Common use of Indemnity and Contribution by the Company and the Underwriters Clause in Contracts

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents and each person, if any, who controls any Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act as follows: (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment thereto), including the Rule 430B Information, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of any action commenced against it in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in the defense of any such action; provided, however, that counsel to the indemnifying party shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and expenses of more than one counsel (in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances. No indemnifying party shall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party. (d) If the indemnification provided for in this Section 6 is for any reason unavailable to or insufficient to hold harmless an indemnified party in respect of any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying party shall contribute to the aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions as the total net proceeds from the offering of the Shares pursuant to this Agreement (before deducting expenses) received by the Company and the total underwriting discount received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and the Underwriters on the other hand shall be determined by reference to, among other things, whether any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 6, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Shares underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 Xxx) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not joint.

Appears in 3 contracts

Samples: Underwriting Agreement (Equity One, Inc.), Underwriting Agreement (Equity One, Inc.), Underwriting Agreement (Equity One, Inc.)

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Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, from and against any loss, expense, liability, damage or claim (or action in respect thereof) (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim (or action in respect thereof) arises out of or is based upon (i) against any and all lossbreach of any representation, liabilitywarranty or covenant of the Company contained herein, claim(ii) any failure on the part of the Company to comply with any applicable law, damage and expense whatsoeverrule or regulation relating to the offering of securities being made pursuant to the Prospectus, as incurred(iii) any application or other document, arising out or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an "Application") or (iv) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company), a Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), any Application or any audio or visual materials prepared, approved or used by the Company in connection with the marketing of the Shares, including the Rule 430B Informationwithout limitation, slides, videos, films and tape recordings, or the arises out of or is based upon any omission or alleged omission therefrom of to state a material fact required to be stated therein in either such Registration Statement or Prospectus or such other materials or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , and will promptly reimburse any Underwriter for all reasonable expenses (iiincluding reasonable counsel fees and expenses) against as they are incurred in connection with the investigation of, preparation for or defense arising from any and all threatened or pending claim, except insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim (or action in respect thereof) arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission of a material fact contained in and made in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representative to the Company by any Underwriter expressly for use in the such Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)such Prospectus. (b) If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses, provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its written consent. (c) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s 's directors, each of the Company’s 's officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (or action in respect thereof) (including the reasonable cost of investigation) which, damage and expense described in jointly or severally, the indemnity contained in subsection (a) of this SectionCompany or any such person may incur under the Securities Act, as incurredthe Exchange Act or otherwise, but only with insofar as such loss, expense, liability, damage or claim (or action in respect to thereof) arises out of or is based upon any untrue statements or omissions, statement or alleged untrue statements or omissions, statement of a material fact contained in and made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished in writing by such Underwriter through the Representative to the Company by such Underwriter expressly for use therein. in the Registration Statement (cor in the Registration Statement as amended by any post-effective amendment thereof by the Company), a Prospectus or any Application, or arises out of or is based upon any omission or alleged omission to state a material fact in connection with such information required to be stated either in such Registration Statement, Prospectus or Application or necessary to make such information, in the light of the circumstances under which made, not misleading, and will promptly reimburse the Company for all reasonable expenses (including reasonable counsel fees and expenses) Each indemnified party shall give notice as promptly as reasonably practicable they are incurred in connection with the investigation of, preparation for or defense arising from any threatened or pending claim. The statements set forth in the table under paragraph one, and in paragraphs three, eight, nine, ten, eleven, twelve, thirteen, fourteen and fifteen under the caption "Underwriting" in the Preliminary Prospectus and the Prospectus (to each indemnifying party the extent such statements relate to the Underwriters) constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company for purposes of Section 3(j) and this Section 9. If any action commenced is brought against it the Company, or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (d) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) or (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims (or actions in respect thereof) referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (or actions in respect thereof) (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities (or actions in respect thereof) referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (d)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective ' obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 3 contracts

Samples: Underwriting Agreement (Opinion Research Corp), Underwriting Agreement (Opinion Research Corp), Underwriting Agreement (Opinion Research Corp)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees and the Operating Partnership, jointly and severally, agree to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, and the respective affiliates, directors, officers, employees and agents of each Underwriter from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such indemnified party may incur arising under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company or the Operating Partnership contained herein, (B) an untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), including any Issuer Free Writing Prospectus that the Rule 430B InformationCompany has filed or was required to file with the Commission or is otherwise required retain, or the Prospectus (the term Prospectus for the purpose of this Section 10 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (C) any application or other document, or any amendment or supplement thereto, executed by the Company or the Operating Partnership or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Securities under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an “Application”), (D) an omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, or necessary to make the statements made therein not misleading or arising out of any untrue statement misleading, (E) an omission or alleged untrue statement of a material fact contained in omission from any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “such Issuer Free Writing Prospectus,” , Prospectus or the omission or alleged omission therefrom any Application of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , (iiF) against an untrue statement or alleged untrue statement of a material fact contained in any audio or visual materials used in connection with the marketing of the Securities, including, without limitation, slides, videos, films and all tape recordings; except, in each case of (B), (D) and (E) above only, insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such an untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected omission or alleged omission of a material fact contained in and in conformity with the written consent of statements set forth in the Company; first paragraph under the heading “Underwriting–Commissions and Discounts,” the information in the first paragraph under the heading “Underwriting–Stabilization” and the information under the heading “Underwriting–Electronic Distribution” in the Preliminary Prospectus, the Disclosure Package and the Prospectus (iii) against any and all expense whatsoever, as incurred (including to the fees and disbursements of counsel chosen by extent such statements relate to the Underwriters), reasonably incurred . The indemnity agreement set forth in investigating, preparing this Section 10(a) shall be in addition to any liability which the Company or defending the Operating Partnership may otherwise have. If any action is brought against any litigation, an Underwriter or any investigation controlling person in respect of which indemnity may be sought against the Company or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, the Operating Partnership pursuant to the extent that any such expense is not paid under subsection (i) or (iia) above, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company, (in which case neither the Company shall have the right to direct the defense of such action on behalf of the indemnified party or parties or the named parties in any such proceeding (including any impleaded parties included by the Company and the indemnified person)) or representation by both parties by the same counsel would be inappropriate due to a conflict or potential differing interests between such parties, in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any untrue statement such claim or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, and the Operating Partnership from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which the Company, the Operating Partnership or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection or claim arises out of or is based upon (aA) of this Section, as incurred, but only with respect to an untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), or any preliminary prospectus, any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission, or the Prospectus (Prospectus, or any amendment Application, (B) an omission or supplement theretoalleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, or (C) an omission or alleged omission from any such Issuer Free Writing Prospectus, Prospectus or any Application of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, but in each case only insofar as such untrue statement or alleged untrue statement or omission or alleged omission was made in such Registration Statement, Issuer Free Writing Prospectus, Prospectus or Application in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representatives to the Company by such Underwriter or the Operating Partnership expressly for use therein. . The statements set forth in the first paragraph under the heading “Underwriting–Commissions and Discounts,” the information in the first paragraph under the heading “Underwriting–Short Positions” and the information under the heading “Underwriting–Electronic Distribution” in the Preliminary Prospectus, the Disclosure Package and the Prospectus (cto the extent such statements relate to the Underwriters) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company or the Operating Partnership for purposes of this Agreement. If any action commenced is brought against it the Company, the Operating Partnership, the Manager or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company, the Operating Partnership, the Manager or such person shall promptly notify the Representatives in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company, the Operating Partnership, the Manager or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company, the Operating Partnership, the Manager or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (dc) If the indemnification provided for in this Section 6 10 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 10 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on Company, the one hand Operating Partnership and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, Notes or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on Company, the one hand Operating Partnership and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company or the Operating Partnership bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on Company, the one hand Operating Partnership and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company Company, the Operating Partnership or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company, the Operating Partnership and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 10 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (d)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 610, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Shares underwritten by it underwriting discounts and distributed commissions applicable to the public were offered to the public exceeds the amount of any damages which Notes purchased by such Underwriter has otherwise been required pursuant to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionthis Agreement. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 10 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 3 contracts

