Cap. In lieu of the foregoing, Target, in consultation with Parent, may (and at the request of Parent, Target shall use its reasonable best efforts to) obtain at or prior to the Effective Time, at Parent’s expense, a six-year “tail” policy under Target’s existing directors’ and officers’ liability insurance policy providing equivalent coverage to that described in the aggregate under this Section 5.9(b)preceding sentence if and to the extent that the same may be obtained for an amount that, in the aggregate, does not exceed the Premium Cap.
(c) In the event the Surviving Corporation or any of its successors or assigns (i) consolidates with or merges into any other person and shall not be the continuing or surviving corporation or entity of such consolidation or merger, or (ii) transfers or conveys all or substantially all of its properties or assets to any person, then, and in each such case, the Surviving Corporation shall cause proper provision to be made so that the successors and assigns of the Surviving Corporation will expressly assume the obligations set forth in this Section 6.9.
(d) The provisions of this Section 5.9 6.9 shall survive the Effective Time and are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives.
Appears in 2 contracts
Samples: Merger Agreement (Pinnacle Financial Partners Inc), Merger Agreement (BNC Bancorp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective Time, CSLC and in the Surviving Entity shallevent of any claim, indemnifyaction, defend and hold harmless each suit, proceeding or investigation, whether civil, criminal or administrative, in which any person who is now, or has been at any time prior to the date hereof has been of this Agreement, or who becomes prior to the Effective Time, an officer, a director or employee officer of the Company or any of its Subsidiaries (the "“Indemnified Parties"”) from and against (i) all lossesis, claimsor is threatened to be, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying made a party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that he or she is or was a director or officer of the Company, any of its Subsidiaries or in connection with any of their respective predecessors or was prior to the Effective Time serving at the request of any such party as a director, officer, employee, trustee or partner of another corporation, partnership, trust, joint venture, employee benefit plan or other entity (a list of the directors and officers of the Company or any of its Subsidiaries who are serving, as of the date of this Agreement, in any such capacity with another corporation, partnership, trust or other enterprise, and a description of the Merger nature of such service, is set forth in Section 7.7(a) of the Company Disclosure Letter) or (ii) this Agreement, or any of the transactions contemplated hereby or therebyand all actions taken by an Indemnified Party in connection herewith, in each case in his or her capacity as a director or officer of the Company or any of its Subsidiaries, whether in any case asserted or arising before or after the Effective Time, Acquiror shall cause the Surviving Company to indemnify and hold harmless, as and to the fullest extent a corporation is provided in the certificate of incorporation and bylaws of the Company as in effect on the date of this Agreement and permitted under by applicable law to indemnify its own directorsLaw, officers each such Indemnified Party against any losses, claims, damages, liabilities, costs, expenses (including reasonable attorneys’ fees and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action claim, suit, proceeding or proceeding investigation to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of an undertaking, from such Indemnified Party to repay such advanced expenses if it is determined by a final and nonappealable judgment of a court of competent jurisdiction that such Indemnified Party was not entitled to indemnification hereunder), judgments, fines and amounts paid in settlement in connection with any undertaking contemplated by applicable lawsuch actual or threatened claim, action, suit, proceeding or investigation, whether civil, criminal, administrative or investigative. Without limiting the foregoingAny Indemnified Party wishing to claim indemnification under this Section 7.7, if upon learning of any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Actioninvestigation, shall promptly notify the CompanyAcquiror in writing thereof, CSLC or the Surviving Entity of such election (but provided, that the failure to so to notify the Company shall not relieve it from any liability which it may have affect the obligations of Acquiror under this Section 5.9, 7.7 except (and only) to the extent such failure to notify materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified PartiesAcquiror.
(b) For a period of seven six (6) years after the Effective Time, CSLC Acquiror shall use its reasonable best efforts to cause the persons serving as officers and directors of the Company immediately prior to the Effective Time to be maintained in effect covered by the current policies of directors' ’ and officers' ’ liability insurance policy or policies maintained by the Company and Acquiror or one of its Subsidiaries (provided provided, that CSLC may substitute therefor Acquiror’s directors’ and officers’ liability insurance policy or policies of provide at least the same coverage and amounts containing terms and conditions which are no are, in the aggregate, not materially less advantageousadvantageous to such directors and officers of the Company than the terms and conditions of the existing directors’ and officers’ liability insurance policy of the Company) with respect to claims arising from facts or events that existed or occurred at or prior to the Effective Time. Notwithstanding the foregoing, in no event will Acquiror be required to expend, in the aggregate and on an annual basis, an amount in excess of 200% of the annual premiums currently paid by the Company for such insurance, which occurred before current premiums are set forth in Section 7.7(b) of the Company Disclosure Letter (the “Insurance Amount”), and if Acquiror is unable to maintain or obtain the insurance called for by this Section 7.7(b) for an amount per year equal to or less than the Insurance Amount, Acquiror shall use its reasonable best efforts to obtain as much comparable insurance as may be available for the Insurance Amount. The provisions of this Section 7.7(b) shall be deemed to have been satisfied if prepaid policies have been obtained by Acquiror or by the Company with Acquiror’s prior written consent, which policies provide the persons covered by the Company’s directors’ and officers’ liability insurance policy immediately prior to the Effective Time with coverage for a period of not less than six (6) years after the Effective Time with respect to claims arising from facts or events that occurred at or prior to the extent available on commercially reasonable terms; providedEffective Time. If such prepaid policies have been obtained by the Company prior to the Effective Time with Acquiror’s consent, however, that CSLC Acquiror shall not be obligated maintain such policies in full force and effect and continue to incur in excess of $400,000 in the aggregate under this Section 5.9(b)honor all obligations thereunder.
(c) The provisions of this Section 5.9 7.7 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives.
Appears in 2 contracts
Samples: Merger Agreement (People's United Financial, Inc.), Merger Agreement (Danvers Bancorp, Inc.)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective Time, CSLC and in the Surviving Entity shallevent of any threatened or actual claim, indemnifyaction, defend and hold harmless each suit, proceeding or investigation, whether civil, criminal or administrative, including, without limitation, any such claim, action, suit, proceeding or investigation in which any person who is now, or has been at any time prior to the date hereof has been of this Agreement, or who becomes prior to the Effective Time, an officera director, director officer or employee of the Company Long Beach or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all lossesis, claimsor is threatened to be, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying made a party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that he is or was a director, officer or employee of Long Beach, any of its Subsidiaries or in connection with any of their respective predecessors or was prior to the Effective Time serving at the request of any such party as a director, officer, employee, fiduciary or agent of another corporation, partnership, trust or other enterprise or (ii) this Agreement, the Merger or any of the transactions contemplated hereby and all actions taken by an Indemnified Party in connection herewith, whether in any case asserted or therebyarising before or after the Effective Time, the parties hereto agree to cooperate and use their best efforts to defend against and respond to such proceedings to the extent set forth in each case the next sentence. It is understood and agreed that after the Effective Time, Washington Mutual shall indemnify and hold harmless, as and to the fullest extent a corporation is permitted under applicable law to indemnify by the corporate governance documents of Long Beach or its own directorsSubsidiaries as of the date hereof and by law, officers each such Indemnified Party against any losses, claims, damages, liabilities, costs, expenses (including reasonable attorneys' fees and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action claim, suit, proceeding or proceeding investigation to each Indemnified Party Parry to the fullest extent permitted under applicable by law upon receipt of any an undertaking contemplated by applicable law. Without limiting the foregoingfrom such Indemnified Party to repay such advanced expenses if it is finally and unappealably determined that such Indemnified Party was not entitled to indemnification hereunder), if judgments, fines and amounts paid in settlement in connection with any such threatened or actual claim, action, suit, proceeding or investigation, and in the event of any such threatened or actual claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether asserted or arising before or after the Effective Time) (collectively, "Claims"), (i) the Indemnified Parties may retain counsel reasonably satisfactory to them after consultation with Washington Mutual; provided, however, that (1) Washington Mutual shall have the right to assume the defense thereof and upon such assumption Washington Mutual shall not be liable to any Indemnified Party for any legal expenses of other counsel or any other expenses subsequently incurred by any Indemnified Party in connection with the defense thereof, except that if Washington Mutual elects not to assume such defense or counsel for the Indemnified Parties reasonably advises the Indemnified Parties that there are or may be (whether or not any have yet actually arisen) issues which raise conflicts of interest between Washington Mutual and the Company (or Indemnified Parties, the Indemnified Parties may retain counsel reasonably satisfactory to them them, and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) Washington Mutual shall pay all the reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and Parties, (iii2) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity Washington Mutual shall be liable obligated pursuant to this paragraph to pay for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more for all Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur in excess of $400,000 in the aggregate under this Section 5.9(b).
(c) The provisions of this Section 5.9 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representatives.,
Appears in 2 contracts
Samples: Merger Agreement (Long Beach Financial Corp), Merger Agreement (Washington Mutual Inc)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective Time, CSLC Validus shall cause the Amalgamated Company to, to the fullest extent permitted by applicable Law (and, in the case of former officers and directors, to the extent permitted by the bye-laws of IPC and the Surviving Entity shallAmalgamated Company prior to the Closing), indemnify, defend and hold harmless harmless, and provide advancement of expenses to, each person who is now, or has been at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, a director or employee officer of the Company or any of its Subsidiaries IPC (the "“Indemnified Parties"”) from and against (i) all losses, claims, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case proceeding or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, director or officer or employee of the Company IPC or any Subsidiaryof its respective subsidiaries, whether and pertaining to any matter existing or occurring occurring, or any acts or omissions occurring, at or prior to the Effective Time and Time, whether asserted or claimed prior to, at or after after, the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole including matters, acts or in part on, or arising in whole or in part out of or omissions occurring in connection with the approval of this Agreement, Agreement and the Merger or any consummation of the transactions contemplated hereby hereby) to the same extent such persons are indemnified or therebyhave the right to advancement of expenses as of the date of this Agreement by IPC or any of its respective subsidiaries pursuant to the relevant entity’s memorandum of association, bye-laws and indemnification agreements and resolutions, if any, in each case to existence on the fullest extent a corporation is permitted under date hereof. Except as required by applicable law to indemnify its own directorsLaw, officers and employees, until such time as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted period under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted which a claim against any Indemnified Party (whether arising before with respect to any acts or after omissions by any such Indemnified Party occurring at or prior to the Effective Time)Time shall have expired, (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) Validus shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure)not, and shall deliver not permit any of its subsidiaries to, amend or eliminate the indemnification or advancement provisions of the bye-laws of the Amalgamated Company in any manner adverse to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period of seven six years after the Effective Time, CSLC Validus shall cause purchase as of the Effective Time, a tail policy to be maintained in effect the current policies of existing directors' ’ and officers' ’ liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) IPC with respect to claims arising from facts or events which occurred before at or prior to the Effective Time to Time, and which tail policy shall contain substantially the extent available on commercially reasonable termssame coverage and amounts as, and contain terms and conditions no less advantageous than the coverage provided by the existing policy of IPC as of the date of this Agreement; provided, however, that CSLC in no event shall not Validus be obligated required to incur expend for the entire tail policy, in excess of $400,000 in 350% of the aggregate under this Section 5.9(b)annual premium currently provided by IPC for its existing policy of directors’ and officers’ liability insurance; and provided further that, if the premium of such insurance coverage exceeds such amount, Validus shall be obliged to obtain a policy with the greatest coverage available for a cost not to exceed such amount. At the request of Validus, IPC shall cooperate with Validus to obtain such a tail policy effective as of the Effective Time.
(c) In the event that Validus or the Amalgamated Company or any of its successors or assigns (i) consolidates or amalgamates with or merges into any other person and is not the continuing or surviving corporation or entity of such consolidation or amalgamation or (ii) transfers or conveys all or substantially all of its properties and assets to any person (including by dissolution), then, and in each such case, Validus shall cause proper provision to be made so that the successors and assigns of Validus or the Amalgamated Company assume and honor the obligations set forth in this Section 5.8.
(d) The provisions of this Section 5.9 Sections 5.8(a) through (c): (i) are intended to be for the benefit of, and shall be enforceable by, each director of IPC as of the date of this Agreement and each other Indemnified Party, his or her heirs and his representativeslegal representatives and (ii) are in addition to, and not in substitution for, any other rights to indemnification or contribution that any such person may have by contract or otherwise. Each of the directors of IPC as of the date of this Agreement shall, at any time prior to 10 business days prior to the Closing Date, have the right to be bound as a counterparty solely in regard to this Section 5.8 by executing and delivering to each of Validus, Amalgamation Sub and IPC a counterpart signature page hereto.
(e) IPC shall use commercially reasonable efforts to obtain a pro rata refund (on an annualized basis taking into account the remaining period of the policy term) of the $1,156,000 premium paid by IPC on June 30, 2009, in connection with the renewal of its annual directors’ and officers’ liability insurance coverage for the period July 2009 through July 2010.
Appears in 2 contracts
Samples: Agreement and Plan of Amalgamation (Ipc Holdings LTD), Amalgamation Agreement (Validus Holdings LTD)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallIn the event of any threatened or actual claim, action, suit, proceeding or investigation, whether civil, criminal or administrative (a “Claim”), including any such Claim in which any individual who is now, or has been at any time before the date of this Agreement, or who becomes before the Effective Time, a director, officer or employee of Target or any of its Subsidiaries or who is or was serving at the request of Target or any of its Subsidiaries as a director, officer or employee of another person (the “Indemnified Parties”), is, or is threatened to be, made a party based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that he is or was a director, officer or employee of Target or any of its Subsidiaries before the Effective Time or (ii) this Agreement or any of the transactions contemplated by this Agreement, whether asserted or arising before or after the Effective Time, the Parties shall cooperate and use their best efforts to defend against and respond thereto. All rights to indemnification and exculpation from liabilities for acts or omissions occurring at or before the Effective Time now existing in favor of any Indemnified Party as provided in their respective articles of incorporation or bylaws (or comparable organizational documents), and from any existing indemnification agreements set forth on Section 6.6(a) of the Target Disclosure Schedule, shall survive the Merger and shall continue in full force and effect in accordance with their terms, and shall not be amended, repealed or otherwise modified after the Effective Time in any manner that would adversely affect the rights thereunder of such individuals for acts or omissions occurring at or before the Effective Time or taken at the request of Buyer pursuant to Section 6.7, it being understood that nothing in this sentence shall require any amendment to the articles of incorporation or bylaws of the Surviving Corporation.
(b) From and after the Effective Time, CSLC and the Surviving Entity Corporation shall, to the fullest extent permitted by applicable law, indemnify, defend and hold harmless harmless, and provide advancement of reasonable expenses to, each person who is now, or at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, director or employee of the Company or any of its Subsidiaries (the "Indemnified Parties") from and Party against (i) all losses, claims, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") Claim based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company Target or any SubsidiarySubsidiary of Target, whether and pertaining to any matter existing or occurring occurring, or any acts or omissions occurring, at or prior to before the Effective Time and Time, whether asserted or claimed prior tobefore, or at or after after, the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole including matters, acts or in part on, or arising in whole or in part out of or omissions occurring in connection with the approval of this Agreement, Agreement and the Merger or any consummation of the transactions contemplated hereby hereby) or thereby, in each case taken at the request of Buyer pursuant to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties6.7.
(bc) For Buyer shall cause the individuals serving as officers and directors of Target or any of its Subsidiaries immediately before the Effective Time to be covered for a period of seven six years after from the Effective Time, CSLC shall cause to be maintained in effect Time by the current policies of directors' ’ and officers' ’ liability insurance policy maintained by the Company and its Subsidiaries Target (provided that CSLC Buyer may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which that are no not less advantageousadvantageous to such officers and directors than such policy) with respect to claims arising from facts acts or events which occurred omissions occurring before the Effective Time that were committed by such officers and directors in their capacity as such; provided that in no event shall Buyer be required to expend annually in the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur aggregate an amount in excess of $400,000 in 280% of the aggregate under this annual premiums currently paid by Target (which current amount is set forth on Section 5.9(b6.6(c) of the Target Disclosure Schedule) for such insurance (the “Insurance Amount”), and provided, further, that if Buyer is unable to maintain such policy (or such substitute policy) as a result of the preceding proviso, Buyer shall obtain as much comparable insurance as is available for the Insurance Amount.
(cd) The provisions of this Section 5.9 6.6 shall survive the Effective Time and are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives.
Appears in 2 contracts
Samples: Merger Agreement (Park Sterling Corp), Merger Agreement (Community Capital Corp /Sc/)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from and after After the Effective Time, CSLC Parent and the Surviving Entity shall, indemnify, defend Corporation jointly and severally shall indemnify and hold harmless (and shall also advance expenses as incurred to the fullest extent permitted under applicable law, upon receipt from such indemnified party of the undertaking to repay such advances contemplated by Section 145 of the DGCL, to) each person who is now, now or at any time has been prior to the date hereof has been or who becomes prior to the Effective Time, Time an officer, officer or director or employee of the Company or any of its Subsidiaries the Company's subsidiaries (the "Indemnified PartiesPersons") from and against (i) all losses, claims, damages, costs, expenses (including, without limitation, counsel fees and expenses), liabilities or judgments or amounts that are paid in settlement with payments (provided Parent and the approval of the indemnifying party (Surviving Corporation have approved such settlement, which approval shall not be unreasonably be withheld) or liabilities arising out of or in connection with any claim, demand, action, suit, proceeding, case proceeding or investigation (a "ActionClaim") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, an officer or employee director of the Company or any Subsidiary, of its subsidiaries whether or not pertaining to any matter existing or occurring at or prior to the Effective Time and whether or not asserted or claimed prior to, to or at or after the Effective Time ("Indemnified Liabilities") to the fullest extent permitted by applicable law and (ii) all Indemnified Liabilities based in whole or in part on, on or arising in whole or in part out of or in connection with pertaining to this Agreement, the Merger Agreement or any of the transactions contemplated hereby or therebyhereby, in each case to the fullest extent a corporation is required or permitted under applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC and or under the Surviving EntityCorporation's Certificate of Incorporation or bylaws. The parties hereto intend, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated not prohibited by applicable law, that the indemnification provided for in this Section 4.11 shall apply without limitation to negligent acts or omissions by an Indemnified Person. Without limiting Parent hereby guarantees the foregoing, if payment and performance of the Surviving Corporation's obligations in this Section 4.11. Each Indemnified Person is intended to be a third party beneficiary of this Section 4.11 and may specifically enforce its terms. This Section 4.11 shall not limit or otherwise adversely affect any such claim, action, suit, proceeding or investigation is commenced or instituted against rights any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties Person may retain counsel satisfactory to them and have under any agreement with the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither under the Company, CSLC nor the Surviving Entity shall be liable for any settlement 's Certificate of any claim effected without its written consent Incorporation or Bylaws.
(which consent shall not unreasonably be withheld). b) Any Indemnified Party electing wishing to claim indemnification under this Section 5.94.11, upon learning of any such ActionClaim, shall promptly notify the Company, CSLC or Parent and the Surviving Entity of such election Corporation (but although the failure so to notify Parent and the Company Surviving Corporation shall not relieve it Parent and the Surviving Corporation from any liability which it Parent and the Surviving Corporation may have under this Section 5.9, 4.11 except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights Parent and defenses as a result of such failurethe Surviving Corporation), and shall deliver to the Company (or after the Effective Time, to CSLC Parent and the Surviving Entity) Corporation the undertaking as contemplated by applicable lawSection 145 of the DGCL. The Indemnified Parties as a group may shall retain only one law firm of legal counsel (in addition to local counsel) to represent them with respect to each such matter unless (i) there is, under applicable standards of professional conductconduct (as determined by counsel to the Indemnified Parties), a conflict in respect of any significant issue or potential conflict between the positions of any two or more Indemnified Parties, or (ii) an Indemnified Party reasonably concludes (based upon advice of counsel) that there may be legal defenses available to the Indemnified Party that are different from or in addition to those available to the other Indemnified Parties, in which events, such additional counsel as may be required may be retained by the Indemnified Parties.
(bc) For a period of seven Parent shall cause the Surviving Corporation to maintain in effect for not less than six (6) years after from the Effective Time, CSLC shall cause to be maintained in effect Time the current policies of the directors' and officers' liability and fiduciary insurance most recently maintained by the Company and its Subsidiaries with aggregate liability coverage not less than the coverage provided by the insurance most recently maintained by the Company (provided that CSLC the Surviving Corporation may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageousadvantageous to the beneficiaries thereof so long as such substitution does not result in gaps or lapses in coverage) with respect to claims arising from facts or events which occurred before matters occurring prior to the Effective Time to the extent available on commercially reasonable termsTime; provided, however, that CSLC in satisfying its obligation under this Section, the Surviving Corporation shall not be obligated to incur pay premiums in excess of $400,000 150% of the amount per annum incurred by the Company in the aggregate under this Section 5.9(b)twelve months ended December 31, 1997 with respect to such insurance, which amount has been disclosed to Parent.
(cd) The provisions In the event the Surviving Corporation or its successor (i) is consolidated with or merges into another person and is not the continuing or surviving corporation or entity of such consolidation or merger or (ii) transfers all or substantially all of its properties and assets to any other person in a single transaction or a series of related transactions, then in each such case Parent shall make or cause to be made proper provision so that the successor or transferee of the Surviving Corporation shall comply in all material respect with the terms of this Section 5.9 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representatives4.11.
Appears in 2 contracts
Samples: Merger Agreement (Technitrol Inc), Merger Agreement (Gti Corp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Without limiting any additional rights that any current or former manager, director, officer, trustee, member, employee, agent or fiduciary may have under any indemnification agreement or under the Company shallCharter, and the Company Bylaws or, if applicable, comparable Organizational Documents of Hermes Sub I or any Company Subsidiary, from and after the Second Merger Effective TimeTime until the sixth (6th) anniversary of the Closing Date, CSLC and Parent shall cause the Surviving Entity shall, indemnify, defend surviving corporation in the First Merger to: (i) indemnify and hold harmless each person who is nowat the date hereof, was previously, or at any time prior to during the period from the date hereof has been or who becomes prior to through the date of the Second Merger Effective Time, an serving as a manager, director, officer, director trustee, member, employee, agent or employee fiduciary, in each case to the extent such persons are otherwise entitled to indemnification pursuant to the terms of the Organizational Documents of Company, Xxxxxx Sub I or any of the Company Subsidiaries as in effect on the date hereof, of Company, Hermes Sub I or any of its the Company Subsidiaries and acting in such capacity (collectively, the "“Indemnified Parties"”) from to the fullest extent authorized or permitted by applicable Law as now or hereafter in effect against any fees, costs or expenses (including attorneys’ and against (i) all consultants’ fees and expenses), amounts paid in settlement, judgments, fines, losses, claims, damages, costs, expenses, damages or liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or incurred in connection with any claimwith, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or otherwise related to any actual or alleged Action or any investigation, defense, preparation thereof or participation therein, in connection with with, arising out of or otherwise related to matters existing or occurring or alleged to have occurred prior to or at the fact Second Merger Effective Time, including any such Action arising out of or pertaining to (x) matters that relate to such Indemnified Party’s duties or service as a manager, director, officer, trustee, member, employee, agent or fiduciary of Company, Xxxxxx Sub I or any of the Company Subsidiaries or, to the extent such person is or was a directorserving at the request or for the benefit of Company, officer Hermes Sub I or employee any of the Company Subsidiaries, any other entity or any SubsidiaryBenefit Plan maintained by any of the foregoing at or prior to the Second Merger Effective Time and (y) this Agreement or any of the transactions contemplated hereby, whether pertaining including the Mergers, the consideration and approval thereof and the process undertaken in connection therewith; and (ii) promptly pay on behalf of or advance to each of the Indemnified Parties, in each case to the extent such persons are otherwise entitled to payment or advancement of expenses pursuant to the terms of the Organizational Documents of Company, Hermes Sub I and the Company Subsidiaries as in effect on the date hereof in connection with, arising out of or otherwise related to any matter such actual or alleged Action, in connection with, arising out of or otherwise related to matters existing or occurring or alleged to have occurred prior to or at the Second Merger Effective Time. The indemnification and advancement obligations of the surviving corporation in the First Merger pursuant to this Section 7.5(a) shall be limited to acts or omissions occurring at or before the Second Merger Effective Time and any Action relating thereto (including with respect to any acts or omissions occurring in connection with the approval of this Agreement, the Mergers and the consummation of the other transactions contemplated by this Agreement, including the consideration and approval thereof and the process undertaken in connection therewith and any claim relating thereto), and all rights to indemnification and advancement conferred hereunder shall continue as to a person who has ceased to be a manager, director, officer, trustee, member, employee, agent or fiduciary of Company, Xxxxxx Sub I or any of the Company Subsidiaries after the date hereof and shall inure to the benefit of such person’s heirs, executors and personal and legal representatives. Parent hereby agrees that any indemnification agreement between Company and any director or officer of Company shall entitle such director or officer to indemnification and advancement of expenses in connection with such director’s or officer’s service as director or officer of Hermes Sub 1 to the same extent as such director or officer is entitled to indemnification and advancement of expenses as a director or officer of Company under such indemnification agreement.
(b) Without limiting the foregoing, the surviving corporation in the First Merger agrees that all rights to indemnification and exculpation from liabilities for acts or omissions occurring at or prior to the Second Merger Effective Time now existing in favor of the current or former managers, directors, officers, trustees, members, employees, agents or fiduciaries or other Indemnified Parties as provided in the Organizational Documents and whether asserted the indemnification agreements of Company, Hermes Sub I and any applicable Company Subsidiaries shall survive the Second Merger and shall continue in full force and effect in accordance with their terms. For a period of six (6) years following the Second Merger Effective Time, the Organizational Documents of the surviving corporation in the First Merger and of any applicable Subsidiary of the surviving corporation in the First Merger shall contain provisions no less favorable with respect to indemnification and limitations on liability of directors and officers than are set forth in the Organizational Documents of Company, Hermes Sub I or claimed prior toany applicable Company Subsidiary, at which provisions shall not be amended, repealed or otherwise modified for a period of six (6) years following the Second Merger Effective Time in any manner that would affect adversely the rights of the applicable Indemnified Parties thereunder, unless such modification shall be required by applicable Law and then only to the minimum extent required by applicable Law.
(c) For a period of six (6) years after the Second Merger Effective Time ("Indemnified Liabilities") Time, the surviving corporation in the First Merger shall maintain in effect Company’s current directors’ and (ii) all Indemnified Liabilities based in whole or in part onofficers’ liability insurance covering each Person covered, or arising in whole or in part out on the date of or in connection with this Agreement, by Company’s directors’ and officers’ liability insurance policy for acts or omissions occurring prior to and through the Second Merger or any of the transactions contemplated hereby or thereby, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time); provided, that in lieu of such obligation, (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist surviving corporation in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC First Merger may substitute therefor policies of at least an insurance company with the same or better rating as Company’s current insurance carrier the material terms of which, including coverage and amounts containing terms and conditions which amount, are no less advantageous) with favorable in any material respect to claims arising such directors and officers than Company’s existing policies as of the date hereof or (ii) at Parent’s election, Company will obtain extended reporting period coverage under Company’s existing insurance programs (to be effective as of the Second Merger Effective Time) or purchase a “tail” policy for a period of six (6) years from facts or events which occurred before the Second Merger Effective Time for a cost not in excess of the Maximum Amount (as defined below); and provided, further, that in no event shall the surviving corporation in the First Merger be required to pay annual premiums for insurance under this Section 7.5(c) in excess of 300% of the most recent annual premiums paid by Company prior to the extent available on commercially reasonable terms; provideddate of this Agreement for such purpose (the “Maximum Amount”), howeverit being understood that if the annual premiums of such insurance coverage exceed such amount, that CSLC the surviving corporation in the First Merger shall nevertheless be obligated to provide such coverage as may be obtained for such Maximum Amount.
(d) If the surviving corporation in the First Merger or its successors or assigns (i) consolidates with or merges with or into any other Person and shall not be obligated the continuing or surviving corporation, partnership or other entity of such consolidation or merger or (ii) liquidates, dissolves or winds-up, or transfers or conveys all or substantially all of its properties and assets to incur any Person, then, and in excess each such case, proper provision shall be made so that the successors and assigns of $400,000 the surviving corporation in the aggregate under First Merger shall assume the obligations set forth in this Section 5.9(b7.5(d).
(ce) The surviving corporation in the First Merger shall pay all reasonable expenses, including reasonable attorneys’ fees, that may be incurred by any Indemnified Party in enforcing the indemnity and other obligations provided in this Section 7.5(e); provided, that such Indemnified Party provides an undertaking to repay such expenses if it is determined by a final and non-appealable judgment of a court of competent jurisdiction that such Person is not legally entitled to indemnification under Law.
(f) The provisions of this Section 5.9 7.5 are intended to be for the express benefit of, and shall be enforceable by, each Indemnified PartyParty (who are intended third party beneficiaries of this Section 7.5), his or her heirs and his or her personal representatives, shall be binding on all successors and assigns of Parent, Company and the surviving corporation in the First Merger and shall not be amended in a manner that is adverse to the Indemnified Party (including his or her successors, assigns and heirs) without the prior written consent of the Indemnified Party (including such successors, assigns and heirs) affected thereby. The exculpation and indemnification provided for by this Section 7.5 shall not be deemed to be exclusive of any other rights to which an Indemnified Party is entitled, whether pursuant to applicable Law, contract or otherwise.
Appears in 2 contracts
Samples: Merger Agreement (Regency Centers Lp), Merger Agreement (Urstadt Biddle Properties Inc)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallIn the event of any threatened or actual claim, and from and after the Effective Timeaction, CSLC and the Surviving Entity shallsuit, indemnifyproceeding or investigation, defend and hold harmless each person whether civil, criminal or administrative, including, without limitation, any such claim, action, suit, proceeding or investigation in which any individual who is now, or has been at any time prior to the date hereof has been of this Agreement, or who becomes prior to the Effective Time, an officer, a director or officer or employee of CAVB or any of its Subsidiaries, or who is or was serving at the Company request of CAVB or any of its Subsidiaries as a director, officer, employee or agent of another person, including any entity specified in the CAVB Disclosure Schedule (the "Indemnified Parties") from and against (i) all losses), claimsis, damagesor is threatened to be, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying made a party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that he is or was a director, officer or employee of CAVB or any of its Subsidiaries or any entity specified in connection with the CAVB Disclosure Schedule or any of their respective predecessors or (ii) this Agreement, the Merger Agreement or any of the transactions contemplated hereby hereby, whether in any case asserted or therebyarising before or after the Effective Time, in each case the parties hereto agree to cooperate and use their best efforts to defend against and respond thereto. It is understood and agreed that after the Effective Time, PNFP shall indemnify and hold harmless, as and to the fullest extent a corporation is permitted under applicable law to indemnify its own directorsby law, officers each such Indemnified Party against any losses, claims, damages, liabilities, costs, expenses (including reasonable attorney's fees and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action claim, suit, proceeding or proceeding investigation to each Indemnified Party to the fullest extent permitted under applicable by law upon receipt of any undertaking contemplated required by applicable law. Without limiting the foregoing), if judgments, fines and amounts paid in settlement in connection with any such threatened or actual claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Partiesinvestigation.
(b) For PNFP shall use its reasonable best efforts to cause the individuals serving as officers and directors of CAVB, its Subsidiaries or any entity specified in the CAVB Disclosure Schedule immediately prior to the Effective Time to be covered for a period of seven six (6) years after from the Effective TimeTime (or the period of the applicable statute of limitations, CSLC shall cause to be maintained in effect if longer) by the current policies of directors' and officers' liability insurance policy maintained by the Company and its Subsidiaries CAVB (provided that CSLC PNFP may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no not less advantageousadvantageous than such policy) with respect to claims arising from facts acts or events which occurred before omissions occurring prior to the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur which were committed by such officers and directors in excess of $400,000 in the aggregate under this Section 5.9(b)their capacity as such.
(c) In the event PNFP or any of its successors or assigns (i) consolidates with or merges into any other person and shall not be the continuing or surviving corporation or entity of such consolidation or merger, or (ii) transfers or conveys all or substantially all of its properties and assets to any person, then, and in each such case, to the extent necessary, proper provision shall be made so that the successors and assigns of PNFP assume the obligations set forth in this Section 6.8.
(d) The provisions of this Section 5.9 6.8 shall survive the Effective Time and are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives.
Appears in 2 contracts
Samples: Merger Agreement (Cavalry Bancorp Inc), Merger Agreement (Pinnacle Financial Partners Inc)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective Time, CSLC and in the Surviving Entity shallevent of any claim, indemnifyaction, defend and hold harmless each suit, proceeding or investigation, whether civil, criminal or administrative, including, without limitation, any such claim, action, suit, proceeding or investigation in which any person who is now, or has been at any time prior to the date hereof has been of this Agreement, or who becomes prior to the Effective Time, an officera director, director officer or employee of the Company Dime or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all lossesis, claimsor is threatened to be, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying made a party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that he is or was a director, officer or employee of Dime, any of its Subsidiaries or any of their respective predecessors or was prior to the Effective Time serving at the request of any such party as a director, officer, employee, fiduciary or agent of another corporation, partnership, trust or other enterprise (a list of which directors, officers and employees of Dime or any of its Subsidiaries who as of the date of this Agreement are serving in connection any such capacity with another corporation, trust, partnership, trust or other enterprise is set forth in Section 7.8(a) of the Dime Disclosure Schedule) or (ii) this Agreement, the Merger or any of the transactions contemplated hereby and all actions taken by an Indemnified Party in connection herewith, whether in any case asserted or therebyarising before or after the Effective Time, in each case Washington Mutual shall indemnify and hold harmless, as and to the fullest extent a corporation is permitted under by applicable law to indemnify its own directorslaw, officers each such Indemnified Party against any losses, claims, damages, liabilities, costs, expenses (including reasonable attorneys' fees and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action claim, suit, proceeding or proceeding investigation to each Indemnified Party to the fullest extent permitted under applicable by law upon receipt of an undertaking, to the extent required by law, from such Indemnified Party to repay such advanced expenses if it is determined by a final and non-appealable judgment of a court of competent jurisdiction that such Indemnified Party was not entitled to indemnification hereunder), judgments, fines and amounts paid in settlement in connection with any undertaking contemplated by applicable lawsuch threatened or actual claim, action, suit, proceeding or investigation). Without limiting the foregoingAny Indemnified Party wishing to claim indemnification under this Section 7.8, if upon learning of any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time)investigation, (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matternotify Washington Mutual thereof, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent failure to so notify shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification affect the obligations of Washington Mutual under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election 7.8 except (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except and only) to the extent such failure to notify materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified PartiesWashington Mutual.
(b) For Without limiting any of the obligations under paragraph (a) of this Section 7.8, Washington Mutual agrees that all rights to indemnification and all limitations of liability existing in favor of the Indemnified Parties as provided in Dime's Certificate of Incorporation or Bylaws or in the corresponding constituent documents of any of Dime's Subsidiaries as in effect as of the date of this Agreement with respect to matters occurring on or prior to the Effective Time shall survive the Merger and shall continue in full force and effect thereafter, without any amendment thereto; provided, however, that nothing contained in this Section 7.8(b) shall be deemed to preclude the liquidation, consolidation or merger of Dime or any Subsidiary thereof, in which case all of such rights to indemnification and limitations on liability shall be deemed to so survive and continue notwithstanding any such liquidation, consolidation or merger and shall constitute rights which may be asserted against Washington Mutual. Nothing contained in this Section 7.8(b) shall be deemed to preclude any rights to indemnification or limitations on liability provided in Washington Mutual's Articles of Incorporation or Bylaws or the similar governing documents of any of Washington Mutual's Subsidiaries with respect to matters occurring subsequent to the Effective Time to the extent that the provisions establishing such rights or limitations are not otherwise amended to the contrary.
(c) Washington Mutual shall use its best efforts to cause the persons serving as officers and directors of Dime immediately prior to the Effective Time to be covered for a period of seven six (6) years after from the Effective Time, CSLC shall cause to be maintained in effect Closing Date by the current policies of directors' and officers' liability insurance policy or policies maintained by the Company and its Subsidiaries Washington Mutual (provided that CSLC may substitute therefor Washington Mutual's policy or policies of provide at least the same coverage and amounts containing terms and conditions which are in the aggregate no less advantageousadvantageous to such directors and officers of Dime than the terms and conditions of the existing directors' and officers' liability insurance policy of Dime, and provided further that in no event will Washington Mutual be required to expend in any one year an amount in excess of 200% of the annual premiums currently paid by Dime for such insurance (the "Insurance Amount"), and further provided, that if Washington Mutual is unable to maintain or obtain the insurance called for by this Section 7.8(c) as a result of the preceding proviso, Washington Mutual shall use its reasonable best efforts to obtain as much comparable insurance as available for the Insurance Amount) with respect to claims arising from facts acts or events which occurred before omissions occurring prior to the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur which were committed by such officers and directors in excess of $400,000 in the aggregate under this Section 5.9(b).
(c) their capacity as such. The provisions of this Section 5.9 7.8 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives.