Samples: Underwriting Agreement (Great Ajax Corp.), Underwriting Agreement (Great Ajax Corp.), Underwriting Agreement (Great Ajax Corp.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus, (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company), the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (D) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an “Application”), including the Rule 430B Information, or the (E) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, Prospectus or any Application or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , or (iiF) against any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials used in connection with the marketing of the Shares, including, without limitation, slides, videos, films and all tape recordings; except insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement, Prospectus or Application. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such settlement is effected with Underwriter shall promptly notify the written consent Company in writing of the Company; (iii) against any institution of such action, and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) aboveand payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time, or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, damage and expense described in jointly or severally, the indemnity contained in subsection (a) of this SectionCompany or any such person may incur under the Securities Act, as incurredthe Exchange Act or otherwise, but only with respect to insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representative to the Company expressly for use in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company), the Prospectus, or any preliminary prospectusApplication, or (B) any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in such Registration Statement, the Prospectus or any Application or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth in the third, twelfth through eighteenth, and twenty-third paragraphs under the caption “Underwriting” in the Prospectus (or any amendment or supplement theretoto the extent such statements relate to the Underwriters) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company by for purposes of Section 3(k) and this Section 9. The indemnity agreement set forth in this Section 9(b) shall be in addition to any liabilities that such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of may otherwise have. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the defense of such action within a reasonable time, or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 3 contracts

Samples: Underwriting Agreement (Bimini Mortgage Management Inc), Underwriting Agreement (Bimini Mortgage Management Inc), Underwriting Agreement (Bimini Mortgage Management Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, and the respective directors, officers, employees and agents of each Underwriter from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus, (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), including any Issuer Free Writing Prospectus that the Rule 430B InformationCompany has filed or was required to file with the Commission or is otherwise required retain, or the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (D) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an “Application”), (E) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, or necessary to make the statements made therein not misleading or arising out of misleading, (F) any untrue statement omission or alleged untrue statement of a material fact contained in omission from any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “such Issuer Free Writing Prospectus,” , Prospectus or the omission or alleged omission therefrom any Application of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , (iiG) against any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials used in connection with the marketing of the Shares, including, without limitation, slides, videos, films and all tape recordings; except, in the case of (C), (E) and (F) above only, insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement, Prospectus or Application. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. (b) If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such settlement is effected with Underwriter shall promptly notify the written consent Company in writing of the Company; (iii) against any institution of such action, and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) aboveand payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time after delivery of notice of such action or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (bc) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection or claim arises out of or is based upon (aA) of this Section, as incurred, but only with respect to any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), or any preliminary prospectus, any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission, or the Prospectus (Prospectus, or any amendment Application, (B) any omission or supplement theretoalleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, or (C) any omission or alleged omission from any such Issuer Free Writing Prospectus, Prospectus or any Application of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, but in each case only insofar as such untrue statement or alleged untrue statement or omission or alleged omission was made in such Registration Statement, Issuer Free Writing Prospectus, Prospectus or Application in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representative to the Company by such Underwriter expressly for use therein. . The date on which the Underwriters expect to deliver the shares on the front cover, the information in the table listing the Underwriters and the number of shares of Common Stock each has agreed to purchase and the statements set forth in the paragraphs identified by “Discretionary Accounts” and “Stabilization” under the caption “Underwriting” in the Preliminary Prospectus, the Disclosure Package and the Prospectus (cto the extent such statements relate to the Underwriters) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company for purposes of Section 3(m), Section 3(n) and this Section 9. If any action commenced is brought against it the Company, or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company, or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of any such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Representative will not relieve the Representative of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. The Company, or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company, or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time after delivery of notice of such action or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by such Underwriter and paid as incurred (it being understood, however, that the indemnified party. In no event Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (d) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand Company, and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand Company, and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand Company, and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on Company, and of the one hand and the Underwriters on the other hand Underwriters, shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company, and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of losses9(d)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the other provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of The Underwriters’ obligations to contribute pursuant to this Section 6, 9 are several in proportion to their respective underwriting commitments and not joint. (f) The Company agrees to indemnify and hold harmless each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, its affiliates and each person, if any, who controls the Company each Underwriter and its affiliates within the meaning of either Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act shall have Exchange Act, from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) (i) caused by any untrue statement or alleged untrue statement of a material fact contained in any material prepared by or with the same rights consent of the Company for distribution to contribution participants in connection with the Directed Share Program, or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; (ii) as a result of the Company. The Underwriters’ respective obligations failure of any participant to contribute pursuant pay for and accept delivery of Directed Shares that the participant has agreed to this Section 6 are several purchase; or (iii) related to, arising out of, or in proportion to connection with the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not jointDirected Share Program.

Appears in 2 contracts

Samples: Underwriting Agreement (HomeStreet, Inc.), Underwriting Agreement (HomeStreet, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) that, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any preliminary prospectus, the Prospectus and all lossany amendment or supplement thereto and any prospectus wrapper material), liability, claim, damage and expense whatsoever, as incurred, arising out of (ii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (Statement, any Issuer Free Writing Prospectus or any amendment thereto), including the Rule 430B InformationProspectus, or the (iii) any omission or alleged omission therefrom of to state a material fact required to be stated therein or necessary to make in the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectusRegistration Statement, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against ; except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made of a material fact contained in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representatives to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectusStatement, any Issuer Free Writing Prospectus or the Prospectus Prospectus. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liabilities that the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any amendment of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or supplement theretocontrolling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who that signed the Registration Statement, Statement and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) that, damage and expense described in jointly or severally, the indemnity contained in subsection (a) of this SectionCompany or any such person may incur under the Securities Act, as incurredthe Exchange Act or otherwise, but only with respect to insofar as such loss, expense, liability, damage or claim arises out of or is based upon (i) any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representatives to the Company expressly for use in the Registration Statement (Statement, any Issuer Free Writing Prospectus or any amendment thereto)the Prospectus, or (ii) any preliminary prospectusomission or alleged omission to state a material fact in connection with such information required to be stated in the Registration Statement, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) necessary to make such information, in reliance upon and the light of the circumstances under which made, not misleading; provided, however, that the statements identified in conformity with written Schedule IV attached hereto constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company by for purposes of this Section 9. The indemnity agreement set forth in this Section 9(b) shall be in addition to any liabilities that such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of may otherwise have. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representatives in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of any such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Representatives will not relieve the Underwriters of any obligation hereunder, except to the extent that their ability to defend is actually impaired by such failure or delay. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them that are different from or additional to those available to the Underwriters (in which case the Representatives shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by the indemnified party. In no event Underwriters and paid as incurred (it being understood, however, that the Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). (c) The indemnifying party under this Section 9 shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the same general allegations plaintiff, the indemnifying party agrees to indemnify (to the extent provided in this Section 9) the indemnified party against any loss, expense, liability, damage or circumstancesclaim by reason of such settlement or judgment. No indemnifying party shall, without the prior written consent of the indemnified partiesparty, settle or effect any settlement, compromise or consent to the entry of judgment in any judgment with respect to any litigationpending or threatened action, or any investigation suit or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification any indemnified party is or contribution could be have been a party and indemnity was or could have been sought under this Section 6 (whether or not the hereunder by such indemnified parties are actual or potential parties thereto)party, unless such settlement, compromise or consent (i) includes an unconditional release of each such indemnified party from all liability arising out on claims that are the subject matter of such litigationaction, investigation, suit or proceeding or claim and (ii) does not include a statement as to to, or an admission of of, fault, culpability or a failure to act by or on behalf of any indemnified party. (d) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and by the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above above, but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which that resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and by the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering sale of the Shares pursuant to this Agreement (net of underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount clause (i) and, if applicable clause (ii), of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionsubsection (d) above. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations to contribute pursuant to this Section 9 are several in proportion to their respective underwriting commitments and not joint. For purposes of this Section 69, each officer and director of an Underwriter and each person, if any, who controls an Underwriter within the meaning of the Section 15 of the 1933 Securities Act or and Section 20 of the 1934 Exchange Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Securities Act or and Section 20 of the 1934 Exchange Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not joint.