Appears in 2 contracts
Samples: Merger Agreement (Washington Mutual Inc), Merger Agreement (Dime Bancorp Inc)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective Time, CSLC and in the Surviving Entity shallevent of any threatened or actual claim, indemnifyaction, defend and hold harmless each suit, proceeding or investigation, whether civil, criminal or administrative, in which any person who is now, or has been at any time prior to the date hereof has been of this Agreement, or who becomes prior to the Effective Time, an officer, a director or employee officer of the Company SIB or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all lossesis, claimsor is threatened to be, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying made a party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that he is or was a director or officer of SIB, any of its Subsidiaries or any of their respective predecessors or was prior to the Effective Time serving at the request of any such party as a director, officer, employee, fiduciary or agent of another corporation, partnership, trust or other enterprise (a list of which with respect to the directors and officers of SIB or any of its Subsidiaries as of the date of this Agreement is set forth in connection with Section 7.8(a) of the SIB Disclosure Schedule) or (ii) this Agreement, the Merger or any of the transactions contemplated hereby and all actions taken by an Indemnified Party in connection herewith, whether in any case asserted or therebyarising before or after the Effective Time, in each case ICBC shall indemnify and hold harmless, as and to the fullest extent a corporation is permitted under applicable law to indemnify its own directorsprovided in the certificate of incorporation and bylaws of SIB as in effect on the date of this Agreement, officers each such Indemnified Party against any losses, claims, damages, liabilities, costs, expenses (including reasonable attorneys' fees and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action claim, suit, proceeding or proceeding investigation to each Indemnified Party to the fullest extent permitted under applicable by law upon receipt of an undertaking, to the extent required by the DGCL, from such Indemnified Party to repay such advanced expenses if it is determined by a final and nonappealable judgment of a court of competent jurisdiction that such Indemnified Party was not entitled to indemnification hereunder), judgments, fines and amounts paid in settlement in connection with any undertaking contemplated by applicable lawsuch threatened or actual claim, action, suit, proceeding or investigation. Without limiting the foregoingAny Indemnified Party wishing to claim indemnification under this Section 7.8, if upon learning of any such claim, action, suit, proceeding or investigation, shall notify ICBC thereof, provided that the failure to so notify shall not affect the obligations of ICBC under this Section 7.8 except (and only) to the extent such failure to notify materially prejudices ICBC. In the event of any such threatened or actual claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether asserted or arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel reasonably satisfactory to them after consultation with ICBC; provided, however, that (A) ICBC shall have the right to assume the defense thereof and upon such assumption ICBC shall not be liable to any Indemnified Party for any legal expenses of other counsel or any other expenses subsequently incurred by any Indemnified Party in connection with the defense thereof, except that if (x) ICBC elects not to assume such defense or (y) counsel for the Indemnified Parties reasonably advises that there are issues which raise conflicts of interest between ICBC and the Company (or Indemnified Parties, then the Indemnified Parties may retain counsel reasonably satisfactory to them after consultation with ICBC, and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) ICBC shall pay all the reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and Parties, (iiiB) the Company ICBC shall in all cases be obligated pursuant to this paragraph to pay for only one firm of counsel (in addition to local counsel) for any action or after the Effective Timegroup of related actions for all Indemnified Parties, CSLC and the Surviving Entity(C) ICBC shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall not be liable for any settlement of any claim effected without its prior written consent (which consent shall not be unreasonably be withheld). Any ) and (D) ICBC shall have no obligation hereunder to any Indemnified Party electing to claim when and if a court of competent jurisdiction shall ultimately determine, and such determination shall have become final and nonappealable, that indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but Indemnified Party in the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking manner contemplated hereby is prohibited by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two law or more Indemnified Partiesregulation.
(b) For a period Nothing contained in Section 7.8(a) or any other provision of seven years this Agreement shall limit any right to indemnification which any current or former director, officer, employee or agent of SIB may have under applicable law or regulation or the SIB's Certificate of Incorporation, Bylaws or the equivalent documents of any Subsidiary of SIB, as applicable, in each case as in effect on the date hereof, which ICBC agrees to honor in accordance with their terms. Without limiting the foregoing, ICBC also agrees that the limitations on liability existing in favor of the Indemnified Parties in SIB's Certificate of Incorporation or the equivalent documents of any SIB Subsidiary as in effect on the date hereof with respect to matters occurring prior to the Effective Time shall survive the Merger and shall continue in full force and effect from and after the Effective Time, CSLC .
(c) ICBC shall use its reasonable best efforts to cause the persons serving as officers and directors of SIB immediately prior to the Effective Time to be maintained in effect covered for a period of six (6) years from the current policies of Closing Date by the directors' and officers' liability insurance policy or policies maintained by the Company and its Subsidiaries ICBC (provided that CSLC may substitute therefor ICBC's policy or policies of provide at least the same coverage and amounts containing terms and conditions which are in the aggregate not materially less advantageous to such directors and officers of SIB than the terms and conditions of the existing directors' and officers' liability insurance policy of SIB, and provided further that in no less advantageousevent will ICBC be required to expend in any one year an amount in excess of 200% of the annual premiums currently paid by SIB for the insurance covering the officers and directors of SIB (the "Insurance Amount"), and provided, further, that if ICBC is unable to maintain or obtain the insurance called for by this Section 7.8(c) as a result of the preceding proviso, ICBC shall use its reasonable best efforts to obtain as much comparable insurance as available for the Insurance Amount) with respect to claims arising from facts acts or events which occurred before omissions occurring prior to the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur which were committed by such officers and directors in excess of $400,000 in the aggregate under this Section 5.9(b)their capacity as such.
(cd) The provisions of this Section 5.9 7.8 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives.
(e) If ICBC or any of its successors or assigns shall consolidate with or merge into any other entity and shall not be the continuing or surviving entity of such consolidation or merger shall transfer all or substantially all of its assets to any other entity, then and in each case, proper provision shall be made so that the successors and assigns of ICBC shall assume the obligations set forth in this Section 7.8.
Appears in 2 contracts
Samples: Merger Agreement (Staten Island Bancorp Inc), Merger Agreement (Independence Community Bank Corp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from and after the Effective Time, CSLC and the Surviving Entity shall, indemnify, defend and hold harmless each person who is now, or at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, director or employee of the Company or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of or in connection with this Agreement, the Merger or any of the transactions contemplated hereby or thereby, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, as the case may be be, and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.95.10, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.95.10, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur in excess of $400,000 in the aggregate under this Section 5.9(b).
(c) The provisions of this Section 5.9 5.10 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representatives.
Appears in 2 contracts
Samples: Merger Agreement (Capital Senior Living Corp), Merger Agreement (Ilm Ii Senior Living Inc /Va)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective Time, CSLC Parent and the Surviving Entity shall, Corporation shall jointly and severally indemnify, defend and hold harmless each person who is now, or has been at any time prior to the date hereof has been of this Agreement or who becomes prior to the Effective TimeTime a director, an officer, director employee or employee agent of the Company or any of its Subsidiaries (when acting in such capacity) (each individually an "Indemnified Party", and collectively, the "Indemnified ----------------- ----------- Parties") from ), against any costs or expenses (including reasonable attorneys' fees ------- and against (i) all expenses), judgments, settlement amounts, fines, losses, claims, damagesdemands, costsdamages or liabilities (collectively, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld"Costs") of or incurred in connection with any ----- claim, action, suit, proceedingproceeding or investigation, case whether civil, criminal or investigation administrative (each, a "ActionClaim") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter matters existing or occurring at or ----- prior to or after the Effective Time and Time, whether threatened, asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities Time, which is based in whole or in part on, or arising in whole or in part out of the fact that such person is or in connection with this Agreement, was a director (including as a member of the Merger Special Committee) or officer of the Company or any of its Subsidiaries including, without limitation, all Costs based in whole or in part on, or arising in whole or in part out of, or pertaining to this Agreement or the transactions contemplated hereby or therebyhereby, in each case including the Offer and the Merger, to the fullest extent a corporation is that the Company would have been permitted under applicable law the DGCL and its certificate of incorporation, bylaws and other agreements in effect on the date hereof to indemnify its own directorssuch individual. Parent shall, officers and employees, as or shall cause the case may be and CSLC and Company (or the Surviving EntityCorporation after the Effective Time) to, as the case may be, shall pay expenses all Costs in advance of the final disposition of any such action or proceeding Claim to each Indemnified Party to the fullest extent permitted under applicable law upon provided in the Company's certificate of incorporation or bylaws as in effect on the date hereof, subject to receipt by Parent or the Company (or the Surviving Corporation after the Effective Time) of any an undertaking by or on behalf of such Indemnified Party contemplated by applicable lawSection 145(e) of the DGCL. Without limiting the generality or effect of the foregoing, if in the event any such claim, action, suit, proceeding or investigation Claim is commenced or instituted brought against any Indemnified Party (whether arising before or after the Effective Time)) and, (i) in the opinion of counsel to an Indemnified Party, under applicable standards of professional conduct, there is a conflict on any significant issue between the position of the Company and an Indemnified Party, the Indemnified Parties may retain counsel of their choice, which counsel shall be reasonably satisfactory to them Parent and the Company (or satisfactory the Surviving Corporation after the Effective Time) (it being understood that Xxxxx, Xxxxxxx & Xxxxxxxxx, LLP is acceptable to them Parent and CSLC the Company (and the Surviving Entity Corporation after the Effective Time); (ii) ), and Parent shall, or shall cause the Company (or the Surviving Corporation after the Effective Time) to, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may not retain only more than one law firm of legal counsel (in addition to local counsel) to represent them with respect to each such matter unless there is, in the opinion of counsel to an Indemnified Party, under applicable standards of professional conduct, a conflict in respect of on any significant issue between the positions of any two or more Indemnified Parties. The Company, Parent and the Merger Sub (or the Surviving Corporation after the Effective Time) agree that all rights to indemnification, including provisions relating to advances of Costs incurred with respect to matters occurring through the Effective Time, shall survive six years from the Effective Time; provided, however, that all rights to indemnification in respect of any Claim asserted or made within such period shall continue until the disposition of such Claim.
(b) For a period Any Indemnified Party wishing to claim indemnification under subsection (a) of seven years this Section 6.l0, upon learning of any such Claim, shall promptly notify Parent and the Surviving Corporation thereof (but the failure so to notify Parent and the Surviving Corporation shall not relieve them from any liability which they may have under this Section 6.10 except to the extent such failure materially prejudices such party). In the event of any such Claim (whether arising before or after the Effective Time), CSLC Parent and the Surviving Corporation shall cause have the right to assume the defense of any Claim for which an Indemnified Party is entitled to indemnification under subsection (a) of this Section 6.10 with counsel reasonably acceptable to such Indemnified Party (which right shall not affect the right of the Indemnified Parties to be maintained reimbursed for fees and expenses of separate counsel under the circumstances specified in effect Section 6.10(a)). Except as otherwise provided in this Section 6.10, neither the Parent nor the Surviving Corporation shall be liable to any such Indemnified Party for any legal expenses of other counsel or any other expenses incurred by such Indemnified Party in connection with the defense thereof after either the Parent or the Surviving Corporation, as the case may be, have assumed the defense of such Claim. The Indemnified Party will cooperate in all respects as reasonably requested by Parent or the Surviving Corporation, as the case may be, in the defense of any such matter and in connection therewith, shall be entitled to reimbursement by Parent of reasonable expenses incurred in connection therewith on a current policies basis. Neither Parent nor the Surviving Corporation, as the case may be, shall have any obligation hereunder to any Indemnified Party if and when a court shall ultimately determine, and such determination shall have become final and nonappealable, that the indemnification of such Indemnified Party in the manner contemplated by this Section 6.10 is prohibited by law. If such indemnity is not available with respect to any Indemnified Party, then Parent, the Company and the Merger Sub (or the Surviving Corporation after the Effective Date), on the one hand, and the Indemnified Party, on the other hand, shall contribute to the amount payable in such proportion as is appropriate to reflect relative faults and benefits.
(c) The Company shall purchase, and Parent shall reimburse the Company at the Closing for the fully prepaid premium expense incurred for "Prior Acts" Directors' & Officers' Liability Insurance to be effective with the signing of this Agreement. It is agreed the policy term will be for six years from the date of this Agreement without restriction as to when any alleged or actual wrongful acts or omissions may have occurred up to and including the date of sale of the FD Shares to Merger Sub pursuant to the Offer. The policy limits combining both coverage agreements A & B (individual directors & officers liability insurance and corporate reimbursement coverage) will be no less than $25 million limits for the policy term with no more than a $250,000 deductible for coverage B (corporate reimbursement coverage). The corporate reimbursement coverage part is to be extended to provide indemnity to the Company, FD and Parent for their obligations, if any, to indemnify the individual directors and officers of the Company, including its predecessor or successor names, if any, for the Company directors' and officers' actual or alleged acts, errors or omissions committed prior to or on the date of sale of the FD Shares to Merger Sub. Other terms and conditions are to be no less advantageous to the intended beneficiaries thereof than FD's existing directors' and officers' liability coverage. This insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect policy is also to claims arising from facts be primary to any other insurance or events which occurred before the Effective Time indemnity obligation owed to the extent available on commercially reasonable terms; providedindividuals from any of the parties to this Agreement. The Company shall not, howeverwithout prior written consent of Parent, that CSLC shall not purchase such coverage if the total cost of the coverage exceeds $200,000. This insurance is to be obligated to incur in excess noncancellable except for the nonpayment of $400,000 in premium or the aggregate under this Section 5.9(b)ultimate failure of the FD Shares being purchased by Merger Sub.
(cd) The provisions of this Section 5.9 6.10 are intended to be for the benefit of, and shall be enforceable by, each of the Indemnified Party, his Parties and their respective heirs and his representativesestates. Nothing in this Section 6.10 shall limit in any way any other rights to indemnification that any current or former director or officer of the Company or any of its Subsidiaries may have by contract or otherwise.
(e) Without limiting the effect of subsections (a) or (c) of this Section 6.10, from and after the Effective Time, the Surviving Corporation shall fulfill, assume and honor in all respects the obligations of the Company or any of its Subsidiaries pursuant to the Company's or any of its Subsidiaries certificate of incorporation, bylaws and any indemnification agreement between the Company or any of its Subsidiaries which is set forth on Schedule 6.10 and ------------- any of their respective directors and officers existing and in force as of the Effective Time. The Surviving Corporation agrees that the indemnification obligations set forth in the Company's certificate of incorporation and bylaws, in each case as of the date of this Agreement, shall survive the Merger (and, as of or prior to the Effective Time, Parent shall cause the bylaws of Merger Sub to reflect such provisions). No subsequent amendment of the provisions of the bylaws of the Surviving Corporation shall affect the indemnification obligations of Parent or the Surviving Corporation in any manner that would adversely affect the rights of the Indemnified Parties under this Section 6.10.
(f) If Parent or the Surviving Corporation or any of its successors or assigns (i) shall consolidate with or merge into any other Person and shall not be the continuing or surviving corporation or Person of such consolidation or merger or (ii) shall transfer all or substantially all of its properties and assets to any Person, then and in each such case, proper provisions shall be made so that the successors and assigns of the Parent and Surviving Corporation shall assume all of the obligations set forth in this Section 6.10.
Appears in 2 contracts
Samples: Merger Agreement (International Technology Corp), Merger Agreement (Fluor Daniel Gti Inc)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallIn the event of any threatened or actual claim, and from and after the Effective Timeaction, CSLC and the Surviving Entity shallsuit, indemnifyproceeding or investigation, defend and hold harmless each whether civil, criminal or administrative, including, without limitation, any such claim, action, suit, proceeding or investigation in which any person who is now, or has been at any time prior to the date hereof has been of this Agreement, or who becomes prior to the Effective Time, an officer, a director or employee officer of the Company CBI or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all lossesis, claimsor is threatened to be, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying made a party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that he is or was a director or officer of CBI, any of the CBI Subsidiaries or in connection with any of their respective predecessors or (ii) this Agreement, the Merger CBI Option Agreement, or any of the transactions contemplated hereby or thereby, whether in each any case asserted or arising before or after the Effective Time, the parties hereto agree to cooperate and use their best efforts to defend against and respond thereto. It is understood and agreed that after the Effective Time, Bancorp shall indemnify and hold harmless, as and to the fullest extent a corporation is permitted under applicable law to indemnify its own directorsby law, officers each such Indemnified Party against any losses, claims, damages, liabilities, costs, expenses (including reasonable attorney's fees and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action claim, suit, proceeding or proceeding investigation to each Indemnified Party to the fullest extent permitted under applicable by law upon receipt of any undertaking required by applicable law), judgments, fines and amounts paid in settlement in connection with any such threatened or actual claim, action, suit, proceeding or investigation and in the event of any such threatened or actual claim, action, suit, proceeding, or investigation (whether asserted or arising before or after the Effective Time), the Indemnified Parties may retain counsel reasonably satisfactory to them after consultation with Bancorp; provided, however, that (1) Bancorp shall have the right to assume the defense thereof and upon such assumption Bancorp shall not be liable to any Indemnified Party for any legal expenses of other counsel or any other expenses subsequently incurred by any Indemnified Party in connection with the defense thereof, except that if Bancorp elects not to assume such defense or counsel for the Indemnified Parties reasonably advises the Indemnified Parties that there are issues which raise conflicts of interest between Bancorp and the Indemnified Parties, the Indemnified Parties may retain counsel reasonably satisfactory to them after consultation with Bancorp, and Bancorp shall pay the reasonable fees and expenses of such counsel for the Indemnified Parties, (2) Bancorp shall be obligated pursuant to this paragraph to pay for only one firm of counsel for all Indemnified Parties, unless an Indemnified Party shall have reasonably concluded, based on the advice of counsel, that in order to be adequately represented, separate counsel is necessary for such Indemnified Party, in which case, Bancorp shall be obligated to pay for such separate counsel, (3) Bancorp shall not be liable for any settlement effected without its prior written consent (which consent shall not be unreasonably withheld) and (4) Bancorp shall have no obligation hereunder to any Indemnified Party when and if a court of competent jurisdiction shall ultimately determine, and such determination shall have become final and nonappealable, that indemnification of such Indemnified Party in the manner contemplated hereby is prohibited by applicable law. Without limiting the foregoingAny Indemnified Party wishing to claim Indemnification under this Section 6.8, if upon learning of any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time)investigation, (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matternotify Bancorp thereof, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent failure to so notify shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification affect the obligations of Bancorp under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, 6.8 except to the extent such failure to notify materially prejudices it or if it otherwise forfeits substantive rights Bancorp. Bancorp's obligations under this Section 6.8 continue in full force and defenses as effect for a result period of such failure), and shall deliver to the Company six (or after 6) years from the Effective Time; provided, however, that all rights to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict indemnification in respect of any significant issue between claim (a "Claim") asserted or made within such period shall continue until the positions final disposition of such Claim and provided further that Bancorp shall have the right of set-off against any two or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause payments required to be maintained in effect made by Bancorp to an Indemnified Party pursuant to this Section 6.8(a) to the current policies of extent that such Indemnified Party shall have received the indemnification to which such Indemnified Party is entitled from an insurer under a directors' and officers' liability insurance policy maintained by CBI or Bancorp. Notwithstanding the Company foregoing provisions of this Section 6.8(a), Bancorp shall have no obligation to indemnify the Indemnified Parties (or advance expenses to them) except to the extent they would be entitled to such indemnification (or advance) under the provisions of Bancorp's Articles of Incorporation or Bylaws or any agreement to which Bancorp is a party as in effect on the date of this Agreement if such Indemnified Parties had been officers or directors of Bancorp at the time of the event giving rise to such indemnification.
(b) Bancorp shall use its best efforts to cause the persons serving as officers and its Subsidiaries directors of CBI immediately prior to the Effective Time to be covered for a period of six (6) years from the Effective Time by the directors' and officers' liability insurance policy maintained by Bancorp, if any (provided that CSLC Bancorp may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which that are no not less advantageousadvantageous than such policy) with respect to claims arising from facts acts or events which occurred before omissions occurring prior to the Effective Time to the extent available on commercially reasonable termswhich were committed by such officers and directors in their capacity as such; provided, however, that CSLC in no event shall not Bancorp be obligated required to incur in excess expend more than 200 percent of $400,000 in the aggregate under current amount expended by CBI (the "Insurance Amount") to maintain or procure insurance coverage pursuant hereto and further provided that if Bancorp is unable to maintain or obtain the insurance called for by this Section 5.9(b6.8(b), Bancorp shall use its best efforts to obtain as much comparable insurance as is available for the Insurance Amount.
(c) In the event Bancorp or any of its successors or assigns (i) consolidates with or merges into any other person and shall not be the continuing or surviving corporation or entity of such consolidation or merger, or (ii) transfers or conveys all or substantially all of its properties and assets to any person, then, and in each such case, to the extent necessary, proper provision shall be made so that the successors and assigns of Bancorp assume the obligations set forth in this section.
(d) The provisions of this Section 5.9 6.8 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives.
Appears in 2 contracts
Samples: Merger Agreement (Us Bancorp /Or/), Merger Agreement (Us Bancorp /Or/)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective Time, CSLC and in the Surviving Entity shallevent of any claim, indemnifyaction, defend and hold harmless each suit, proceeding or investigation, whether civil, criminal or administrative, including, without limitation, any such claim, action, suit, proceeding or investigation in which any person who is now, or has been at any time prior to the date hereof has been of this Agreement, or who becomes prior to the Effective Time, an officer, a director or employee officer of the Company Providian or any of its Subsidiaries (the "“Indemnified Parties"”) from and against (i) all lossesis, claimsor is threatened to be, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying made a party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that he is or was a director, officer or employee of Providian, any of its Subsidiaries or in connection with any of their respective predecessors or was prior to the Effective Time serving at the request of any such party as a director, officer, employee, fiduciary or agent of another corporation, partnership, trust or other enterprise or (ii) this Agreement, the Merger or any of the transactions contemplated hereby and all actions taken by an Indemnified Party in connection herewith, whether in any case asserted or therebyarising before or after the Effective Time, in Washington Mutual shall indemnify and hold harmless each case such Indemnified Party, to the fullest extent a corporation is permitted to which such Indemnified Party would be entitled under applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving EntityBy-Laws of Providian as in effect on the date of this Agreement, as the case may beagainst any losses, shall pay claims, damages, liabilities, costs, expenses (including reasonable attorneys’ fees and expenses in advance of the final disposition of any such action claim, suit, proceeding or proceeding investigation to each Indemnified Party to the fullest extent permitted under applicable by law upon receipt of any undertaking contemplated an undertaking, to the extent required by applicable law, from such Indemnified Party to repay such advanced expenses if it is determined by a final and non-appealable judgment of a court of competent jurisdiction that such Indemnified Party was not entitled to indemnification hereunder), judgments, fines and amounts paid in settlement in connection with any such threatened or actual claim, action, suit, proceeding or investigation. Without limiting the foregoingAny Indemnified Party wishing to claim indemnification under this Section 7.8, if upon learning of any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time)investigation, (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matternotify Washington Mutual thereof, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent failure to so notify shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification affect the obligations of Washington Mutual under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election 7.8 except (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except and only) to the extent such failure to notify materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified PartiesWashington Mutual.
(b) For Without limiting any of the obligations under paragraph (a) of this Section 7.8, Washington Mutual agrees that all rights to indemnification and all limitations of liability existing in favor of the Indemnified Parties as provided in Providian’s Certificate of Incorporation or Bylaws or in the corresponding constituent documents of any of Providian’s Subsidiaries as in effect as of the date of this Agreement with respect to matters occurring on or prior to the Effective Time shall survive the Merger and shall continue in full force and effect thereafter, without any amendment thereto; provided, however, that nothing contained in this Section 7.8(b) shall be deemed to preclude the liquidation, consolidation or merger of Providian or any Subsidiary thereof, in which case all of such rights to indemnification and limitations on liability shall be deemed to so survive and continue notwithstanding any such liquidation, consolidation or merger and shall constitute rights which may be asserted against Washington Mutual.
(c) Washington Mutual shall use its best efforts to cause the persons serving as officers and directors of Providian immediately prior to the Effective Time to be covered for a period of seven six (6) years after from the Effective Time, CSLC shall cause to be maintained in effect Closing Date by the current policies of directors' ’ and officers' ’ liability insurance policy or policies maintained by the Company and its Subsidiaries Providian (provided that CSLC (x) Washington Mutual may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are in the aggregate no less advantageousadvantageous to such directors and officers of Providian than the terms and conditions of the existing directors’ and officers’ liability insurance policy of Providian, and (y) in no event will Washington Mutual be required to expend in any one year an amount in excess of 200% of the annual premiums currently paid by Providian for such insurance (the “Insurance Amount”), and provided further, that if Washington Mutual is unable to maintain or obtain the insurance called for by this Section 7.8(c) as a result of the preceding clause (y), Washington Mutual shall use its reasonable best efforts to obtain as much comparable insurance as available for the Insurance Amount) with respect to claims arising from facts acts or events which occurred before omissions occurring prior to the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur which were committed by such officers and directors in excess of $400,000 in the aggregate under this Section 5.9(b)their capacity as such.
(cd) The provisions of this Section 5.9 7.8 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives.
Appears in 2 contracts
Samples: Merger Agreement (Washington Mutual Inc), Merger Agreement (Providian Financial Corp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallIn the event of any threatened or actual claim, and from and after the Effective Timeaction, CSLC and the Surviving Entity shallsuit, indemnifyproceeding or investigation, defend and hold harmless each person whether civil, criminal or administrative, including, without limitation, any such claim, action, suit, proceeding or investigation in which any individual who is now, or has been at any time prior to the date hereof has been of this Agreement, or who becomes prior to the Effective Time, an officer, a director or officer or employee of the Company BANC ONE, FCN, Newco or any of its Subsidiaries their respective Subsidiaries, including any entity specified in the BANC ONE Disclosure or the FCN Disclosure Schedule (the "Indemnified Parties") from and against (i) all losses), claimsis, damagesor is threatened to be, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying made a party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that he is or was a director, officer or employee of BANC ONE, FCN, Newco any of their respective Subsidiaries or any entity specified in connection with the BANC ONE Disclosure Schedule or the FCN Disclosure Schedule or any of their respective predecessors or (ii) this Agreement, the Merger Option Agreements or any of the transactions contemplated hereby or thereby, whether in each any case asserted or arising before or after the Effective Time, the parties hereto agree to cooperate and use their best efforts to defend against and respond thereto. It is understood and agreed that after the Effective Time, Newco shall indemnify and hold harmless, as and to the fullest extent a corporation is permitted under applicable law to indemnify its own directorsby law, officers each such Indemnified Party against any losses, claims, damages, liabilities, costs, expenses (including reasonable attorney's fees and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action claim, suit, proceeding or proceeding investigation to each Indemnified Party to the fullest extent permitted under applicable by law upon receipt of any undertaking required by applicable law), judgments, fines and amounts paid in settlement in connection with any such threatened or actual claim, action, suit, proceeding or investigation, and in the event of any such threatened or actual claim, action, suit, proceeding or investigation (whether asserted of arising before or after the Effective Time); and Newco, after consultation with an Indemnified Party, shall retain counsel and direct the defense thereof, provided, however, that by virtue of the obligations herein set forth, Newco shall not be liable to any Indemnified Party for any legal expenses of other counsel or any other expenses incurred by any Indemnified Party in connection with the defense thereof, except that if Newco fails or elects not to assume such defense or counsel for the Indemnified Parties reasonably advises the Indemnified Parties that there are issues which raise conflicts of interest between Newco and the Indemnified Parties, the Indemnified Parties may retain counsel reasonably satisfactory to them after consultation with Newco, and Newco shall pay the reasonable fees and expenses of such counsel for the Indemnified Parties, (B) Newco shall be obligated pursuant to this paragraph to pay for only one firm of counsel for all Indemnified Parties, unless an Indemnified Party shall have reasonably concluded, based on the advice of counsel and after consultation with Newco, that in order to be adequately represented, separate counsel is necessary for such Indemnified Party, in which case, Newco shall be obligated to pay for such separate counsel, (C) Newco shall not be liable for any settlement effected without its prior written consent (which consent shall not be unreasonably withheld) and (D) Newco shall have no obligation hereunder to any Indemnified Party when and if a court of competent jurisdiction shall ultimately determine, and such determination shall have become final and nonappealable, that indemnification of such Indemnified Party in the manner contemplated hereby is prohibited by applicable law. Without limiting the foregoingAny Indemnified Party wishing to claim Indemnification under this Section 7.8, if upon learning of any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time)investigation, (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matternotify Newco thereof, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent failure to so notify shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification affect the obligations of Newco under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, 7.8 except to the extent such failure to notify materially prejudices it or if it otherwise forfeits substantive rights Newco. Newco's obligations under this Section 7.8 continue in full force and defenses as effect for a result period of such failure), and shall deliver to six years from the Company Effective Time (or after the Effective Timeperiod of the applicable statute of limitations, if longer); provided, however, that all rights to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict indemnification in respect of any significant issue between claim (a "Claim") asserted or made within such period shall continue until the positions final disposition of any two or more Indemnified Partiessuch Claim.
(b) For BANC ONE (and Newco, from and after the First Effective Time) shall use its best efforts to cause the individuals serving as officers and directors of FCN, its Subsidiaries or any entity specified in the FCN Disclosure Schedule immediately prior to the Effective Time to be covered for a period of seven six (6) years after from the Effective TimeTime (or the period of the applicable statute of limitations, CSLC shall cause to be maintained in effect if longer) by the current policies of directors' and officers' liability insurance policy maintained by the Company and its Subsidiaries FCN (provided that CSLC Newco may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no not less advantageousadvantageous than such policy) with respect to claims arising from facts acts or events which occurred before omissions occurring prior to the Effective Time to the extent available on commercially reasonable termswhich were committed by such officers and directors in their capacity as such; provided, however, that CSLC in no event shall not Newco be obligated required to incur in excess expend more than 200% of $400,000 in the aggregate under current amount expended by FCN (the "Insurance Amount") to maintain or procure insurance coverage pursuant hereto and provided further that if Newco is unable to maintain or obtain the insurance called for by this Section 5.9(b7.8(b), Newco shall use its best efforts to obtain as much comparable insurance as available for the Insurance Amount.
(c) In the event Newco or any of its successors or assigns (i) consolidates with or merges into any other person and shall not be the continuing or surviving corporation or entity of such consolidation or merger, or (ii) transfers or conveys all or substantially all of its properties and assets to any person, then, and in each such case, to the extent necessary, proper provision shall be made so that the successors and assigns of Newco assume the obligations set forth in this section.
(d) The provisions of this Section 5.9 7.8 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives.
Appears in 2 contracts
Samples: Agreement and Plan of Reorganization (Banc One Corp /Oh/), Agreement and Plan of Reorganization (First Chicago NBD Corp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallIn the event of any threatened or actual claim, and from and after the Effective Timeaction, CSLC and the Surviving Entity shallsuit, indemnifyproceeding or investigation, defend and hold harmless each person whether civil, criminal or administrative, including, without limitation, any such claim, action, suit, proceeding or investigation in which any individual who is now, or has been at any time prior to the date hereof has been of this Agreement, or who becomes prior to the Effective Time, an officera director, director LLC manager or employee officer of FTC or any of its Subsidiaries, or who is or was serving at the Company request of FTC or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was as a director, LLC manager, officer or employee agent of another person (the Company “Indemnified Parties”), is, or any Subsidiaryis threatened to be, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities made a party based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that such person is or was a director, LLC manager, or officer of FTC or in connection with any of its Subsidiaries or any of their predecessors or is or was serving at the request of FTC or any of its Subsidiaries or any of their predecessors as a director, LLC manager, officer or agent of another person or (ii) this Agreement, the Merger Agreement or any of the transactions contemplated hereby hereby, whether in any case asserted or therebyarising before or after the Effective Time, the parties hereto agree to cooperate and use their best efforts to defend against and respond thereto as {JX489484.11} PD.35183901.7 provided in each case this Section 6.6(a). From and after the Effective Time, the Surviving Corporation shall indemnify, defend and hold harmless, to the fullest same extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, as the case may Indemnified Parties would have been indemnified under the FTC Articles and FTC Bylaws or any Subsidiary of FTC as such documents were in effect on the date of this Agreement as if the Indemnified Parties were officers or directors of FTC or any such Subsidiary at all relevant times (except that no indemnity shall be provided by BancPlus hereunder with respect to any claim arising on account of an Indemnified Party’s service as an officer or director of another for-profit entity), each such Indemnified Party against any losses, claims, damages, liabilities, costs, expenses (including reasonable attorney’s fees and CSLC court costs and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any to each Indemnified Party upon receipt of an undertaking (whether arising before in reasonable and customary form) to repay such advances if it is ultimately determined that such Indemnified Party is not entitled to indemnification hereunder), judgments, fines and amounts paid in settlement in connection with any such threatened or after actual claim, action, suit, proceeding or investigation. Amounts otherwise required to be paid by BancPlus to the Indemnified Parties pursuant to this Section 6.6(a) shall be reduced by any amounts that such Indemnified Parties recover from any third party. This indemnity shall be provided for six (6) years following the Effective Time), (i) ; or if there shall be any proceeding pending or threatened on the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after sixth anniversary of the Effective Time, CSLC such indemnity shall continue in full force and the Surviving Entity) shall pay all reasonable fees and expenses of effect until such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (pending or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Partiesthreatened proceeding is finally resolved.
(b) For Subject to the following sentence, for a period of seven six (6) years after the Effective Time, CSLC BancPlus shall cause to be maintained in effect the current policies of directors' ’ and officers' ’ and, if applicable, fiduciary liability insurance maintained by the Company and its Subsidiaries FTC (provided provided, that CSLC BancPlus may substitute therefor policies with a substantially comparable insurer of at least the same coverage and amounts containing terms and conditions which are no less advantageousadvantageous to the insured) with respect to claims against the then-present and former officers and directors of FTC and its Subsidiaries arising from facts or events which occurred at or before the Effective Time to (including the extent available on commercially reasonable termstransactions contemplated by this Agreement); provided, however, that CSLC BancPlus shall not be obligated to incur expend, in the aggregate, an amount in excess of $400,000 300% of the aggregate annual premium paid as of the date hereof by FTC for such insurance (the “Premium Cap”), and if such premium for such insurance would at any time exceed the Premium Cap, then BancPlus shall cause to be maintained policies of insurance which provide the maximum coverage available at an aggregate premium equal to the Premium Cap. In lieu of the foregoing, FTC, in consultation with BancPlus, may (and at the request of BancPlus, FTC shall) obtain at or prior to the Effective Time, at BancPlus’s expense, a six-year “tail” policy under FTC’s existing directors’ and officers’ and, if applicable, fiduciary liability insurance policy providing equivalent coverage to that described in the aggregate under this Section 5.9(b)preceding sentence if and to the extent that the same may be obtained for an amount that, in the aggregate, does not exceed the Premium Cap.
(c) In the event the Surviving Corporation or any of its successors or assigns (i) consolidates with or merges into any other person and shall not be the continuing or surviving corporation or entity of such consolidation or merger, or (ii) transfers or conveys all or substantially all of its properties or assets to any person, then, and in each such case, the Surviving Corporation shall cause proper provision to be made so that the successors and assigns of the Surviving Corporation will expressly assume the obligations set forth in this Section 6.6. {JX489484.11} PD.35183901.7
(d) The provisions of this Section 5.9 6.6 shall survive the Effective Time and are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives.
Appears in 2 contracts
Samples: Share Exchange and Merger Agreement (Bancplus Corp), Share Exchange and Merger Agreement (Bancplus Corp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective Time, CSLC Parent will, and will cause the Surviving Entity shallCorporation to, indemnifyto the maximum extent set forth in the Organizational Documents of the Company, defend any indemnification agreements of the Company, and under applicable Law, indemnify and hold harmless each person individual who is now, or at any time prior to as of the date hereof has been of this Agreement, or who becomes prior to the Effective Time, an officera director, director officer or employee of the Company or any of its Subsidiaries or who is as of the date of this Agreement, or who thereafter commences prior to the Effective Time, serving at the request of the Company or any of its Subsidiaries as a director, officer or employee of another Person (collectively, the "“Company Indemnified Parties") from and ”), against (i) all claims, losses, claimsliabilities, damages, costsjudgments, inquiries, fines and fees, costs and expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or including reasonable attorneys’ fees and disbursements, incurred in connection with any claimAction, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with pertaining to (i) matters existing or occurring at or prior to the Effective Time (including the decision of the Company Board to enter into this Agreement, the terms of this Agreement and the pendency and consummation of the transactions and actions contemplated hereby), or (ii) the fact that such person the Company Indemnified Party is or was a director, officer or employee of the Company or any Subsidiaryof its Subsidiaries or is or was serving at the request of the Company or any of its Subsidiaries as a director, whether pertaining to any matter existing officer or occurring at or prior to the Effective Time and employee of another Person, whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of or in connection with this Agreement, Time. In the Merger or any of the transactions contemplated hereby or thereby, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition event of any such action or proceeding to Action, (A) each Company Indemnified Party will be entitled to advancement of expenses incurred in the fullest extent permitted under applicable law upon receipt defense of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any from the Surviving Corporation within ten (10) Business Days of receipt by the Surviving Corporation from the Company Indemnified Party of a request therefor; provided, however, that any Person to whom expenses are advanced provides an undertaking, if and only to the extent required by the MGCL or the Organizational Documents of the Company (whether arising before or after as in effect immediately prior to the Effective Time), to repay such advances if it is ultimately determined that such Person is not entitled to be indemnified by the Surviving Corporation as authorized by the MGCL, (iB) without limiting the foregoing, each Company Indemnified Parties Party may retain the Company’s regularly engaged independent legal counsel (provided that such engagement would not create a conflict of interest under applicable rules of ethics) or other counsel satisfactory to them them, and the Company (or satisfactory to them and CSLC Parent and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) Corporation shall pay all reasonable fees and expenses of such counsel for the Company Indemnified Parties Party as promptly as reasonably itemized statements therefor are received; , (C) the Surviving Corporation shall not settle, compromise or consent to the entry of any judgment in any proceeding or threatened action, suit, proceeding, investigation or claim (and in which indemnification could be sought by such Company Indemnified Party hereunder), unless such settlement, compromise or consent includes an unconditional release of such Company Indemnified Party from all liability arising out of such action, suit, proceeding, investigation or claim or such Company Indemnified Party otherwise consents, and (iiiD) the Company (or after the Effective Time, CSLC Parent and the Surviving Entity) Corporation shall use their reasonable best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period In the event that the Surviving Corporation or any of seven years after its successors or assigns (i) consolidates with or merges into any other Person and is not the Effective Timecontinuing or Surviving Corporation or entity of such consolidation or merger; or (ii) transfers or conveys all or substantially all of its properties and assets to any Person, CSLC then, and in each such case, Parent and the Surviving Corporation shall cause proper provision to be maintained made so that the successors and assigns of the Surviving Corporation assume the obligations set forth in effect this Section 5.12.
(c) At the current policies cost and expense of Parent, and with the cooperation of the Company prior to the Closing Date, Parent shall obtain a “tail” directors' ’ and officers' ’ liability insurance policy or runoff extension (of six (6) years duration) and fiduciary liability insurance policy or runoff extension (of two (2) years duration) for the Company and its current and former directors, officers and employees who are currently covered by the directors’ and officers’ and fiduciary liability insurance coverage currently maintained by the Company, such tail to provide coverage in an amount not less than the existing coverage and to have other terms not less favorable to the insured persons than the directors’ and officers’ liability insurance and fiduciary liability insurance coverage currently maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which that occurred on or before the Effective Time to Time; provided that in no event shall the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur in excess cost of $400,000 in any such tail policy exceed 250% of the aggregate under this Section 5.9(b)last annual premium for such coverage.
(cd) The provisions of this Section 5.9 5.12 (i) shall survive consummation of the Merger; (ii) are intended to be for the benefit of, and shall will be enforceable by, each indemnified or insured party (including the Company Indemnified PartyParties), his or her heirs and his or her representatives; and (iii) are in addition to, and not in substitution for, any other rights to indemnification or contribution that any such Person may have by Contract or otherwise.