Appears in 2 contracts

Samples: Underwriting Agreement (CapLease, Inc.), Underwriting Agreement (Capital Lease Funding Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, and the respective directors, officers, employees and agents of each Underwriter from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus, (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), including any Issuer Free Writing Prospectus that the Rule 430B InformationCompany has filed or was required to file with the Commission or is otherwise required retain, or the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (D) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an "Application"), (E) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, or necessary to make the statements made therein not misleading or arising out of misleading, (F) any untrue statement omission or alleged untrue statement of a material fact contained in omission from any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “such Issuer Free Writing Prospectus,” , Prospectus or the omission or alleged omission therefrom any Application of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , (iiG) against any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials used in connection with the marketing of the Shares, including, without limitation, slides, videos, films and all tape recordings; except, in the case of (C), (E) and (F) above only, insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement, Prospectus or Application. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. (b) If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such settlement is effected with Underwriter shall promptly notify the written consent Company in writing of the Company; (iii) against any institution of such action, and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) aboveand payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (bc) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s 's directors, each of the Company’s 's officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection or claim arises out of or is based upon (aA) of this Section, as incurred, but only with respect to any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), or any preliminary prospectus, any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission, or the Prospectus (Prospectus, or any amendment Application, (B) any omission or supplement theretoalleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, or (C) any omission or alleged omission from any such Issuer Free Writing Prospectus, Prospectus or any Application of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, but in each case only insofar as such untrue statement or alleged untrue statement or omission or alleged omission was made in such Registration Statement, Issuer Free Writing Prospectus, Prospectus or Application in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representatives to the Company by such Underwriter expressly for use therein. . The statements set forth in the paragraph identified by "Stabilization" under the caption "Underwriting" in the Preliminary Prospectus, the Disclosure Package and the Prospectus (cto the extent such statements relate to the Underwriters) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company for purposes of Section 3(d), Section 3(f) and this Section 9. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representatives in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (d) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (d)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective ' obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 2 contracts

Samples: Underwriting Agreement (Customers Bancorp, Inc.), Underwriting Agreement (Customers Bancorp, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, and the respective directors, officers, employees and agents of each Underwriter, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoor part thereof), including the Rule 430B Information, Preliminary Prospectus or the Prospectus, (ii) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, or necessary to make the statements made therein not misleading misleading, (iii) any omission or arising alleged omission from any such Preliminary Prospectus or Prospectus of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, or (iv) any untrue statement or alleged untrue statement of any material fact contained in the Roadshow Material; except in each case of (i), (ii), (iii) and (iv) above insofar as any such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with the information set forth in the last sentence of the first paragraph of Section 10(b). The indemnity agreement set forth in this Section 10(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time after delivery of notice of such action or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its consent. (b) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Company’s directors, the Company’s officers that signed the Registration Statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus Registration Statement (or any amendment or supplement theretopart thereof), the Preliminary Prospectus or Prospectus, (ii) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements therein not misleading, or (iii) any omission or alleged omission from any such Preliminary Prospectus or Prospectus of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoever, but in each case only insofar as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement omission was made in such Registration Statement, Preliminary Prospectus or omission made Prospectus in reliance upon and in conformity with written information furnished in writing by or on behalf of the Underwriters through the Representative to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use therein. . The following statements under the caption “Underwriting” beginning on page S-64 of the Preliminary Prospectus: (cA) Each indemnified party shall give notice as promptly as reasonably practicable the first sentence of the sixth paragraph on page S-64; and (B) the first paragraph and the first, second, fifth and sixth sentences of the second paragraph under the caption “Stabilization” on page S-65 of the Preliminary Prospectus (and the corresponding sections of the Prospectus, to each indemnifying party the extent such statements relate to the Underwriters) constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company for purposes of Section 3(u), Section 3(v) and this Section 10. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action, and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of any such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Representative will not relieve the Representative or any Underwriter of any obligation hereunder, except to the extent that the Representative’s ability to defend is actually impaired by such failure or delay. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time after delivery of notice of such action or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by such Underwriter and paid as incurred (it being understood, however, that the indemnified party. In no event Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (dc) If the indemnification provided for in this Section 6 10 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 10 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, Securities or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth in the table on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover page of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 10 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable, claimssubsection (c)(ii), damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 610, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Shares underwritten by it underwriting discounts and distributed commissions applicable to the public were offered to the public exceeds the amount of any damages which Securities purchased by such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 10 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 2 contracts

Samples: Underwriting Agreement (OFS Capital Corp), Underwriting Agreement (OFS Capital Corp)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, any “affiliate” (within the meaning of Rule 405 under the Act) of any Underwriter, and the respective directors, officers, employees, members and agents of each Underwriter, and the successors and assigns of all of the foregoing persons, from and against, and to reimburse any and all expenses incurred in connection with, any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or other person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any and all lossbreach of any representation, liabilitywarranty or covenant of the Company contained herein; (ii) any failure on the part of the Company to comply with any applicable law, claim, damage and expense whatsoever, as incurred, arising out rule or regulation relating to the offering of securities being made pursuant to the Prospectus; (iii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), including any Issuer Free Writing Prospectus that the Rule 430B InformationCompany has filed or was required to file with the Commission or is otherwise required to retain, the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company) or the Disclosure Package; (iv) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an “Application”); (v) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; ; (iivi) against any omission or alleged omission from any such Issuer Free Writing Prospectus, Prospectus, Disclosure Package, Testing-the-Waters Communication or Marketing Material, or any Application, of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (vii) any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials used in connection with the marketing of the Shares, including, without limitation, slides, videos, films and all tape recordings, the Testing-the-Waters Communications and the Marketing Materials; and (viii) any act or failure to act or any alleged act or failure to act by any Underwriter in connection with, or relating in any manner to, the Shares or the offering contemplated hereby, and which is included as part of or referred to in any loss, claim, damage, liability or action arising out of or based upon any matter covered by the foregoing clauses; except, in the case of (iii), (v) and (vi) above only, insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement, Prospectus or Application. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. If any action, suit or proceeding (a “Proceeding”) is brought against an Underwriter or other person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such settlement is effected with indemnified party shall promptly notify the written consent Company in writing of the Company; (iii) against institution of such Proceeding and the Company shall assume the defense of such Proceeding including the employment of counsel reasonably satisfactory to the indemnified party and payment of any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably expenses related to such Proceeding or incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any connection with such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) aboveindemnified party’s successful enforcement of this Section 9(a); provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such indemnified party shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such indemnified party unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or omission the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or alleged untrue statement such indemnified party or omission made in reliance upon and in conformity with written information furnished parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such Proceeding effected without its consent, and the Company shall not, without the prior written consent of the indemnified party, effect any settlement, compromise or consent to the entry of judgment in any amendment thereto)pending or threatened Proceeding in respect of which any indemnified party is or could have been a party and indemnity was or could have been sought hereunder by such indemnified party, including any preliminary prospectusunless such settlement, any Issuer Free Writing Prospectus compromise or consent includes an unconditional release of such indemnified party from all liability on claims that are the Prospectus (subject matter of such Proceeding and does not include an admission of fault or any amendment culpability or supplement thereto)a failure to act by or on behalf of such indemnified party. (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, and the successors and assigns of all of the foregoing persons, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection or claim arises out of or is based upon (ai) of this Section, as incurred, but only with respect to any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in the Registration Statement (or any amendment thereto)Statement, or any preliminary prospectusthe Prospectus, the Disclosure Package, any Issuer Free Writing Prospectus, any Testing-the-Waters Communication or any Marketing Material that the Company has filed or was required to file with the Commission or is otherwise required to retain, or any Application or (ii) any omission or alleged omission to state a material fact required to be stated in any such Registration Statement, Prospectus, Issuer Free Writing Prospectus, Disclosure Package, Testing-the-Waters Communication or Marketing Material, or necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, but in each case only insofar as such untrue statement or alleged untrue statement or omission or alleged omission was made in such Registration Statement, Issuer Free Writing Prospectus, Prospectus or the Prospectus (or any amendment or supplement thereto) Application in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representative to the Company by such Underwriter expressly for use therein. . The statements set forth in the paragraphs [●] under the caption “Underwriting” in the Preliminary Prospectus, the Disclosure Package and the Prospectus (cto the extent such statements relate to the Underwriters) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party constitute the only information furnished by or on behalf of any action commenced Underwriter through the Representative to the Company for purposes of Section 3(l) and Section 3(m) and this Section 9. If any Proceeding is brought against it the Company, or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company, or such person shall promptly notify the Representative in writing of the institution of such Proceeding and in any event the Representative, on behalf of the Underwriters, shall not relieve it from any liability which it may have otherwise than on account assume the defense of this indemnity agreement. In such Proceeding, including the case employment of parties indemnified pursuant to Section 6(a) above, counsel reasonably satisfactory to the indemnified parties party and payment of any and all expenses related to such Proceeding or incurred in connection with such indemnified party’s successful enforcement of this Section 9(b). Such indemnified party shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be selected at the expense of such indemnified party unless the employment of such counsel shall have been authorized in writing by the Underwriters, and, Representative in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such action; providedfees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of any such Proceeding effected without its written consent, and the same general allegations or circumstances. No indemnifying party shallUnderwriters shall not, without the prior written consent of the indemnified partiesparty, settle or effect any settlement, compromise or consent to the entry of judgment in any judgment with respect to any litigation, pending or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever threatened Proceeding in respect of which indemnification any indemnified party is or contribution could be have been a party and indemnity was or could have been sought under this Section 6 (whether or not the hereunder by such indemnified parties are actual or potential parties thereto)party, unless such settlement, compromise or consent (i) includes an unconditional release of each such indemnified party from all liability arising out on claims that are the subject matter of such litigation, investigation, proceeding or claim Proceeding and (ii) does not include a statement as to or an admission of fault, fault or culpability or a failure to act by or on behalf of any such indemnified party. (dc) If the indemnification provided for in this Section 6 is 9 is, for any reason reason, unavailable to or insufficient to hold harmless an indemnified party under Sections 9(a) and (b) in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, expenses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating, preparing to defend or defending any Proceeding. The provisions set forth in ‎Sections 9(a) and 9(b) with respect to notice of commencement of any Proceeding shall apply if a claim for contribution is to be made under this ‎Section 9(c); provided, however, that no additional notice shall be required with respect to any action for which notice has been duly given under Sections 9(a) or 9(b) for purposes of indemnification. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of losses9(c)(i) and, liabilitiesif applicable, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission9(c)(ii) above. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 9 are several several, and not joint, in proportion to the principal amount of Shares their respective underwriting commitments as set forth opposite their respective names in on Schedule A hereto and not jointI hereto.