(e) From and after the Effective Time, Parent shall cause the Surviving Corporation and its Subsidiaries to honor, in accordance with their respective terms, the covenants contained in this Section 5.12.
Appears in 2 contracts
Samples: Merger Agreement (Reven Housing REIT, Inc.), Merger Agreement (KBS Strategic Opportunity REIT, Inc.)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective Time, CSLC and in the Surviving Entity shallevent of any claim, indemnifyaction, defend and hold harmless each suit, proceeding or investigation, whether civil, criminal or administrative, in which any person who is now, or has been at any time prior to the date hereof has been of this Agreement, or who becomes prior to the Effective Time, an officer, a director or employee officer of the Company or any of its Subsidiaries (the "“Indemnified Parties"”) from and against (i) all lossesis, claimsor is threatened to be, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying made a party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that he or she is or was a director or officer of the Company, any of its Subsidiaries or in connection with any of their respective predecessors or (ii) this Agreement or the Voting Agreement, the Merger or any of the transactions contemplated hereby or therebythereby and all actions taken by an Indemnified Party in connection herewith or therewith, in each case in his or her capacity as a director or officer of the Company or any of its Subsidiaries, whether in any case asserted or arising before or after the Effective Time, Acquiror shall cause the Surviving Company to indemnify and hold harmless, as and to the fullest extent a corporation is provided in the certificate of incorporation and bylaws of the Company as in effect on the date of this Agreement and permitted under by applicable law to indemnify its own directorsLaw, officers each such Indemnified Party against any losses, claims, damages, liabilities, costs, expenses (including reasonable attorneys’ fees and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action claim, suit, proceeding or proceeding investigation to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of an undertaking from such Indemnified Party to repay such advanced expenses if it is determined by a final and nonappealable judgment of a court of competent jurisdiction that such Indemnified Party was not entitled to indemnification hereunder), judgments, fines and amounts paid in settlement in connection with any undertaking contemplated by applicable lawsuch actual or threatened claim, action, suit, proceeding or investigation, whether civil, criminal, administrative or investigative. Without limiting the foregoingAny Indemnified Party wishing to claim indemnification under this Section 7.7, if upon learning of any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Actioninvestigation, shall promptly notify the CompanyAcquiror in writing thereof, CSLC or the Surviving Entity of such election (but provided, that the failure to so to notify the Company shall not relieve it from any liability which it may have affect the obligations of Acquiror under this Section 5.9, 7.7 except (and only) to the extent such failure to notify materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified PartiesAcquiror.
(b) For a period of seven six (6) years after the Effective Time, CSLC Acquiror shall use its reasonable best efforts to cause the persons serving as officers and directors of the Company immediately prior to the Effective Time to be maintained in effect covered by the current policies of directors' ’ and officers' ’ liability insurance policy or policies maintained by the Company and Acquiror or one of its Subsidiaries (provided provided, that CSLC may substitute therefor Acquiror’s directors’ and officers’ liability insurance policy or policies of provide at least the same coverage and amounts containing terms and conditions which are no are, in the aggregate, not materially less advantageousadvantageous to such directors and officers of the Company than the terms and conditions of the existing directors’ and officers’ liability insurance policy of the Company) with respect to claims arising from facts or events that existed or occurred at or prior to the Effective Time. Notwithstanding the foregoing, in no event will Acquiror be required to expend, in the aggregate and on an annual basis, an amount (the “Insurance Amount”) in excess of 200% of the annual premiums currently paid by the Company for such insurance, which occurred before current premiums are set forth in Section 7.7(b) of the Company Disclosure Letter, and if Acquiror is unable to maintain or obtain the insurance called for by this Section 7.7(b) for an amount per year equal to or less than the Insurance Amount, Acquiror shall use its reasonable best efforts to obtain as much comparable insurance as may be available for the Insurance Amount. The provisions of this Section 7.7(b) shall be deemed to have been satisfied if prepaid policies have been obtained by Acquiror or by the Company (with Acquiror’s consent), which policies provide the persons covered by the Company’s directors’ and officers’ liability insurance policy immediately prior to the Effective Time with coverage for a period of not less than six (6) years after the Effective Time with respect to claims arising from facts or events that occurred at or prior to the extent available on commercially reasonable terms; providedEffective Time. If such prepaid policies have been obtained by the Company prior to the Effective Time with Acquiror’s consent, however, that CSLC Acquiror shall not be obligated maintain such policies in full force and effect and continue to incur in excess of $400,000 in the aggregate under this Section 5.9(b)honor all obligations thereunder.
(c) The provisions of this Section 5.9 7.7 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives.
Appears in 2 contracts
Samples: Merger Agreement (Schwab Charles Corp), Merger Agreement (optionsXpress Holdings, Inc.)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallWithout limiting any other rights that any Indemnified Person may have pursuant to any employment agreement, and indemnification agreement or otherwise, from and after the Effective Time, CSLC and from the Effective Time until the sixth (6th) anniversary of the date on which the Effective Time occurs, Parent shall cause the Surviving Entity shall, Corporation to indemnify, defend and hold harmless each person Person who is now, or has been at any time prior to the date hereof has been of this Agreement or who becomes prior to the Effective Time, an officer, a director or employee officer of the Company or any of its Subsidiaries or who acts as a fiduciary under any Employee Benefit Plan of the Company or any of its Subsidiaries (the "“Indemnified Parties"Persons”) from and against (i) all losses, claims, damages, costs, fines, penalties, expenses (including attorneys’ and other professionals’ fees and expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably to be unreasonable withheld, conditioned or delayed) of or in connection with any threatened or actual claim, action, suit, proceeding, case proceeding or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person Person is or was a director, director or officer or employee of the Company or any Subsidiaryof its Subsidiaries, a fiduciary under any Employee Benefit Plan of the Company or any of its Subsidiaries or is or was serving at the request of the Company or any of its Subsidiaries as a director, officer, employee or agent of another corporation, partnership, limited liability company, joint venture, employee benefit plan, trust or other enterprise or by reason of anything done or not done by such Person in any such capacity whether pertaining to any matter act or omission occurring or existing or occurring prior to, at or prior to after the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("“Indemnified Liabilities") and (ii) ”), including all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, or in connection with pertaining to, this Agreement, the Merger Agreement or any of the transactions contemplated hereby or therebyhereby, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers (and employees, as the case may be and CSLC and Parent shall cause the Surviving Entity, as the case may be, shall Corporation and its Subsidiaries to pay expenses in advance of the final disposition of any such action claim, action, suit, proceeding or proceeding investigation to each Indemnified Party Person in accordance with the constituent documents of the Surviving Corporation and its Subsidiaries). Any Indemnified Person wishing to the fullest extent permitted claim indemnification under applicable law this Section 5.6, upon receipt learning of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time)investigation, (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and shall notify the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election Corporation (but the failure so to notify the Company shall not relieve it a Person from any liability which that it may have under this Section 5.9, 5.6 except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), Person’s position with respect to such claims) and shall deliver to the Company (or after the Effective Time, to CSLC Parent and the Surviving Entity) the Corporation any undertaking contemplated required by applicable law. The Indemnified Parties as , but without any requirement for the posting of a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of bond or any significant issue between the positions of any two other terms or more Indemnified Partiesconditions other than those expressly set forth herein.
(b) For a period of seven years after From the Effective Time, CSLC Parent and the Surviving Corporation shall not amend, repeal or otherwise modify the certificate of incorporation or bylaws of the Surviving Corporation such that the certificate of incorporation or bylaws of the Surviving Corporation would contain provisions less favorable with respect to indemnification, advancement of expenses and exculpation of former or present directors and officers than as are currently set forth in the Company’s certificate of incorporations and bylaws. Parent shall, and shall cause the Surviving Corporation to, fulfill and honor any indemnification agreements between the Company and any of its directors, officers or employees existing immediately prior to the Effective Time.
(c) Parent shall (or with Parent’s consent, the Company may) cause to be maintained put in effect place and shall fully prepay immediately prior to the Effective Time a “tail” insurance policy with a claims period of at least six (6) years from the Effective Time from an insurance carrier with the same or better credit rating as the Company’s current insurance carrier with respect to directors’ and officers’ liability insurance in an amount and scope at least as favorable as the Company’s existing policies with respect to matters, acts or omissions existing or occurring at or prior to the Effective Time; provided that Parent shall not be obligated to expend, nor shall the Company be permitted to expend, more than a single payment amount for such six (6) year period in excess of three hundred percent (300%) of the annual premiums for the current policies of directors' ’ and officers' officer’s liability insurance maintained by the Company to purchase such “tail” insurance.
(d) In the event that Parent or the Surviving Corporation or any of its successors or assigns (i) consolidates with or merges into any other Person and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated the continuing or surviving corporation or entity of such consolidation or merger or (ii) transfers all or substantially all of its properties and assets to incur any Person, then, in excess each such case, proper provisions shall be made so that the successors and assigns of $400,000 Parent or the Surviving Corporation, as the case may be, shall assume the obligations set forth in the aggregate under this Section 5.9(b).
(c) 5.6. The provisions of this Section 5.9 5.6 are intended to be for the benefit of, and shall be enforceable by, the Parties and each Indemnified PartyPerson entitled to indemnification or insurance coverage or expense advancement pursuant to this Section 5.6, his and his, her or their respective heirs and his representatives.
Appears in 2 contracts
Samples: Merger Agreement (Owens & Minor Inc/Va/), Agreement and Plan of Merger (Medical Action Industries Inc)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallWithout limiting any other rights that any Indemnified Person may have pursuant to any employment agreement or indemnification agreement in effect on the date hereof or otherwise, and from and after the Effective Time, CSLC Parent and the Surviving Entity Corporation shall, jointly and severally, indemnify, defend and hold harmless each person Person who is now, or has been at any time prior to the date hereof has been of this Agreement or who becomes prior to the Effective Time, an officer, a director or employee officer of the Company or any of its Subsidiaries or who acts as a fiduciary under any Company Plan, in each case, when acting in such capacity (the "“Indemnified Parties"Persons”) from and against (i) all losses, claims, damages, costs, fines, penalties, expenses (including attorneys’ and other professionals’ fees and expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) settlement, of or incurred in connection with any claimthreatened or actual Proceeding to which such Indemnified Person is a party or is otherwise involved (including as a witness) based, action, suit, proceeding, case or investigation ("Action") based in whole or in part part, on or arising arising, in whole or in part part, out of or in connection with the fact that such person Person is or was a director or officer of the Company or any of its Subsidiaries, a fiduciary under any Company Plan or is or was serving at the request of the Company or any of its Subsidiaries as a director, officer or employee fiduciary of the Company another corporation, partnership, limited liability company, joint venture, Employee Benefit Plan, trust or other enterprise, as applicable, or by reason of anything done or not done by such Person in any Subsidiarysuch capacity, whether pertaining to any matter act or omission occurring or existing or occurring at or prior to or at, but not after, the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("“Indemnified Liabilities") and (ii) ”), including all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, or in connection with pertaining to, this Agreement, Agreement or the Merger or any of the transactions contemplated hereby or therebyTransactions, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers Law (and employees, as the case may be and CSLC Parent and the Surviving EntityCorporation shall, as the case may bejointly and severally, shall pay expenses incurred in connection therewith in advance of the final disposition of any such action or proceeding Proceeding to each Indemnified Party Person to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable lawLaw). Without limiting the foregoing, if in the event any such claim, action, suit, proceeding Proceeding is brought or investigation is commenced or instituted threatened to be brought against any Indemnified Party Persons (whether arising before or after the Effective Time), (i) the Indemnified Parties Persons may retain the Company’s regularly engaged legal counsel or other counsel satisfactory to them them, and the Company (or satisfactory to them and CSLC Parent and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) Corporation shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties Persons as promptly as reasonably itemized statements therefor are received; , and (iiiii) the Company (or after the Effective Time, CSLC Parent and the Surviving Entity) Corporation shall use its best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing Person wishing to claim indemnification or advancement of expenses under this Section 5.96.10, upon learning of any such ActionProceeding, shall promptly notify the Company, CSLC or the Surviving Entity of such election Corporation (but the failure so to notify the Company shall not relieve it a Party from any liability which obligations that it may have under this Section 5.9, 6.10 except to the extent such failure materially prejudices it such Party’s position with respect to such claims). With respect to any determination of whether any Indemnified Person is entitled to indemnification by Parent or if it otherwise forfeits substantive rights Surviving Corporation under this Section 6.10, such Indemnified Person shall have the right, as contemplated by the DGCL, to require that such determination be made by special, independent legal counsel selected by the Indemnified Person and defenses approved by Parent or Surviving Corporation, as a result of such failureapplicable (which approval shall not be unreasonably withheld or delayed), and shall deliver to who has not otherwise performed material services for Parent, Surviving Corporation or the Company Indemnified Person within the last three (or after the Effective Time, to CSLC and the Surviving Entity3) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Partiesyears.
(b) For Parent and the Surviving Corporation shall not amend, repeal or otherwise modify any provision in the Organizational Documents of the Surviving Corporation or any of its Subsidiaries in any manner that would affect (or manage the Surviving Corporation or its Subsidiaries, with the intent to or in a period manner that would) adversely the rights thereunder of seven years after any Indemnified Person to indemnification, exculpation and advancement except to the extent required by applicable Law. Parent shall, and shall cause the Surviving Corporation to, fulfill and honor any indemnification, expense advancement or exculpation agreements between the Company or any of its Subsidiaries and any of its directors or officers existing and in effect prior to the date of this Agreement.
(c) Parent and the Surviving Corporation shall indemnify any Indemnified Person against all reasonable costs and expenses (including reasonable attorneys’ fees and expenses), such amounts to be payable in advance upon request as provided in Section 6.10(a), relating to the enforcement of such Indemnified Person’s rights under this Section 6.10 or under any charter, bylaw or contract regardless of whether such Indemnified Person is ultimately determined to be entitled to indemnification hereunder or thereunder.
(d) Parent and the Surviving Corporation will cause to be put in place, and Parent shall fully prepay immediately prior to the Effective Time, CSLC shall cause to be maintained in effect the current “tail” insurance policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies with a claims period of at least six (6) years from the Effective Time (the “Tail Period”) from an insurance carrier with the same coverage and amounts containing terms and conditions which are no less advantageous) or better credit rating as the Company’s current insurance carrier with respect to claims arising from facts directors’ and officers’ liability insurance (“D&O Insurance”) in an amount and scope at least as favorable as the Company’s existing policies with respect to matters, acts or events which occurred before omissions existing or occurring at or prior to, but not after, the Effective Time to the extent available on commercially reasonable termsTime; provided, however, that CSLC in no event shall the aggregate cost of the D&O Insurance exceed during the Tail Period 300% of the current aggregate annual premium paid by the Company for such purpose; and provided, further, that if the cost of such insurance coverage exceeds such amount, the Surviving Corporation shall obtain a policy with the greatest coverage available for a cost not exceeding such amount.
(e) In the event that Parent or the Surviving Corporation or any of its successors or assignees (i) consolidates with or merges into any other Person and shall not be obligated the continuing or surviving corporation or entity of such consolidation or merger or (ii) transfers all or substantially all of its properties and assets to incur any Person, then, in excess each such case, proper provisions shall be made so that the successors and assigns of $400,000 Parent or the Surviving Corporation, as the case may be, shall assume the obligations set forth in this Section 6.10. Parent and the aggregate Surviving Corporation shall not sell, transfer, distribute or otherwise dispose of any of their assets in a manner that would reasonably be expected to render Parent or Surviving Corporation unable to satisfy their obligations under this Section 5.9(b).
(c) 6.10. The provisions of this Section 5.9 6.10 are intended to be for the benefit of, and shall be enforceable by, the Parties and each Indemnified PartyPerson entitled to indemnification or insurance coverage or expense advancement pursuant to this Section 6.10, and his heirs and his representativesRepresentatives. The rights of the Indemnified Persons under this Section 6.10 are in addition to any rights such Indemnified Persons may have under the Organizational Documents of the Company or any of its Subsidiaries, or under any applicable contracts or Law. Parent and the Surviving Corporation shall pay all expenses, including attorneys’ fees, that may be incurred by any Indemnified Person in enforcing the indemnity and other obligations provided in this Section 6.10.
Appears in 2 contracts
Samples: Merger Agreement (Concho Resources Inc), Merger Agreement (Conocophillips)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective Time, CSLC and in the Surviving Entity shallevent of any threatened or actual claim, indemnifyaction, defend and hold harmless each suit, proceeding or investigation, whether civil, criminal or administrative, in which any person who is now, or has been at any time prior to the date hereof has been of this Agreement, or who becomes prior to the Effective Time, an a director, officer, director employee or employee agent of the Company ICBC or any of its Subsidiaries (the "”Indemnified Parties"”) from and against (i) all lossesis, claimsor is threatened to be, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying made a party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that he is or was a director, officer, employee or agent of ICBC, any of its Subsidiaries or in connection with any of their respective predecessors or was prior to the Effective Time serving at the request of any such party as a director, officer, employee, fiduciary or agent of another corporation, partnership, trust or other enterprise or (ii) this Agreement, the Merger or any of the transactions contemplated hereby and all actions taken by an Indemnified Party in connection herewith, whether in any case asserted or therebyarising before or after the Effective Time, in each case Sovereign shall indemnify and hold harmless, as and to the fullest extent a corporation is permitted under by applicable law to indemnify its own directorslaw, officers each such Indemnified Party against any losses, claims, damages, liabilities, costs, expenses (including reasonable attorneys’ fees and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action claim, suit, proceeding or proceeding investigation to each Indemnified Party to the fullest extent permitted under applicable by law upon receipt of any undertaking contemplated an undertaking, to the extent required by applicable law. Without limiting the foregoingDGCL, from such Indemnified Party to repay such advanced expenses if it is determined by a final and nonappealable judgment of a court of competent jurisdiction that such Indemnified Party was not entitled to indemnification hereunder), judgments, fines and amounts paid in settlement in connection with any such threatened or actual claim, action, suit, proceeding or investigation is commenced or instituted against investigation.
(b) Sovereign shall pay all reasonable costs and expenses, including attorneys’ fees, that may be incurred by any Indemnified Party in enforcing the indemnity and other obligations provided for in this Section 7.7 to the fullest extent permitted by applicable law.
(whether arising before c) Without limiting anything contained in Section 7.7(a) or after any other provision of this Agreement, the Effective Time), parties hereto acknowledge and agree that (i) the Indemnified Parties may retain counsel satisfactory to them will be provided with indemnification from and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); Time that is no less favorable to their rights to indemnification presently set forth in the certificate of incorporation, by-laws or equivalent documents of ICBC or any of its Subsidiaries, as applicable, in each case as in effect on the date hereof, and (ii) Sovereign shall honor and perform under all indemnification agreements entered into by ICBC or any of its Subsidiaries.
(d) Sovereign shall use its reasonable best efforts to cause the Company persons covered by ICBC’s directors’ and officers’ liability insurance policy immediately prior to the Effective Time to be covered for a period of six (6) years from the Closing Date by the directors’ and officers’ liability insurance policy or after policies maintained by Sovereign with respect to claims arising from facts or events that occurred at or prior to the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC Sovereign’s policy or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of provide at least the same coverage and amounts containing terms and conditions which are no not less advantageousadvantageous to such directors and officers of ICBC than the terms and conditions of the existing directors’ and officers’ liability insurance policy of ICBC. Sovereign will not be required to expend, in respect of its obligations to such covered persons as described in the preceding sentence, in any one year an amount in excess of 200% of the annual premiums currently paid by ICBC for the insurance covering the officers and directors of ICBC (the ”Insurance Amount”), provided, that if such expenditure would exceed the Insurance Amount, Sovereign shall use its reasonable best efforts to obtain as much comparable insurance as is available for the Insurance Amount. The provisions of this Section 7.7(d) shall be deemed to have been satisfied if prepaid policies have been obtained by ICBC prior to the Effective Time, which policies provide the persons covered by ICBC’s directors’ and officers’ liability insurance policy immediately prior to the Effective Time with coverage for a period of not less than six years from the Effective Time with respect to claims arising from facts or events which that occurred before at or prior to the Effective Time to the extent available on commercially reasonable termsTime; provided, however, that CSLC provided such prepaid policies shall not be obligated obtained by ICBC at a cost per annum that is higher than the Insurance Amount. If such prepaid policies have been obtained by ICBC prior to incur the Effective Time, Sovereign shall maintain such policies in excess of $400,000 in the aggregate under this Section 5.9(b)full force and effect and continue to honor ICBC’s obligations thereunder.
(ce) The provisions of this Section 5.9 7.7 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives.
(f) If Sovereign or any of its successors or assigns shall consolidate with or merge into any other entity and shall not be the continuing or surviving entity of such consolidation or merger or shall transfer all or substantially all of its assets to any other entity, then and in each case, proper provision shall be made so that the successors and assigns of Sovereign shall assume the obligations set forth in this Section 7.7.
Appears in 2 contracts
Samples: Merger Agreement (Sovereign Bancorp Inc), Merger Agreement (Independence Community Bank Corp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from and after the Effective Time, CSLC and the Surviving Entity Corporation shall, indemnify, defend and hold harmless each person who is nowthe present and former directors, or at any time prior to the date hereof has been or who becomes prior to the Effective Timeofficers, an officer, director or employee employees and agents of the Company or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses (including reasonable attorneys' fees and expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any threatened or actual claim, action, suit, proceeding, case proceeding or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with pertaining to the fact that such person is or was a director, director or officer or employee of the Company or any Subsidiary, of its Subsidiaries whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, or at or after after, the Effective Time ("Indemnified Liabilities") and (ii) ), including all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, or in connection with pertaining to this Agreement, the Merger Agreement or any of the transactions contemplated hereby or therebyhereby, in each case to the fullest extent a corporation is permitted under applicable the DGCL as the same exists or may hereafter be amended (but, in the case of any such amendment, only to the extent that such amendment permits broader rights than such law permitted prior to such amendment and only to the extent such amendment is not retroactively applicable) to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entitydirectors or officers, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if in the event any such claim, action, suit, proceeding or investigation is commenced or instituted brought against any Indemnified Party Parties (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC Surviving Corporation, and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) Corporation shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are receivedreceived and otherwise advance to such Indemnified Party upon request reimbursement of documented expenses incurred, in either case to the fullest extent and in the manner permitted by the DGCL; and (iiiii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall Corporation will use best all reasonable efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC Company nor the Surviving Entity Corporation shall be liable for any settlement of any claim effected without its prior written consent (which consent shall not be unreasonably be withheld). Any Indemnified Party electing wishing to claim indemnification under this Section 5.95.4, upon learning of any such Actionclaim, action, suit, proceeding or investigation, shall promptly notify the CompanyCompany (or after the Effective Time, CSLC or the Surviving Entity of such election Corporation) (but the failure so to notify the Company shall not relieve it a party from any liability which it may have under this Section 5.9, 5.4 except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failureparty), and shall to the extent required by the DGCL deliver to the Company (or after the Effective Time, to CSLC and the Surviving EntityCorporation) the undertaking contemplated by applicable lawSection 145(c) of the DGCL. The Indemnified Parties as a group may retain only one law firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of on any significant issue between the positions of any two or more Indemnified Parties. The Company and TAGTCR agree that all rights to indemnification, including provisions relating to advances of expenses incurred in defense of any action or suit, existing in favor of the Indemnified Parties with respect to matters occurring through the Effective Time, shall survive the Merger and shall continue in full force and effect for a period of not less than six years from the Effective Time; provided, however, that all rights to indemnification in respect of any Indemnified Liabilities asserted or made within such period shall continue until the disposition of such Indemnified Liabilities.
(b) For a period of seven six years after the Effective Time, CSLC the Surviving Corporation shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC TAGTCR may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageousadvantageous in any material respect to the Indemnified Parties) with respect to claims matters arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable termsTime; provided, however, that CSLC in no event shall not the Surviving Corporation be obligated required to incur in excess maintain such insurance with comparable coverage if the cost of $400,000 such insurance is more than 125% of the cost of such insurance in the aggregate under this Section 5.9(b)prior year, but in such case, the Surviving Corporation shall purchase as much coverage as possible for such amount.
(c) The provisions of this Section 5.9 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representatives.
Appears in 2 contracts
Samples: Merger Agreement (Compdent Corp), Agreement and Plan of Merger (Compdent Corp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallWithout limiting any other rights that any Indemnified Person may have pursuant to any employment agreement or indemnification agreement in effect on the date hereof or otherwise, from the Effective Time and from and after until the six (6) year anniversary of the Effective Time, CSLC Parent and the Surviving Entity Corporation shall, jointly and severally, indemnify, defend and hold harmless each person Person who is now, or has been at any time prior to the date hereof has been of this Agreement or who becomes prior to the Effective Time, an officer, director or employee of the Company or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiaryof its Subsidiaries or who acts as a fiduciary under any Company Plan or any of its Subsidiaries (the “Indemnified Persons”) against all losses, claims, damages, costs, fines, penalties, expenses (including attorneys’ and other professionals’ fees and expenses), obligations, liabilities or judgments or amounts that are paid in settlement, of or incurred in connection with any threatened or actual Proceeding to which such Indemnified Person is a party or is otherwise involved (including as a witness) based, in whole or in part, on or arising, in whole or in part, out of the fact that such Person is or was a director, officer, employee or agent of the Company or any of its Subsidiaries, a fiduciary under any Company Plan or any of its Subsidiaries or is or was serving at the request of the Company or any of its Subsidiaries as a director, officer, employee or agent of another corporation, partnership, limited liability company, joint venture, Employee Benefit Plan, trust or other enterprise or by reason of anything done or not done by such Person in any such capacity, whether pertaining to any matter act or omission occurring, alleged to have occurred, or existing or occurring prior to, at or prior to after the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("“Indemnified Liabilities") and (ii) ”), including all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, or in connection with pertaining to, this AgreementAgreement or the Transactions, or the Merger approval or any of recommendations thereof by the transactions contemplated hereby Company Board or therebyCompany Special Committee, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers Law (and employees, as the case may be and CSLC Parent and the Surviving EntityCorporation shall, as the case may bejointly and severally, shall pay expenses incurred in connection therewith in advance of the final disposition of any such action or proceeding Proceeding to each Indemnified Party Person to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable lawLaw). Without limiting the foregoing, if in the event any such claim, action, suit, proceeding Proceeding is brought or investigation is commenced or instituted threatened to be brought against any Indemnified Party Persons (whether arising before or after the Effective Time), (i) the Indemnified Parties Persons may retain the Company’s regularly engaged legal counsel or other counsel satisfactory to them them, and the Company (or satisfactory to them and CSLC Parent and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) Corporation shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties Persons as promptly as reasonably itemized statements therefor are received; , and (iiiii) the Company (or after the Effective Time, CSLC Parent and the Surviving Entity) Corporation shall use their reasonable best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing Person wishing to claim indemnification or advancement of expenses under this Section 5.96.7, upon learning of any such ActionProceeding, shall promptly notify the Company, CSLC or the Surviving Entity of such election Corporation (but the failure so to notify the Company shall not relieve it a party from any liability which obligations that it may have under this Section 5.9, 6.7 except to the extent such failure materially prejudices it such party’s position with respect to such claims). With respect to any determination of whether any Indemnified Person is entitled to indemnification by Parent or if it otherwise forfeits substantive rights Surviving Corporation under this Section 6.7, such Indemnified Person shall have the right, as contemplated by the DGCL, to require that such determination be made by special, independent legal counsel selected by the Indemnified Person and defenses approved by Parent or Surviving Corporation, as a result of such failureapplicable (which approval shall not be unreasonably withheld or delayed), and shall deliver to who has not otherwise performed material services for Parent, Surviving Corporation or the Company Indemnified Person within the last three (or after the Effective Time, to CSLC and the Surviving Entity3) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Partiesyears.
(b) For Parent and the Surviving Corporation shall not amend, repeal or otherwise modify any provision in the Organizational Documents of the Surviving Corporation in any manner that would affect (or manage the Surviving Corporation or its Subsidiaries, with the intent to or in a period manner that would) adversely affect the rights thereunder or under the Organizational Documents of seven years after the Surviving Corporation or any of its Subsidiaries of any Indemnified Person to indemnification, exculpation and expense or fee advancement except to the extent required by applicable Law. Parent shall, and shall cause the Surviving Corporation to, fulfill and honor any indemnification, expense advancement or exculpation agreements between the Company or any of its Subsidiaries and any of its directors, officers or employees existing immediately prior to the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur in excess of $400,000 in the aggregate under this Section 5.9(b).
(c) Parent and the Surviving Corporation shall indemnify any Indemnified Person against all reasonable costs and expenses (including reasonable attorneys’ fees and expenses), such amounts to be payable in advance upon request as provided in Section 6.7(a), relating to the enforcement of such Indemnified Person’s rights under this Section 6.7 or under any Organizational Document or contract regardless of whether such Indemnified Person is ultimately determined to be entitled to indemnification hereunder or thereunder.
(d) Parent and the Surviving Corporation will cause to be put in place (which may be with the Company’s current insurance carrier), and Parent shall fully prepay immediately prior to the Effective Time, “tail” insurance policies with a claims period of at least six (6) years from the Effective Time from an insurance carrier with the same or better credit rating as the Company’s current insurance carrier with respect to directors’ and officers’ liability insurance in an amount and scope at least as favorable as the Company’s existing policies with respect to matters, acts or omissions existing or occurring at or prior to the Effective Time. The Surviving Corporation shall maintain or cause to be maintained such policies in full force and effect, and continue to honor the obligations thereunder.
(e) In the event that Parent or the Surviving Corporation or any of its successors or assigns (i) consolidates with or merges into any other Person and shall not be the continuing or surviving corporation or entity of such consolidation or merger or (ii) transfers all or substantially all of its properties and assets to any Person, then, in each such case, proper provisions shall be made so that the successors and assigns of Parent or the Surviving Corporation, as the case may be, shall assume the obligations set forth in this Section 6.7. The provisions of this Section 5.9 6.7 are intended to be for the benefit of, and shall be enforceable by, the parties and each Indemnified PartyPerson entitled to indemnification or insurance coverage or expense advancement pursuant to this Section 6.7, and his heirs and his representatives. Parent and the Surviving Corporation shall not sell, transfer, distribute or otherwise dispose of any of their assets in a manner that would reasonably be expected to render Parent or Surviving Corporation unable to satisfy their obligations under this Section 6.7.
(f) The obligations of the Surviving Corporation or Company Subsidiaries under this Section 6.7 shall not be terminated or modified by such parties in any manner as to adversely affect any Indemnified Person without the consent of such affected Indemnified Person.
Appears in 2 contracts
Samples: Merger Agreement (Maxwell W Keith III), Merger Agreement (Via Renewables, Inc.)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallAll rights to indemnification or exculpation, and from and after the Effective Timeexisting in favor of a director, CSLC and the Surviving Entity shall, indemnify, defend and hold harmless each person who is now, or at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, director employee or employee agent (an "Indemnified Person") of the Company or any of its Subsidiaries (the "Indemnified Parties") from including, without limitation, rights relating to advancement of expenses and against (i) all losses, claims, damages, costs, expenses, liabilities or judgments or amounts that indemnification rights to which such persons are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was entitled because they are serving as a director, officer officer, agent or employee of another entity at the request of the Company or any Subsidiaryof its Subsidiaries), whether pertaining as provided in the Restated Certificate of Incorporation of the Company, the By-laws of the Company or any indemnification agreement, in each case, as in effect on the date of this Agreement, and relating to any matter existing actions or occurring at or prior to events through the Effective Time Time, shall survive the Merger and whether asserted or claimed prior toshall continue in full force and effect, at or after without any amendment thereto; provided, however, that the Effective Time ("Surviving Corporation shall not be required to indemnify any Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of or Person in connection with any proceeding (or portion thereof) to the extent involving any claim initiated by such Indemnified Person unless the initiation of such proceeding (or portion thereof) was authorized by the Board of Directors of the Company or unless such proceeding is brought by an Indemnified Person to enforce rights under this AgreementSection 7.13; provided further that any determination required to be made with respect to whether an Indemnified Person's conduct complies with the standards set forth under the DGCL, the Merger Restated Certificate of Incorporation of the Company, the By-laws of the Company or any of the transactions contemplated hereby or thereby, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entitysuch agreement, as the case may be, shall pay expenses be made by independent legal counsel selected by such Indemnified Person and reasonably acceptable to Parent; and provided further that nothing in advance of the final disposition this Section 7.13 shall impair any rights of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable lawPerson. Without limiting the foregoinggenerality of the preceding sentence, if in the event that any such claim, Indemnified Person becomes involved in any actual or threatened action, suit, claim, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and Parent shall, or shall cause the Surviving EntityCorporation to, promptly advance to such Indemnified Person his or her legal and other expenses (including the cost of any investigation and preparation incurred in connection therewith), subject to the providing by such Indemnified Person of an undertaking to reimburse all amounts so advanced in the event of a non-appealable determination of a court of competent jurisdiction that such Indemnified Person is not entitled thereto.
(b) shall pay all reasonable fees In the event that, from and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC a third person asserts any claim against any Indemnified Person with respect to any matter to which the foregoing indemnities apply, the Indemnified Person shall give prompt written notice to the Surviving Corporation, and the Surviving Entity) Corporation shall use best efforts have the right, at its election, to assist in take over the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any or settlement of any such claim effected without at its own expense by giving prompt written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except notice to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable termsPerson; provided, however, that CSLC that, (i) if the Surviving Corporation does not give such notice and does not proceed diligently to defend the claim within thirty (30) days (or such shorter period as is necessary to permit the Indemnified Person to respond) after receipt of such notice of the claim, then the Indemnified Person may employ separate counsel to represent it and defend it against such claim and (ii) if the Surviving Corporation elects to defend the claim then the Surviving Corporation shall not be obligated to incur in excess of $400,000 in the aggregate under this Section 5.9(b).
(c) The provisions of this Section 5.9 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representatives.employ counsel
Appears in 2 contracts
Samples: Merger Agreement (Dekalb Genetics Corp), Merger Agreement (Monsanto Co)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallIn the event of any threatened or actual claim, and from and after the Effective Timeaction, CSLC and the Surviving Entity shallsuit, indemnifyproceeding or investigation, defend and hold harmless each whether civil, criminal or administrative, including any such claim, action, suit, proceeding or investigation in which any person who is now, or has been at any time prior to the date hereof has been of this Agreement, or who becomes prior to the Effective Time, an officer, a director or officer or employee of the Company or Eldorado (including any of its Subsidiaries subsidiaries) (the "Indemnified Parties") from and against (i) all lossesis, claimsor is threatened to be, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying made a party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that he or she is or was a director, officer or employee of Eldorado or in connection with any of its predecessors, or (ii) this Agreement, the Merger Agreement or any of the transactions contemplated hereby or therebyhereby, in any case whether asserted or arising before or after the Effective Time, the Parties hereto agree to cooperate and use their best efforts to defend against and respond thereto.
(b) After the Effective Time, and for a period of six years thereafter, CSBI shall indemnify and hold harmless and defend, each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directorssuch Indemnified Party against any losses, officers claims, damages, liabilities, costs, expenses (including reasonable attorney's fees and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action claim, suit, proceeding or proceeding investigation to each Indemnified Party to the fullest extent permitted Eldorado's directors are so indemnified under applicable law upon receipt the Eldorado Indemnification Rights as of the date hereof), judgments, fines and amounts paid in settlement in connection with any such threatened or actual claim, action, suit, proceeding or investigation, whether civil, criminal, administrative or investigative, arising out of or pertaining to any action or omission that occurred, or has been alleged to have occurred, at any time prior to the Effective Time or the respective times they cease be directors or officers of Eldorado or the Bank (as applicable), whichever is later, or arising out of or pertaining to this Agreement or the other agreements entered into or approved by the Eldorado Directors in connection with the transactions contemplated by this Agreement (specifically including the implementation of any undertaking contemplated modification, change or adjustment pursuant to Section 5.13.2) (collectively, the "Indemnified Liabilities, Expenses and Claims"), in each instance as and to the fullest extent that the directors of Eldorado, as of the date hereof, would be entitled to be indemnified by applicable lawEldorado or the Bank pursuant to their respective Articles of Incorporation and under whichever of the respective Bylaws, or the Indemnification Agreements, as in effect on the date hereof, would provide such directors with the most extensive indemnification rights (hereinafter the "Eldorado Indemnification Rights"), EXECUTION VERSION with respect to such Indemnified Liabilities, Expenses and Claims if they had arisen prior to the Effective Time. Without limiting In the foregoing, if event of any such threatened or actual claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether asserted or arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel reasonably satisfactory to them after consultation with CSBI; PROVIDED, HOWEVER, that (i) except as otherwise provided hereinafter, CSBI shall have the right to assume the defense thereof with counsel reasonably acceptable to the Indemnified Parties, and upon such assumption CSBI shall not be liable to any Indemnified Party for any legal expenses of other counsel or any other expenses subsequently incurred by any Indemnified Party in connection with the defense thereof, except that if counsel for the Indemnified Parties reasonably advises the Indemnified Parties that there are issues which raise conflicts of interest between CSBI and the Company (Indemnified Parties or among the Indemnified Parties, the Indemnified Parties may retain counsel reasonably satisfactory to them after consultation with CSBI, and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) CSBI shall pay all the reasonable fees and expenses of such counsel for the Indemnified Parties, (ii) CSBI shall be obligated pursuant to this paragraph to pay for only one firm of counsel for all Indemnified Parties promptly in the absence of a conflict of interest (determined as reasonably itemized statements therefor are received; described above) among the Indemnified Parties in each jurisdiction in which any such claim, actions, suit, proceeding or investigation is brought, and shall be obligated pursuant to this paragraph to pay for no more than two firms of counsel among all Indemnified Parties in each such jurisdiction in the event of a conflict of interest (determined as described above) among the Indemnified Parties, (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) CSBI shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall not be liable for any settlement of any claim effected without its prior written consent (consent, which consent it shall not unreasonably be withheld). Any withhold, (iv) CSBI shall have no obligation hereunder to any Indemnified Party electing when and if a court of competent jurisdiction shall ultimately determine, and such determination shall have become final and nonappealable, that indemnification of such Indemnified Party in the manner contemplated hereby is prohibited by applicable Law and such Law makes unenforceable the indemnity otherwise provided hereunder or under the Indemnification Agreements, and (v) CSBI shall have no obligation hereunder to claim indemnification under this Section 5.9any Indemnified Party with respect to any threatened or actual claim, upon learning action, suit, proceeding or investigation, or any loss or expense caused thereby, arising out of any action (or failure to act) that has been determined by a judgment of a court having competent jurisdiction and that has been final and non-appealable to have been a material breach of this Agreement, provided that CSBI proves that such Actionact or omission was intentionally or recklessly committed by such Indemnified Party. Unless and until there shall be a final judicial determination that a person who is otherwise an Indemnified Party is not entitled to indemnification hereunder with respect to a given claim or proceeding, CSBI shall promptly notify advance all expenses with respect to which an Indemnified Party is entitled to indemnity hereunder by paying the Companysame to the Indemnified Party or to the counsel or other Person to whom they are owed within twenty (20) days following delivery of a written request therefor by such Indemnified Party to CSBI. Each Indemnified Party with respect to whom expenses have been so advanced hereby undertakes to repay such amount advanced only if, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except and to the extent that, it shall ultimately be determined that such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause Party is not entitled to be maintained in effect the current policies of directors' and officers' liability insurance maintained indemnified by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect CSBI pursuant to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur in excess of $400,000 in the aggregate under this Section 5.9(b).
(c) The provisions of this Section 5.9 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representatives.EXECUTION VERSION
Appears in 2 contracts
Samples: Merger Agreement (Commerce Security Bancorp Inc), Merger Agreement (Commerce Security Bancorp Inc)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallIn the event of any threatened or actual Action, and from and after the Effective Timewhether civil, CSLC and the Surviving Entity shallcriminal or administrative, indemnify, defend and hold harmless each person in which any individual who is now, or has been at any time prior to the date hereof has been of this Agreement, or who becomes prior to the Effective Time, an officer, a director or employee officer of the Company or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person who is or was a director, officer or employee serving at the request of the Company or any Subsidiaryof its Subsidiaries as a director or officer of another Person (the “Indemnified Parties”), whether pertaining is, or is threatened to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior tobe, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities made a party based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that he is or was a director or officer of the Company or in connection with any of its Subsidiaries, (ii) all acts or omissions by him taken at the request of the Company or any of its Subsidiaries at any time prior to the Effective Time, or (iii) this Agreement, the Merger Agreement or any of the transactions contemplated hereby by this Agreement, whether asserted or therebyarising before or after the Effective Time, in each case the Parties shall cooperate and use their best efforts to defend against and respond thereto. From and after the Effective Time, Parent shall indemnify and hold harmless, as and to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC Law and the Surviving EntityCompany’s Organizational Documents, as the case may beeach such Indemnified Party against any losses, shall pay claims, damages, liabilities, costs, expenses (including reimbursement for reasonable fees and expenses incurred in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law Action upon receipt of any undertaking contemplated required by applicable law. Without limiting the foregoingLaw), if judgments, fines and amounts paid in settlement in connection with any such claim, action, suit, proceeding threatened or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such actual Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For Unless required by applicable law, no provision in any Organizational Documents of the Company or any of its Subsidiaries providing indemnification, advancement or exculpation shall for a period of seven six (6) years after following the Effective TimeTime be amended, CSLC modified or repealed in any manner that would adversely affect the rights or protections thereunder of any individuals who at the Effective Time were current or former directors, officers or employees of the Company or any of its Subsidiaries.
(c) The Company shall purchase, prior to the Effective Time (and Parent shall cause to be maintained in effect throughout its term), a six (6) year prepaid “tail policy” from a broker specifically designated by the Parent, on terms and conditions (in both amount and scope) providing substantially equivalent benefits as the current policies of directors' ’, officers’ and officers' employees’ liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts acts or events which occurred before omissions occurring prior to the Effective Time to the extent available on commercially reasonable terms; providedthat were committed by such directors, however, that CSLC shall not be obligated to incur officers and employees in excess of $400,000 in the aggregate under this Section 5.9(b)their capacity as such.
(cd) The provisions of this Section 5.9 6.7 shall survive the Effective Time and are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representativesRepresentatives and are in addition to, and not in substitution for, any other rights to indemnification or contribution that any such Person may have by contract or otherwise.
(e) If Parent or the Surviving Corporation or any of its successors or assigns shall (i) consolidate with or merge into any other Person and shall not be the continuing or surviving corporation or entity of such consolidation or merger or (ii) transfer all or substantially all of its properties and assets to any Person, then, and in each such case, proper provisions shall be made so that the successors and assigns of Parent or the Surviving Corporation (or acquiror of such assets), as the case may be, shall assume all of the obligations of Parent or the Surviving Corporation set forth in this Section 6.7.
Appears in 2 contracts
Samples: Merger Agreement (Amtech Systems Inc), Merger Agreement (Btu International Inc)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallIn the event of any threatened or actual claim, and from and after the Effective Timeaction, CSLC and the Surviving Entity shallsuit, indemnifyproceeding or investigation, defend and hold harmless each person whether civil, criminal or administrative, including, without limitation, any such claim, action, suit, proceeding or investigation in which any individual who is now, or has been at any time prior to the date hereof has been of this Agreement, or who becomes prior to the Effective Time, an officer, a director or employee of the Company or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of FNB, any of its Subsidiaries, any of its Non-Subsidiary Affiliates or a fiduciary or administrator of a plan for the Company benefit of its directors or employees including any Subsidiaryentity specified in the FNB Disclosure Schedule (the “Indemnified Parties”), whether pertaining is, or is threatened to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior tobe, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities made a party based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that he or she is or was a director, officer or employee of FNB or any of its Subsidiaries or any entity specified in connection with the FNB Disclosure Schedule or any of their respective predecessors or (ii) this Agreement, the Merger Agreement or any of the transactions contemplated hereby or thereby, whether in each any case asserted or arising before or after the Effective Time, the parties hereto agree to cooperate and use their best efforts to defend against and respond thereto. It is understood and agreed that after the Effective Time, LSB shall indemnify and hold harmless, as and to the fullest extent a corporation is permitted under applicable law to indemnify its own directorsby law, officers each such Indemnified Party against any losses, claims, damages, liabilities, costs, expenses (including reasonable attorney’s fees and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action claim, suit, proceeding or proceeding investigation to each Indemnified Party to the fullest extent permitted under applicable by law upon receipt of any undertaking contemplated required by applicable law. Without limiting the foregoing), if judgments, fines and amounts paid in settlement in connection with any such threatened or actual claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Partiesinvestigation.
(b) For LSB shall use its reasonable best efforts to cause the individuals serving as officers and directors of FNB, its Subsidiaries, its Non-Subsidiary Affiliates or a fiduciary or administrator of a plan for the benefit of its employees or directors or any entity specified in the FNB Disclosure Schedule immediately prior to the Effective Time to be covered for a period of seven six (6) years after from the Effective TimeTime (or the period of the applicable statute of limitations, CSLC shall cause to be maintained in effect if longer) by the current policies of directors' ’ and officers' ’ liability insurance policy maintained by the Company and its Subsidiaries LSB (provided that CSLC LSB may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no not less advantageousadvantageous than such policy) with respect to claims arising from facts acts or events which occurred before omissions occurring prior to the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur which were committed by such officers and directors in excess of $400,000 in the aggregate under this Section 5.9(b)their capacity as such.
(c) In the event LSB or any of its successors or assigns (i) consolidates with or merges into any other person and shall not be the continuing or surviving corporation or entity of such consolidation or merger, or (ii) transfers or conveys all or substantially all of its properties and assets to any person, then, and in each such case, to the extent necessary, proper provision shall be made so that the successors and assigns of LSB assume the obligations set forth in this Section 6.8.
(d) The provisions of this Section 5.9 6.8 shall survive the Effective Time and are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives.
Appears in 2 contracts
Samples: Merger Agreement (FNB Financial Services Corp), Merger Agreement (LSB Bancshares Inc /Nc/)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallWithout limiting any other rights that any Indemnified Person may have pursuant to any employment agreement or indemnification agreement in effect as if the entry into this Agreement or otherwise, and from and after the Effective Time, CSLC Parent and the Surviving Entity Corporation shall, jointly and severally, indemnify, defend and hold harmless each person Person who is now, or has been at any time prior to the date hereof has been entry into this Agreement or who becomes prior to the Effective Time, an officer, a director or employee officer of the Company or any of its Subsidiaries or who acts as a fiduciary under any Company Plan, in each case, when acting in such capacity (the "“Indemnified Parties"Persons”) from and against (i) all losses, claims, damages, costs, fines, penalties, expenses (including attorneys’ and other professionals’ fees and expenses), liabilities Liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) settlement, of or incurred in connection with any claimThreatened or actual Proceeding to which such Indemnified Person is a party or is otherwise involved (including as a witness) based, action, suit, proceeding, case or investigation ("Action") based in whole or in part part, on or arising arising, in whole or in part part, out of or in connection with the fact that such person Person is or was a director or officer of the Company or any of its Subsidiaries, a fiduciary under any Company Plan or is or was serving at the request of the Company or any of its Subsidiaries as a director, officer or employee fiduciary of the Company another corporation, partnership, limited liability company, joint venture, Employee Benefit Plan, trust or other enterprise, as applicable, or by reason of anything done or not done by such Person in any Subsidiarysuch capacity, whether pertaining to any matter act or omission occurring or existing or occurring at or prior to or at, but not after, the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("“Indemnified Liabilities") and (ii) ”), including all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, or in connection with pertaining to, this Agreement, Agreement or the Merger or any of the transactions contemplated hereby or therebyTransactions, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers Law (and employees, as the case may be and CSLC Parent and the Surviving EntityCorporation shall, as the case may bejointly and severally, shall pay expenses incurred in connection therewith in advance of the final disposition of any such action or proceeding Proceeding to each Indemnified Party Person to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheldLaw). Any Indemnified Party electing Person wishing to claim indemnification or advancement of expenses under this Section 5.96.10, upon learning of any such ActionProceeding, shall promptly notify the Company, CSLC or the Surviving Entity of such election Corporation (but the failure so to notify the Company shall not relieve it a Party from any liability which obligations that it may have under this Section 5.9, 6.10 except to the extent such failure materially prejudices it such Party’s position with respect to such claims). With respect to any determination of whether any Indemnified Person is entitled to indemnification by Parent or if it otherwise forfeits substantive rights the Surviving Corporation under this Section 6.10, such Indemnified Person shall have the right, as contemplated by the DGCL, to require that such determination be made by special, independent legal counsel selected by the Indemnified Person and defenses approved by Parent or the Surviving Corporation, as a result of such failureapplicable (which approval shall not be unreasonably withheld or delayed), and shall deliver to who has not otherwise performed material services for Parent, the Company Surviving Corporation or the Indemnified Person within the last three years.
(or b) From and after the Effective Time, to CSLC Parent and the Surviving EntityCorporation shall not amend, repeal or otherwise modify any provision in the Organizational Documents of the Surviving Corporation or any of its Subsidiaries in any manner that would affect (or manage the Surviving Corporation or its Subsidiaries, with the intent to or in a manner that would affect) adversely the undertaking contemplated rights thereunder of any Indemnified Person to indemnification, exculpation and advancement, except to the extent required by applicable lawLaw. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there isParent shall, under applicable standards of professional conductand shall cause the Surviving Corporation to, a conflict in respect of fulfill and honor any significant issue indemnification, expense advancement or exculpation agreements between the positions Company or any of its Subsidiaries and any two of its directors, or more Indemnified Partiesofficers existing and in effect prior to the entry into this Agreement.
(bc) For a period of seven years From and after the Effective Time, CSLC Parent and the Surviving Corporation shall indemnify any Indemnified Person against all reasonable costs and expenses (including reasonable attorneys’ fees and expenses), such amounts to be payable in advance upon request as provided in Section 6.10(a), relating to the enforcement of such Indemnified Person’s rights under this Section 6.10 or under any charter, bylaw or contract; provided, that, to the extent required by applicable Law, such Indemnified Person to whom expenses are advanced provides an undertaking to repay such advances if it is ultimately determined by final adjudication that such Indemnified Person is not entitled to indemnification.
(d) Parent and the Company will cause to be maintained put in effect place and maintain, and Parent shall fully prepay immediately prior to, and conditioned upon the current occurrence of, the Effective Time, “tail” insurance policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies with a claims period of at least six years from the Effective Time (the “Tail Period”) from an insurance carrier with the same coverage and amounts containing terms and conditions which are no less advantageous) or better credit rating as the Company’s current insurance carrier with respect to claims arising from facts directors’ and officers’ liability insurance (“D&O Insurance”) in an amount and scope at least as favorable as the Company’s existing policies with respect to matters, acts or events which occurred before omissions existing or occurring at or prior to, but not after, the Effective Time to the extent available on commercially reasonable termsTime; provided, however, that CSLC in no event shall the aggregate cost of the D&O Insurance exceed during the Tail Period 300% of the current aggregate annual premium paid by the Company for such purpose; and provided, further, that, if the cost of such insurance coverage exceeds such amount, the Company shall obtain a policy with the greatest coverage available for a cost not exceeding such amount.
(e) In the event that, prior to the sixth anniversary of the Effective Time, Parent or the Surviving Corporation or any of its successors or assignees after the Effective Time (i) consolidates with or merges into any other Person and shall not be obligated the continuing or surviving company or entity of such consolidation or merger or (ii) transfers all or substantially all of its properties and assets to incur any Person, then, in excess each such case, proper provisions shall be made so that the successors and assigns of $400,000 Parent or the Surviving Corporation, as the case may be, shall assume the obligations set forth in this Section 6.10. Parent and the aggregate Surviving Corporation shall not sell, transfer, distribute or otherwise dispose of any of their assets in a manner that would reasonably be expected to render Parent or Surviving Corporation unable to satisfy their obligations under this Section 5.9(b).
(c) 6.10. The provisions of this Section 5.9 6.10 are intended to be for the benefit of, and shall be enforceable by, the Parties and each Indemnified Partyperson entitled to indemnification or insurance coverage or expense advancement pursuant to this Section 6.10, and his heirs and his representativesRepresentatives. The rights of the Indemnified Persons under this Section 6.10 are in addition to any rights such Indemnified Persons may have under the Organizational Documents of the Company or any of its Subsidiaries, or under any applicable contracts or Law.
Appears in 2 contracts
Samples: Merger Agreement (CONSOL Energy Inc.), Merger Agreement (Arch Resources, Inc.)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective Time, CSLC and the Surviving Entity shall, indemnify, defend Corporation shall indemnify and hold harmless each person who is now, or who has been at any time prior to before the date hereof has been of this Agreement, or who becomes prior to before the Effective Time, an officera director, director officer or employee of the Company or any of its Subsidiaries (the "in each case, when acting in such capacity) (each, a “Company Indemnified Parties"Party”) from and against (i) all losses, claims, damages, costs, expensesexpenses (including reasonable attorneys’ fees), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any actual or threatened claim, action, suit, proceeding, case investigation or investigation other legal proceeding, whether civil, criminal, administrative or investigative ("Action") based each, a “Claim”), in whole which a Company Indemnified Party is, or in part on is threatened to be made, a party or witness or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiaryof its Subsidiaries or is or was serving at the request of the Company or any of its Subsidiaries as a director, whether pertaining officer, employee or agent of a corporation, partnership, joint venture, trust or other enterprise if such Claim pertains to any matter arising, existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after before the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole including any matter arising, existing or in part on, or arising in whole or in part out of or occurring in connection with this Agreementthe Merger and the other transactions contemplated hereby), regardless of whether such Claim is asserted or claimed before, or after, the Merger or any of the transactions contemplated hereby or therebyEffective Time, in each case to the fullest extent a corporation is permitted under by applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC and the Law. The Surviving Entity, as the case may be, Corporation shall pay expenses (including reasonable attorneys’ fees) in advance of the final disposition of any such action or proceeding Claim to each Company Indemnified Party to the fullest extent permitted under by applicable law Law upon receipt of any an undertaking contemplated by applicable law(in a reasonable and customary form) to repay such advance payments if he or she shall be adjudicated or determined to be not entitled to indemnification under this Section 6.7(a). Without limiting In the foregoing, if event of any such claimClaim, actionthe Surviving Corporation shall reasonably cooperate with the Company Indemnified Party, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and Indemnified Party shall reasonably cooperate with the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective TimeCorporation, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified PartiesClaim.
(b) For The Surviving Corporation shall maintain in effect for a period of seven six (6) years after the Effective Time, CSLC shall cause to be maintained in effect Time the current policies of currently existing directors' ’ and officers' ’ liability insurance policy maintained by the Company and its Subsidiaries (provided provided, that CSLC the Surviving Corporation may substitute therefor policies with a substantially comparable insurer of at least the same coverage and amounts containing terms and conditions which are no less advantageousadvantageous to the insured) with respect to claims arising from facts or events which occurred at or before the Effective Time and covering persons who are currently covered by such insurance or who become covered by such insurance prior to the extent available on commercially reasonable termsEffective Time; provided, howeverthat in no event shall the Surviving Corporation be required to expend annually in the aggregate an amount in excess of 250% of the annual premium payment on the Company’s current policy in effect as of the date of this Agreement (the “Maximum Amount”) and, if the Surviving Corporation is unable to maintain such policy (or substitute policy) as a result of this proviso, the Surviving Corporation shall obtain as much comparable insurance as is available for a period of six (6) years following the Effective Time by payment of such amount; provided, further, that CSLC (i) Parent or the Surviving Corporation may substitute therefor a six (6)-year “tail” prepaid policy the material terms of which, including coverage and amount, are no less favorable in any material respect to such directors and officers than the Company’s existing policies as of the date hereof; provided, that Parent and the Surviving Corporation shall not be obligated to incur in excess of $400,000 pay, in the aggregate aggregate, an amount greater than the Maximum Amount for such “tail” policy or (ii) Parent may request that the Company obtain such “tail” prepaid coverage for a six (6)-year period under this Section 5.9(bthe Company’s existing insurance programs (to be effective as of the Effective Time).
(c) The provisions of this Section 5.9 6.7 shall survive the Effective Time and are intended to be for the benefit of, and shall be enforceable by, each Company Indemnified Party, Party and his or her respective heirs and his representatives. In the event the Surviving Corporation or any of its successors or assigns (i) consolidates with or merges into any other person and shall not be the continuing or surviving corporation or entity of such consolidation or merger or (ii) transfers or conveys all or substantially all of its properties or assets to any person, then, and in each such case, the Surviving Corporation or any of its successors or assigns, as applicable, shall cause proper provision to be made so that the successors and assigns of the Surviving Corporation will expressly assume the obligations set forth in this Section 6.7.
Appears in 2 contracts
Samples: Merger Agreement (DNB Financial Corp /Pa/), Merger Agreement (S&t Bancorp Inc)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from and after the Effective Time, CSLC and the Surviving Entity shall, Parent shall indemnify, defend and hold harmless each person who is nowStockholder, or at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, director or employee of the Company or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses (including reasonable attorneys' fees and expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not be unreasonably be withheld) of or in connection with any threatened or actual claim, action, suit, proceeding, case proceeding or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of or in connection with executed this Agreement, the Merger other than as a result of, or relating to, any claim of the transactions contemplated hereby or thereby, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers Stockholder (and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall Parent will pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest full extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law). Without limiting the foregoing, if in the event any such claim, action, suit, proceeding or investigation is commenced or instituted brought against any Indemnified Party (whether arising before or after the Effective Time)Parties, (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them Parent and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) Parent shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor therefore are received; and (iiiii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall Parent will use best all reasonable efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity Parent shall not be liable for any settlement of any claim effected without its prior written consent (which consent shall not unreasonably be withheld)consent. Any Indemnified Party electing wishing to claim indemnification under this Section 5.95.k., upon learning of any such Actionclaim, action, suit, proceeding or investigation, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable lawParent. The Indemnified Parties as a group may retain only one law firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect the written opinion of counsel to the Indemnified Parties, on any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least in no event shall the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not Parent be obligated to incur in excess pay the fees and expenses of $400,000 in the aggregate under this Section 5.9(b).
(c) more than two law firms on behalf of all Indemnified Parties. The provisions of this Section 5.9 5.k. are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representativespersonal representatives and shall be binding on all successors and assigns of Parent, Sub, the Company and the Surviving Corporation. The provisions of this Section 5.k. shall terminate and shall be of no force or effect following execution of the Merger Agreement or upon Parent's delivery of notice to the Indemnified Party that it will immediately upon the written request of such party terminate the Option relating to the shares of Company Common Stock owned by such Indemnified Party.
Appears in 2 contracts
Samples: Stockholders Agreement (First Southwest Co Et Al), Stockholders Agreement (U S Intec Inc)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective Time, CSLC and Parent shall, or shall cause the Surviving Entity shallCorporation to, indemnify, defend and hold harmless each person present and former director and officer of the Company and each Subsidiary of the Company, and each such Person who is now, or served at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, director or employee request of the Company or any Subsidiary of its Subsidiaries the Company as a director, officer, trustee, partner, fiduciary, employee or agent of another corporation, partnership, joint venture, trust, pension or other employee benefit plan or enterprise (collectively, the "Indemnified PartiesINDEMNIFIED PARTIES") from ), against all Losses and against (i) all losses, claims, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or Expenses in connection with any claim, action, suit, proceeding, case proceeding or investigation (each a "ActionCLAIM") ), whether civil, administrative or investigative, to the extent that any such Claim is based in whole or in part on or arising in whole or in part arises out of or in connection with of: (i) the fact that such person Indemnified Party is or was a director, director or officer or employee of the Company or any Subsidiaryof its Subsidiaries or is or was serving at the request of the Company or any of its Subsidiaries as a director, whether pertaining officer, trustee, partner, fiduciary, employee or agent of another corporation, partnership, joint venture, trust, pension or other employee benefit plan or enterprise; or (ii) this Agreement or any of the transactions contemplated hereby, in each case to the extent that any such Claim pertains to any matter or fact arising, existing or occurring at or prior to or at the Effective Time and Time, whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part onTime, or arising in whole or in part out of or in connection with this Agreement, the Merger or any of the transactions contemplated hereby or thereby, in each case to the fullest full extent a corporation is permitted under applicable law to indemnify its own directorsLaw, officers and employeesthe Company Charter or the certificate of incorporation of the Subsidiary, as the case may be, or the by-laws of the Company or the Subsidiary, as the case may be, as in effect of the date hereof (and Parent shall, or shall cause the Surviving Corporation to, advance expenses as incurred to the fullest extent permitted under applicable Law); PROVIDED, HOWEVER, that neither Parent nor the Surviving Corporation shall be and CSLC required to indemnify any Indemnified Party in connection with any proceeding (or portion thereof) involving any Claim initiated by such Indemnified Party unless the initiation of such proceeding (or portion thereof) was authorized by the Board of Directors of Parent or unless such proceeding is brought by any Indemnified Party to enforce rights under this SECTION 7.6.
(b) Parent and the Surviving EntityCompany agree that all rights to indemnification, and all limitations of liability with respect thereto, existing in favor of any Indemnified Party, as provided in the Company Charter or the certificate of incorporation of the Subsidiary, as the case may be, or by-laws of the Company or the Subsidiary, as the case may be, in effect at the date hereof, shall survive the Merger and shall continue in full force and effect, without any amendment thereto, for a period of six years after the Effective Time to the extent such rights and limitations of liability are consistent with applicable Law; PROVIDED, HOWEVER, that in the event any Claim is asserted or made within such six-year period, all such rights and limitations of liability in respect of any such Claim shall continue until disposition thereof; PROVIDED, FURTHER, that any determination required to be made with respect to whether an Indemnified Party's conduct complies with the standards set forth under applicable Law, the Company Charter or the certificate of incorporation of the Subsidiary, as the case may be, or the by-laws of the Company or the Subsidiary, as the case may be, shall pay expenses be made by independent legal counsel selected by such Indemnified Party and reasonably acceptable to Parent; and provided, further, that nothing in advance this SECTION 7.6 shall impair any rights or obligations of any present or former director or officer of the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party Company.
(whether arising before or after the Effective Time), (ic) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC Parent or the Surviving Entity of such election (but Corporation shall maintain the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of Company's existing directors' and officers' liability insurance maintained by policies (true and complete copies of which have been made available to Parent) for a period of not less than six years after the Company and its Subsidiaries (provided Effective Time; PROVIDED, HOWEVER, that CSLC Parent or the Surviving Corporation may substitute therefor policies of at least the same similar coverage and amounts containing terms and conditions which are no less advantageous) with respect advantageous to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable termssuch former directors and officers; providedPROVIDED, howeverFURTHER, that CSLC if the existing insurance policies expire or are canceled during such period, Parent or the Surviving Corporation shall not use all reasonable efforts to obtain similar insurance; and PROVIDED, FURTHER, that neither Parent nor the Surviving Corporation shall be obligated required to incur pay an annual premium for such insurance in excess of $400,000 200% of the last annual premium paid by the Company prior to the date hereof, but in such case shall purchase as much coverage as possible for such amount (it being understood that Parent or the aggregate Surviving Corporation may satisfy its obligations under this Section 5.9(bSECTION 7.6 by purchasing a "tail" policy that provides the required coverage).
(cd) The provisions of this Section 5.9 SECTION 7.6 are intended to be for the benefit of, and shall be enforceable by, each of the Indemnified PartyParties, his their heirs and his personal representatives.
Appears in 2 contracts
Samples: Merger Agreement (Whitman Corp/New/), Merger Agreement (Delta Beverage Group Inc)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallIn the event of any threatened or actual claim, action, suit, proceeding or investigation, whether civil, criminal, or administrative (a “Claim”), including any such Claim in which any individual who is now, or has been at any time before the date of this Agreement, or who becomes before the Effective Time, a director or officer of Talmer or any of its Subsidiaries (each, an “Indemnified Party”), is, or is threatened to be, made a party based in whole or in part on, or arising in whole or in part out of, or pertaining to this Agreement or any of the transactions contemplated by this Agreement, whether asserted or arising before or after the Effective Time, the Parties shall cooperate and use their commercially reasonable efforts to defend against and respond thereto. All rights to indemnification (including advancement of expenses) and exculpation from liabilities for acts or omissions occurring at or before the Effective Time now existing in favor of any Indemnified Party as provided in the Talmer Articles and/or the Talmer Bylaws, and from any existing indemnification agreements, shall survive the Merger and shall continue in full force and effect in accordance with their terms, and shall not be amended, repealed, or otherwise modified after the Effective Time in any manner that would adversely affect the rights thereunder of such individuals for acts or omissions occurring at or before the Effective Time or taken at the request of Chemical pursuant to Section 6.7, it being understood that nothing in this sentence shall require any amendment to the Articles of Incorporation or Bylaws of the Surviving Corporation.
(b) From and after the Effective Time, CSLC and the Surviving Entity Corporation shall, to the fullest extent permitted by applicable Law, indemnify, defend defend, and hold harmless harmless, and provide advancement of reasonable expenses to, each person who is now, or at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, director or employee of the Company or any of its Subsidiaries (the "Indemnified Parties") from and Party against (i) all losses, claims, damages, costs, expenses, liabilities liabilities, or judgments judgments, or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") Claim based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is Person was a director or officer of Talmer or any Talmer Subsidiary (or was serving at the request of Talmer or any of its Subsidiaries as a director, officer officer, employee, or employee trustee of the Company or any Subsidiary, whether another Person) and pertaining to any matter existing or occurring, or any acts or omissions occurring, at or before the Effective Time, whether asserted or claimed before, or at or after, the Effective Time (including matters, acts or omissions occurring in connection with the approval of this Agreement and the consummation of the transactions contemplated hereby) or taken at the request of Chemical pursuant to Section 6.7; provided, that, and without limitation to the covenants set forth in Section 6.6(a), with respect to any predecessor entities of Talmer Bank, only matters arising from acts or omissions occurring after the acquisition by Talmer of such entities shall be covered by this Section 6.6(b).
(c) The Surviving Corporation shall maintain in effect for not less than six (6) years from the Effective Time the current policies of directors’ and officers’ liability insurance and fiduciary liability insurance maintained by Talmer and the Talmer Subsidiaries for the Indemnified Parties prior to the Effective Time with respect to matters occurring at or prior to the Effective Time and whether asserted or claimed prior toTime, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of or in connection with this Agreement, the Merger or any of including the transactions contemplated hereby or therebyby this Agreement. Alternatively, in each case the Surviving Corporation may substitute therefor policies of substantially the same coverage containing terms and conditions that, taken as a whole, are no less advantageous to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable lawParties. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after After the Effective Time, the Surviving Corporation shall not be required to pay premiums for insurance coverages in excess of 300% of the last annual premium (such 300% threshold, the “Maximum Amount”) paid by Talmer prior to the date of this Agreement in respect of the coverages required to be obtained pursuant to this Section 6.6(c), (i) but in such case shall purchase the Indemnified Parties may retain counsel satisfactory to them and greatest coverage available for a cost not exceeding the Company (or satisfactory to them and CSLC and Maximum Amount. Alternatively, the Surviving Entity after the Effective Time); (ii) the Company (Corporation may purchase at or after the Effective Time, CSLC and at a cost not exceeding the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conductMaximum Amount, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect six-year prepaid “tail” policy on terms and conditions providing substantially equivalent benefits as the current policies of directors' ’ and officers' ’ liability insurance and fiduciary liability insurance maintained by Talmer and the Company and its Talmer Subsidiaries (provided that CSLC may substitute therefor policies of at least for the same coverage and amounts containing terms and conditions which are no less advantageous) Indemnified Parties with respect to claims arising from facts matters occurring at or events which occurred before prior to the Effective Time to Time, including the extent available on commercially reasonable terms; providedtransactions contemplated by this Agreement. If such “tail” prepaid policy has been obtained, however, that CSLC the Surviving Corporation shall not be obligated to incur maintain it in excess of $400,000 in the aggregate under this Section 5.9(b)full force and effect for its full term and honor all obligations thereunder.
(cd) The provisions of this Section 5.9 6.6 shall survive the Effective Time and are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives.
Appears in 2 contracts
Samples: Merger Agreement (Talmer Bancorp, Inc.), Merger Agreement (Chemical Financial Corp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallWithout limiting any other rights that any Indemnified Person may have pursuant to any employment agreement or indemnification agreement in effect on the date hereof or otherwise, from the Effective Time and from and after until the six year anniversary of the Effective Time, CSLC Parent and the Surviving Entity Corporation shall, jointly and severally, indemnify, defend and hold harmless each person Person who is now, or has been at any time prior to the date hereof has been of this Agreement or who becomes prior to the Effective Time, an officera director, director officer or employee of the Company or any of its Subsidiaries or who acts as a fiduciary under any Company Plan or any of its Subsidiaries (the "“Indemnified Parties"Persons”) from and against (i) all losses, claims, damages, costs, fines, penalties, expenses (including attorneys’ and other professionals’ fees and expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) settlement, of or incurred in connection with any claimthreatened or actual Proceeding to which such Indemnified Person is a party or is otherwise involved (including as a witness) based, action, suit, proceeding, case or investigation ("Action") based in whole or in part part, on or arising arising, in whole or in part part, out of or in connection with the fact that such person Person is or was a director, officer or employee of the Company or any Subsidiaryof its Subsidiaries, a fiduciary under any Company Plan or any of its Subsidiaries or is or was serving at the request of the Company or any of its Subsidiaries as a director, officer, employee or agent of another corporation, partnership, limited liability company, joint venture, Employee Benefit Plan, trust or other enterprise or by reason of anything done or not done by such Person in any such capacity, whether pertaining to any matter act or omission occurring or existing or occurring prior to, at or prior to after the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("“Indemnified Liabilities") and (ii) ”), including all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, or in connection with pertaining to, this Agreement, Agreement or the Merger or any of the transactions contemplated hereby or therebyTransactions, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers Law (and employees, as the case may be and CSLC Parent and the Surviving EntityCorporation shall, as the case may bejointly and severally, shall pay expenses incurred in connection therewith in advance of the final disposition of any such action or proceeding Proceeding to each Indemnified Party Person to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable lawLaw). Without limiting the foregoing, if in the event any such claim, action, suit, proceeding Proceeding is brought or investigation is commenced or instituted threatened to be brought against any Indemnified Party Persons (whether arising before or after the Effective Time), (i) the Indemnified Parties Persons may retain the Company’s regularly engaged legal counsel or other counsel satisfactory to them them, and the Company (or satisfactory to them and CSLC Parent and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) Corporation shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties Persons as promptly as reasonably itemized statements therefor are received; , and (iiiii) the Company (or after the Effective Time, CSLC Parent and the Surviving Entity) Corporation shall use its best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing Person wishing to claim indemnification or advancement of expenses under this Section 5.96.10, upon learning of any such ActionProceeding, shall promptly notify the Company, CSLC or the Surviving Entity of such election Corporation (but the failure so to notify the Company shall not relieve it a party from any liability which obligations that it may have under this Section 5.9, 6.10 except to the extent such failure materially prejudices it such party’s position with respect to such claims). With respect to any determination of whether any Indemnified Person is entitled to indemnification by Parent or if it otherwise forfeits substantive rights Surviving Corporation under this Section 6.10, such Indemnified Person shall have the right, as contemplated by the DGCL, to require that such determination be made by special, independent legal counsel selected by the Indemnified Person and defenses approved by Parent or Surviving Corporation, as a result of such failureapplicable (which approval shall not be unreasonably withheld or delayed), and shall deliver to who has not otherwise performed material services for Parent, Surviving Corporation or the Company Indemnified Person within the last three (or after the Effective Time, to CSLC and the Surviving Entity3) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Partiesyears.
(b) For Parent and the Surviving Corporation shall not amend, repeal or otherwise modify any provision in the Organizational Documents of the Surviving Corporation in any manner that would affect (or manage the Surviving Corporation or its Subsidiaries, with the intent to or in a period manner that would) adversely the rights thereunder or under the Organizational Documents of seven years after the Surviving Corporation or any of its Subsidiaries of any Indemnified Person to indemnification, exculpation and advancement except to the extent required by applicable Law. Parent shall, and shall cause the Surviving Corporation to, fulfill and honor any indemnification, expense advancement or exculpation agreements between the Company or any of its Subsidiaries and any of its directors, officers or employees existing immediately prior to the Effective Time.
(c) Parent and the Surviving Corporation shall indemnify any Indemnified Person against all reasonable, documented, out-of-pocket costs and expenses (including reasonable attorneys’ fees and expenses), such amounts to be payable in advance upon request as provided in Section 6.10(a), relating to the enforcement of such Indemnified Person’s rights under this Section 6.10 or under any charter, bylaw or contract regardless of whether such Indemnified Person is ultimately determined to be entitled to indemnification hereunder or thereunder.
(d) Parent and the Surviving Corporation will cause to be put in place, and Parent shall fully prepay immediately prior to the Effective Time, CSLC shall cause to be maintained in effect the current “tail” insurance policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies with a claims period of at least six years from the Effective Time from an insurance carrier with the same coverage and amounts containing terms and conditions which are no less advantageous) or better credit rating as the Company’s current insurance carrier with respect to claims arising from facts directors’ and officers’ liability insurance in an amount and scope at least as favorable as the Company’s existing director and officer liability policies disclosed on Schedule 4.19 of the Company Disclosure Letter with respect to matters, acts or events which occurred before omissions existing or occurring at or prior to the Effective Time to the extent available on commercially reasonable termsTime; provided, however, that CSLC Parent may elect in its sole discretion to, but shall not be obligated required to, spend more than 300% (the “Cap Amount”) of the last annual premium paid by the Company prior to incur in excess the date hereof for the six years of $400,000 in coverage under such tail policy; provided further that if the aggregate under this Section 5.9(b)cost of such insurance exceeds the Cap Amount, and Parent elects not to spend more than the Cap Amount for such purpose, then Parent shall purchase as much coverage as is obtainable for the Cap Amount.
(ce) In the event that Parent or the Surviving Corporation or any of its successors or assigns (i) consolidates with or merges into any other Person and shall not be the continuing or surviving corporation or entity of such consolidation or merger or (ii) transfers all or substantially all of its properties and assets to any Person, then, in each such case, proper provisions shall be made so that the successors and assigns of Parent or the Surviving Corporation, as the case may be, shall assume the obligations set forth in this Section 6.10.
(f) The provisions of this Section 5.9 6.10 are intended to be for the benefit of, and shall be enforceable by, the parties and each Indemnified PartyPerson entitled to indemnification or insurance coverage or expense advancement pursuant to this Section 6.10, and his heirs and his representatives. Parent and the Surviving Corporation shall not sell, transfer, distribute or otherwise dispose of any of their assets in a manner that would reasonably be expected to render Parent or Surviving Corporation unable to satisfy their obligations under this Section 6.10.
Appears in 2 contracts
Samples: Merger Agreement (Range Resources Corp), Merger Agreement (Memorial Resource Development Corp.)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallWithout limiting any additional rights that any director, and officer, trustee, employee, agent, or fiduciary may have under any employment or indemnification agreement or under the Operating Agreement or this Agreement or, if applicable, similar organizational documents or agreements of any of ATN’s Subsidiaries, from and after the Effective Time, CSLC Parent and the Surviving Entity ATN, jointly and severally, shall, indemnify, defend : (i) indemnify and hold harmless each person who is now, or at any time prior to the date hereof has been or who becomes prior to during the period from the date hereof through the date of the Effective Time, an officer, Time serving as a director or employee officer of the Company ATN or any of its Subsidiaries or as a fiduciary under or with respect to any employee benefit plan (within the "meaning of Section 3(3) of ERISA) (collectively, the “Indemnified Parties"”) from to the fullest extent authorized or permitted by applicable Law, as now or hereafter in effect, in connection with any Claim and against (i) all any losses, claims, damages, liabilities, costs, expensesIndemnification Expenses, liabilities or judgments or judgments, fines, penalties and amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of including all interest, assessments and other charges paid or payable in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out respect of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities"thereof) resulting therefrom; and (ii) all Indemnified Liabilities based in whole or in part onpromptly pay on behalf of or, or arising in whole or in part out of or in connection with this Agreementwithin ten (10) days after any request for advancement, the Merger or any advance to each of the transactions contemplated hereby Indemnified Parties, any Indemnification Expenses incurred in defending, serving as a witness with respect to or thereby, in each case otherwise participating with respect to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses any Claim in advance of the final disposition of any such action Claim, including payment on behalf of or proceeding advancement to each the Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated Indemnification Expenses incurred by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of connection with enforcing any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to such indemnification and/or advancement, in each such matter unless there is, under applicable standards of professional conduct, a conflict in respect case without the requirement of any significant issue between the positions bond or other security). The indemnification and advancement obligations of any two Parent and ATN pursuant to this Section 7.8(a) shall extend to acts or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of omissions occurring at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time and any Claim relating thereto (including with respect to any acts or omissions occurring in connection with the approval of this Agreement and the consummation of the Merger and the transactions contemplated by this Agreement, including the consideration and approval thereof and the process undertaken in connection therewith and any Claim relating thereto), and all rights to indemnification and advancement conferred hereunder shall continue as to a person who has ceased to be a director or officer of ATN or any of its Subsidiaries after the date hereof and shall inure to the extent available on commercially reasonable terms; providedbenefit of such person’s heirs, howeverexecutors and personal and legal representatives. As used in this Section 7.8(a): (x) the term “Claim” shall mean any threatened, asserted, pending or completed action, whether instituted by any party hereto, any Governmental Authority or any other person, that CSLC any Indemnified Party in good faith believes might lead to the institution of any Action, whether civil, criminal, administrative, investigative or other, including any arbitration or other alternative dispute resolution mechanism, arising out of or pertaining to matters that relate to such Indemnified Party’s duties or service as a director or officer of ATN, any of its Subsidiaries, or any employee benefit plan (within the meaning of Section 3(3) of ERISA) maintained by any of the foregoing at or prior to the Effective Time; and (y) the term “Indemnification Expenses” shall not mean reasonable attorneys’ fees and all other reasonable costs, expenses and obligations (including experts’ fees, travel expenses, court costs, retainers, transcript fees, duplicating, printing and binding costs, as well as telecommunications, postage and courier charges) paid or incurred in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to investigate, defend, be obligated a witness in or participate in, any Claim for which indemnification is authorized pursuant to incur in excess of $400,000 in the aggregate under this Section 5.9(b7.8(a).