Appears in 2 contracts

Samples: Underwriting Agreement (Synergy CHC Corp.), Underwriting Agreement (Synergy CHC Corp.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify shall indemnify, defend and hold harmless each Underwriter, its affiliatesdirectors, as such term is defined in Rule 501(b) under the 1933 Act (eachofficers, an “Affiliate”)employees, its selling affiliates and agents and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which the Underwriters or any such controlling person may incur insofar as follows: such loss, expense, liability, damage or claim arises out of or, is based upon (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company) or the Prospectus (the term Prospectus for the purpose of this Section 7 being deemed to include any Preliminary Prospectus, Pricing Prospectus, Issuer Free Writing Prospectus, the Prospectus and any Prospectus supplements, in each case as amended or supplemented by the Company), (ii) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or “blue sky” laws thereof or filed with the Commission or any securities association or securities exchange (each an “Application”), including the Rule 430B Information, or the (iii) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, Prospectus or Application or necessary to make the statements made therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; ; except, in the case of each of clauses (i), (ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; providedloss, however, that this indemnity agreement shall not apply to any lossexpense, liability, claim, damage or expense to the extent arising claim arises out of or is based upon (x) any such untrue statement or omission or alleged untrue statement or omission made of a material fact contained in reliance upon and in conformity with written information furnished in writing by or on behalf of the Underwriters to the Company by any Underwriter expressly for use in the such Registration Statement or such Prospectus or (y) sales to any person asserting any such loss, expense, liability, damage or any amendment thereto)claim incurred from purchasing the Shares, including any preliminary prospectus, any Issuer Free Writing Prospectus if a copy of the Pricing Disclosure Package or the Prospectus (in each case, as then amended or supplemented if the Company shall have timely furnished any amendment amendments or supplement supplements thereto) was not sent or given by or on behalf of such Underwriter to such person, if required by law to have been delivered, at or prior to the written confirmation of the sale of the Shares to such person, and if the Pricing Disclosure Package or the Prospectus (in each case, as so amended or supplemented), as applicable, would have cured the defect giving rise to such loss, expense, liability, damage or claim, unless such failure is the result of noncompliance by the Company under this Agreement. (b) Each Underwriter of the Underwriters shall, severally agrees to indemnify and not jointly, indemnify, defend and hold harmless the Company, the Company’s Company each of its directors, each of the Company’s its officers who signed the Registration Statement, Statement and each person, if any, who controls the Company Company, as the case may be, within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, the Company, or any such person may incur but only insofar as such loss, expense, liability, damage and expense described in the indemnity or claim arises out of or is based upon (i) any untrue statement of a material fact contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus thereof by the Company) or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished in writing by or on behalf of such Underwriter to the Company expressly for inclusion in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company) or the Prospectus, as specified in the last sentence of this Section 5(b), or (ii) any omission to state a material fact regarding such Underwriter expressly required to be stated in such Registration Statement or the Prospectus or necessary to make such statement not misleading. The obligation of each of the Underwriters to indemnify the Company (including any director, officer or control person thereof) shall only relate to any untrue statement or omission which applies to the respective Underwriter. The Company and the Underwriters acknowledge that the information set forth (x) in the first sentence of the last paragraph on the cover page of the Prospectus concerning the Underwriters, relating to the delivery of the Shares, and (y) in the eleventh and twelfth paragraphs under the caption “Underwriting” in the Prospectus, with respect to passive market and stabilization activities by the Underwriters, constitute the only information furnished by or on behalf of the Underwriters to the Company for use thereinpurposes of this Section 5. (c) Each Promptly after receipt by an indemnified party shall give under subsection (a) or (b) above of notice as promptly as reasonably practicable of any claims or the commencement of any action, such indemnified party shall, if a claim in respect thereof is to each be made against the indemnifying party of any action commenced under such subsection, notify in writing each party against it in respect of which indemnity may whom indemnification is to be sought hereunder, of the claim or the commencement thereof (but the failure so to so notify an indemnifying party shall not (i) relieve such the indemnifying party from any liability hereunder which it may have under this Section 5, to the extent that it is did not otherwise learn of such action and such failure does not materially prejudiced prejudice the indemnifying party as a result thereof thereof, and (ii) in any event shall not relieve it from any liability which it that such indemnifying party may have otherwise than on account of this the indemnity agreementagreement hereunder). In The indemnifying party shall be entitled to appoint counsel of the indemnifying party’s choice at the indemnifying party’s expense to represent the indemnified party in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be responsible for the fees and expenses of any separate counsel retained by the indemnified party or parties indemnified pursuant to Section 6(a) aboveexcept as set forth below); provided, however, that such counsel shall be reasonably satisfactory to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Companyparty. An The indemnifying party may participate at its own expense in the defense of any such actionaction at its own expense, and to the extent it may elect, by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, the indemnifying party may assume the defense thereof with counsel reasonably satisfactory to such indemnified party; provided, however, that counsel to the indemnifying party shall not (except with the written consent of the indemnified party) also be counsel to the indemnified party. In no event Notwithstanding the foregoing, the indemnified party or parties shall have the indemnifying parties be liable for right to employ its or their own counsel in any such case, but the fees and expenses of more than such counsel shall be at the expense of such indemnified party or parties unless (i) the employment of such counsel shall have been authorized in writing by one of the indemnifying parties in connection with the defense of such action, (ii) the indemnifying parties shall not have employed reasonably satisfactory counsel to have charge of the defense of such action within a reasonable time after notice of commencement of the action, (iii) the indemnifying party does not diligently defend the action after assumption of the defense, or (iv) such indemnified party or parties shall have reasonably concluded based on the advice of the advice of counsel that there may be defenses available to it or them which are different from or additional to those available to one or all of the indemnifying parties (in which case the indemnifying parties shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events the fees and expenses of one counsel selected by all of the indemnified parties to represent them all (in addition to one local counsel selected by all of the indemnified parties to represent them all in each applicable jurisdiction) shall be borne by the indemnifying parties. In the case of any local counsel) separate from their own counsel for all indemnified parties the Company and its officers, directors and control persons, such counsel shall be designated in connection with writing by the Company. In the case of any one action or separate but similar or related actions counsel for the Underwriters and their respective officers, directors and control persons, such counsel shall be designated jointly in writing by the same jurisdiction arising out of the same general allegations or circumstancesRepresentatives. No indemnifying party shall, without the prior written consent of the indemnified parties, settle effect any settlement or compromise of, or consent to the entry of any judgment with respect to to, any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be have been sought under this Section 6 5 (whether or not the indemnified parties are actual or potential parties thereto), unless (x) such settlement, compromise or consent (iI) includes an unconditional release of each the indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (iiII) does not include a statement as to to, or an admission of of, fault, culpability or a failure to act act, by or on behalf of any the indemnified party, and (y) the indemnifying party reaffirms its indemnification obligations pursuant to this Agreement. (d) If the indemnification provided for in this Section 6 5 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) or (b) of this Section 5 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with respect to the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the respect to such offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total proceeds (net proceeds from the offering of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company from the Shares sold under this Agreement, on the one hand, and the total underwriting discount discounts and commissions received by the UnderwritersUnderwriters with respect to the Shares purchased under this Agreement, on the other hand, bear to the total gross proceeds from the offering of the Shares under this Agreement, in each case as set forth in the table on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover page of the Prospectus. The relative fault of the Company on the one hand and the Underwriters on the other hand shall be determined by reference to, among other things, (i) whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and Underwriters, (ii) the intent of the parties, and (iii) their relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 5(d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of losses5(d)(i) and, liabilitiesif applicable, claimsSection 5(d)(ii), damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 65, no Underwriter (i) none of the Underwriters shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omission. No Underwriters and, (ii) no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxAct) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this in Section 6 are 5(d) shall be several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting obligations and not joint. The indemnity and contribution contained in this Section 5 shall remain operative and in full force and effect regardless of (i) any termination of this Agreement and (ii) any investigation made by or on behalf of the Underwriters or the Company or the Subsidiaries and such party’s officers or directors or any person controlling such parties.

Appears in 2 contracts

Samples: Underwriting Agreement (Film Department Holdings, Inc.), Underwriting Agreement (Film Department Holdings, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, and the respective affiliates, directors, officers, employees and agents of each Underwriter from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such indemnified party may incur arising under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) any failure on the part of the Company to comply with any applicable Law relating to the offering of securities being made pursuant to the Prospectus, (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), including any Issuer Free Writing Prospectus that the Rule 430B InformationCompany has filed or was required to file with the Commission or is otherwise required to retain, any other Free Writing Prospectus that was approved by the Company, or the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (D) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an “Application”), (E) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, or necessary to make the statements made therein not misleading or arising out of misleading, (F) any untrue statement omission or alleged untrue statement of a material fact contained in omission from any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “such Issuer Free Writing Prospectus,” , any other Free Writing Prospectus that was approved by the Company, the Prospectus or the omission or alleged omission therefrom any Application of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , (iiG) against any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials used in connection with the marketing of the Shares, including, without limitation, slides, videos, films and all tape recordings; except, in the case of (B), (C), (D), (E) and (F) above only, insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made of a material fact contained in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representative to the Company by any Underwriter expressly for use in the such Registration Statement (or any amendment thereto)Statement, including any preliminary prospectus, any Issuer Free Writing Prospectus or Application (that information being limited to that described in the Prospectus (or last sentence of the first paragraph of Section 9(c) hereof). The indemnity agreement set forth in this Section 9(a) shall be in addition to any amendment or supplement thereto)liability which the Company may otherwise have. (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of If any action commenced is brought against it an Underwriter or controlling person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder to against the extent it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. In the case of parties indemnified Company pursuant to Section 6(asubsection (a) above, counsel to such Underwriter shall promptly notify the indemnified parties shall be selected by the Underwriters, andCompany, in writing of the case institution of parties indemnified pursuant to Section 6(b) abovesuch action, counsel to and the indemnified parties Company shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of any such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also be counsel to party or parties or the named parties in any such proceeding (including any impleaded parties included by the Company and the indemnified party. In no event person)) or representation by both parties by the same counsel would be inappropriate due to a conflict or potential differing interests between such parties, in any of which events such fees and expenses shall be borne by the indemnifying parties Company and paid as incurred (it being understood, however, that the Company shall not be liable for fees and the expenses of more than one counsel (separate firm of attorneys for the Underwriters or controlling persons in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than one local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding and subject to the proviso in this sentence, the Company shall not be liable for any settlement of any such claim or action effected without its consent; provided, however, that if at any time an indemnified party shall have requested an indemnifying party to reimburse such indemnified party for fees and expenses of counsel as contemplated by this Section 9, the Company agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 60 days after receipt by such indemnifying party of the same general allegations aforesaid request, (ii) such indemnifying party shall have received notice of the terms such settlement at least 30 days prior to such settlement being entered into, and (iii) such indemnifying party shall not have (x) reimbursed the indemnified party in accordance with such request, (y) disputed in good faith the indemnified party’s entitlement to such reimbursement prior to the date of such settlement, or circumstances(z) disputed in good faith the terms of such settlement. No indemnifying party shall, without the prior written consent of the indemnified partiesparty, settle or compromise or consent to the entry effect any settlement of any judgment with respect to any litigation, pending or any investigation or threatened proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which any indemnified party is or could have been a party and indemnification or contribution could be have been sought under this Section 6 (whether or not the hereunder by such indemnified parties are actual or potential parties thereto)party, unless such settlement, compromise or consent settlement (ix) includes an unconditional release of each such indemnified party party, in form and substance reasonably satisfactory to such indemnified party, from all liability arising out on claims that are the subject matter of such litigation, investigation, proceeding or claim and (iiy) does not include a any statement as to or an any admission of fault, culpability or a failure to act by or on behalf of any indemnified party. (c) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Company’s directors, the Company’s officers that signed the Registration Statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment), any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission, or the Prospectus, or any Application, (B) any omission or alleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, or (C) any omission or alleged omission from any such Issuer Free Writing Prospectus, any Free Writing Prospectus, Prospectus or any Application of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, but in each case only insofar as such untrue statement or alleged untrue statement or omission or alleged omission was made in such Registration Statement, Issuer Free Writing Prospectus, Prospectus or Application in reliance upon and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use therein. The statements set forth in the third paragraph under the caption “Underwriting” and the first and second paragraphs under the heading identified by “Stabilization” under the caption “Underwriting” in the Preliminary Prospectus, the Disclosure Package and the Prospectus (to the extent such statements relate to the Underwriters) constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company for purposes of this Agreement. If any action is brought against the Company or any such person in respect of which indemnity may be sought against any Underwriter pursuant to the foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action and the Representative, on behalf of the Underwriters, shall assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that the Underwriters shall not be liable for the expenses of more than one separate firm of attorneys in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of any such claim or action effected without the written consent of the Representative. (d) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable lawLaw, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take into account of the equitable considerations referred to above in this Section 6. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionsubsection (d)(i) above. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint. (f) The remedies provided for in this Section are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified person at law or in equity.