(c) The provisions of this Section 5.9 are intended , including any Claim relating to be a claim for the benefit of, and shall be enforceable by, each indemnification or advancement brought by an Indemnified Party. Neither Parent nor ATN shall settle, his heirs and his representativescompromise or consent to the entry of any judgment in any actual or threatened Claim in respect of which indemnification has been or could be sought by such Indemnified Party hereunder unless such settlement, compromise or judgment includes an unconditional release of such Indemnified Party from all liability arising out of such Claim without admission or finding of wrongdoing, or such Indemnified Party otherwise consents thereto.
Appears in 2 contracts
Samples: Merger Agreement (Atlas Energy Resources, LLC), Merger Agreement (Atlas Resources Public #18-2008 Program)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallGPU and, and from and after the Effective Time, CSLC the Surviving Corporation (each of GPU and the Surviving Entity shallCorporation, as the case may be, is referred to herein as a "GPU Indemnifying Party") shall indemnify, defend defend, and hold harmless each person who is now, or has been at any time prior to the date hereof has been of this Agreement or who becomes prior to the Effective Time, an officer, director director, or employee of the Company GPU or any of its Subsidiaries (the "GPU Indemnified Parties") from and against against
(i) all losses, claims, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party GPU Indemnifying Party (which approval shall not be unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case proceeding or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company GPT or any Subsidiaryof its Subsidiaries, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, or at or after after, the Effective Time (the "GPU Indemnified Liabilities") and ), and
(ii) all GPU Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, or in connection with pertaining to this Agreement, the Merger Agreement or any of the transactions contemplated hereby or therebyhereby, in each case to the fullest full extent a corporation is permitted under by applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC (and the Surviving Entity, as the case may be, shall applicable GPU Indemnifying Party will pay expenses as incurred in advance of the final disposition of any such action or proceeding to each GPU Indemnified Party to the fullest full extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. ).
(i) Without limiting the foregoing, if in the event any such claim, action, suit, proceeding proceeding, or investigation is commenced or instituted brought against any GPU Indemnified Party (whether arising before or after the Effective Time), ,
(iA) the GPU Indemnified Parties may retain counsel satisfactory to them and approved by the Company GPU Indemnifying Party, which approval shall not be unreasonably withheld,
(or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (iiB) the Company (or after the Effective Time, CSLC and the Surviving Entity) GPU Indemnifying Party shall pay all reasonable fees and expenses of such counsel for the GPU Indemnified Parties promptly as reasonably itemized statements therefor are received; and , and
(iiiC) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall GPU Indemnifying Party will use best all reasonable efforts to assist in the vigorous defense of any such matter.
(ii) However, provided that neither the Company, CSLC nor the Surviving Entity no GPU Indemnifying Party shall be liable for any settlement of any claim effected without its written consent (consent, which consent shall not be unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur in excess of $400,000 in the aggregate under this Section 5.9(b).
(c) The provisions of this Section 5.9 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representatives.
Appears in 1 contract
Samples: Merger Agreement (Firstenergy Corp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallIn the event of any threatened or actual claim, and from and after the Effective Timeaction, CSLC and the Surviving Entity shallsuit, indemnifydemand, defend and hold harmless each proceeding or investigation, whether civil, criminal or administrative (each, an "Action"), including any Action in which any person who is now, or has been at any time prior to the date hereof has been hereof, or who becomes prior to the Effective Time, an officera trustee, director or employee of the Company or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company NCIC or any Subsidiaryof its Subsidiaries (each, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time (an "Indemnified LiabilitiesParty" and collectively, the "Indemnified Parties") and (ii) all Indemnified Liabilities is, or is threatened to be, made a party based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that he or she is or was a trustee, director, officer, employee, or agent of NCIC or any of its Subsidiaries, or is or was serving at the request of NCIC or any of its Subsidiaries as a director, officer, employee, partner, member or agent of another corporation, partnership, joint venture, trust or other enterprise, in connection with each case at or prior to the Effective Time or (ii) the negotiation, execution or performance of this Agreement, the Merger any agreement or document contemplated hereby or delivered in connection herewith, or any of the transactions contemplated hereby or therebyhereby, in each case from and after the Effective Time, the Surviving Company (together with the Company, the "Indemnitors"), shall jointly and severally indemnify and hold harmless, as and to the fullest extent that a Maryland corporation is permitted under applicable law Law to indemnify its own officers and directors, officers each Indemnified Party against any losses, claims, damages, liabilities, costs, expenses (including reasonable attorneys' fees and employeesexpenses), as judgments, fines and amounts paid in settlement in connection with any such Action (collectively, "Indemnifiable Amounts"), and in the case may be and CSLC and event of any such Action (whether asserted before or after the Surviving EntityEffective Time), as the case may be, Indemnitors shall pay promptly (but in any event within ten (10) calendar days of written request) advance expenses in advance of pending the final disposition of any such action or proceeding Action to each Indemnified Party to the fullest extent permitted under by applicable law upon Law.
(b) The Indemnitors shall have the right to defend each Indemnified Party in any Action that may give rise to the payment of Indemnifiable Amounts hereunder; provided, however, that the Indemnitors shall notify such Indemnified Party of any such decision to defend within twenty (20) calendar days of receipt of written notice of any undertaking contemplated by applicable law. Without limiting such Action, and provided, further, that the foregoingIndemnitors shall not, without the prior written consent of such Indemnified Party, consent to the entry of any judgment against such Indemnified Party or enter into any settlement or compromise that (i) includes an admission of fault of such Indemnified Party or (ii) does not include, as an unconditional term thereof, the full release of such Indemnified Party from all liability in respect of such Action, which release shall be in form and substance reasonably satisfactory to such Indemnified Party.
(c) Notwithstanding Section 6.6(b), if any such claim, action, suit, proceeding or investigation is commenced or instituted against any in an Action to which an Indemnified Party (whether arising before is a party by reason of the Indemnified Party's service as a trustee, director, officer, employee, or after the Effective Time)agent of NCIC or any of its Subsidiaries, (i) such Indemnified Party reasonably concludes, after consultation with counsel, that he or she may have separate defenses or counterclaims to assert with respect to any issue which may not be consistent with the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); position of other defendants in such Action, (ii) the Company (a conflict of interest or after the Effective Time, CSLC potential conflict of interest exists between such Indemnified Party and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and Indemnitors, or (iii) the Company (or after Indemnitors fail to assume the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matterAction in a timely manner, provided such Indemnified Party shall be entitled to be represented by separate legal counsel of such Indemnified Party's choice at the expense of the Indemnitors; provided, however, that neither none of the Company, CSLC nor the Surviving Entity Indemnitors shall be liable for any settlement of any claim effected without its prior written consent (which consent shall not be unreasonably withheld, con- ditioned or delayed) and provided, further, that the Surviving Corporation shall not be withheld)responsible for more than one counsel for all Indemnified Parties, taken as a whole. Any Subject to the prior sentence, for the avoidance of doubt, each Indemnified Party electing represented by counsel in any Action on or prior to claim the Closing Date may, at such Indemnified Party's election, continue to be represented by such counsel at the expense of the Indemnitors.
(d) The Purchaser Parties agree that all rights to indemnification under this Section 5.9and contribution existing in favor of, upon learning and all exculpations and limitations of any such Actionthe personal liability of, shall promptly notify the Company, CSLC Indemnified Parties provided for in the NCIC Charter or the Surviving Entity NCIC Bylaws, as well as indemnification agreements, as in effect as of such election (but the failure so date hereof, with respect to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except matters occurring at or prior to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, including the Merger, shall continue in full force and effect in accordance with their terms. NCIC shall, prior to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause obtain and fully pay for a policy (providing coverage for the Indemnified Parties) with a claims period of at least six (6) years from the Effective Time from an insurance carrier with the same or better credit rating as NCIC's current insurance carrier with respect to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company in an amount and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are scope no less advantageous) favorable than NCIC's existing policies with respect to claims arising from facts matters existing or events which occurred before occurring at or prior to the Effective Time Time. From and after the Effective Time, the Purchaser Parties and the Surviving Company shall maintain such policy in full force and effect for its full term and shall continue to honor NCIC's obligations thereunder. The Purchaser Parties will promptly notify the Indemnified Parties if for any reason such policy will lapse prior to the extent available on commercially reasonable terms; providedconclusion of its six-year term, however, that CSLC shall not be obligated to incur in excess of $400,000 in upon the aggregate under this Section 5.9(b)Purchaser Parties receiving notice thereof from the insurer or otherwise obtaining knowledge thereof.
(ce) The provisions of this This Section 5.9 are 6.6 is intended to be for the irrevocable benefit of, and to grant third party rights to, the Indemnified Parties and shall be enforceable bybinding on all successors and assigns of NCIC and the Surviving Company. Each of the Indemnified Parties shall be entitled to enforce the covenants contained in this Section 6.6.
(f) In the event that the Surviving Company (i) consolidates with or merges into any other person or entity and shall not be the continuing or surviving entity of such consolidation or merger or (ii) transfers or conveys all or substantially all of its properties and assets to any person or entity, then, and in each Indemnified Partysuch case, his heirs and his representativessuch continuing or surviving entity or transferee, as the case may be, shall assume the obligations set forth in this Section 6.6.
Appears in 1 contract
Samples: Merger Agreement (Northstar Capital Investment Corp /Md/)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective Time, CSLC Buyer and the Surviving Entity shall, Corporation shall indemnify, defend and hold harmless each person who is now, or has been at any time prior to the date hereof has been or who becomes prior to the Effective Timehereof, an officer, officer or director or employee of the Company or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses (including attorneys' fees and expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not be unreasonably be withheld) of or in connection with any threatened or actual claim, action, suit, proceeding, case proceeding or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of or in connection with this Agreementof, the Merger fact that such person is or was a director , officer, employee or agent of Company or any of its Subsidiaries (including service as a fiduciary of any employee benefit plan) whether pertaining to (i) any matter existing or occurring at or prior to the Effective Time or (ii) based in whole or in part on, or arising in whole or in part out of, or pertaining to this Agreement or the transactions contemplated hereby hereby, and whether asserted or therebyclaimed prior to, or at or after, the Effective Time ("Indemnified Liabilities"), in each the case of clause (i) above, to the fullest full extent a corporation is permitted under applicable law the New York Law to indemnify its own directors, directors or officers and employees, as the case may be (and CSLC Buyer and the Surviving EntityCorporation, as the case may be, shall will pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest full extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law). Without limiting the foregoing, if in the event any such claim, action, suit, proceeding or investigation is commenced or instituted brought against any Indemnified Party Parties (whether arising before or after the Effective Time), (iA) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them Buyer and CSLC Surviving Corporation and the Buyer and Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) Corporation shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iiiB) the Company (or after the Effective Time, CSLC Buyer and the Surviving Entity) shall Corporation will use best all reasonable efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC Buyer nor the Surviving Entity Corporation shall be liable for any settlement of any claim effected without its prior written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing wishing to claim indemnification under this Section 5.97.04, upon learning of any such Actionclaim, action, suit, proceeding or investigation, shall promptly notify the Company, CSLC or the Buyer and Surviving Entity of such election Corporation (but the failure so to notify the Company shall not relieve it a party from any liability which it may have under this Section 5.9, 7.04 except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failureparty), and shall deliver to the Company (or after the Effective Time, to CSLC Buyer and the Surviving Entity) Corporation the undertaking contemplated by applicable lawSection 723(c) of the New York Law. The Indemnified Parties as a group may retain only one law firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of on any significant issue between the positions of any two or more Indemnified Parties. Buyer and Merger Subsidiary agree that all rights to indemnification, including provisions relating to advances of expenses incurred in defense of any action or suit, existing in favor of the Indemnified Parties with respect to matters occurring through the Effective Time, shall survive the Merger and shall continue in full force and effect for a period of not less than six years from the Effective Time; provided, however, that all rights to indemnification in respect of any Indemnified Liabilities asserted or made within such period shall continue until the disposition of such Indemnified Liabilities.
(b) For a period of seven six years after the Effective Time, CSLC Buyer shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC Buyer may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageousadvantageous in any material respect to the Indemnified Parties) with respect to claims matters arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; providedTime, however, provided that CSLC Buyer shall not be obligated required to incur pay an annual premium for such insurance in excess of 150% of the last annual premium paid by Company prior to the date hereof, but in such case shall purchase as much coverage as possible for such amount ("Maximum Premium"). Company represents to Buyer that the Maximum Premium is $400,000 in the aggregate under this Section 5.9(b)202,944.00.
(c) The provisions of this Section 5.9 7.04 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representativespersonal representatives and shall be binding on all successors of Buyer, Merger Subsidiary, and Surviving Corporation.
Appears in 1 contract
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallIn the event of any threatened or actual claim, and from and after the Effective Timeaction, CSLC and the Surviving Entity shallsuit, indemnifyproceeding or investigation, defend and hold harmless each person whether civil, criminal or administrative, including, without limitation, any such claim, action, suit, proceeding or investigation in which any individual who is now, or has been at any time prior to the date hereof has been of this Agreement, or who becomes prior to the Effective Time, an officer, a director or officer or employee of the Company or any of its Subsidiaries Subsidiaries, (the "Indemnified Parties") from and against (i) all losses), claimsis, damagesor is threatened to be, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying made a party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that he or she is or was a director, officer or employee of the Company or in connection with any of its subsidiaries or any of its predecessors or (ii) this Agreement, the Merger Option Agreement or any of the transactions contemplated hereby or thereby, whether in each any case asserted or arising before or after the Effective Time, the parties hereto agree to cooperate and use their best efforts to defend against and respond thereto. It is understood and agreed that after the Effective Time, Parent shall indemnify and hold harmless, as and to the fullest extent a corporation is permitted under applicable law to indemnify its own directorsby law, officers each such Indemnified Party against any losses, claims, damages, liabilities, costs, expenses (including reasonable attorney's fees and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action claim, suit, proceeding or proceeding to each Indemnified Party investigation, as and to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing) to each Indemnified Party, if judgments, fines and amounts paid in settlement in connection with any such threatened or actual claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Partiesinvestigation.
(b) For Parent shall cause the individuals serving as officers and directors of the Company and each of its subsidiaries immediately prior to the Effective Time to be covered for a period of seven six years after from the Effective TimeTime (or the period of the applicable statute of limitations, CSLC shall cause to be maintained in effect if longer) by the current policies of directors' and officers' liability insurance policy maintained by Parent or the Company and its Subsidiaries Surviving Corporation (provided that CSLC Parent may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which that are no not less advantageousadvantageous than such policy) with respect to claims arising from facts acts or events which occurred before omissions occurring prior to the Effective Time to the extent available on commercially reasonable termsthat were com- mitted by such officers and directors in their capacity as such; provided, -------- however, that CSLC in no event shall not Parent be obligated to incur expend, in order to ------- maintain or provide insurance coverage pursuant to this Section 6.8(b), any amount per annum in excess of $400,000 in 200% of the aggregate under this Section 5.9(bamount of the annual premiums paid as of the date hereof by Company for such insurance (the "Maximum Amount"). If the amount of the annual premiums necessary to maintain or procure such insurance coverage exceeds the Maximum Amount, Parent shall use all reasonable efforts to maintain the most advantageous policies of directors' and officers' insurance obtainable for an annual premium equal to the Maximum Amount.
(c) In the event Parent or any of its successors or assigns (i) consolidates with or merges into any other person and shall not be the continuing or surviving corporation or entity of such consolidation or merger, or (ii) transfers or conveys all or substantially all of its properties and assets to any person, then, and in each such case, to the extent necessary, proper provision shall be made so that the successors and assigns of Parent assume the obligations set forth in this Section 6.8.
(d) The provisions of this Section 5.9 6.8 shall survive the Effective Time and are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives.
Appears in 1 contract
Samples: Merger Agreement (Imperial Bancorp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallIn the event of any threatened or actual claim, action, suit, proceeding or investigation, whether civil, criminal or administrative (a “Claim”), including any such Claim in which any individual who is now, or has been at any time before the date of this Agreement, or who becomes before the Effective Time, a director, officer or employee of Seller or any Seller Subsidiary or who is or was serving at the request of Seller or any Seller Subsidiary as a director, officer or employee of another person (the “Indemnified Parties”), is, or is threatened to be, made a party based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that he is or was a director, officer or employee of Seller or any Seller Subsidiary before the Effective Time or (ii) this Agreement or any of the transactions contemplated by this Agreement, whether asserted or arising before or after the Effective Time, the Parties shall cooperate and use their best efforts to defend against and respond thereto. All rights to indemnification and exculpation from liabilities for acts or omissions occurring at or before the Effective Time now existing in favor of any Indemnified Party as provided in their respective articles of incorporation or bylaws (or comparable organizational documents), and from any existing indemnification agreements set forth on Section 6.7(a) of the Seller Disclosure Schedule, shall survive the Merger and shall continue in full force and effect in accordance with their terms, and shall not be amended, repealed or otherwise modified after the Effective Time in any manner that would adversely affect the rights thereunder of such individuals for acts or omissions occurring at or before the Effective Time or taken at the request of Buyer pursuant to Section 6.8, it being understood that nothing in this sentence shall require any amendment to the articles of incorporation or bylaws of the Surviving Corporation.
(b) From and after the Effective Time, CSLC and the Surviving Entity Corporation shall, to the fullest extent permitted by applicable law, indemnify, defend and hold harmless harmless, and provide advancement of reasonable expenses to, each person who is now, or at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, director or employee of the Company or any of its Subsidiaries (the "Indemnified Parties") from and Party against (i) all losses, claims, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") Claim based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company Seller or any Seller Subsidiary, whether and pertaining to any matter existing or occurring occurring, or any acts or omissions occurring, at or prior to before the Effective Time and Time, whether asserted or claimed prior tobefore, or at or after after, the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole including matters, acts or in part on, or arising in whole or in part out of or omissions occurring in connection with the approval of this Agreement, Agreement and the Merger or any consummation of the transactions contemplated hereby hereby) or thereby, in each case taken at the request of Buyer pursuant to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties6.8.
(bc) For Buyer shall cause the individuals serving as officers and directors of Seller or any Seller Subsidiary immediately before the Effective Time to be covered for a period of seven six years after from the Effective Time, CSLC shall cause to be maintained in effect Time by the current policies of directors' ’ and officers' ’ liability insurance policy maintained by the Company and its Subsidiaries Seller (provided that CSLC Buyer may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which that are no not less advantageousadvantageous to such officers and directors than such policy) with respect to claims arising from facts acts or events which occurred omissions occurring before the Effective Time to the extent available on commercially reasonable termsthat were committed by such officers and directors in their capacity as such; provided, however, that CSLC in no event shall not Buyer be obligated required to incur expend annually in the aggregate an amount in excess of $400,000 in 150% of the aggregate under this annual premiums currently paid by Seller (which current amount is set forth on Section 5.9(b6.7(c) of the Seller Disclosure Schedule) for such insurance (the “Insurance Amount”); and, provided, further, that if Buyer is unable to maintain such policy (or such substitute policy) as a result of the preceding proviso, Buyer shall obtain as much comparable insurance as is available for the Insurance Amount.
(cd) The provisions of this Section 5.9 6.7 shall survive the Effective Time and are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives.
Appears in 1 contract
Samples: Merger Agreement (BNC Bancorp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective Time, CSLC and in the Surviving Entity shallevent of any claim, indemnifyaction, defend and hold harmless each suit, proceeding or investigation, whether civil, criminal or administrative, in which any person who is now, or has been at any time prior to the date hereof has been of this Agreement, or who becomes prior to the Effective Time, an officer, a director or employee officer of the Company or any of its Subsidiaries (the "“Indemnified Parties"”) from and against (i) all lossesis, claimsor is threatened to be, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying made a party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) any event or occurrence related to the fact that such Indemnified Party is or was a director or officer of the Company or in connection with any of its Subsidiaries or was prior to the Effective Time serving at the request of any such party as a director, officer, employee, trustee, agent, partner or fiduciary of another corporation, partnership, trust, joint venture, employee benefit plan or other entity (a list of the directors and officers of the Company or any of its Subsidiaries who are serving, as of the date of this Agreement, in any such capacity with another corporation, partnership, trust or other enterprise, and a description of the Merger nature of such service, is set forth in Section 7.7(a) of the Company Disclosure Schedule) or (ii) this Agreement, or any of the transactions contemplated hereby or therebyand all actions taken by an Indemnified Party in connection herewith, in each case in his or her capacity as a director or officer of the Company or any of its Subsidiaries, whether in any case asserted or arising before or after the Effective Time, Parent shall cause the Surviving Company to indemnify and hold harmless, as and to the fullest extent a corporation is provided in the certificate of incorporation and bylaws of the Company as in effect on the date of this Agreement and permitted under by applicable law to indemnify its own directorsLaw, officers each such Indemnified Party against any losses, claims, damages, liabilities, costs, expenses (including reasonable attorneys’ fees and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action claim, suit, proceeding or proceeding investigation to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of an undertaking, to the extent required by the DGCL, from such Indemnified Party to repay such advanced expenses if it is determined by a final and non-appealable judgment of a court of competent jurisdiction that such Indemnified Party was not entitled to indemnification hereunder), judgments, fines and amounts paid in settlement in connection with any undertaking contemplated by applicable lawsuch actual or threatened claim, action, suit, proceeding or investigation, whether civil, criminal, administrative or investigative. Without limiting the foregoing, if Any Indemnified Party wishing to claim indemnification under this Section 7.7 (i) upon learning of any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Actioninvestigation, shall promptly notify the CompanyParent in writing thereof, CSLC or the Surviving Entity of such election (but provided, that the failure to so to notify the Company shall not relieve it from any liability which it may have affect the obligations of Parent under this Section 5.9, 7.7 except (and only) to the extent such failure to notify materially prejudices it Parent and (ii) shall give Parent or if it otherwise forfeits substantive rights any of its Subsidiaries such information and defenses cooperation as a result they may reasonably require and as shall be within such Indemnified Party’s power. From and after closing, Parent shall cause the Surviving Company to continue in full force and effect, on the same terms existing on the date of such failure)this Agreement, and shall deliver to any indemnification agreement in favor of any individual listed on Section 7.7(a) of the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified PartiesDisclosure Schedule.
(b) For a period of seven six (6) years after the Effective Time, CSLC Parent shall cause the persons serving as officers and directors of the Company prior to the Effective Time to be maintained in effect covered by the current policies of directors' ’ and officers' ’ liability insurance policy or policies (providing only for Side A coverage for such persons where the existing policies also include Side B or Side C coverage for the Company) maintained by the Company and Parent or one of its Subsidiaries (provided provided, that CSLC may substitute therefor Parent’s directors’ and officers’ liability insurance policy or policies of provide at least the same coverage and amounts containing terms and conditions which are no are, in the aggregate, not materially less advantageousadvantageous to such directors and officers of the Company than the terms and conditions of the existing directors’ and officers’ liability insurance policy of the Company) with respect to claims arising from facts or events that existed or occurred at or prior to the Effective Time. Notwithstanding the foregoing, in no event will Parent be required to expend, in the aggregate and on an annual basis, an amount in excess of 250% of the annual premiums currently paid by the Company for such insurance, which occurred before current premiums are set forth in Section 7.7(b) of the Company Disclosure Schedule (the “Insurance Amount”), and if Parent is unable to maintain or obtain the insurance called for by this Section 7.7(b) for an amount per year equal to or less than the Insurance Amount, Parent shall obtain as much comparable insurance as may be available for the Insurance Amount. The provisions of this Section 7.7(b) shall be deemed to have been satisfied if tail policies have been obtained by Parent or by the Company with Parent’s consent (not to be unreasonably withheld), which policies provide the persons covered by the Company’s directors’ and officers’ liability insurance policy immediately prior to the Effective Time with coverage (on terms not materially less favorable than those of the policies in effect as of the date of this Agreement) for a period of not less than six (6) years after the Effective Time with respect to claims arising from facts or events that occurred at or prior to the extent available on commercially reasonable termsEffective Time; provided, however, that CSLC such tail policies shall not be obligated obtained at an annual cost that is higher than the Insurance Amount. If such prepaid policies have been obtained by the Company prior to incur the Effective Time with Parent’s consent, Parent shall maintain such policies in excess of $400,000 in the aggregate under this Section 5.9(b)full force and effect and continue to honor all obligations thereunder.
(c) The provisions of this Section 5.9 7.7 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his personal representatives.
Appears in 1 contract
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallSubject to applicable law, and for six years from and after the Effective Time, CSLC Parent and the Surviving Entity Corporation shall, indemnifyjointly and severally, defend (i) fulfill and honor in all respects the obligations of the Company for indemnification and advancement of expenses in favor of each past and present officer and director of the Company (each, an "Indemnified Party") under the Company Charter, the Company Bylaws or any indemnification agreement set forth in Section 5.11 of the Company Letter to which such Indemnified Party is a party and (ii) shall indemnify and hold harmless each person who is nowIndemnified Party against any costs or expenses (including but not limited to reasonable attorneys' fees and expenses), or at any time prior to the date hereof has been or who becomes prior to the Effective Timejudgments, an officerfines, director or employee of the Company or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damagessettlements, costsdamages or liabilities (collectively, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld"Costs") of or incurred in connection with any threatened or pending claim, action, suit, proceeding, case proceeding or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiaryinvestigation, whether pertaining to any matter existing civil, criminal, administrative or occurring at or prior to the Effective Time and investigative (each, a "Proceeding"), whether asserted or claimed prior to, at or after the Effective Time ("Time, if and whenever such Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole Party is or in part onwas a party to or a subject of, or is threatened to be made a party to or a subject of, such Proceeding arising in whole or in part out of or pertaining to acts or omissions or alleged acts or omissions of the Indemnified Party occurring at or prior to the Effective Time (including, without limitation, for acts or omissions occurring in connection with the approval of this Agreement, Agreement and the Merger or any consummation of the transactions contemplated hereby hereby) in his or thereby, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, her capacity as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance an officer or director of the final disposition of any such action Company or proceeding to each Indemnified Party its wholly-owned Subsidiaries, to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any DGCL (and Parent shall also advance expenses to each Indemnified Party (whether arising before or after as incurred to the Effective Time), (i) fullest extent permitted by the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matterDGCL, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification whom expenses are advanced provides an undertaking to repay such advances if it is ultimately determined that such expenses can not be reimbursed or indemnified under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except DGCL to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failureundertaking is required by the DGCL), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The provisions of Section 5.11(a)(ii) shall not require Parent to indemnify an Indemnified Parties as Party hereunder in connection with a group may retain only one firm of legal counsel to represent them with respect to each Proceeding commenced by such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified PartiesParty.
(b) For a Parent shall provide and maintain in effect, or shall cause the Surviving Corporation to provide and maintain in effect, for an aggregate period of seven not less than six (6) years after from the Effective Time, CSLC shall cause to be maintained in effect for the current policies benefit of those Persons who are covered by the Company's directors' and officers' liability insurance maintained by policy as of the Company Original Agreement Date an insurance and its Subsidiaries indemnification policy that provides coverage for acts or omissions occurring at or prior to the Effective Time (provided including, without limitation, for acts or omissions occurring in connection with the approval of this Agreement and the consummation of the transactions contemplated hereby) (the "D&O Insurance") that CSLC may substitute therefor policies of is at least the same coverage and amounts containing terms and conditions which are no less advantageous) as favorable (with respect to claims arising from facts or events which occurred before the Effective Time coverage, amounts, limits, deductibles and conditions) to the extent available on commercially reasonable termsCompany's existing policy; provided, however, that CSLC Parent and the Surviving Corporation shall not be obligated required to incur pay an annual premium for the D&O Insurance in excess of 200% of the annual premium currently paid by the Company for such coverage (the "Company's Current Premium"). If such premiums for such insurance would at any time exceed 200% of the Company's Current Premium, then Parent shall maintain the maximum amount of coverage under a policy having the same deductible as is available for such 200% of the Company's Current Premium. The Company represents and warrants to Parent that the Company's Current Premium is $400,000 in 1,240,000. Notwithstanding the aggregate foregoing, Parent shall use its reasonable best efforts to cause coverage to be extended under the Company's D&O Insurance by obtaining a six-year "tail" policy, provided that the cost of such tail coverage does not exceed $3 million. If Parent is unable to obtain such tail policy, Parent shall provide the Company with notice thereof at least 5 business days prior to the Effective Time. If the Company receives such notice from Parent, the Company may purchase such tail policy, provided that the cost of such tail coverage does not exceed $3 million. Such tail policy shall satisfy Parent's and the Surviving Corporation's obligations under the provisions of this Section 5.9(b5.11(b).
(c) The provisions of this Section 5.9 5.11 are intended to be for the benefit of, and shall be enforceable by, each of the Indemnified Parties and their heirs and estates and such provisions may not be terminated or amended in any manner adverse to the interests of such Person without his or her prior consent.
(d) Notwithstanding anything herein to the contrary, if any claim, action, suit, proceeding or investigation is made against an Indemnified Party, his heirs for which such Indemnified Party is entitled to indemnification hereunder, on or prior to the sixth anniversary of the Effective Time, the provisions of this Section 5.11 shall continue in effect, solely with respect to such matters, until the final disposition of such claim, action, suit, proceeding or investigation.
(e) In the event the Parent or the Surviving Corporation or any of their respective successors or assigns (i) consolidates with or merges into any other Person and his representativesshall not be the continuing or surviving corporation of such consolidation or merger, or (ii) transfers all or substantially all of its properties to any Person, then, and in each case, to the extent necessary to effect such assumption, proper provision shall be made so that the successors and assigns of the Parent and the Surviving Corporation, as the case may be, shall assume the obligations set forth in this Section 5.11.
Appears in 1 contract
Samples: Merger Agreement (Advanced Fibre Communications Inc)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective Time, CSLC and in the Surviving Entity shallevent of any threatened or actual claim, indemnifyaction, defend and hold harmless each suit, proceeding or investigation, whether civil, criminal or administrative, in which any person who is now, or has been at any time prior to the date hereof has been of this Agreement, or who becomes prior to the Effective Time, an officer, a director or employee officer of the Company SunCoast or any of its Subsidiaries (the "“Indemnified Parties"”) from and against (i) all lossesis, claimsor is threatened to be, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying made a party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that he is or was a director or officer of SunCoast, any of its Subsidiaries or any of their respective predecessors or was prior to the Effective Time serving at the request of any such party as a director, officer, employee, fiduciary or agent of another corporation, partnership, trust or other enterprise (a list of which with respect to the directors and officers of SunCoast or any of its Subsidiaries as of the date of this Agreement is set forth in connection with Section 7.8(a) of the SunCoast Disclosure Schedule) or (ii) this Agreement, the Merger or any of the transactions contemplated hereby and all actions taken by an Indemnified Party in connection herewith, whether in any case asserted or therebyarising before or after the Effective Time, in each case NBC shall indemnify and hold harmless, as and to the fullest extent a corporation is permitted under applicable law to indemnify its own directorsprovided in the certificate of incorporation and bylaws of SunCoast as in effect on the date of this Agreement, officers each such Indemnified Party against any losses, claims, damages, liabilities, costs, expenses (including reasonable attorneys’ fees and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action claim, suit, proceeding or proceeding investigation to each Indemnified Party to the fullest extent permitted under applicable by law upon receipt of an undertaking, to the extent required by the FBCA, from such Indemnified Party to repay such advanced expenses if it is determined by a final and nonappealable judgment of a court of competent jurisdiction that such Indemnified Party was not entitled to indemnification hereunder), judgments, fines and amounts paid in settlement in connection with any undertaking contemplated by applicable lawsuch threatened or actual claim, action, suit, proceeding or investigation. Without limiting the foregoingAny Indemnified Party wishing to claim indemnification under this Section 7.8, if upon learning of any such claim, action, suit, proceeding or investigation, shall notify NBC thereof, provided that the failure to so notify shall not affect the obligations of NBC under this Section 7.8 except (and only) to the extent such failure to notify materially prejudices NBC. In the event of any such threatened or actual claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether asserted or arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel reasonably satisfactory to them after consultation with NBC; provided, however, that (A) NBC shall have the right to assume the defense thereof and upon such assumption NBC shall not be liable to any Indemnified Party for any legal expenses of other counsel or any other expenses subsequently incurred by any Indemnified Party in connection with the defense thereof, except that if (x) NBC elects not to assume such defense or (y) counsel for the Indemnified Parties reasonably advises that there are issues which raise conflicts of interest between NBC and the Company (or Indemnified Parties, then the Indemnified Parties may retain counsel reasonably satisfactory to them after consultation with NBC, and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) NBC shall pay all the reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and Parties, (iiiB) the Company NBC shall in all cases be obligated pursuant to this paragraph to pay for only one firm of counsel (in addition to local counsel) for any action or after the Effective Timegroup of related actions for all Indemnified Parties, CSLC and the Surviving Entity(C) NBC shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall not be liable for any settlement of any claim effected without its prior written consent (which consent shall not be unreasonably be withheld). Any ) and (D) NBC shall have no obligation hereunder to any Indemnified Party electing to claim when and if a court of competent jurisdiction shall ultimately determine, and such determination shall have become final and nonappealable, that indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but Indemnified Party in the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking manner contemplated hereby is prohibited by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two law or more Indemnified Partiesregulation.
(b) For a period Nothing contained in Section 7.8(a) or any other provision of seven years this Agreement shall limit any right to indemnification which any current or former director, officer, employee or agent of SunCoast may have under applicable law or regulation or the SunCoast’s Articles of Incorporation, Bylaws or the equivalent documents of any Subsidiary of SunCoast, as applicable, in each case as in effect on the date hereof, which NBC agrees to honor in accordance with their terms. Without limiting the foregoing, NBC also agrees that the limitations on liability existing in favor of the Indemnified Parties in SunCoast’s Articles of Incorporation or the equivalent documents of any SunCoast Subsidiary as in effect on the date hereof with respect to matters occurring prior to the Effective Time shall survive the Merger and shall continue in full force and effect from and after the Effective Time, CSLC .
(c) NBC shall use its reasonable best efforts to cause the persons serving as officers and directors of SunCoast immediately prior to the Effective Time to be maintained in effect covered for a period of three years from the current policies of Closing Date by the directors' ’ and officers' ’ liability insurance policy or policies maintained by the Company and its Subsidiaries NBC (provided that CSLC may substitute therefor NBC’s policy or policies of provide at least the same coverage and amounts containing terms and conditions which are in the aggregate not materially less advantageous to such directors and officers of SunCoast than the terms and conditions of the existing directors’ and officers’ liability insurance policy of SunCoast, and provided further that in no less advantageousevent will NBC be required to expend in any one year an amount in excess of 200% of the annual premiums currently paid by SunCoast for the insurance covering the officers and directors of SunCoast (the “Insurance Amount”), and provided, further, that if NBC is unable to maintain or obtain the insurance called for by this Section 7.8(c) as a result of the preceding proviso, NBC shall use its reasonable best efforts to obtain as much comparable insurance as available for the Insurance Amount) with respect to claims arising from facts acts or events which occurred before omissions occurring prior to the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur which were committed by such officers and directors in excess of $400,000 in the aggregate under this Section 5.9(b)their capacity as such.
(cd) The provisions of this Section 5.9 7.8 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives.
(e) If NBC or any of its successors or assigns shall consolidate with or merge into any other entity and shall not be the continuing or surviving entity of such consolidation or merger shall transfer all or substantially all of its assets to any other entity, then and in each case, proper provision shall be made so that the successors and assigns of NBC shall assume the obligations set forth in this Section 7.8.
Appears in 1 contract
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective Time, CSLC each of Parent and the Surviving Entity shall, indemnify, defend Corporation shall indemnify and hold harmless each person who is nowharmless, or at any time prior to the date hereof has been or who becomes prior to the Effective Timefullest extent permitted by applicable Law, an officereach director, director officer or employee of the Company and Company Bank as of the date hereof or at any of its Subsidiaries time from the date hereof to the Effective Time (in each case, when acting in such capacity) (collectively, the "“Company Indemnified Parties"”) from against expenses (including reasonable attorneys’ fees), judgments, fines, losses or liabilities actually and against (i) all losses, claims, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or reasonably incurred by such Company Indemnified Party in connection with any claim, threatened or actual action, suit, suit or proceeding, case whether civil, criminal, administrative or investigation investigative ("Action") based in whole other than an action by or in part on the right of the Company or Company Bank), whether arising in whole before or in part after the Effective Time, arising out of or in connection with the fact that such person Person is or was a director, officer or employee of the Company or any Subsidiary, whether Company Bank or is or was serving at the request of the Company or Company Bank as a director or officer of another Person and pertaining to any matter matters, acts or omissions existing or occurring at or prior to the Effective Time and whether asserted Time, including matters, acts or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of or omissions occurring in connection with the approval of this Agreement, the Merger or any of Agreement and the transactions contemplated hereby by this Agreement (each, a “Claim”), if such Company Indemnified Party acted in good faith and in a manner such Company Indemnified Party reasonably believed to be in or therebynot opposed to the best interests of the Company or Company Bank, and, with respect to any criminal action or proceeding, had no reason to believe such Company Indemnified Party’s conduct was unlawful, to the same extent as such Persons have the right to be indemnified pursuant to the Company’s or Company Bank’s articles of incorporation and bylaws, or comparable governing documents, in each case to effect on the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers date of this Agreement; and employees, as the case may be and CSLC Parent and the Surviving Entity, Corporation shall also advance expenses as the case may be, shall pay expenses in advance of the final disposition of any incurred by such action or proceeding to each Company Indemnified Party to the fullest same extent as such Persons have the right to expense advancement pursuant to the Company’s or Company Bank’s articles of incorporation and bylaws, or comparable governing documents, in effect on the date of this Agreement, to the extent permitted under applicable law upon receipt of any undertaking contemplated by applicable lawLaw, provided that the Person to whom expenses are advanced provides a reasonable and customary undertaking to repay such advances, unless it is ultimately determined that such Person is entitled to indemnification. Without limiting Parent and the foregoingSurviving Corporation shall reasonably cooperate with the Company Indemnified Party, if and the Company Indemnified Party shall reasonably cooperate with Parent and the Surviving Corporation, in the defense of any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Partiesinvestigation.
(b) For a period of seven six (6) years after the Effective Time, CSLC the Surviving Corporation shall use its commercially reasonable efforts to cause to be maintained in effect the current policies of directors' ’ and officers' ’ liability insurance maintained by that serves to reimburse the present and former officers and directors of the Company and its Subsidiaries or Company Bank (provided that CSLC may substitute therefor policies determined as of at least the same coverage and amounts containing terms and conditions which are no less advantageousEffective Time) with respect to claims against such directors and officers arising from facts acts and omissions that occurred at or events which occurred before the Effective Time to (including the extent available on commercially reasonable termstransactions contemplated by this Agreement); provided, however, that CSLC the Surviving Corporation shall not be obligated to incur expend, on an annual basis, an amount in excess of $400,000 200% of the current annual premium paid as of the date hereof by the Company for such insurance (the “Premium Cap”), and if such premiums for such insurance would at any time exceed the Premium Cap, then the Surviving Corporation shall cause to be maintained policies of insurance which, in the Surviving Corporation’s good faith determination, provide the greatest coverage available for an aggregate under this Section 5.9(bcost not exceeding the Premium Cap. In lieu of the foregoing, the Company, in consultation with Parent, may (and at the request of Parent, the Company shall use its reasonable best efforts to) obtain and fully pay for, at or prior to the Effective Time, a six-year “tail” policy on the terms described in the preceding sentence if and to the extent that the same may be obtained for an amount that, in the aggregate, does not exceed the Premium Cap (except if one or more directors elects to pay for any excess over such amount). If the Company purchases such a “tail policy” prior to the Effective Time, Parent and the Surviving Corporation shall not, and shall not permit any of their Subsidiaries to, take any action that would reasonably be expected to result in the cancellation or modification of such policy.
(c) The obligations of the Surviving Corporation, Parent and the Company under this Section 6.8 shall not be terminated or modified after the Effective Time in a manner so as to adversely affect any Company Indemnified Party without the written consent of the affected Company Indemnified Party.
(d) The provisions of this Section 5.9 6.8 shall survive the Effective Time and are intended to be for the benefit of, and shall be enforceable by, each Company Indemnified Party, Party and his or her heirs and his representatives. If the Surviving Corporation or any of its successors or assigns will consolidate with or merge into any other entity and not be the continuing or surviving entity of such consolidation or merger or transfer of all or substantially all of its assets or deposits to any other entity, then, in each case to the extent the obligations set forth in this Section 6.8 are not otherwise transferred and assumed by such successors and assigns by operation of law or otherwise, proper provision shall be made so that the successors and assigns of the Surviving Corporation will assume the obligations set forth in this Section 6.8.
Appears in 1 contract
Indemnification; Directors’ and Officers’ Insurance. (a) The For a period of six years after the Effective Time, the provisions with respect to indemnification set forth in the certificate of incorporation and bylaws of Purchaser as in effect on the date of this Agreement (true, correct and complete copies of which have been provided to Company) shall not be amended, repealed or otherwise modified in any manner that would adversely affect the rights thereunder of individuals who at any time prior to the Effective Time were directors or officers of Company shallin respect of actions or omissions occurring at or prior to the Effective Time (including without limitation the transactions contemplated by this Agreement), and unless such modification is required by law.
(b) Notwithstanding Section 6.8(a) above, from and after the Effective Time, CSLC and Parent shall, or shall cause the Surviving Entity shallCorporation to, indemnify, defend and hold harmless each person who is now, or has been at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, officer or director or employee of the Company or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses (including reasonable attorneys' fees and expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not be unreasonably be withheld) of or incurred in connection with any claim, threatened or actual action, suit, proceeding, case suit or investigation ("Action") proceeding based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, director or officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) ), including all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, this Agreement or in connection with this Agreement, the Merger or any of the transactions contemplated hereby or therebyhereby, in each case case, to the fullest full extent that a corporation is permitted under applicable law the DGCL to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entitydirectors or officers, as the case may be, shall pay expenses in advance of . In the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if event any such claim, action, suit, proceeding or investigation is commenced or instituted brought against any Indemnified Party (whether arising before or after Party, the Effective Time)indemnifying party shall assume and direct all aspects of the defense thereof, (i) including settlement, and the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) Party shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist cooperate in the C-1-29 vigorous defense of any such matter. The Indemnified Party shall have a right to participate in (but not control) the defense of any such matter with its own counsel and at its own expense. The indemnifying party shall not settle any such matter unless (i) the Indemnified Party gives prior written consent, provided which shall not be unreasonably withheld, or (ii) the terms of the settlement provide that neither the Company, CSLC nor Indemnified Party shall have no responsibility for the Surviving Entity discharge of any settlement amount and impose no other obligations or duties on the Indemnified Party and the settlement discharges all rights against Indemnified Party with respect to such matter. In no event shall the indemnifying party be liable for any settlement of any claim effected without its prior written consent (which consent shall not unreasonably be withheld)consent. Any Indemnified Party electing wishing to claim indemnification under this Section 5.96.8(b), upon learning of any such Actionclaim, action, suit, proceeding or investigation, shall promptly notify the Company, CSLC or Parent and the Surviving Entity of such election Corporation (but the failure so to notify the Company shall not relieve it the indemnifying party from any liability which it may have under this Section 5.9, 6.8(b) except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failureindemnifying party), and shall deliver to the Company (or after the Effective Time, to CSLC Parent and the Surviving Entity) Corporation the undertaking contemplated by applicable lawSection 145(e) of the DGCL. The Indemnified Parties as a group may retain only one will be represented by a single law firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of on any significant issue between the positions of any two or more Indemnified Parties. The rights to indemnification under this Section 6.8(b) shall continue in full force and effect for a period of six years from the Effective Time; provided, however, that all rights to indemnification in respect of any Indemnified Liabilities asserted or made within such period shall continue until the disposition of such Indemnified Liabilities.
(bc) For a period of seven two years after the Effective Time, CSLC Time Parent shall cause to be maintained in effect the current policies of directors' and officers' liability insurance, for the benefit of those persons who are covered by Company's directors' and officers' liability insurance maintained by policies at the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same Effective Time, providing coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before matters occurring prior to the Effective Time that is at least equal to the coverage provided under Company's current directors' and officers' liability insurance policies, to the extent available on commercially reasonable termsthat such liability insurance can be maintained at an annual cost to Parent not greater than 150 percent of the premium for the current Company directors' and officers' liability insurance; provided, however, provided that CSLC shall if such insurance cannot be obligated so maintained at such cost, Parent shall maintain as much of such insurance as can be so maintained at a cost equal to incur in excess 150 percent of $400,000 in the aggregate under this Section 5.9(b)current annual premiums of Company for such insurance.
(c) The provisions of this Section 5.9 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representatives.
Appears in 1 contract
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective Time, CSLC and the Surviving Entity shall, Corporation shall indemnify, defend and hold harmless each person who is now, or has been at any time prior to the date hereof has been of this Agreement or who becomes prior to the Effective Time, an officer, Time a director or employee officer of the Company or any of its Subsidiaries (when acting in such capacity) (the "Indemnified Parties") from and ), against any costs or expenses (i) all including reasonable attorneys' fees), judgments, fines, losses, claims, damagesdemands, costsliabilities, expensesdamages or liabilities (collectively, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld"Costs") of or incurred in connection with any claim, action, suit, proceedingproceeding or investigation, case whether civil, criminal or investigation ("Action") based in whole or in part on or administrative arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter matters existing or occurring at or prior to or after the Effective Time and Time, whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities Time, which is based in whole or in part on, or arising in whole or in part out of the fact that such person is or in connection with this Agreement, was a director or officer of the Merger Company or any of its Subsidiaries including, without limitation, all losses, claims, damages, costs, expenses, liabilities, judgments or settlement amounts based in whole or in part on, or arising in whole or in part out of, or pertaining to this Agreement or the transactions contemplated hereby or thereby, in each case to the fullest extent a corporation is that the Company would have been permitted under applicable law the DGCL and its certificate of incorporation, by-laws and other agreements in effect on the date hereof to indemnify its own directorssuch individual.
(b) Any Indemnified Party wishing to claim indemnification under subsection (a) of this Section 6.10, officers and employeesupon learning of any such claim, as the case may be and CSLC action, suit, proceeding or investigation, shall promptly notify Parent and the Surviving Entity, as Corporation thereof (but the case failure so to notify the Surviving Corporation shall not relieve it from any liability which it may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party have under this Section 6.10 except to the fullest extent permitted under applicable law upon receipt such failure materially prejudices such party). In the event of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory Surviving Corporation shall have the right to them and assume the Company (or satisfactory to them and CSLC defense thereof and the Surviving Entity after Corporation shall not be liable to any such Indemnified Party for any legal expenses of other counsel or any other expenses subsequently incurred by such Indemnified Party in connection with the Effective Time); defense thereof, (ii) the Company (or after the Effective Time, CSLC and Indemnified Party will cooperate in all respects as requested by the Surviving Entity) shall pay all reasonable fees and expenses Corporation in the defense of any such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; matter and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) Corporation shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall not be liable for any settlement of any claim effected without its prior written consent (which consent shall not be unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC the Surviving Corporation shall not be obligated have any obligation hereunder to incur any Indemnified Party if and when a court shall ultimately determine, and such determination shall have become final, that the indemnification of such Indemnified Party in the manner contemplated hereby is prohibited by Law. (c) Parent and the Surviving Corporation shall maintain the Company's and its Subsidiaries' existing officers' and directors' liability insurance ("D&O Insurance") for a period of six (6) years after the Effective Time so long as the annual premium therefor is not in excess of 150% of the last annual premium paid prior to the date hereof (the "Current Premium"); provided, however, that if the existing 21 27 D&O Insurance expires, is terminated or canceled during such six-year period, the Surviving Corporation will use its commercially reasonable efforts to obtain as much D&O Insurance as can be obtained for the remainder of such period for a premium not in excess (on an annualized basis) of 150% of the Current Premium; provided further, that, in lieu of maintaining such existing D&O Insurance as provided above, Parent may cause coverage to be provided under any policy maintained for the benefit of Parent or any of its Subsidiaries, so long as the terms are no less advantageous to the intended beneficiaries thereof than the existing D&O Insurance. In lieu of the purchase of such insurance by Parent or the Surviving Corporation, the Company may purchase a six-year extended reporting period endorsement ("reporting tail coverage") under its existing directors' and liability insurance coverage, provided that the total cost of the reporting tail coverage shall not exceed $400,000 350,000, and provided that such reporting tail coverage shall extend the director and officer liability coverage in force as of the aggregate under this Section 5.9(b)date hereof for a period of six (6) years from the Effective Time for any claims based upon, arising out of, directly or indirectly resulting from, in consequence of, or in any way involving wrongful acts or omissions occurring on or prior to the Effective Time, including without limitation all claims based upon, arising out of, directly or indirectly resulting from, in consequence of, or in any way involving the Offer, the Merger and any and all related transactions or related events.
(cd) The provisions of this Section 5.9 6.10 are intended to be for the benefit of, and shall be enforceable by, each of the Indemnified Party, his Parties and their respective heirs and his representativesestates. Nothing in this Section 6.10 shall limit in any way any other rights to indemnification that any current or former director or officer of the Company may have by contract or otherwise.
(e) From and after the Effective Time, the Surviving Corporation shall fulfill, assume and honor in all respects the obligations of the Company pursuant to the Company's Certificate of Incorporation, Bylaws and any indemnification agreement between the Company and any of the Company's directors and officers existing and in force as of the Effective Time. The Company agrees that the indemnification obligations set forth in the Company's Certificate of Incorporation and Bylaws, in each case as of the date of this Agreement, shall survive the Merger (and, as of or prior to the Effective Time, Parent shall cause the Bylaws of Sub to reflect such previsions) and shall not be amended, repealed or otherwise modified for a period of six (6) years after the Effective Time in any manner that would adversely affect the rights thereunder of the Indemnified Parties.
(f) If the Surviving Corporation or any of its successors or assigns (i) shall consolidate with or merge into any other Person and shall not be the continuing or surviving corporation or Person of such consolidation or merger or (ii) shall transfer all or substantially all of its properties and assets to any Person, then and in each such case, proper provisions shall be made so that the successors and assigns of the Surviving Corporation shall assume all of the obligations set forth in this Section 6.10.
Appears in 1 contract
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective Time, CSLC and Buyer (the Surviving Entity shall, indemnify, defend “Indemnifying Party”) shall indemnify and hold harmless harmless, each person who is now, or at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, present and former director or employee officer of the Company or any of its Subsidiaries (the "“Indemnified Parties"”) from and any person who becomes an Indemnified Party between the date of this Agreement and the Effective Time, against any costs or expenses (i) all including reasonable attorneys’ fees), judgments, fines, losses, claims, damages, costs, expenses, damages or liabilities or judgments or and amounts that are paid in settlement with incurred after the approval of Effective Time or not yet paid or accrued prior to the indemnifying party (which approval shall not unreasonably be withheld) of or Effective Time, in connection with any claim, action, suit, proceedingproceeding or investigation, case whether civil, criminal, administrative or investigation ("Action") based in whole or in part on or investigative, arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter matters existing or occurring at or prior to the Effective Time and Time, whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities Time, based in whole or in part onpart, or arising in whole or in part out of, or pertaining to the fact that he or she was a director or officer of Company or any of its Subsidiaries or is or was serving at the request of Company or any of its Subsidiaries as a director, officer, employee, trustee or other agent of any other organization or in any capacity with respect to any employee benefit plan of Company or any of its Subsidiaries, including without limitation any matters arising in connection with or related to the negotiation, execution, and performance of this Agreement, the Merger Agreement or any of the transactions contemplated hereby or therebyit contemplates, in each case to the fullest full extent a corporation is to which such Indemnified Parties would be entitled to have the right to be indemnified under the Articles of Organization or Bylaws of Company or its applicable Subsidiary as in effect on the date of this Agreement as though such Articles of Organization and Bylaws continue to remain in effect after the Effective Time and as permitted under by applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, Law. Buyer shall pay expenses in advance of the final disposition of any such action claim, 58 action, suit, proceeding or proceeding investigation to each Indemnified Party to the fullest full extent as would have been permitted by Company or its Subsidiaries under applicable law Company’s or such Subsidiaries’ Articles of Organization or Bylaws, upon receipt of an undertaking to repay such advance payments if such officer, director or employee shall be adjudicated or determined to be not entitled to indemnification in accordance with Company’s or such Subsidiaries’ Articles of Organization or Bylaws. Xxxxx’s obligations as successor in interest to Company shall continue as required under the Articles of Organization and Bylaws of Company. (b) Any Indemnified Party wishing to claim indemnification under this Section 5.11, upon learning of any undertaking contemplated by applicable law. Without limiting such claim, action, suit, proceeding or investigation, shall promptly notify the foregoingIndemnifying Party, but the failure to so notify shall not relieve the Indemnifying Party of any liability it may have to such Indemnified Party if such failure does not actually prejudice the Indemnifying Party and, if so, only to the extent of such actual prejudice. In the event of any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnifying Party shall have the right to assume the defense and the Indemnifying Party shall not be liable to such Indemnified Parties for any legal expenses of other counsel or any other expenses subsequently incurred by the Indemnified Parties in connection with the defense, except that if the Indemnifying Party elects not to assume defense or counsel for the Indemnified Parties advises that there are issues which raise conflicts of interest between the Indemnifying Party and the Indemnified Parties, the Indemnified Parties may retain counsel which is reasonably satisfactory to them the Indemnifying Party, and the Company (or satisfactory to them and CSLC and Indemnifying Party shall pay, promptly as statements are received, the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iiiwhich may not exceed one firm in any jurisdiction), (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist Indemnified Parties will cooperate in the vigorous defense of any such matter, provided that neither (iii) the Company, CSLC nor the Surviving Entity Indemnifying Party shall not be liable for any settlement of any claim effected without its prior written consent (which consent shall not be unreasonably be withheld). Any , conditioned or delayed) and (iv) the Indemnifying Party shall have no obligation hereunder in the event that a federal or state banking agency or a court of competent jurisdiction shall determine that indemnification of an Indemnified Party electing is prohibited by applicable Laws and regulations. (c) Prior to claim indemnification under this Section 5.9the Closing, upon learning of any such ActionCompany shall and if Company is unable to, Buyer shall promptly notify the Company, CSLC or cause the Surviving Entity as of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to obtain and fully pay the extent available on commercially reasonable premium for the extension of Company’s existing directors’ and officers’ insurance policies, in each case for a claims reporting or discovery period of at least six (6) years from and after the Effective Time from an insurance carrier with the same or better credit rating as Company’s current insurance carrier with respect to directors’ and officers’ liability insurance (“D&O Insurance”) with terms; , conditions, retentions, and limits of liability that are at least as favorable to the Indemnified Parties as Company’s existing policies with respect to any actual or alleged error, misstatement, misleading statement, act, omission, neglect, breach of duty or any matter claimed against a director or officer of Company or any of its Subsidiaries by reason of him or her serving in such capacity that existed or occurred at or prior to the Effective Time (including in connection with this Agreement or the transactions or actions it contemplates); provided, however, that CSLC in no event shall Company expend, or Buyer or the Surviving Entity be required to expend, for such “tail” policy in the aggregate a premium amount in excess of an amount (the “Maximum D&O Tail Premium”) equal to 250% of the annual premiums paid by Company for D&O Insurance in effect as of the date of this Agreement; provided, further, that if the cost of such a tail policy exceeds the Maximum D&O Tail Premium, Company, Buyer or the Surviving Entity shall obtain a tail policy with the greatest coverage available for a cost not exceeding Maximum D&O Tail Premium.
(d) If Buyer or any of its successors or assigns shall consolidate with or merge into any other entity and shall not be obligated the continuing or surviving entity of such consolidation or merger or shall transfer all or substantially all of its assets to incur any other entity, then and in excess each case, proper provision shall be made so that the successors and assigns of $400,000 Buyer shall assume the obligations set forth in the aggregate under this Section 5.9(b)5.11.
(ce) The provisions Nothing in this Agreement is intended to, shall be construed to or shall release, waive, or impair any rights to directors’ and officers’ insurance claims under any policy that is or has been in existence with respect to Company or its officers, directors and employees, and that the indemnification of this Section 5.9 5.11 is not a substitute for any claims under any policies.
(f) Any indemnification payments made pursuant to this Section 5.11 are intended subject to be for and conditioned upon their compliance with Section 18(k) of the benefit of, Federal Deposit Insurance Act (12 U.S.C. § 1828(k)) and shall be enforceable by, each Indemnified Party, his heirs and his representativesthe regulations promulgated by the FDIC (12 C.F.R. Part 359).
Appears in 1 contract
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from and after the Effective Time, CSLC and the Surviving Entity shall, Parent shall indemnify, defend and hold harmless each person who is nowStockholder, or at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, director or employee of the Company or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses (including reasonable attorneys' fees and expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not be unreasonably be withheld) of or in connection with any threatened or actual claim, action, suit, proceeding, case proceeding or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of or in connection with executed this Agreement, the Merger other than as a result of, or relating to, any claim of the transactions contemplated hereby or thereby, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers Stockholder (and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall Parent will pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest full extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law). Without limiting the foregoing, if in the event any such claim, action, suit, proceeding or investigation is commenced or instituted brought against any Indemnified Party (whether arising before or after the Effective Time)Parties, (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them Parent and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) Parent shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor therefore are received; and (iiiii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall Parent will use best all reasonable efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity Parent shall not be liable for any settlement of any claim effected without its prior written consent (which consent shall not unreasonably be withheld)consent. Any Indemnified Party electing wishing to claim indemnification under this Section 5.95.k, upon learning of any such Actionclaim, action, suit, proceeding or investigation, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable lawParent. The Indemnified Parties as a group may retain only one law firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect the written opinion of counsel to the Indemnified Parties, on any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least in no event shall the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not Parent be obligated to incur in excess pay the fees and expenses of $400,000 in the aggregate under this Section 5.9(b).
(c) more than two law firms on behalf of all Indemnified Parties. The provisions of this Section 5.9 5.k. are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representativespersonal representatives and shall be binding on all successors and assigns of Parent, Sub, the Company and the Surviving Corporation. The provisions of this Section 5.k. shall terminate and shall be of no force or effect following execution of the Merger Agreement or upon Parent's delivery of notice to the Indemnified Party that it will immediately upon the written request of such party terminate the Option relating to the shares of Company Common Stock owned by such Indemnified Party.
Appears in 1 contract
Indemnification; Directors’ and Officers’ Insurance. (a) The Without limiting any additional rights that any director, officer, trustee, employee, agent, or fiduciary may have under any employment or indemnification agreement or under the Company’s Organizational Documents, or, if applicable, the Company shallSubsidiaries’ Organizational Documents, and from and for a period of six (6) years after the Effective Time, CSLC and Parent shall cause the Surviving Entity shall, indemnify, defend Corporation to: (i) indemnify and hold harmless each person who is now, or has been or becomes at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, officer or director or employee of the Company or any Company Subsidiary and also with respect to any such Person, by reason of its Subsidiaries the fact such Person is or was a director, officer, employee, member, trustee or fiduciary of another corporation, foundation, partnership, joint venture, trust, pension or other Benefit Plan or enterprise (regardless of whether such other entity or enterprise is affiliated with the "Company) serving at the request of or on behalf of the Company or any Company Subsidiary and together with such Person’s heirs, executors or administrators (collectively, the “Indemnified Parties"”) from to the fullest extent authorized or permitted by, and against (i) all subject to the conditions and procedures set forth in, applicable Law in connection with any Proceeding and any losses, claims, damages, liabilities, costs, expensesIndemnification Expenses, liabilities or judgments or Judgments, fines, penalties and amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of including all interest, assessments and other charges paid or payable in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out respect of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities"thereof) resulting therefrom; and (ii) all Indemnified Liabilities based in whole or in part onpromptly pay on behalf of or, or arising in whole or in part out of or in connection with this Agreementwithin ten (10) days after any request for advancement, the Merger or any advance to each of the transactions contemplated hereby Indemnified Parties, any Indemnification Expenses incurred in defending, serving as a witness with respect to or thereby, in each case otherwise participating with respect to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses any Proceeding in advance of the final disposition of any such action Proceeding, including payment on behalf of or proceeding advancement to each the Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated Indemnification Expenses incurred by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of connection with enforcing any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to such indemnification or advancement, in each such matter unless there is, under applicable standards of professional conduct, a conflict in respect case without the requirement of any significant issue between the positions of any two bond or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable termsother security; provided, however, that, to the extent required by applicable Law, the payment of any Indemnification Expenses incurred by an Indemnified Party in advance of the final disposition of a Proceeding shall be made only upon delivery to the Surviving Corporation of an undertaking by or on behalf of such Indemnified Party to repay all amounts so paid in advance if it shall ultimately be determined that CSLC shall such Indemnified Party is not entitled to be obligated indemnified. The indemnification and advancement obligations of the Surviving Corporation pursuant to incur in excess of $400,000 in the aggregate under this Section 5.9(b).
6.10 extend to acts or omissions occurring at or before the Effective Time and any Proceeding relating thereto (c) The provisions including with respect to any acts or omissions occurring in connection with the approval of this Section 5.9 are intended to be for Agreement and the benefit ofconsummation of the Transactions, including the consideration and shall be enforceable by, each Indemnified Party, his heirs and his representatives.approval
Appears in 1 contract
Indemnification; Directors’ and Officers’ Insurance. (ai) The Company shall, and from From and after the Effective Time, CSLC and the Surviving Entity shall, Parent shall indemnify, defend and hold harmless each any person who is now, or has been at any time prior to the date hereof has been hereof, or who becomes prior to the Effective Time, an a director, officer, director employee or employee agent (an "Indemnified Person") of the Company or any of its Subsidiaries (the "Indemnified Parties") from and subsidiaries against (i) all losses, claims, damages, costsliabilities, expensescosts and expenses (including reasonable fees and expenses of legal counsel selected by the Indemnified Person with the consent of Parent, liabilities or judgments or which consent will not be unreasonably withheld), judgments, fines and amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any claim, actual or threatened action, suit, proceedingclaim, case proceeding or investigation (each a "ActionClaim") to the extent such Indemnified Person acted in good faith and in a manner reasonably believed to be in the best interest of the Company and, in the case of a criminal proceeding, to the extent such Indemnified Person had no reasonable cause to believe such Indemnified Person's conduct was unlawful and to the extent that any such Claim is based in whole on, or in part on or arising in whole or in part arises out of or in connection with of: (x) the fact that such person Indemnified Person is or was a director, director or officer or employee of the Company or any Subsidiaryof its subsidiaries or is or was serving at the request of the Company or any of its subsidiaries as a director or officer of another corporation, whether pertaining partnership, joint venture, trust or other enterprise; or (y) this Agreement or any of the transactions contemplated hereby, in each case to the extent that any such Claim pertains to any matter or fact arising, existing or occurring at or prior to or at the Effective Time and Time, regardless of whether such Claim is asserted or claimed prior to, at or after the Effective Time Time, to the full extent permitted under the CGCL, the Company Certificate or the Company Bylaws or any indemnification agreement in effect prior to the date hereof and listed in Section 5.2(c) to the Company Disclosure Schedule ("complete and correct copies of which have been previously provided to Parent), including provisions relating to advancement of expenses incurred in the defense of any such Claim. Without limiting the generality of the preceding sentence, in the event any Indemnified Liabilities") Person becomes involved in any Claim, after the Effective Time, Parent shall periodically advance to such Indemnified Person its legal and other expenses (including the cost of any investigation and preparation incurred in connection therewith), subject to the provisions of paragraph (ii) of this Section 5.2(b), and subject to the providing by such Indemnified Person of an undertaking to reimburse all amounts so advanced in the event of a final non-appealable determination by a court of competent jurisdiction that such Indemnified Person is not entitled thereto.
(ii) The Indemnified Person shall control the defense of any Claim with counsel selected by the Indemnified Person, which counsel shall be reasonably acceptable to Parent, provided that Parent shall be permitted to participate in the defense of such Claim at its own expense. Parent shall not be obligated to pay the fees and expenses of more than one counsel for all Indemnified Liabilities based Persons in whole any single Claim except to the extent that, in the opinion of independent legal counsel selected by the Indemnified Person, which counsel shall be reasonably acceptable to Parent, representation of two or more of such Indemnified Persons would present a conflict of interest under applicable standards of conduct in part onthe legal profession. Parent shall not be liable for any settlement effected without its written consent, which consent shall not unreasonably be withheld.
(iii) Parent and the Company agree that all rights to indemnification of liabilities, and all limitations with respect thereto, existing in favor of any Indemnified Person, as provided in the Company Certificate or arising the Company Bylaws and any indemnification agreement in whole effect at the date hereof and listed in Section 5.2(b) to the Company Disclosure Schedule, shall survive the Mergers and shall continue in full force and effect, without any amendment thereto; provided, however, that in the event any Claim is asserted or in part out of or in connection made, any determination required to be made with this Agreementrespect to whether an Indemnified Person's conduct complies with the standards set forth under the CGCL, the Merger Company Certificate or the Company Bylaws or any of the transactions contemplated hereby or thereby, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entitysuch agreement, as the case may be, shall pay expenses be made as permitted by the CGCL; and provided further that nothing in advance this Section 5.2(c) shall impair any rights or obligations of any current or former director or officer of the final disposition of any such action Company or proceeding to each Indemnified Party its subsidiaries, including pursuant to the fullest extent permitted under applicable law upon receipt respective certificates of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding incorporation or investigation is commenced bylaws of Parent or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there istheir respective subsidiaries, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two CGCL or more Indemnified Partiesotherwise.
(biv) For a period of seven six years after the Effective Time, CSLC Parent shall cause to be maintained in effect the current policies of directors' and officers' and fiduciary liability insurance maintained by the Company and its Subsidiaries (provided that CSLC Parent may substitute therefor policies of at least the same coverage and amounts containing with terms and conditions which that are no less advantageousadvantageous to former officers and directors of the Company) only with respect to claims arising from facts or events which occurred at or before the Effective Time to the extent available on commercially reasonable termsTime; provided, however, provided that CSLC Parent shall not be obligated required to incur pay in the aggregate for D&O Insurance in excess of $400,000 750% of the last annual premium paid prior to the date hereof, but in the aggregate under this Section 5.9(b)such case shall purchase as much coverage as possible for such amount.
(cv) The provisions of this Section 5.9 5.2(b) are intended to be for the benefit of, and shall be enforceable by, each Indemnified PartyPerson, his or her heirs and his or her personal representatives. Parent will not, nor will Parent permit the Surviving Corporation to, merge or consolidate with any other Person or sell all or substantially all of Parent's or such subsidiary's assets unless Parent or the Surviving Corporation ensures that the surviving or resulting entity assumes the obligations imposed by this Section 5.2(b).
Appears in 1 contract
Samples: Merger Agreement (Xicor Inc)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from and after the Effective Time, CSLC and the Surviving Entity Corporation shall, indemnify, defend and hold harmless each person who is now, or has been at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, officer or director or employee of the Company or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses (including attorneys' fees and expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not be unreasonably be withheld) of or in connection with any threatened or actual claim, action, suit, proceeding, case proceeding or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, director or officer or employee of the Company or any Subsidiary, of its Subsidiaries whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, or at or after after, the Effective Time ("Indemnified Liabilities") and (ii) ), including all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, or in connection with pertaining to this Agreement, the Merger Agreement or any of the transactions contemplated hereby or therebyhereby, in each case to the fullest full extent a corporation is permitted under applicable law the DGCL to indemnify its own directors, directors or officers and employees, as the case may be (and CSLC the Company and the Surviving EntityCorporation, as the case may be, shall will pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest full extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law). Without limiting the foregoing, if in the event any such claim, action, suit, proceeding or investigation is commenced or instituted brought against any Indemnified Party Parties (whether arising before or after the Effective Time), (i) the Company shall defend the Indemnified Parties may retain in such matter with counsel satisfactory to them of the Company's choosing and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall will use best all reasonable efforts to assist in the vigorous defense of any such matter, provided that neither . In no event will the Company, CSLC nor Company or the Surviving Entity shall Corporation be liable for any settlement of any claim effected without its prior written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing wishing to claim indemnification under this Section 5.95.6, upon learning of any such Actionclaim, action, suit, proceeding or investigation, shall promptly notify the CompanyCompany (or after the Effective Time, CSLC or the Surviving Entity of such election Corporation) (but the failure so to notify the Company shall not relieve it a party from any liability which it may have under this Section 5.9, 5.6 except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failureparty), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving EntityCorporation) the undertaking contemplated by applicable lawSection 145(e) of the DGCL. The Company and Sub agree that the foregoing rights to indemnification, including provisions relating to advances of expenses incurred in defense of any action or suit, existing in favor of the Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there ismatters occurring through the Effective Time, under applicable standards shall survive the Merger and shall continue in full force and effect for a period of professional conductnot less than six years from the Effective Time; provided, a conflict however, that all rights to indemnification in respect of any significant issue between Indemnified Liabilities asserted or made within such period shall continue until the positions disposition of any two or more such Indemnified PartiesLiabilities.
(b) For a period of seven six years after the Effective Time, CSLC the Surviving Corporation shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC Parent may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no not materially less advantageousadvantageous to the Indemnified Parties) with respect to claims matters arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; providedTime, however, provided that CSLC Parent shall not be obligated required to incur pay an annual premium for such insurance in excess of 200% of the last annual premium paid by the Company prior to the date hereof, but in such case shall purchase as much coverage as possible for such amount. The last annual premium paid by the Company was $400,000 in the aggregate under this Section 5.9(b)105,000.
(c) The provisions of this Section 5.9 5.6 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representativespersonal representatives and shall be binding on all successors and assigns of Sub, the Company and the Surviving Corporation.
Appears in 1 contract
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from and after the Effective Time, CSLC and the Surviving Entity Corporation shall, indemnify, defend and hold harmless each person who is now, or has been at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, director director, employee or employee agent of the Company or any of its Subsidiaries (the Subsidiaries(the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses (including attorneys' fees and expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not be unreasonably be withheld) of or in connection with any threatened or actual claim, action, suit, proceeding, case proceeding or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer officer, employee or employee agent of the Company or any Subsidiary, of its Subsidiaries whether pertaining to any matter existing or occurring at or prior to the Effective Time or any acts or omissions occurring or existing at or prior to the Effective Time and whether asserted or claimed prior to, or at or after after, the Effective Time ("Indemnified Liabilities") and (ii) ), including all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, or in connection with pertaining to this Agreement, the Merger Agreement or any of the transactions contemplated hereby or therebyhereby, in each case to the fullest full extent a corporation is permitted under applicable law the DGCL to indemnify its own directors, directors or officers and employees, as the case may be (and CSLC the Company and the Surviving EntityCorporation, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest full 61 extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law). Without limiting the foregoing, if in the event any such claim, action, suit, proceeding or investigation is commenced or instituted brought against any Indemnified Party Parties (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain the Company's regularly engaged independent legal counsel or counsel satisfactory to them and reasonably satisfactory to the Company (or them and reasonably satisfactory to them and CSLC and the Surviving Entity Corporation after the Effective Time); (ii) and the Company (or after the Effective Time, CSLC and the Surviving EntityCorporation) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iiiii) the Company (or after the Effective Time, CSLC and the Surviving EntityCorporation) shall will use all reasonable best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC Company nor the Surviving Entity Corporation shall be liable for any settlement of any claim effected without its prior written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing wishing to claim indemnification under this Section 5.96.6, upon learning of any such Actionclaim, action, suit, proceeding or investigation, shall promptly notify the CompanyCompany (or after the Effective Time, CSLC or the Surviving Entity of such election Corporation) (but the failure so to notify the Company shall not relieve it a party from any liability which it may have under this Section 5.9, 6.6 except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failureparty's position with respect to such claims), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving EntityCorporation) the undertaking contemplated by applicable lawSection 145(e) of the DGCL. The Indemnified Parties as a group may retain only one law firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of on any significant issue between the positions of any two or more Indemnified PartiesParties in which case such additional counsel as may be required (as shall be reasonably determined by the Indemnified Parties and the Company or the Surviving Corporation, as the case may be) may be retained by the Indemnified Parties at the cost and expense of the Company (or Surviving Corporation). The Company and Sub agree that the foregoing rights to indemnification, including provisions relating to advances of expenses incurred in defense of any action or suit, existing in favor of the Indemnified Parties with respect to matters occurring through the Effective Time, shall survive the Merger and shall continue in full force and effect for a period of not less than six years from the Effective Time; provided, however, that all rights to indemnification in respect of any Indemnified Liabilities asserted or made within such period shall continue until the disposition of such Indemnified Liabilities. Furthermore, the provisions with respect to indemnification set forth in the certificate of incorporation of the Surviving Corporation shall not be amended for a period of six years following the Effective Time if such amendment would materially and adversely affect the rights thereunder of individuals who at any time prior to the Effective Time were directors, officers, employees or agents of the Company in respect of actions or omissions occurring at or prior to the Effective Time.
(b) Parent and Sub hereby unconditionally waive and release the Indemnified Parties from and agrees to indemnify, defend and hold harmless the Indemnified Parties from and against any and all claims, demands, causes of action, liabilities, costs or expenses, whether arising under contract, statute, common law or otherwise, with respect to environmental matters (including without limitation any of the foregoing arising under CERCLA or any other Environmental Laws).
(c) For a period of seven six years after the Effective Time, CSLC the Surviving Corporation shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC Parent may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageousadvantageous in any material respect to the Indemnified Parties) with respect to claims matters arising from facts before and acts or events which occurred before omissions occurring or existing at or prior to the Effective Time to including the extent available on commercially reasonable terms; providedtransactions contemplated by this Agreement, however, provided that CSLC Parent shall not be obligated required to incur pay an annual premium for such insurance in excess of $400,000 200% of the last annual premium paid by the Company prior to the date hereof, but in the aggregate under this Section 5.9(b).