Appears in 2 contracts

Samples: Underwriting Agreement (Pacific DataVision, Inc.), Underwriting Agreement (Pacific DataVision, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 the Securities Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the 1933 Securities Act, the Exchange Act or Section 20 otherwise, insofar as such loss, expense, liability, damage or claim arises out of the 1934 Act as follows: or is based upon (i) against any and all lossbreach of any representation, liabilitywarranty or covenant of the Company contained herein, claim(ii) any failure on the part of the Company to comply with any applicable law, damage and expense whatsoeverrule or regulation relating to the offering of securities being made pursuant to the Prospectus, as incurred, arising out of (iii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company) or in a Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), including the Rule 430B Information, or the (iv) any omission or alleged omission therefrom of to state a material fact required to be stated therein in either such Registration Statement or Prospectus or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against , except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omissionalleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement or such Prospectus, provided, however, that the indemnity agreement contained in this subsection (a) with respect to the Preliminary Prospectus or the Prospectus shall not inure to the benefit of an Underwriter (or to the benefit of any person controlling such Underwriter) with respect to any person asserting any such loss, expense, liability, damage or claim which is the subject thereof if the Prospectus or any supplement thereto prepared with the consent of the Representatives and furnished to the Underwriters prior to the Closing Time corrected any such alleged untrue statement or omission; provided that any omission and if such settlement is effected with Underwriter failed to send or give a copy of the Prospectus or supplement thereto to such person at or prior to the written consent confirmation of the Company;sale of Shares to such person, unless such failure resulted from noncompliance by the Company with Section 4(b) above). (iiib) If any action is brought against any and all expense whatsoeveran Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such Underwriter shall promptly notify the Company, as incurred (applicable, in writing of the institution of such action, and the Company, as applicable, shall assume the defense of such action, including the fees and disbursements employment of counsel chosen by the Underwriters)of its choosing and payment of expenses, reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that any failure or delay to so notify the Company, as applicable, will not relieve the Company, as applicable, of any obligation hereunder, except to the extent that its ability to defend is actually impaired or otherwise prejudiced by such failure or delay, and after notice from the Company to such indemnified party of its election so to assume the defense thereof, the Company will not be liable to such indemnified party under this indemnity agreement Section for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company, as applicable, in connection with the defense of such action, or the Company, as applicable, shall not apply have employed counsel to have charge of the defense of such action within a reasonable time after notice of such action by such indemnified party or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there exists an actual and material conflict of interest between the interests of the Company and such indemnified party in connection with such action (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company, as applicable, and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its prior written consent. (c) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Company’s directors and officers, and any person who controls the Company within the meaning of the Securities Act, from and against any loss, expense, liability, claim, damage or expense to claim (including the extent arising reasonable cost of investigation) which, jointly or severally, the Company, or any such person may incur under the Securities Act, the Exchange Act or otherwise, but only insofar as such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or omission or alleged untrue statement or omission made of a material fact contained in reliance upon and in conformity with written information furnished in writing by such Underwriter through the Representatives to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (as amended by any post-effective amendment thereof by the Company) or any amendment thereto)in a Prospectus, or arises out of or is based upon any preliminary prospectus, any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in such Registration Statement or Prospectus or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth (i) in the last paragraph on the cover page and (ii) under the caption “Underwriting” in the Preliminary Prospectus and the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company by such Underwriter expressly for use thereinpurposes of Section 3(j) and this Section 9. (cd) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representatives in writing of the institution of such action and in any event the Representatives, on behalf of the Underwriters, shall not relieve it from any liability which it may have otherwise than on account assume the defense of this indemnity agreement. In such action, including the case employment of parties indemnified pursuant to Section 6(a) abovecounsel of its choosing (who shall not, except with the reasonable consent of the Company, be counsel to the indemnified parties shall be selected by Representatives or the Underwriters, and, in the case ) and payment of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in the defense of any such actionexpenses; provided, however, that any failure or delay to so notify the Representatives, as applicable, will not relieve the Representatives or the Underwriters, as applicable, of any obligation hereunder, except to the extent that their ability to defend is actually impaired or otherwise prejudiced by such failure or delay, and after notice from such Underwriter to such indemnified party of its election so to assume the defense thereof, such Underwriter will not be liable to such indemnified party under this Section for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time after notice of such action by such indemnified party or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there exists an actual and material conflict of interest between the interests of the Company and such indemnified party in connection with such action (in which case the Representatives shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by such Underwriter and paid as incurred (it being understood, however, that the indemnified party. In no event Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (de) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b), (c) and (d) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions as proportion as, the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company and Company, as applicable, bear to the total underwriting discount discounts and commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 were determined amount paid or payable by pro rata allocation (even if the Underwriters were treated a party as one entity for such purpose) or by any other method of allocation which does not take account a result of the equitable considerations referred to above in this Section 6. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and liabilities referred to above in the first sentence of this Section 6 subsection (e) shall be deemed to include any legal or other fees or expenses reasonably incurred by such indemnified party in investigating, preparing connection with investigating or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. action which is the subject of this subsection (e). (f) Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 2 contracts