(c) The provisions of this Section 5.9 are intended to be for the benefit of, and such case shall be enforceable by, each Indemnified Party, his heirs and his representatives.purchase as much coverage as possible for
Appears in 1 contract
Samples: Merger Agreement (Ero Inc)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallIn the event of any threatened or actual claim, and from and after the Effective Timeaction, CSLC and the Surviving Entity shallsuit, indemnifyproceeding or investigation, defend and hold harmless each person whether civil, criminal or administrative, including, without limitation, any such claim, action, suit, proceeding or investigation in which any individual who is now, or has been at any time prior to the date hereof has been of this Agreement, or who becomes prior to the Effective Time, an officer, a director or officer or employee of the Company Premier, Northern Illinois or any of its their Subsidiaries (the "Indemnified Parties") from and against (i) all losses), claimsis, damagesor is threatened to be, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying made a party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that he or she is or was a director, officer or employee of Premier, Northern Illinois or in connection with any of their Subsidiaries or any of their respective predecessors, or (ii) this Agreement, the Merger Option Agreements or any of the transactions contemplated hereby or thereby, whether in each any case asserted or arising before or after the Effective Time, the parties hereto agree to cooperate and use reasonable efforts to defend against and respond thereto. It is understood and agreed that after the Effective Time, GPF shall indemnify and hold harmless, as and to the fullest extent a corporation is permitted under applicable law to indemnify its own directorsby law, officers each such Indemnified Party against any losses, claims, damages, liabilities, costs, expenses (including reasonable attorney's fees and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action claim, suit, proceeding or proceeding to investigation incurred by each Indemnified Party to the fullest extent permitted under applicable by law upon receipt of any undertaking required by applicable law), judgments, fines and amounts paid in settlement in connection with any such threatened or actual claim, action, suit, proceeding or investigation, and in the event of any such threatened or actual claim, action, suit, proceeding or investigation (whether asserted or arising before or after the Effective Time), the Indemnified Parties may retain counsel reasonably satisfactory to them after consultation with GPF; provided, however, that (A) GPF shall have the right to assume the defense thereof and upon such assumption GPF shall not be liable to any Indemnified Party for any legal expenses of other counsel or any other expenses subsequently incurred by any Indemnified Party in connection with the defense thereof, except that if GPF elects not to assume such defense or counsel for the Indemnified Parties reasonably advises the Indemnified Parties that there are issues which raise conflicts of interest between GPF and the Indemnified Parties, the Indemnified Parties may retain counsel reasonably satisfactory to them after consultation with GPF, and GPF shall pay the reasonable fees and expenses of such counsel for the Indemnified Parties, (B) GPF shall be obligated pursuant to this paragraph to pay for only one firm of counsel for all Indemnified Parties, unless an Indemnified Party shall have reasonably concluded, based on the advice of counsel, that there is a material conflict of interest between the interests of such Indemnified Party and the interests of one or more other Indemnified Parties and that the interests of such Indemnified Party will not be adequately represented unless separate counsel is retained, in which case, GPF shall be obligated to pay for such separate counsel, (C) GPF shall not be liable for any settlement effected without its prior written consent (which consent shall not be unreasonably withheld) and (D) GPF shall have no obligation hereunder to any Indemnified Party when and if a court of competent jurisdiction shall ultimately determine, and such determination shall have become final and nonappealable, that indemnification of such Indemnified Party in the manner contemplated hereby is prohibited by applicable law. Without limiting the foregoingAny Indemnified Party wishing to claim Indemnification under this Section 6.8, if upon learning of any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time)investigation, (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matternotify GPF thereof, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent failure to so notify shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification affect the obligations of GPF under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, 6.8 except to the extent such failure to notify materially prejudices it GPF. GPF's obligations under this Section 6.8 continue in full force and effect for a period of three years from the Effective Time (or the period of the applicable statute of limitations, if it otherwise forfeits substantive longer); provided, however, that all rights and defenses as to indemnification in respect of any claim (a result "Claim") asserted or made within such period shall continue until the final disposition of such failure)Claim.
(b) Premier and Northern Illinois shall each use reasonable efforts (i) to obtain, and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance coverage for the officers and directors of GPF, to the extent that the same is economically practicable, and (ii) either to cause the individuals serving as officers and directors of Premier, Northern Illinois or their Subsidiaries immediately prior to the Effective Time to be covered for a period of three years from the Effective Time (or the period of the applicable statute of limitations, if longer) by the directors' and officers' liability insurance policies maintained by the Company Premier and its Subsidiaries (provided that CSLC may Northern Illinois, respectively, or to substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no not less advantageousadvantageous than the policies previously maintained by Premier and Northern Illinois, respectively) with respect to claims arising from facts acts or events which occurred before omissions occurring prior to the Effective Time to the extent available on commercially reasonable termswhich were committed by such officers and directors in their capacity as such; provided, however, that CSLC in no event shall not GPF be obligated required to incur in excess expend more than $50,000 per year (the "Insurance Amount") to maintain or procure insurance coverage pursuant to clause (ii) of $400,000 in this sentence, and provided further that if GPF is unable to maintain or obtain the aggregate under insurance called for by clause (ii) of this Section 5.9(b)sentence, GPF shall use reasonable efforts to obtain as much comparable insurance as available for the Insurance Amount.
(c) In the event GPF or any of its successors or assigns (i) consolidates with or merges into any other person and shall not be the continuing or surviving corporation or entity of such consolidation or merger, or (ii) transfers or conveys all or substantially all of its properties and assets to any person, then, and in each such case, to the extent necessary, proper provision shall be made so that the successors and assigns of GPF assume the obligations set forth in this section.
(d) The provisions of this Section 5.9 6.8 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives.
Appears in 1 contract
Samples: Agreement and Plan of Reorganization (Northern Illinois Financial Corp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective Time, CSLC Xxxxxx shall, and shall cause the Surviving Entity shallCorporation to, indemnify, defend indemnify and hold harmless each person who is now, or at any time prior to the fullest extent L3 would be permitted to do so under applicable Law and L3’s Organizational Documents in effect as of the date hereof has been or who becomes prior to of this Agreement, each present and former (determined as of the Effective Time, an officer, ) director or employee and officer of the Company L3 or any of its Subsidiaries or any Person who prior to or at the Effective Time served at the request of L3 or any of its Subsidiaries as a director or officer of another Person in which L3 or any of its Subsidiaries has an equity investment, in each case, when acting in such capacity (the "“L3 Indemnified Parties") from and ”), against any costs or expenses (i) all including reasonable attorneys’ fees), judgments, fines, losses, claims, damages, costs, expenses, damages or liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or incurred in connection with any claimwith, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or otherwise related to any Proceeding, in connection with the fact that such person is with, arising out of or was a director, officer or employee of the Company or any Subsidiary, whether pertaining otherwise related to any matter matters existing or occurring at or prior to the Effective Time and Time, whether asserted or claimed prior to, at or after the Effective Time Time, including in connection with ("Indemnified Liabilities"i) the Transactions, and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of or in connection with actions to enforce this Agreement, the Merger provision or any other indemnification or advancement right of any L3 Indemnified Party, and Xxxxxx or the transactions contemplated hereby or thereby, in each case Surviving Corporation shall also advance expenses as incurred to the fullest extent a corporation is that L3 would have been permitted to do so under applicable law Law and L3’s Organizational Documents in effect as of the date of this Agreement; provided that any Person to indemnify its own directorswhom expenses are advanced provides an undertaking to repay such advances if it is ultimately determined by final adjudication that such Person is not entitled to indemnification. From and after the Effective Time, officers Xxxxxx shall, and employees, as the case may be and CSLC and shall cause the Surviving EntityCorporation to, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party indemnify and hold harmless to the fullest extent Xxxxxx would be permitted to do so under applicable law upon receipt Law and Xxxxxx’ Organizational Documents in effect as of any undertaking contemplated by applicable law. Without limiting the foregoingdate of this Agreement, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party each present and former (whether arising before or after determined as of the Effective Time) director and officer of Xxxxxx or any of its Subsidiaries or any Person who prior to or at the Effective Time served at the request of Xxxxxx or any of its Subsidiaries as a director or officer of another Person in which Xxxxxx or any of its Subsidiaries has an equity investment, in each case, when acting in such capacity (the “Xxxxxx Indemnified Parties” and, together with the L3 Indemnified Parties, the “Indemnified Parties”), against any costs or expenses (i) the Indemnified Parties may retain counsel satisfactory including reasonable attorneys’ fees), judgments, fines, losses, claims, damages or liabilities incurred in connection with, arising out of or otherwise related to them and the Company (any Proceeding, in connection with, arising out of or satisfactory otherwise related to them and CSLC and the Surviving Entity after matters existing or occurring at or prior to the Effective Time); (ii) the Company (, whether asserted or claimed prior to, at or after the Effective Time, CSLC including in connection with (i) the Transactions, and (ii) actions to enforce this provision or any other indemnification or advancement right of any Xxxxxx Indemnified Party, and Xxxxxx or the Surviving EntityCorporation shall also advance expenses as incurred to the fullest extent that Xxxxxx would have been permitted to do so under applicable Law and Xxxxxx’ Organizational Documents in effect as of the date of this Agreement; provided that any Person to whom expenses are advanced provides an undertaking to repay such advances if it is ultimately determined by final adjudication that such Person is not entitled to indemnification.
(b) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after Prior to the Effective Time, CSLC L3 shall and, if L3 is unable to, Xxxxxx shall cause the Surviving Corporation as of the Effective Time to, obtain and fully pay the premium for “tail” insurance policies for the extension of (i) the directors’ and officers’ liability coverage of L3’s existing directors’ and officers’ insurance policies, and (ii) L3’s existing fiduciary liability insurance policies, in each case for a claims reporting or discovery period of six (6) years from and after the Effective Time (the “Tail Period”) from one or more insurance carriers with the same or better credit rating as L3’s insurance carrier as of the date of this Agreement with respect to directors’ and officers’ liability insurance and fiduciary liability insurance (collectively, “D&O Insurance”) with terms, conditions, retentions and limits of liability that are at least as favorable to the insureds as L3’s existing policies with respect to matters existing or occurring at or prior to the Effective Time (including in connection with this Agreement or the Transactions). If L3 and the Surviving Entity) shall use best efforts Corporation for any reason fail to assist in obtain such “tail” insurance policies as of the vigorous defense of any such matterEffective Time, provided that neither the Company, CSLC nor the Surviving Entity Corporation shall, and Xxxxxx shall be liable cause the Surviving Corporation to, continue to maintain in effect for the Tail Period the D&O Insurance in place as of the date of this Agreement with terms, conditions, retentions and limits of liability that are at least as favorable to the insureds as provided in L3’s existing policies as of the date of this Agreement, or the Surviving Corporation shall, and Xxxxxx shall cause the Surviving Corporation to, purchase comparable D&O Insurance for the Tail Period with terms, conditions, retentions and limits of liability that are substantially the same as provided in L3’s existing policies as of the date of this Agreement. Prior to or as of the Effective Time, Xxxxxx shall obtain and fully pay the premium for “tail” insurance policies for the extension of (i) the directors’ and officers’ liability coverage of Xxxxxx’ existing directors’ and officers’ insurance policies, and (ii) Xxxxxx’ existing fiduciary liability insurance policies, in each case for the Tail Period from one or more insurance carriers with the same or better credit rating as Xxxxxx’ insurance carrier as of the date of this Agreement with respect to D&O Insurance with terms, conditions, retentions and limits of liability that are at least as favorable to the insureds as Xxxxxx’ existing policies with respect to matters existing or occurring at or prior to the Effective Time (including in connection with this Agreement or the Transactions). If Xxxxxx for any settlement reason fails to obtain such “tail” insurance policies as of any claim effected without its written consent the Effective Time, Xxxxxx shall continue to maintain in effect for the Tail Period the D&O Insurance in place as of the date of this Agreement with terms, conditions, retentions and limits of liability that are at least as favorable to the insureds as provided in Xxxxxx’ existing policies as of the date of this Agreement, or Xxxxxx shall purchase comparable D&O Insurance for the Tail Period with terms, conditions, retentions and limits of liability that are substantially the same as provided in Xxxxxx’ existing policies as of the date of this Agreement.
(which consent shall not unreasonably be withheld). c) Any Indemnified Party electing wishing to claim indemnification under this Section 5.98.15, upon learning of any such ActionProceeding, shall promptly notify Xxxxxx thereof in writing, but the Company, CSLC failure to so notify shall not relieve Xxxxxx or the Surviving Entity Corporation of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, to such Indemnified Party except to the extent such failure materially prejudices the indemnifying party. In the event of any Proceeding: (i) Xxxxxx or the Surviving Corporation shall have the right to assume the defense thereof (it being understood that by electing to assume the defense thereof, neither Xxxxxx nor the Surviving Corporation will be deemed to have waived any right to object to the Indemnified Party’s entitlement to indemnification hereunder with respect thereto or assumed any liability with respect thereto), except that if it otherwise forfeits substantive rights Xxxxxx or the Surviving Corporation elects not to assume such defense or legal counsel or the Indemnified Party advises that there are issues which raise conflicts of interest between Xxxxxx or the Surviving Corporation and defenses as a result the Indemnified Party, the Indemnified Party may retain legal counsel satisfactory to them, and Xxxxxx or the Surviving Corporation shall pay all reasonable and documented fees and expenses of such failure)legal counsel for the Indemnified Party promptly as statements therefor are received; provided, and shall deliver to the Company (or after the Effective Timehowever, to CSLC that Xxxxxx and the Surviving EntityCorporation shall be obligated pursuant to this Section 8.15(c) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain to pay for only one firm of legal counsel for all Indemnified Parties in any jurisdiction unless the use of one legal counsel for such Indemnified Parties would present such legal counsel with a conflict of interest (provided that the fewest number of legal counsels necessary to represent them with respect to each avoid conflicts of interest shall be used); (ii) the Indemnified Parties shall cooperate in the defense of any such matter unless there isif Xxxxxx or the Surviving Corporation elects to assume such defense, under and Xxxxxx and the Surviving Corporation shall cooperate in the defense of any such matter if Xxxxxx or the Surviving Corporation elects not to assume such defense; (iii) the Indemnified Parties shall not be liable for any settlement effected without their prior written consent if Xxxxxx or the Surviving Corporation elects to assume such defense and Xxxxxx and the Surviving Corporation shall not be liable for any settlement effected without their prior written consent if Xxxxxx or the Surviving Corporation elects not to assume such defense; (iv) Xxxxxx and the Surviving Corporation shall not have any obligation hereunder to any Indemnified Party if and when a court of competent jurisdiction shall ultimately determine, and such determination shall have become final, that the indemnified action of such Indemnified Party in the manner contemplated hereby is prohibited by applicable standards of professional conduct, a conflict Law; and (v) all rights to indemnification in respect of any significant issue between the positions such Proceedings shall continue until final disposition of any two or more Indemnified Partiesall such Proceedings.
(bd) For a period of seven years after During the Tail Period, all rights to indemnification and exculpation from liabilities for acts or omissions occurring at or prior to the Effective TimeTime and rights to advancement of expenses relating thereto now existing in favor of any L3 Indemnified Party or Xxxxxx Indemnified Party as provided in the Organizational Documents of L3 or Xxxxxx, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company as applicable, and its Subsidiaries (provided that CSLC may substitute therefor policies or any indemnification agreement between such L3 Indemnified Party or Xxxxxx Indemnified Party, as applicable, and L3 or Xxxxxx, as applicable, or any of at least its Subsidiaries, in each case, as in effect on the same coverage date of this Agreement, shall survive the Transactions unchanged and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated amended, restated, repealed or otherwise modified in any manner that would adversely affect any right thereunder of any such L3 Indemnified Party or Xxxxxx Indemnified Party, as applicable.
(e) If Xxxxxx or the Surviving Corporation or any of their respective successors or assigns (i) shall consolidate with or merge into any other Person and shall not be the continuing or surviving Person of such consolidation or merger or (ii) shall transfer all or substantially all of its properties and assets to incur any Person, then, and in excess each such case, proper provisions shall be made so that the successors and assigns of $400,000 Xxxxxx or the Surviving Corporation shall assume all of the obligations set forth in this Section 8.15.
(f) The rights of the aggregate L3 Indemnified Parties under this Section 5.9(b)8.15 are in addition to any rights such L3 Indemnified Parties may have under the Organizational Documents of L3 or any of its Subsidiaries, or under any applicable Contracts of L3 or Laws. The rights of the Xxxxxx Indemnified Parties under this Section 8.15 are in addition to any rights such Xxxxxx Indemnified Parties may have under the Organizational Documents of Xxxxxx or any of its Subsidiaries, or under any applicable Contracts of Xxxxxx or Laws.
(cg) The provisions of this This Section 5.9 are 8.15 is intended to be for the benefit of, and from and after the Effective Time shall be enforceable by, each of the Indemnified PartyParties, his heirs and his representativeswho shall be third-party beneficiaries of this Section 8.15.
Appears in 1 contract
Samples: Agreement and Plan of Merger (L3 Technologies, Inc.)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective Time, CSLC in the event of any threatened or actual claim, action, suit, or proceeding, whether civil, criminal, administrative or investigative, and whether brought by, or in the Surviving Entity shallname of, indemnifyPSB or any of its Subsidiaries and their respective successors or assigns, defend and hold harmless each in which any person who is now, or has been at any time prior to the date hereof has been of this Agreement, or who becomes prior to the Effective Time, an a director, officer, director employee or employee agent of the Company PSB or any of its Subsidiaries (the "“Indemnified Parties"”) from and against is, or is threatened to be, made a party: (i) all losses, claims, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval by reason of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person he is or was a director, officer officer, employee or employee agent of the Company PSB, any of its Subsidiaries or any Subsidiary, whether pertaining to any matter existing of their respective predecessors or occurring at or was prior to the Effective Time and whether asserted serving at the request of any such party as a director, officer, employee, fiduciary or claimed prior toagent of another corporation, at partnership, trust or after the Effective Time ("Indemnified Liabilities") and other enterprise, or (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, or in connection with pertaining to this Agreement, the Merger or any of the transactions contemplated hereby and all actions taken by an Indemnified Party in connection herewith, whether in any case asserted or therebyarising before or after the Effective Time, in Conestoga shall indemnify each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers such Indemnified Party against any expenses (including reasonable attorneys’ fees and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action claim, suit, proceeding or proceeding investigation to each Indemnified Party to the fullest extent permitted under applicable by law upon receipt of any an undertaking contemplated from such Indemnified Party to repay such advanced expenses if it is determined by applicable law. Without limiting the foregoinga final and nonappealable judgment of a court of competent jurisdiction that such Indemnified Party was not entitled to indemnification hereunder), if judgments, fines and amounts paid in settlement actually and reasonably incurred by such Indemnified Party in connection with any such threatened or actual claim, action, suitsuit or proceeding, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except subject to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result limitations under Pennsylvania law related to the indemnification of such failure)directors, officers, and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm other representatives of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified PartiesPennsylvania corporations.
(b) For Conestoga shall pay all reasonable costs and expenses, including attorneys’ fees, that may be incurred by any Indemnified Party in enforcing the indemnity and other obligations provided for in this Section 7.7 to the fullest extent permitted by applicable law if the Indemnified Party is awarded substantially all of the relief sought by a court of competent jurisdiction.
(c) Conestoga shall use its reasonable best efforts to cause the persons covered by PSB’s directors’ and officers’ liability insurance policy immediately prior to the Effective Time to be covered for a period of seven six (6) years after from the Closing Date by the directors’ and officers’ liability insurance policy or policies maintained by Conestoga with respect to claims arising from facts or events that occurred at or prior to the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor Conestoga’s policy or policies of provide at least the same coverage and amounts containing terms and conditions which are no not less advantageous) with advantageous to such directors and officers of PSB than the terms and conditions of the directors’ and officers’ liability insurance policy of PSB existing on July 31, 2006. Conestoga will not be required to expend, in respect of its obligations to claims arising from facts or events which occurred before such covered persons as described in the Effective Time preceding sentence, in any one year an amount in excess of 200% of the annual premiums currently paid by PSB for the insurance covering the officers and directors of PSB (the “Insurance Amount”), provided, that if such expenditure would exceed the Insurance Amount, Conestoga shall use its reasonable best efforts to obtain as much comparable insurance as is available for the Insurance Amount. Promptly following the execution of this Agreement, PSB shall purchase, to the extent available available, additional directors’ and officers’ liability insurance or transaction insurance in such reasonable amounts and on commercially such reasonable terms; provided, however, that CSLC shall not be obligated to incur in excess of $400,000 in the aggregate under this Section 5.9(b)terms as directed by Conestoga.
(cd) The provisions of this Section 5.9 are intended to be for 7.7 will survive the benefit of, Merger.
(e) If Conestoga or any of its successors or assigns shall consolidate with or merge into any other entity and shall not be enforceable bythe continuing or surviving entity of such consolidation or merger or shall transfer all or substantially all of its assets to any other entity, then and in each Indemnified Partycase, his heirs proper provision shall be made so that the successors and his representativesassigns of Conestoga shall assume the obligations set forth in this Section 7.7.
Appears in 1 contract
Samples: Merger Agreement (PSB Bancorp Inc)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallprovisions with respect to indemnification set forth in the certificate of incorporation and by-laws of Protection One shall not be amended, and repealed or otherwise modified for a period of six years from the Closing in any manner that would affect adversely the rights thereunder of individuals who at the Closing were directors or officers of Protection One, unless such modification shall be required by law. From and after the Effective TimeClosing, CSLC and the Surviving Entity shall, indemnify, defend Protection One will indemnify and hold harmless each person who is nowpresent and former director and officer of Protection One (when acting in such capacity), or at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, director or employee determined as of the Company Closing, against any costs or any of its Subsidiaries expenses (the "Indemnified Parties") from and against (i) all including reasonable attorneys' fees), judgments, fines, losses, claims, damages, costs, expenses, liabilities or judgments settlement amounts (collectively, "Costs") incurred or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceedingproceeding or investigation, case whether civil, criminal, administrative or investigation ("Action") based in whole or in part on or investigative, arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter matters existing or occurring at or prior to the Effective Time and Closing, whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part onClosing, or arising in whole or in part out of or in connection with this Agreement, the Merger or any of the transactions contemplated hereby or thereby, in each case to the fullest extent a corporation that Protection One is permitted under applicable Delaware law to indemnify its own directors, officers (and employees, Protection One shall also advance expenses as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party incurred to the fullest extent permitted under applicable law provided the Person to whom expenses are advanced provides an undertaking to repay such advances if it is ultimately determined that such Person is not entitled to indemnification); and provided, further, that any determination required to be made with respect to whether an officer's or director's conduct complies with the standards set forth under Delaware law shall be made by independent counsel selected by Protection One.
(b) Any Indemnified Party wishing to claim indemnification under paragraph (a) of this Section 3.13, upon receipt learning of any undertaking contemplated by applicable lawsuch claim, action, suit, proceeding or investigation, shall promptly notify Protection One thereof, but the failure to so notify shall not relieve Protection One of any liability it may have to such Indemnified Party if such failure does not materially prejudice Protection One. Without limiting In the foregoing, if event of any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective TimeClosing), (i) Protection One shall have the right to assume the defense thereof and Protection One shall not be liable to such Indemnified Parties for any legal expenses of other counsel or any other expenses subsequently incurred by such Indemnified Parties in connection with the defense thereof, except that if Protection One elects not to assume such defense, the Indemnified Parties may retain counsel satisfactory to them them, and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) Protection One shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC Protection One shall be obligated pursuant to this paragraph (b) to pay for only one firm of counsel for all Indemnified Parties in any jurisdiction, (ii) the Indemnified Parties will cooperate in the defense of any such matter and (iii) Protection One shall not be obligated liable for any settlement effected without its prior written consent; and provided, further, that Protection One shall not have any obligation hereunder to incur in excess any Indemnified Party if and when a court of $400,000 competent jurisdiction shall ultimately determine, and such determination shall have become final, that the indemnification of such Indemnified Party in the aggregate under this Section 5.9(b)manner contemplated hereby is prohibited by applicable law.
(c) Protection One shall maintain its existing officers' and directors' liability insurance ("D&O Insurance") for a period of six years after the Closing so long as the annual premium therefor is not in excess of 150 percent of the last annual premium paid prior to the date hereof (the "Current Premium"); provided, however, that if the existing D&O Insurance expires, is terminated or cancelled during such six (6)-year period, Protection One will use its reasonable efforts to obtain as much D&O Insurance as can be obtained for the remainder of such period for a premium not in excess (on an annualized basis) of 150 percent of the Current Premium.
(d) If Protection One or any of its successors or assigns (i) shall consolidate with or merge into any other corporation or entity and shall not be the continuing or surviving corporation or entity of such consolidation or merger or (ii) shall transfer all or substantially all of its properties and assets to any individual, corporation or other entity, then, and in each such case, proper provisions shall be made so that the successors and assigns of Protection One shall assume all of the obligations set forth in this Section.
(e) The provisions of this Section 5.9 are intended to be for the benefit of, and shall be enforceable by, each of the Indemnified PartyParties, his their heirs and his their representatives.
Appears in 1 contract
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from From and after the Effective Time, CSLC Parent and the Surviving Entity shall, to the fullest extent permitted by applicable Law, jointly and severally indemnify, defend and hold harmless harmless, and provide advancement of expenses to, each person who is now, or has been at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, director or employee of the Company or any of its Subsidiaries (the "“Company Indemnified Parties"”) from and against (i) all losses, claims, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case proceeding or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any SubsidiarySubsidiary of the Company prior to the Effective Time, whether pertaining asserted or claimed prior to, or at or after, the Effective Time (including matters, acts or omissions occurring in connection with the approval of this Agreement and the consummation of the transactions contemplated hereby) to the same extent such persons are indemnified or have the right to advancement of expenses as of the date of this Agreement by the Company pursuant to the Company’s Articles of Incorporation, Code of Regulations and indemnification agreements, in existence on the date hereof with any present or former directors, officers or employees of the Company and its Subsidiaries.
(b) Parent or the Surviving Entity shall have the right, but not the obligation, to assume and control the defense of any threatened or actual litigation, claim or proceeding relating to any matter existing acts or omissions covered under this Section 5.7 (each, a “Claim”); provided, that none of Parent or the Surviving Entity shall settle, compromise or consent to the entry of any judgment in any such Claim for which indemnification has been sought by a Company Indemnified Party hereunder, unless such settlement, compromise or consent includes an unconditional release of such Company Indemnified Party from all liability arising out of such Claim or such Company Indemnified Party otherwise consents in writing to such settlement, compromise or consent. Each of Parent, the Surviving Entity and Company Indemnified Parties shall cooperate in the defense of any Claim and shall provide access to properties and individuals as reasonably requested and furnish, or cause to be furnished, records, information and testimony, and attend such conferences, discovery proceedings, hearings, trials or appeals as may be reasonably requested in connection therewith.
(c) For the six (6) year period commencing immediately after the Effective Time, the Surviving Entity shall maintain in effect the Company’s current directors’ and officers’ liability insurance covering acts or omissions occurring at or prior to the Effective Time for the persons who, as of the date of this Agreement or as of the Effective Time, are covered by the Company’s existing directors’ and whether asserted officers’ liability insurance, with respect to claims arising from facts or claimed prior to, events which occurred at or after before the Effective Time Time, or Parent may substitute therefor a “tail” directors’ and officers’ liability insurance policy with substantially the same coverage and amounts and terms and conditions as the existing policies of directors’ and officers’ liability insurance maintained by the Company; provided, however, that if the one-time “tail” premium shall exceed 200% of the current annual premium ("Indemnified Liabilities"such 200% threshold, the “Maximum Premium”), Parent shall acquire aggregate coverage for the maximum amount available on substantially equivalent terms for a cost equal to the Maximum Premium.
(d) Parent and the Surviving Entity shall pay (as incurred) all expenses, including reasonable fees and expenses of counsel, which an indemnified person may incur in enforcing the indemnity and other obligations provided for in this Section 5.7, provided that the person to whom expenses are advanced provides an undertaking to repay such advances to the extent required by applicable Law.
(e) If Parent, the Surviving Entity or any of their successors or assigns (i) consolidates with or merges into any other person and shall not be the continuing or surviving person in such consolidation or merger, or (ii) transfers or conveys all Indemnified Liabilities based in whole or in part onsubstantially all of its properties and assets to any person, or arising in whole or in part out of or in connection with this Agreementthen, the Merger or any of the transactions contemplated hereby or thereby, and in each case such case, to the fullest extent a corporation is permitted under applicable law to indemnify its own directorsnecessary, officers proper provision shall be made so that the successors and employees, as the case may be and CSLC assigns of Parent and the Surviving Entity, as the case may be, shall pay expenses assume the obligations set forth in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties5.7.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur in excess of $400,000 in the aggregate under this Section 5.9(b).
(cf) The provisions of this Section 5.9 5.7 are intended to be for the benefit of, and shall be enforceable by, each Company Indemnified Party, Party and his or her heirs and his representativesrepresentatives and are in addition to, and not in substitution for, any other rights to indemnification or contribution that any such person may have by contract or otherwise.
Appears in 1 contract
Indemnification; Directors’ and Officers’ Insurance. (a) The Company It is understood and agreed that, subject to the limitations on indemnification under applicable law, Hoosier and Terrapin (the "Indemnifying Parties") shall, and from and after to the Effective Timefullest extent permitted under applicable law, CSLC and the Surviving Entity shall, indemnify, defend indemnify and hold harmless harmless, for a period of six years following the Closing, (i) each person who is nowpresent and former managing or supervisory director, or at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, director or officer and employee of the Company Target or any of its Subsidiaries Target Subsidiary against any costs or expenses (the "Indemnified Parties") from and against (i) all including reasonable attorneys' fees), judgments, fines, losses, claims, damages, costs, expenses, liabilities or judgments or and amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case proceeding or investigation (collectively, "ActionLosses") based in whole or in part on or arising in whole or in part out of any action taken or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or omission occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") Closing Date and (ii) all each present and former managing or supervisory director, officer and employee of any Target Non-Purchased Entity (together with the persons with indemnification rights pursuant to clause (i) above, collectively, the "Indemnified Liabilities based in whole or in part on, or Parties") against any Losses arising in whole or in part out of his or her good faith actions in connection with this Agreement, the Merger or any distribution of the transactions contemplated hereby or therebyPurchase Price to Target's shareholders in accordance with the terms and conditions of the Protocol; provided, in each case to that the fullest extent a corporation is permitted under applicable law to indemnify its own directorsIndemnifying Parties shall not be liable for any settlement effected without their prior written consent (which consent shall not be unreasonably withheld). In connection therewith, officers and employees, as (A) the case may be and CSLC and the Surviving Entity, as the case may be, Indemnifying Parties shall promptly pay expenses in advance of the final disposition of any such action claim, suit, proceeding or proceeding investigation to each Indemnified Party to the fullest full extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting , subject to the foregoing, if any provision by such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party of an undertaking to reimburse the amounts so advanced in the event of a final non-appealable determination by a court of competent jurisdiction that such Indemnified Party is not entitled to such amounts, and (whether arising before or after the Effective Time), (iB) the Indemnified Parties may retain one counsel satisfactory to them (except in case of a conflict of interest among two or more Indemnified Parties, in which case more than one counsel may be retained), and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) Indemnifying Parties shall promptly pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld)Parties. Any Indemnified Party electing wishing to claim indemnification under this Section 5.95.11, upon learning of any such Actionclaim, action, suit, demand, proceeding or investigation, shall promptly notify the CompanyIndemnifying Parties; provided, CSLC or the Surviving Entity of such election (but that the failure to so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, affect the obligations of the Indemnifying Parties except to the extent such failure to notify materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Partiesparties.
(b) For a period of seven six years after the Effective TimeClosing Date, CSLC shall cause to be maintained the Indemnifying Parties will maintain in effect the current policies of existing directors' and officers' liability insurance maintained covering the Indemnified Parties who are currently covered by Target's and the Company Target Subsidiaries' officers and its Subsidiaries directors liability insurance policies (copies of which policies have been provided that CSLC may substitute therefor policies to Purchasers) on terms not less favorable than those in effect on the date hereof in terms of at least the same coverage and amounts containing and which provide coverage as to claims arising out of the good faith actions of such Indemnified Persons in connection with the distribution of the Purchase Price to Target's shareholders in accordance with the terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before of the Effective Time to the extent available on commercially reasonable termsProtocol; provided, however, that CSLC shall not be obligated to incur in excess of $400,000 in if the aggregate under annual premiums for such insurance at any time during such period exceed the per annum rate of premium paid by Target for such insurance as of the date of this Section 5.9(b)Agreement, then the Indemnifying Parties shall provide the maximum coverage that will then be available at an annual premium equal to 175% of such per annum rate as of the date of this Agreement.
(c) The provisions of this This Section 5.9 are 5.11 is intended to be for the irrevocable benefit of, and to grant third party rights to, the Indemnified Parties and shall be enforceable bybinding on all successors and assigns of the Indemnifying Parties. Each of the Indemnified Parties shall be entitled to enforce the covenants contained in this Section 5.11.
(d) In the event that any of Purchasers or any of its successors or assigns (i) consolidates with or merges into any other person or entity and shall not be the continuing or surviving entity of such consolidation or merger or (ii) transfers or conveys a majority of its properties and assets to any person or entity, then, and in each such case, proper provision shall be made so that the successors, assigns and transferees of such Indemnifying Party assume the obligations set forth in this Section 5.11.
(e) To the extent permitted by law, all rights of indemnification for the benefit of any Indemnified PartyParty shall be mandatory rather than permissive.
(f) The liabilities and obligations assumed by the Indemnifying Parties under this Section 5.11(a)-(e) are referred to herein as the "H&T Assumed Liabilities". Following the Closing, his heirs Purchasers shall indemnify and his representativeshold harmless each Target Non-Purchased Entity against any claims arising in respect of the Non-Financial Covenants.
Appears in 1 contract
Samples: Purchase Agreement (Rouse Company)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and For a period of six years from and after the Effective Time, CSLC each of Parent and the Surviving Entity shall, indemnify, defend Corporation will jointly and severally indemnify and hold harmless each person who Indemnified Party with respect to all claims, liabilities, losses, damages, judgments, fines, penalties, costs (including amounts paid in settlement or compromise) and expenses (including fees and expenses of legal counsel) in connection with any Action or investigation (whether civil, criminal, administrative or investigative), whenever asserted, based on or arising out of, in whole or in part, (i) the fact that an Indemnified Party is nowor was a director, or at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, director employee, agent, trustee or employee fiduciary of the Company or any of its Subsidiaries (or a director, officer, employee, agent, trustee or fiduciary of another Person serving at the "request of the Company or any of its Subsidiaries), or (ii) acts or omissions by such Indemnified Parties"Party in the Indemnified Party’s capacity as a director, officer, employee, agent, trustee or fiduciary of the Company or a Subsidiary of the Company (or a director, officer, employee, agent, trustee or fiduciary of another Person serving at the request of the Company or any of its Subsidiaries) from and against or taken at the request of the Company or a Subsidiary of the Company (or such other person), in each case, with respect to such service, acts or omissions under clauses (i) all lossesor (ii), claimsat, damagesor at any time prior to, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party Effective Time (which approval shall not unreasonably be withheld) of or in connection with including any claim, action, suit, proceeding, case or investigation ("Action") based Action relating in whole or in part on to the Merger or arising in whole the enforcement of this provision or in part out any other indemnification or advancement right of any Indemnified Party), to the fullest extent permitted or required by applicable Law. In addition, from and after the Effective Time through the sixth anniversary of the Effective Time, Parent will, and will cause the Surviving Corporation to, upon demand by the Indemnified Party, advance any expenses (including fees and expenses of legal counsel) of any Indemnified Party under this Section 6.8 (including in connection with enforcing the fact indemnity and other obligations referred to in this Section 6.8) as incurred to the fullest extent permitted under applicable Law; provided, NAI-1507512591v13 that the individual to whom expenses are advanced provides an undertaking to repay such advances if it shall be determined by a final, non-appealable judgment of a court of competent jurisdiction that such person is or was not entitled to be indemnified pursuant to this Section 6.8.
(b) For a directorperiod of six years from the Effective Time, officer or employee Parent will guarantee, and the Surviving Corporation will maintain in force all obligations of the Company and any of its Subsidiaries in respect of rights of exculpation, indemnification and advancement of expenses for acts or any Subsidiary, whether pertaining to any matter existing or omissions occurring at or prior to the Effective Time and Time, whether asserted or claimed prior to, at or after the Effective Time ("Time, existing in favor of the Indemnified Liabilities") and (ii) all Indemnified Liabilities based Parties as provided in whole or in part on, or arising in whole or in part out the respective constituent documents of or in connection with this Agreement, the Merger Company or any of its Subsidiaries or in any written Contract described on the transactions contemplated hereby Company Disclosure Letter or thereby, in each case filed as an exhibit to any document filed with the fullest extent a corporation is permitted SEC or available under applicable law Law; provided, however, that all rights to indemnify its own directors, officers and employees, as indemnification in respect of any Action pending or asserted or any claim made within such period will continue until the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action Action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt resolution of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party .
(whether arising before or after the Effective Time), (ic) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after For a period of six years from the Effective Time, CSLC Parent will cause, unless otherwise required by Law, the articles of incorporation and code of regulations or similar organizational documents of the Surviving Entity) shall pay all reasonable fees Corporation and expenses each of such counsel for its Subsidiaries to contain provisions no less favorable to the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, limitation of liabilities of directors and officers and indemnification and advancement of expenses than are set forth immediately prior to the Effective Time in the Company’s constituent documents and/or available under applicable standards Law, which provisions will not be amended, repealed or otherwise modified in a manner that would adversely affect the rights thereunder of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(bd) For a period of seven six years after from the Effective Time, CSLC shall Parent will either cause to be maintained in effect the current policies of directors' ’ and officers' ’ liability insurance and fiduciary liability insurance maintained by the Company and its Subsidiaries, or provide substitute policies or purchase or cause the Surviving Corporation to purchase, a “tail policy” with reputable insurers, in each case of at least the same coverage and scope, and in amounts, and containing terms and conditions, that are no less favorable to such individuals than such policy in effect on the date hereof, with respect to service, acts or omissions arising on or before the Effective Time, including the Transactions, except that in no event shall Parent or the Surviving Corporation be required to pay with respect to such insurance policies an annual premium that is more than 300% of the annual premium payable by the Company for such insurance for the fiscal year ending November 30, 2018 (the “Maximum Amount”); provided, that if the annual premium payable by Parent for such policies at any time exceeds the Maximum Amount, Parent or the Surviving Corporation shall obtain a policy or policies that, in its good faith determination, provide the greatest coverage available for a cost not exceeding the Maximum Amount. The Company may prior to the Effective Time purchase a six-year prepaid “tail policy” on terms and conditions providing at least substantially equivalent benefits as the current policies of directors’ and officers’ liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts service, acts or events which occurred before omissions existing or occurring prior to the Effective Time Time, NAI-1507512591v13 including the Transactions, except that in no event shall the Company pay with respect to such “tail policy” more than the extent available on commercially reasonable terms; providedMaximum Amount. If such prepaid “tail policy” has been obtained by the Company, however, that CSLC shall not it will be obligated deemed to incur in excess of $400,000 in the aggregate under satisfy all obligations to obtain insurance pursuant to this Section 5.9(b)6.8(d) and the Surviving Corporation will use its reasonable best efforts to cause such policy to be maintained in full force and effect, for its full term, and to honor all of its obligations thereunder.
(ce) The provisions of this Section 5.9 6.8 will survive the consummation of the Merger and expressly are intended to be for the benefit ofbenefit, and shall be are enforceable by, each Indemnified Party, and his or her heirs and his or her representatives, and are in addition to, and not in substitution for, any other rights to indemnification or contribution that any such individual may have under the Company’s constituent documents, by Contract or otherwise. The obligations of Parent and the Surviving Corporation under this Section 6.8 (and the “tail policy” obtained pursuant thereto) may not be terminated, canceled or modified in such a manner as to adversely affect the rights of any Indemnified Party to whom this Section 6.8 applies unless the affected Indemnified Party shall have consented in writing to such termination or modification (it being expressly agreed that the Indemnified Parties to whom this Section 6.8 applies will be third party beneficiaries of this Section 6.8).
(f) In the event Parent, the Surviving Corporation or any of their respective successors or assigns (i) consolidates with or merges into any other Person and is not the continuing or surviving corporation or entity in such consolidation or merger or (ii) transfers all or substantially all of its properties and assets to any Person, then, and in either such case, Parent shall make or cause to be made proper provision so that the successors and assigns of Parent or the Surviving Corporation, as the case may be, assume and perform the obligations set forth in this Section 6.8.
Appears in 1 contract
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallSubject to applicable law, and for six years from and after the Effective Time, CSLC Parent and the Surviving Entity Corporation shall, indemnifyjointly and severally, defend (i) fulfill and honor in all respects the obligations of the Company for indemnification and advancement of expenses in favor of each past and present officer and director of the Company (each, an “Indemnified Party”) under the Company Charter, the Company Bylaws or any indemnification agreement set forth in Section 5.11 of the Company Letter to which such Indemnified Party is a party and (ii) shall indemnify and hold harmless each person who is nowIndemnified Party against any costs or expenses (including but not limited to reasonable attorneys’ fees and expenses), or at any time prior to the date hereof has been or who becomes prior to the Effective Timejudgments, an officerfines, director or employee of the Company or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damagessettlements, costsdamages or liabilities (collectively, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld“Costs”) of or incurred in connection with any threatened or pending claim, action, suit, proceeding, case proceeding or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiaryinvestigation, whether pertaining to any matter existing civil, criminal, administrative or occurring at or prior to the Effective Time and investigative (each, a “Proceeding”), whether asserted or claimed prior to, at or after the Effective Time ("Time, if and whenever such Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole Party is or in part onwas a party to or a subject of, or is threatened to be made a party to or a subject of, such Proceeding arising in whole or in part out of or pertaining to acts or omissions or alleged acts or omissions of the Indemnified Party occurring at or prior to the Effective Time (including, without limitation, for acts or omissions occurring in connection with the approval of this Agreement, Agreement and the Merger or any consummation of the transactions contemplated hereby hereby) in his or thereby, in each case to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, her capacity as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance an officer or director of the final disposition of any such action Company or proceeding to each Indemnified Party its wholly-owned Subsidiaries, to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any DGCL (and Parent shall also advance expenses to each Indemnified Party (whether arising before or after as incurred to the Effective Time), (i) fullest extent permitted by the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matterDGCL, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification whom expenses are advanced provides an undertaking to repay such advances if it is ultimately determined that such expenses can not be reimbursed or indemnified under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except DGCL to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failureundertaking is required by the DGCL), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The provisions of Section 5.11(a)(ii) shall not require Parent to indemnify an Indemnified Parties as Party hereunder in connection with a group may retain only one firm of legal counsel to represent them with respect to each Proceeding commenced by such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified PartiesParty.
(b) For a Parent shall provide and maintain in effect, or shall cause the Surviving Corporation to provide and maintain in effect, for an aggregate period of seven not less than six (6) years after from the Effective Time, CSLC shall cause to be maintained in effect for the current policies benefit of those Persons who are covered by the Company’s directors' ’ and officers' ’ liability insurance maintained by policy as of the Company date hereof an insurance and its Subsidiaries indemnification policy that provides coverage for acts or omissions occurring at or prior to the Effective Time (provided including, without limitation, for acts or omissions occurring in connection with the approval of this Agreement and the consummation of the transactions contemplated hereby) (the “D&O Insurance”) that CSLC may substitute therefor policies of is at least the same coverage and amounts containing terms and conditions which are no less advantageous) as favorable (with respect to claims arising from facts or events which occurred before the Effective Time coverage, amounts, limits, deductibles and conditions) to the extent available on commercially reasonable termsCompany’s existing policy; provided, however, that CSLC Parent and the Surviving Corporation shall not be obligated required to incur pay an annual premium for the D&O Insurance in excess of 200% of the annual premium currently paid by the Company for such coverage (the “Company’s Current Premium”). If such premiums for such insurance would at any time exceed 200% of the Company’s Current Premium, then Parent shall maintain the maximum amount of coverage under a policy having the same deductible as is available for such 200% of the Company’s Current Premium. The Company represents and warrants to Parent that the Company’s Current Premium is $400,000 in 1,240,000. Notwithstanding the aggregate foregoing, Parent shall use its reasonable best efforts to cause coverage to be extended under the Company’s D&O Insurance by obtaining a six-year “tail” policy, provided that the cost of such tail coverage does not exceed $3 million. If Parent is unable to obtain such tail policy, Parent shall provide the Company with notice thereof at least 5 business days prior to the Effective Time. If the Company receives such notice from Parent, the Company may purchase such tail policy, provided that the cost of such tail coverage does not exceed $3 million. Such tail policy shall satisfy Parent’s and the Surviving Corporation’s obligations under the provisions of this Section 5.9(b5.11(b).
(c) The provisions of this Section 5.9 5.11 are intended to be for the benefit of, and shall be enforceable by, each of the Indemnified Parties and their heirs and estates and such provisions may not be terminated or amended in any manner adverse to the interests of such Person without his or her prior consent.
(d) Notwithstanding anything herein to the contrary, if any claim, action, suit, proceeding or investigation is made against an Indemnified Party, his heirs for which such Indemnified Party is entitled to indemnification hereunder, on or prior to the sixth anniversary of the Effective Time, the provisions of this Section 5.11 shall continue in effect, solely with respect to such matters, until the final disposition of such claim, action, suit, proceeding or investigation.
(e) In the event the Parent or the Surviving Corporation or any of their respective successors or assigns (i) consolidates with or merges into any other Person and his representativesshall not be the continuing or surviving corporation of such consolidation or merger, or (ii) transfers all or substantially all of its properties to any Person, then, and in each case, to the extent necessary to effect such assumption, proper provision shall be made so that the successors and assigns of the Parent and the Surviving Corporation, as the case may be, shall assume the obligations set forth in this Section 5.11.
Appears in 1 contract
Samples: Merger Agreement (Tellabs Inc)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company Capital shall, and from and after the Effective Time, CSLC and the Surviving Entity shall, Trust shall indemnify, defend and hold harmless each person who is now, now or has been at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, officer or director or employee of the Company Capital or any of its Subsidiaries Capital Subsidiary (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses (including attorneys' fees and expenses), liabilities or judgments or amounts that are paid in settlement of, with the approval of the indemnifying party Indemnifying Party (as defined below) (which approval shall not be unreasonably be withheld) of ), or otherwise in connection with any threatened or actual claim, action, suit, proceeding, case proceeding or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, director or officer or employee of the Company Capital or any Subsidiary, whether pertaining to any matter existing or occurring Capital Subsidiary at or prior to the Effective Time and Time, whether asserted or claimed prior to, or at or after after, the Effective Time ("Indemnified Liabilities") and (ii) ), including all Indemnified Liabilities based in whole or in part on, or arising in whole out of, or in part out of pertaining to this Agreement or in connection with this Agreement, the Merger or any of the transactions contemplated hereby or therebyTransactions, in each case to the fullest full extent a corporation is permitted under applicable law to indemnify its own directors, officers (and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, Trust shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest full extent permitted by law subject to the limitations set forth in the fourth sentence of this Section 8.15(a)). Any Indemnified Parties proposing to assert the right to be indemnified under applicable law upon this Section 8.15 shall, promptly after receipt of notice of commencement of any undertaking contemplated by applicable law. Without limiting the foregoing, if any action against such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory in respect of which a claim is to them be made under this Section 8.15 against Capital, and the Company (or satisfactory to them from and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC Trust (collectively, the "Indemnifying Parties"), notify the Indemnifying Parties of the commencement of such action, enclosing a copy of all papers served. If any such action is brought against any of the Indemnified Parties and such Indemnified Parties notify the Indemnifying Parties of its commencement, the Indemnifying Parties will be entitled to participate in and, to the extent that they elect by delivering written notice to such Indemnified Parties promptly after receiving notice of the commencement of the action from the Indemnified Parties, to assume the defense of the action and after notice from the Indemnifying Parties to the Indemnified Parties of their election to assume the defense, the Indemnifying Parties will not be liable to the Indemnified Parties for any legal or other expenses except as provided below. If the Indemnifying Parties assume the defense, the Indemnifying Parties shall have the right to settle such action without the consent of the Indemnified Parties; provided, however, that the Indemnifying Parties shall be required to obtain such consent (which consent shall not be unreasonably withheld) if the settlement includes any admission or wrongdoing on the part of the Indemnified Parties or any decree or restriction on the Indemnified Parties or their officers or directors; provided, further, that no Indemnifying Parties, in the defense of any such action shall, except with the consent of the Indemnified Parties (which consent shall not be unreasonably withheld), 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 Parties of a release from all liability with respect to such action. The Indemnified Parties will have the right to employ their own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such Indemnified Parties unless (i) the employment of counsel by the Indemnified Parties has been authorized in writing by the Indemnifying Parties, (ii) the Indemnified Parties have reasonably concluded (based on written advice of counsel) that there may be legal defenses available to them that are different from or in addition to those available to the Indemnifying Parties, (iii) a conflict or potential conflict exists (based on written advice of counsel to the Indemnified Parties) between the Indemnified Parties and the Surviving EntityIndemnifying Parties (in which case the Indemnifying Parties will not have the right to direct the defense of such action on behalf of the Indemnified Parties) or (iv) the Indemnifying Parties have not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the Indemnifying Parties. It is understood that the Indemnifying Parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time from all such Indemnified Parties unless (a) the employment of more than one counsel has been authorized in writing by the Indemnifying Parties, (b) any of the Indemnified Parties have reasonably concluded (based on advice of counsel) that there may be legal defenses available to them that are different from or in addition to those available to other Indemnified Parties or (c) a conflict or potential conflict exists (based on advice of counsel to the Indemnified Parties) between any of the Indemnified Parties and the other Indemnified Parties, in each case of which the Indemnifying Parties shall be obligated to pay all the reasonable and appropriate fees and expenses of such additional counsel for the Indemnified or counsels. The Indemnifying Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall will not be liable for any settlement of any action or claim effected without its their written consent (which consent shall not be unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur in excess of $400,000 in the aggregate under this Section 5.9(b).
(c) The provisions of this Section 5.9 8.15 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his or her heirs and his representativesor her personal representatives and shall be binding on all successors and assigns of Trust and Capital.
(c) Trust shall either (i) extend Capital's existing directors' and officers' liability insurance policy as of the date hereof (or a policy providing coverage on the same or better terms and conditions) for acts or omissions occurring prior to the Effective Time by persons who are currently covered by such insurance policy maintained by Capital for a period of six (6) years following the Effective Time, or (ii) add such persons to the existing trust managers and officers liability insurance policy of Trust; provided, however, that such insurance shall provide directors and officers of Capital the same coverage as similarly situated officers and trust managers of Trust and such insurance shall be maintained by Trust for a period of six (6) years following the Effective Time.
(d) In the event that Trust or any of it respective successors or assigns (i) consolidates with or merges into any other person and shall not be the continuing or surviving corporation or entity of such consolidation or merger or (ii) transfers all or substantially all of its properties and assets to any person, then, and in each such case the successors and assigns of such entity shall assume the obligations set forth in this Section 8.15, which obligations are expressly intended to be for the irreversible benefit of, and shall be enforceable by, each director and officer covered hereby.
Appears in 1 contract
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallIn the event of any threatened or actual claim, and from and after the Effective Timeaction, CSLC and the Surviving Entity shallsuit, indemnifyproceeding or investigation, defend and hold harmless each person whether civil, criminal or administrative, including any such claim, action, suit, proceeding or investigation in which any individual who is now, or has been at any time prior to the date hereof has been of this Agreement, or who becomes prior to the later of the INSCX Xxxective Time and the PICOM Effective Time, an officer, a director or trustee or officer or employee of the Company Professionals Group or any Subsidiary of its Subsidiaries Professionals Group or of PPTF or the PPTF Subsidiary, including any entity specified in the Professionals Group Disclosure Schedule or the PPTF Disclosure Schedule (the "Indemnified Parties") from and against (i) all losses), claimsis, damagesor is threatened to be, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying made a party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that he is or was a director, trustee, officer or employee of Professionals Group or in connection with this Agreementany Subsidiary of Professionals Group or PPTF, the Merger PPTF Subsidiary or any entity specified in the Professionals Group Disclosure Schedule or the PPTF Disclosure Schedule, or any of their respective predecessors or (ii) this Agreement or any of the transactions contemplated hereby by this Agreement or thereby, whether in each any case asserted or arising before or after the INSCX Xxxective Time, the parties hereto agree to cooperate and use their best efforts to defend against and respond thereto. It is understood and agreed that after the INSCX Xxxective Time, Professionals Group shall indemnify and hold harmless, as and to the fullest extent a corporation is permitted by law (and, as relates to acts or times prior to the Effective Time, to the fullest extent permitted under applicable law to indemnify its own directorsat such time, officers including the provisions of Section 5(k) of PPTF's Amended Trust Agreement dated January 1, 1987), each such Indemnified Party against any losses, claims, damages, liabilities, costs, expenses (including reasonable attorney's fees and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action claim, suit, proceeding or proceeding investigation to each Indemnified Party to the fullest extent permitted under applicable by law upon receipt of any undertaking contemplated required by applicable law), judgments, fines and amounts paid in settlement in connection with any such threatened or actual claim, action, suit, proceeding or investigation, and in the event of any such threatened or actual claim, action, suit, proceeding or investigation (whether asserted of arising before or after the INSCX Xxxective Time), the Indemnified Parties may retain counsel reasonably satisfactory to them after consultation with Professionals Group; provided, however, that (A) Professionals Group shall have the right to assume the defense thereof and upon such assumption Professionals Group shall not be liable to any Indemnified Party for any legal expenses of other counsel or any other expenses subsequently incurred by any Indemnified Party in connection with the defense thereof, except that if Professionals Group elects not to assume such defense the Indemnified Party may retain counsel reasonably satisfactory to him after consultation with Professionals Group, and Professionals Group shall pay the reasonable fees and expenses of such counsel for the Indemnified Party, (B) Professionals Group shall be obligated pursuant to this paragraph to pay for only one firm of counsel for all Indemnified Parties except to the extent representation by a single firm or attorney is, in the absence of an informed consent by the Indemnified Party, prohibited by ethical rules relating to lawyers' conflicts of interest, (C) Professionals Group shall not be liable for any settlement effected without its prior written consent (which consent shall not be unreasonably withheld), (D) Professionals Group shall have no obligation hereunder to any Indemnified Party when and if a court of competent jurisdiction shall ultimately determine, and such determination shall have become final and nonappealable, that indemnification of such Indemnified Party in the manner contemplated by this Agreement is prohibited by applicable law and (E) Professionals Group shall have no obligation hereunder to any Indemnified Party for which and to the extent payment is actually and unqualifiedly made to such Indemnified Party under any insurance policy, any other agreement for indemnification or otherwise. Without limiting the foregoingAny Indemnified Party wishing to claim Indemnification under this Section 6.9, if upon learning of any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time)investigation, (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matternotify Professionals Group thereof, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent failure to so notify shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification affect the obligations of Professionals Group under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, 6.9 except to the extent such failure to notify materially prejudices it or if it otherwise forfeits substantive rights Professionals Group. Professionals Group's obligations under this Section 6.9 continue in full force and defenses as effect for a result period of such failure), six (6) years from the later of the INSCX Xxxective Time and shall deliver to the Company PICOM Effective Time (or after the Effective Timeperiod of the applicable statute of limitations, if longer); provided, however, that all rights to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict indemnification in respect of any significant issue between claim (a "Claim") asserted or made within such period shall continue until the positions final disposition of any two or more Indemnified Partiessuch Claim.
(b) For Professionals Group shall use its best efforts to cause the individuals serving as officers and directors of PPTF, the PPTF Subsidiary or any entity specified in the PPTF Disclosure Schedule immediately prior to the INSCX Xxxective Time to be covered for a period of seven six (6) years after from the later of the INSCX Xxxective Time and the PICOM Effective TimeTime (or the period of the applicable statute of limitations, CSLC shall cause to be maintained in effect if longer) by the current policies of directors' and officers' liability insurance policy maintained by PPTF or the Company and its Subsidiaries PPTF Subsidiary (provided that CSLC Professionals Group may substitute therefor policies of at least the same or substantially similar coverage and amounts containing terms and conditions which are no not less advantageousadvantageous in any material respect than such policy) with respect to claims arising from facts acts or events which occurred before the Effective Time omissions occurring prior to the extent available on commercially reasonable termsINSCX Xxxective Time which were committed by such officers and directors in their capacity as such; provided, however, that CSLC in no event shall not Professionals Group be obligated required to incur in excess expend more than 200% of $400,000 in the aggregate under current amount expended by PPTF or the PPTF Subsidiary (the "Insurance Premium Amount") to maintain or procure insurance coverage pursuant hereto; and provided, further, that if Professionals Group is unable to maintain or obtain the insurance called for by this Section 5.9(b6.9(b), Professionals Group shall use its best efforts to obtain as much comparable insurance as available for the Insurance Premium Amount.
(c) In the event Professionals Group or any of its successors or assigns (i) consolidates with or merges into any other person and shall not be the continuing or surviving corporation or entity of such consolidation or merger, or (ii) transfers or conveys all or substantially all of its properties and assets to any person, then, and in each such case, to the extent necessary, proper provision shall be made so that the successors and assigns of Professionals Group assume the obligations set forth in this Section 6.9.
(d) The provisions of this Section 5.9 6.9 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives.
Appears in 1 contract
Samples: Merger Agreement (Professionals Insurance Co Management Group)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallIn the event of any threatened or actual claim, and from and action, suit, proceeding or investigation, whether civil, criminal or administrative (a “Claim”), including any such Claim in which any individual who is now, or has been at any time before the date of this Agreement, or who becomes before the Effective Time, a director, officer or employee of Seller or Seller Bank or who is or was serving at the request of Seller or Seller Bank as a director, officer or employee of another person (the “Indemnified Parties”), is, or is threatened to be, made a party based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that he is or was a director, officer or employee of Seller or Seller Bank before the Effective Time or (ii) this Agreement or any of the transactions contemplated by this Agreement, whether asserted or arising before or after the Effective Time, CSLC the Parties shall cooperate and use their best efforts to defend against and respond thereto. All rights to indemnification and exculpation from liabilities for acts or omissions occurring at or before the Effective Time now existing in favor of any Indemnified Party as provided in their respective articles of incorporation or bylaws (or comparable organizational documents), shall survive the Merger and shall continue in full force and effect in accordance with their terms, and shall not be amended, repealed or otherwise modified after the Effective Time in any manner that would adversely affect the rights thereunder of such individuals for acts or omissions occurring at or before the Effective Time or taken at the request of Buyer pursuant to Section 6.11, it being understood that nothing in this sentence shall require any amendment to the articles of incorporation or bylaws of the Surviving Entity Corporation.
(b) From and after the Effective Time and for six years thereafter, the Surviving Corporation shall, to the fullest extent permitted by applicable law, indemnify, defend and hold harmless harmless, and provide advancement of reasonable expenses to, each person who is now, or at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, director or employee of the Company or any of its Subsidiaries (the "Indemnified Parties") from and Party against (i) all losses, claims, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") Claim based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, officer or employee of the Company Seller or any SubsidiarySeller Bank, whether and pertaining to any matter existing or occurring occurring, or any acts or omissions occurring, at or prior to before the Effective Time and Time, whether asserted or claimed prior tobefore, or at or after after, the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities based in whole including matters, acts or in part on, or arising in whole or in part out of or omissions occurring in connection with the approval of this Agreement, Agreement and the Merger or any consummation of the transactions contemplated hereby hereby) or thereby, in each case taken at the request of Buyer pursuant to the fullest extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties6.11.
(bc) For Buyer shall cause the individuals serving as officers and directors of Seller or Seller Bank immediately before the Effective Time to be covered for a period of seven six years after from the Effective Time, CSLC shall cause to be maintained in effect Time by the current policies of directors' ’ and officers' ’ liability insurance policy maintained by the Company and its Subsidiaries Seller (provided that CSLC Buyer may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which that are no not less advantageousadvantageous to such officers and directors than such policy) with respect to claims arising from facts acts or events which occurred omissions occurring before the Effective Time that were committed by such officers and directors in their capacity as such; provided that in no event shall Buyer be required to expend annually in the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur aggregate an amount in excess of $400,000 in 175% of the aggregate under this annual premiums currently paid by Seller (which current amount is set forth on Section 5.9(b6.10(c) of the Seller Disclosure Schedule) for such insurance (the “Insurance Amount”), and provided, further, that if Buyer is unable to maintain such policy (or such substitute policy) as a result of the preceding proviso, Buyer shall obtain as much comparable insurance as is available for the Insurance Amount.
(cd) The provisions of this Section 5.9 6.10(d) shall survive the Effective Time and are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives.
Appears in 1 contract
Samples: Merger Agreement (BNC Bancorp)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallWithout limiting any other rights that any Indemnified Person may have pursuant to any employment agreement, indemnification agreement or otherwise, from and after the First Merger Effective Time, Parent shall and shall cause the Surviving Corporation, and from and after the Second Merger Effective Time, CSLC and Time the Surviving Entity shallNewCo, to indemnify, defend and hold harmless each person Person who is now, or has been at any time prior to the date hereof has been of this Agreement or who becomes prior to the First Merger Effective Time, an officersubject to the terms hereof, a director or employee officer of the Company or any of its Subsidiaries (the "“Indemnified Parties"Persons”) from and against (i) all losses, claims, damages, costs, fines, penalties, expenses (including reasonable attorneys’ and other professionals’ fees and expenses, and including the advancement of such expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not be unreasonably be withheld, delayed or conditioned) of or in connection with any threatened or actual claim, action, suit, proceeding, case proceeding or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person Person is or was a director, director or officer or employee of the Company or any Subsidiary, of its Subsidiaries or by reason of anything done or not done by such Person in any such capacity whether pertaining to any matter act or omission occurring or existing or occurring prior to, at or prior to after the First Merger Effective Time and whether asserted or claimed prior to, at or after the First Merger Effective Time ("“Indemnified Liabilities") and (ii) ”), including all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, or in connection with pertaining to, this Agreement, the Merger Agreement or any of the transactions contemplated hereby or therebyhereby, in each case to the fullest extent a corporation is permitted under applicable law Laws. Any Indemnified Person wishing to indemnify its own directorsclaim indemnification under this Section 5.5, officers and employees, as the case may be and CSLC and the Surviving Entity, as the case may be, shall pay expenses in advance upon learning of the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time)investigation, (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC shall notify Parent and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC Corporation or the Surviving Entity of such election NewCo, as applicable, (but the failure so to notify the Company shall not relieve it a party from any liability which that it may have under this Section 5.9, 5.5 except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), party’s position with respect to such claims) and shall deliver to the Company (or after the Effective Time, to CSLC Parent and the Surviving Entity) Corporation or the Surviving NewCo, as applicable, any undertaking contemplated required by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified PartiesLaw.
(b) For a period Parent, the Surviving Corporation and the Surviving NewCo shall not amend, repeal or otherwise modify the Organizational Documents of seven years after the Surviving Corporation or the Surviving NewCo or any of its Subsidiaries in any manner that would affect adversely the rights thereunder with respect to periods prior to the First Merger Effective TimeTime of individuals who at and at any time prior to the First Merger Effective Time were directors or officers of the Company or any of its Subsidiaries, CSLC except to the extent required by Law. Parent shall, and shall cause the Surviving Corporation or the Surviving NewCo to, fulfill and honor any indemnification agreements, or exculpation, indemnification and advancement of expenses provisions of any employment agreement, in each case, between the Company, on the one hand, and any of their respective directors, officers or employees existing as of the date hereof, on the other hand, solely to the extent such indemnification agreements have been provided or made available to Parent prior to the date hereof.
(c) Parent agrees that the Company will cause to be maintained put in effect place and shall fully prepay immediately prior to the current First Merger Effective Time a “tail” insurance policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies with a claims period of at least six (6) years from the First Merger Effective Time from an insurance carrier with the same coverage and amounts containing terms and conditions which are no less advantageous) or better credit rating as the Company’s current insurance carrier with respect to claims arising from facts directors’ and officers’ liability insurance in an amount and scope at least as favorable as the Company’s existing policies with respect to matters, acts or events which occurred before the Effective Time omissions existing or occurring at or prior to the extent available on commercially reasonable termsFirst Merger Effective Time; provided, however, that CSLC if the aggregate annual premiums for such insurance policies exceed 250% of the per annum rate of premiums currently paid for such insurance policies, then the Company shall purchase and maintain insurance policies or tail insurance providing for the maximum coverage that shall then be available at an annual premium equal to 250% of such rate. For the avoidance of doubt, any costs or expenses of the tail policy or in connection therewith shall not be obligated to incur in excess of $400,000 in the aggregate under this Section 5.9(b)a Company Transaction Expense.
(cd) In the event that Parent, the Surviving Corporation, the Surviving NewCo or any of their respective successors or assigns (i) consolidates with or merges into any other Person and shall not be the continuing or surviving corporation or entity of such consolidation or merger or (ii) transfers all or substantially all of its properties and assets to any Person, then, in each such case, proper provisions shall be made so that the successors and assigns of such Person shall assume the obligations set forth in this Section 5.5. The provisions of this Section 5.9 5.5 are intended to be for the benefit of, and shall be enforceable by, the parties hereto and each Indemnified Party, his heirs and his representativesPerson entitled to indemnification pursuant to this Section 5.5.
Appears in 1 contract
Samples: Transaction Agreement (Avista Healthcare Public Acquisition Corp.)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shall, and from and after the Effective Time, CSLC and the Surviving Entity Corporation shall, indemnify, defend and hold harmless each person who is now, or has been at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, officer or director or employee of the Company or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses (including attorneys' fees and expenses), liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not be unreasonably be withheld) of or in connection with any threatened or actual claim, action, suit, proceeding, case proceeding or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, director or officer or employee of the Company or any Subsidiary, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, or at or after after, the Effective Time ("Indemnified Liabilities") and (ii) ), including all Indemnified Liabilities based in whole or in part on, or arising in whole or in part out of of, or in connection with pertaining to this Agreement, the Merger Agreement or any of the transactions contemplated hereby or therebyhereby, in each case to the fullest full extent a corporation is permitted under applicable law the DGCL to indemnify its own directors, directors or officers and employees, as the case may be (and CSLC the Company and the Surviving EntityCorporation, as the case may be, shall will pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest full extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law). Without limiting the foregoing, if in the event any such claim, action, suit, proceeding or investigation is commenced or instituted brought against any Indemnified Party Parties (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity Corporation after the Effective Time)) and the Company (or after the Effective Time, the Surviving Corporation) shall pay all fees and expenses of such counsel for the Indemnified Parties promptly as statements therefor are received; and (ii) the Company (or after the Effective Time, CSLC and the Surviving EntityCorporation) shall pay will use all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC Company nor the Surviving Entity Corporation shall be liable for any settlement of any claim effected without its prior written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing wishing to claim indemnification under this Section 5.96.6, upon learning of any such Actionclaim, action, suit, proceeding or investigation, shall promptly notify the CompanyCompany (or after the Effective Time, CSLC or the Surviving Entity of such election Corporation) (but the failure so to notify the Company shall not relieve it a party from any liability which it may have under this Section 5.9, 6.6 except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failureparty), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving EntityCorporation) the undertaking contemplated by applicable lawSection 145(e) of the DGCL. The Indemnified Parties as a group may retain only one law firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of on any significant issue between the positions of any two or more Indemnified Parties. The Company and Sub agree that the foregoing rights to indemnification, including provisions relating to advances of expenses incurred in defense of any action or suit, existing in favor of the Indemnified Parties with respect to matters occurring through the Effective Time, shall survive the Merger and shall continue in full force and effect for a period of not less than five years from the Effective Time; provided, however, that all rights to indemnification in respect of any Indemnified Liabilities asserted or made within such period shall continue until the disposition of such Indemnified Liabilities. Furthermore, the provisions with respect to indemnification set forth in the certificate of incorporation of the Surviving Corporation shall not be amended for a period of five years following the Effective Time if such amendment would materially and adversely affect the rights thereunder of individuals who at any time prior to the Effective Time were directors or officers of the Company in respect of actions or omissions occurring at or prior to the Effective Time.
(b) For a period of seven two years after the Effective Time, CSLC the Surviving Corporation shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC Parent may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageousadvantageous in any material respect to the Indemnified Parties) with respect to claims matters arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; providedTime, however, provided that CSLC Parent shall not be obligated required to incur pay an annual premium for such insurance in excess of 150% of the last annual premium paid by the Company prior to the date hereof, but in such case shall purchase as much coverage as possible for such amount. The last annual premium paid by the Company was $400,000 in the aggregate under this Section 5.9(b)125,000.
(c) The provisions of this Section 5.9 6.6 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representativespersonal representatives and shall be binding on all successors and assigns of the Company and the Surviving Corporation.
Appears in 1 contract
Samples: Merger Agreement (Seven Up Rc Bottling Company of Southern California Inc)
Indemnification; Directors’ and Officers’ Insurance. (a) The Company (i) Weeks shall, and and, from and after the Effective Time, CSLC the Surviving Corporation and the Surviving Entity Partnership (collectively, the "INDEMNIFYING PARTIES") shall, indemnify, defend and hold harmless each person who is now, now or has been at any time prior to the date hereof has been or who becomes prior to the Effective Time, an officer, officer or director or employee of the Company Weeks or any of its Subsidiaries Weeks Subsidiary (the "Indemnified PartiesINDEMNIFIED PARTIES") from and against (i) all losses, claims, damages, costs, expenses (including attorneys' fees and expenses), liabilities or judgments or amounts that are paid in settlement of, with the approval of the indemnifying party Indemnifying Parties (which approval shall not be unreasonably be withheld) of withheld or delayed), or otherwise in connection with any threatened or actual claim, action, suit, proceeding, case proceeding or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was a director, director or officer or employee of the Company Weeks or any Subsidiary, whether pertaining to any matter existing or occurring Weeks Subsidiary at or prior to the Effective Time and Time, whether asserted or claimed prior to, or at or after after, the Effective Time ("Indemnified LiabilitiesINDEMNIFIED LIABILITIES") and (ii) ), including all Indemnified Liabilities based in whole or in part on, or arising in whole out of, or in part out of or in connection with pertaining to this Agreement, the REIT Merger, the OP Merger or any of the transactions contemplated hereby by this Agreement or therebythe OP Merger Agreement, in each case to the fullest full extent a corporation is permitted under applicable law the GBCC to indemnify its own directors, officers and employeesdirectors or officers, as the case may be and CSLC (and the Surviving Entity, as the case may be, shall Corporation will pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest full extent permitted under applicable by law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any Indemnified Party (whether arising before or after the Effective Time), (i) the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall pay all reasonable fees and expenses of such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except subject to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failurelimitations set forth in Section 5.12(a)(iii), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Parties.
(b) For a period of seven years after the Effective Time, CSLC shall cause to be maintained in effect the current policies of directors' and officers' liability insurance maintained by the Company and its Subsidiaries (provided that CSLC may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are no less advantageous) with respect to claims arising from facts or events which occurred before the Effective Time to the extent available on commercially reasonable terms; provided, however, that CSLC shall not be obligated to incur in excess of $400,000 in the aggregate under this Section 5.9(b).
(c) The provisions of this Section 5.9 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his heirs and his representatives.
Appears in 1 contract
Indemnification; Directors’ and Officers’ Insurance. (a) The Company shallIn the event of any threatened or actual claim, and from and after the Effective Timeaction, CSLC and the Surviving Entity shallsuit, indemnifyproceeding or investigation, defend and hold harmless each person whether civil, criminal or administrative, including, without limitation, any such claim, action, suit, proceeding or investigation in which any individual who is now, or has been at any time prior to the date hereof has been of this Agreement, or who becomes prior to the Effective Time, an officera director, director LLC manager or employee officer of Seller or any of its Subsidiaries, or who is or was serving at the Company request of Seller or any of its Subsidiaries (the "Indemnified Parties") from and against (i) all losses, claims, damages, costs, expenses, liabilities or judgments or amounts that are paid in settlement with the approval of the indemnifying party (which approval shall not unreasonably be withheld) of or in connection with any claim, action, suit, proceeding, case or investigation ("Action") based in whole or in part on or arising in whole or in part out of or in connection with the fact that such person is or was as a director, LLC manager, officer or employee agent of another person (the Company “Indemnified Parties”), is, or any Subsidiaryis threatened to be, whether pertaining to any matter existing or occurring at or prior to the Effective Time and whether asserted or claimed prior to, at or after the Effective Time ("Indemnified Liabilities") and (ii) all Indemnified Liabilities made a party based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that such person is or was a director, LLC manager, or officer of Seller or in connection with any of its Subsidiaries or any of their predecessors or is or was serving at the request of Seller or any of its Subsidiaries or any of their predecessors as a director, LLC manager, officer or agent of another person or (ii) this Agreement, the Merger Agreement or any of the transactions contemplated hereby hereby, whether in any case asserted or therebyarising before or after the Effective Time, the parties hereto agree to cooperate and use their best efforts to defend against and respond thereto as provided in each case this Section 6.7(a). From and after the Effective Time, the Surviving Corporation shall indemnify, defend and hold harmless, to the fullest same extent a corporation is permitted under applicable law to indemnify its own directors, officers and employees, as the case may Indemnified Parties would have been indemnified under the Seller Articles and Seller Bylaws or any Subsidiary of Seller as such documents were in effect on the date of this Agreement as if the Indemnified Parties were officers or directors of Seller or any such Subsidiary at all relevant times (except that no indemnity shall be provided by Buyer hereunder with respect to any claim arising on account of an Indemnified Party’s service as an officer or director of another for-profit entity), each such Indemnified Party against any losses, claims, damages, liabilities, costs, expenses (including reasonable attorney’s fees and CSLC court costs and the Surviving Entity, as the case may be, shall pay expenses in advance of the final disposition of any such action or proceeding to each Indemnified Party to the fullest extent permitted under applicable law upon receipt of any undertaking contemplated by applicable law. Without limiting the foregoing, if any such claim, action, suit, proceeding or investigation is commenced or instituted against any to each Indemnified Party upon receipt of an undertaking (whether arising before in reasonable and customary form) to repay such advances if it is ultimately determined that such Indemnified Party is not entitled to indemnification hereunder), judgments, fines and amounts paid in settlement in connection with any such threatened or after actual claim, action, suit, proceeding or investigation. Amounts otherwise required to be paid by Buyer to the Indemnified Parties pursuant to this Section 6.7(a) shall be reduced by any amounts that such Indemnified Parties recover from any third party. This indemnity shall be provided for six (6) years following the Effective Time), (i) ; or if there shall be any proceeding pending or threatened on the Indemnified Parties may retain counsel satisfactory to them and the Company (or satisfactory to them and CSLC and the Surviving Entity after the Effective Time); (ii) the Company (or after sixth anniversary of the Effective Time, CSLC such indemnity shall continue in full force and the Surviving Entity) shall pay all reasonable fees and expenses of effect until such counsel for the Indemnified Parties promptly as reasonably itemized statements therefor are received; and (iii) the Company (pending or after the Effective Time, CSLC and the Surviving Entity) shall use best efforts to assist in the vigorous defense of any such matter, provided that neither the Company, CSLC nor the Surviving Entity shall be liable for any settlement of any claim effected without its written consent (which consent shall not unreasonably be withheld). Any Indemnified Party electing to claim indemnification under this Section 5.9, upon learning of any such Action, shall promptly notify the Company, CSLC or the Surviving Entity of such election (but the failure so to notify the Company shall not relieve it from any liability which it may have under this Section 5.9, except to the extent such failure materially prejudices it or if it otherwise forfeits substantive rights and defenses as a result of such failure), and shall deliver to the Company (or after the Effective Time, to CSLC and the Surviving Entity) the undertaking contemplated by applicable law. The Indemnified Parties as a group may retain only one firm of legal counsel to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict in respect of any significant issue between the positions of any two or more Indemnified Partiesthreatened proceeding is finally resolved.
(b) For Subject to the following sentence, for a period of seven six (6) years after the Effective Time, CSLC Buyer shall cause to be maintained in effect the current policies of directors' ’ and officers' ’ and, if applicable, fiduciary liability insurance maintained by the Company and its Subsidiaries Seller (provided provided, that CSLC Buyer may substitute therefor policies with a substantially comparable insurer of at least the same coverage and amounts containing terms and conditions which are no less advantageousadvantageous to the insured) with respect to claims against the then-present and former officers and directors of Seller and its Subsidiaries arising from facts or events which occurred at or before the Effective Time to (including the extent available on commercially reasonable termstransactions contemplated by this Agreement); provided, however, that CSLC Buyer shall not be obligated to incur expend, in the aggregate, an amount in excess of $400,000 300% of the aggregate annual premium paid as of the date hereof by Seller for such insurance (the “Premium Cap”), and if such premium for such insurance would at any time exceed the Premium Cap, then Buyer shall cause to be maintained policies of insurance which provide the maximum coverage available at an aggregate premium equal to the Premium Cap. In lieu of the foregoing, Seller, in consultation with Buyer, may (and at the request of Buyer, Seller shall) obtain at or prior to the Effective Time, at Buyer’s expense, a six-year “tail” policy under Seller’s existing directors’ and officers’ and, if applicable, fiduciary liability insurance policy providing equivalent coverage to that described in the aggregate under this Section 5.9(b)preceding sentence if and to the extent that the same may be obtained for an amount that, in the aggregate, does not exceed the Premium Cap.
(c) In the event the Surviving Corporation or any of its successors or assigns (i) consolidates with or merges into any other person and shall not be the continuing or surviving corporation or entity of such consolidation or merger, or (ii) transfers or conveys all or substantially all of its properties or assets to any person, then, and in each such case, the Surviving Corporation shall cause proper provision to be made so that the successors and assigns of the Surviving Corporation will expressly assume the obligations set forth in this Section 6.7.
(d) The provisions of this Section 5.9 6.7 shall survive the Effective Time and are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, Party and his or her heirs and his representatives.
Appears in 1 contract
Samples: Merger Agreement (Renasant Corp)