Samples: Underwriting Agreement (Anworth Mortgage Asset Corp), Underwriting Agreement (Anworth Mortgage Asset Corp)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, and the respective directors, officers, employees and agents of each Underwriter, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoor part thereof), including the Rule 430B Information, Preliminary Prospectus or the Prospectus, (ii) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, or necessary to make the statements made therein not misleading, (iii) any omission or alleged omission from any such Preliminary Prospectus or Prospectus of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading or arising (iv) any untrue statement or alleged untrue statement of any material fact contained in the Roadshow Material; except in each case of (i), (ii), (iii) and (iv) above insofar as any such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with the information set forth in the last sentence of the first paragraph of Section 10(b). The indemnity agreement set forth in this Section 10(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time after delivery of notice of such action or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its consent. (b) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Company’s directors, the Company’s officers that signed the Registration Statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus Registration Statement (or any amendment or supplement theretopart thereof), the Preliminary Prospectus or Prospectus, (ii) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements therein not misleading, or (iii) any omission or alleged omission from any such Preliminary Prospectus or Prospectus of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoever, but in each case only insofar as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement omission was made in such Registration Statement, Preliminary Prospectus or omission made Prospectus in reliance upon and in conformity with written information furnished in writing by or on behalf of the Underwriters through the Representative to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use therein. . The following statements under the caption “Underwriting” beginning on page [109] of the Registration Statement: (cA) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party the names of the Underwriters, (B) the first sentence of the [third] paragraph on page [109], (C) the [fifth and sixth] paragraph on page [110], and (D) the third sentence of the [seventh] paragraph on page [110] constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company for purposes of Section 3(r), Section 3(s) and this Section 10. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action, and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of any such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Representative will not relieve the Representative or any Underwriter of any obligation hereunder, except to the extent that the Representative’s ability to defend is actually impaired by such failure or delay. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time after delivery of notice of such action or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by such Underwriter and paid as incurred (it being understood, however, that the indemnified party. In no event Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (dc) If the indemnification provided for in this Section 6 10 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 10 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth in the table on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover page of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 10 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable, claimssubsection (c)(ii), damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 610, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 10 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 2 contracts

Samples: Underwriting Agreement (OFS Credit Company, Inc.), Underwriting Agreement (OFS Credit Company, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, and the respective directors, officers, employees and agents of each Underwriter from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), including any Issuer Free Writing Prospectus that the Rule 430B InformationCompany has filed or was required to file with the Commission or otherwise retain, or the Final Prospectus (the term Final Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus and the Statutory Prospectus as amended or supplemented by the Company), (B) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, or necessary to make the statements made therein not misleading misleading, or arising out of (C) any untrue statement omission or alleged untrue statement of a material fact contained in omission from any preliminary prospectus, in any such Issuer Free Writing Prospectus or the Final Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against ; except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement, Final Prospectus or Issuer Free Writing Prospectus. The indemnity agreement set forth in this Section 9(a) shall be in addition to any such settlement is effected with liability which the written consent of the Company;Company may otherwise have. (iiib) If any action is brought against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, an Underwriter or any such alleged untrue statement officer, director or omission, controlling person in respect of which indemnity may be sought against the Company pursuant to the extent that any such expense is not paid under subsection (i) or (iia) above, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such officer, director or alleged untrue statement controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or omission made in reliance upon and in conformity with written information furnished the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that counsel selected by the Company has a conflict of interest or there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (bc) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s their respective directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection or claim arises out of or is based upon (aA) of this Section, as incurred, but only with respect to any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), or any preliminary prospectus, any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission, or the Prospectus (Final Prospectus, or any amendment Application, (B) any omission or supplement theretoalleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, or (C) any omission or alleged omission from any such Issuer Free Writing Prospectus or Final Prospectus of a material fact necessary to make the statements made therein, in light of the circumstances under which they were made, not misleading, but in each case only insofar as such untrue statement or alleged untrue statement or omission or alleged omission was made in such Registration Statement, Issuer Free Writing Prospectus or Final Prospectus in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representative to the Company by such Underwriter expressly for use therein. The statements set forth in the paragraphs identified by “Electronic Delivery” and “Stabilization”, and the concession and reallowance figures appearing in “Commissions and Expenses” under the section “Underwriting” in the Preliminary Prospectus, the Disclosure Package and the Final Prospectus (to the extent such statements relate to the Underwriters) constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company for purposes of this Section 9. (cd) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its or their own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (de) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b), (c) and (d) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (f) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (e)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 2 contracts

Samples: Underwriting Agreement (Horsehead Holding Corp), Underwriting Agreement (Horsehead Holding Corp)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, and the respective directors, officers, employees and agents of each Underwriter, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoor part thereof), including the Rule 430B Information, Preliminary Prospectus or the Prospectus, (ii) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, or necessary to make the statements made therein not misleading misleading, (iii) any omission or arising alleged omission from any such Preliminary Prospectus or Prospectus of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, or (iv) any untrue statement or alleged untrue statement of any material fact contained in the Roadshow Material; except in each case of (i), (ii), (iii) and (iv) above insofar as any such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with the information set forth in the last sentence of the first paragraph of Section 10(b). The indemnity agreement set forth in this Section 10(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time after delivery of notice of such action or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its consent. (b) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Company’s directors, the Company’s officers that signed the Registration Statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus Registration Statement (or any amendment or supplement theretopart thereof), the Preliminary Prospectus or Prospectus, (ii) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements therein not misleading, or (iii) any omission or alleged omission from any such Preliminary Prospectus or Prospectus of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoever, but in each case only insofar as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement omission was made in such Registration Statement, Preliminary Prospectus or omission made Prospectus in reliance upon and in conformity with written information furnished in writing by or on behalf of the Underwriters through the Representatives to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use therein. . The following statements under the caption “Underwriting” beginning on page S-104 of the Preliminary Prospectus: (cA) Each indemnified party shall give notice as promptly as reasonably practicable the first sentence under the caption “Commissions and Discounts” on page S-104; and (B) the second sentence of the first paragraph, the first, second and third sentences of the second paragraph and the third paragraph under the caption “Underwriting-Price Stabilization and Short Positions” on pages S-105 and S-106 of the Preliminary Prospectus (and the corresponding sections of the Prospectus, to each indemnifying party the extent such statements relate to the Underwriters) constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company for purposes of Section 3(q), Section 3(r) and this Section 10. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representatives in writing of the institution of such action, and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of any such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Representatives will not relieve the Representatives or any Underwriter of any obligation hereunder, except to the extent that the Representatives’ ability to defend is actually impaired by such failure or delay. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time after delivery of notice of such action or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by such Underwriter and paid as incurred (it being understood, however, that the indemnified party. In no event Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (dc) If the indemnification provided for in this Section 6 10 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 10 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth in the table on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover page of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 10 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable, claimssubsection (c)(ii), damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 610, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 10 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 2 contracts

Samples: Underwriting Agreement (OFS Capital Corp), Underwriting Agreement (OFS Capital Corp)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus, or (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company) or in a Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), including the Rule 430B Information, or the arises out of or is based upon any omission or alleged omission therefrom of to state a material fact required to be stated therein in either such Registration Statement or Prospectus or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against , except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omissionalleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement or such Prospectus, provided, however, that the indemnity agreement contained in this subsection (a)(i) with respect to the Preliminary Prospectus or the Prospectus shall not inure to the benefit of an Underwriter (or to the benefit of any person controlling such Underwriter) with respect to any person asserting any such loss, expense, liability, damage or claim which is the subject thereof if the Prospectus or any supplement thereto prepared with the consent of the Representatives and furnished to the Underwriters prior to the Closing Time corrected any such alleged untrue statement or omission; provided that any omission and if such settlement is effected with Underwriter failed to send or give a copy of the Prospectus or supplement thereto to such person at or prior to the written consent confirmation of the Company;sale of Shares to such person, unless such failure resulted from noncompliance by the Company with Section 4(b) above). b) If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (iiia) against any above, such Underwriter shall promptly notify the Company in writing of the institution of such action, and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters)and payment of expenses, reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or action effected without the Prospectus (or any amendment or supplement thereto)its written consent. (bc) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s 's directors, each of the Company’s 's officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, damage and expense described in jointly or severally, the indemnity contained in subsection (a) of this SectionCompany, as incurredor any such person may incur under the Securities Act, the Exchange Act or otherwise, but only with respect to insofar as such loss, expense, liability, damage or claim arises out of or is based upon any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representatives to the Company expressly for use in the Registration Statement (or in the Registration Statement as amended by any posteffective amendment thereto)thereof by the Company) or in a Prospectus, or arises out of or is based upon any omission or alleged omission to state a material fact in connection with such information required to be stated either in such Registration Statement or Prospectus or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth (i) in the last paragraph on the cover page and (ii) under the caption "Underwriting of the Common Stock" in the Preliminary Prospectus and the Prospectus (to the extent such statements relate to the Underwriters) constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company for purposes of Section 3(j) and this Section 9. If any action is brought against the Company, or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of any action commenced against it person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company, or such person shall promptly notify the Representatives in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company, or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company, or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (d) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand Company, and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand Company, and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand Company, and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (d)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective ' obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 2 contracts

Samples: Underwriting Agreement (Meadowbrook Insurance Group Inc), Underwriting Agreement (Meadowbrook Insurance Group Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify shall indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which the Underwriters or any such controlling person may incur insofar as follows: such loss, expense, liability, damage or claim arises out of or, is based upon (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company) or the Prospectus (the term Prospectus for the purpose of this Section 5 being deemed to include any Preliminary Prospectus, Pricing Prospectus, Issuer Free Writing Prospectus, the Prospectus and any Prospectus supplements, in each case as amended or supplemented by the Company), (ii) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or “blue sky” laws thereof or filed with the Commission or any securities association or securities exchange (each an “Application”), including the Rule 430B Information, or the (iii) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, Prospectus or Application or necessary to make the statements made therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; ; except, in the case of each of clauses (i), (ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; providedloss, however, that this indemnity agreement shall not apply to any lossexpense, liability, claim, damage or expense to the extent arising claim arises out of or is based upon (x) any such untrue statement or omission or alleged untrue statement or omission made of a material fact contained in reliance upon and in conformity with written information furnished in writing by or on behalf of the Underwriters to the Company by any Underwriter expressly for use in the such Registration Statement or such Prospectus or (y) sales to any person asserting any such loss, expense, liability, damage or any amendment thereto)claim incurred from purchasing the Shares, including any preliminary prospectus, any Issuer Free Writing Prospectus if a copy of the Pricing Disclosure Package or the Prospectus (in each case, as then amended or supplemented if the Company shall have timely furnished any amendment amendments or supplement supplements thereto) was not sent or given by or on behalf of such Underwriter to such person, if required by law to have been delivered, at or prior to the written confirmation of the sale of the Shares to such person, and if the Pricing Disclosure Package or the Prospectus (in each case, as so amended or supplemented), as applicable, would have cured the defect giving rise to such loss, expense, liability, damage or claim, unless such failure is the result of noncompliance by the Company. (b) Each Underwriter of the Underwriters shall, severally agrees to indemnify and not jointly, indemnify, defend and hold harmless the Company, the Company’s Company and its directors, officers, employees and agents, each of the Company’s officers who signed the Registration Statement, and each person, if any, person who controls the Company Company, as the case may be, within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, the Company, or any such person may incur but only insofar as such loss, expense, liability, damage and expense described in the indemnity or claim arises out of or is based upon (i) any untrue statement of a material fact contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus thereof by the Company) or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished in writing by or on behalf of such Underwriter to the Company expressly for inclusion in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company) or the Prospectus, as specified in the last sentence of this Section 5(b), or (ii) any omission to state a material fact regarding such Underwriter expressly required to be stated in such Registration Statement or the Prospectus or necessary to make such statement not misleading. The obligation of each of the Underwriters to indemnify the Company (including any director, officer, employee, agent or control person thereof) shall only relate to any untrue statement or omission which applies to the Underwriter. The Company and the Underwriters acknowledge that the information set forth (x) on the cover page of the Prospectus concerning the Underwriters, relating to the delivery of the Shares, and (y) under the caption “Underwriting” in the Prospectus with respect to passive market and stabilization activities by the Underwriters, constitute the only information furnished by or on behalf of the Underwriters to the Company for use thereinpurposes of this Section 5. (c) Each Promptly after receipt by an indemnified party shall give under subsection (a) or (b) above of notice as promptly as reasonably practicable of any claims or the commencement of any action, such indemnified party shall, if a claim in respect thereof is to each be made against the indemnifying party of any action commenced under such subsection, notify in writing each party against it in respect of which indemnity may whom indemnification is to be sought hereunder, of the claim or the commencement thereof (but the failure so to so notify an indemnifying party shall not (i) relieve such the indemnifying party from any liability hereunder which it may have under this Section 5, to the extent that it is did not otherwise learn of such action and such failure does not materially prejudiced prejudice the indemnifying party as a result thereof thereof, and (ii) in any event shall not relieve it from any liability which it that such indemnifying party may have otherwise than on account of this the indemnity agreementagreement hereunder). In The indemnifying party shall be entitled to appoint counsel of the indemnifying party’s choice at the indemnifying party’s expense to represent the indemnified party in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be responsible for the fees and expenses of any separate counsel retained by the indemnified party or parties indemnified pursuant to Section 6(a) aboveexcept as set forth below); provided, however, that such counsel shall be reasonably satisfactory to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Companyparty. An The indemnifying party may participate at its own expense in the defense of any such actionaction at its own expense, and to the extent it may elect, by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, the indemnifying party may assume the defense thereof with counsel reasonably satisfactory to such indemnified party; provided, however, that counsel to the indemnifying party shall not (except with the written consent of the indemnified party) also be counsel to the indemnified party. In no event Notwithstanding the foregoing, the indemnified party or parties shall have the indemnifying parties be liable for right to employ its or their own counsel in any such case, but the fees and expenses of more than such counsel shall be at the expense of such indemnified party or parties unless (i) the employment of such counsel shall have been authorized in writing by one of the indemnifying parties in connection with the defense of such action, (ii) the indemnifying parties shall not have employed reasonably satisfactory counsel to have charge of the defense of such action within a reasonable time after notice of commencement of the action, (iii) the indemnifying party does not diligently defend the action after assumption of the defense, or (iv) such indemnified party or parties shall have reasonably concluded based on the advice of the advice of counsel that there may be defenses available to it or them which are different from or additional to those available to one or all of the indemnifying parties (in which case the indemnifying parties shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events the fees and expenses of one counsel selected by all of the indemnified parties to represent them all (in addition to one local counsel selected by all of the indemnified parties to represent them all in each applicable jurisdiction) shall be borne by the indemnifying parties. In the case of any local counsel) separate from their own counsel for all indemnified parties the Company and its officers, directors and control persons, such counsel shall be designated in connection with writing by the Company. In the case of any one action or separate but similar or related actions counsel for the Underwriters and their respective officers, directors and control persons, such counsel shall be designated in the same jurisdiction arising out of the same general allegations or circumstances. writing by Xxxxxxxx Curhan Ford & Co. No indemnifying party shall, without the prior written consent of the indemnified parties, settle effect any settlement or compromise of, or consent to the entry of any judgment with respect to to, any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be have been sought under this Section 6 5 (whether or not the indemnified parties are actual or potential parties thereto), unless (x) such settlement, compromise or consent (iI) includes an unconditional release of each the indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (iiII) does not include a statement as to to, or an admission of of, fault, culpability or a failure to act act, by or on behalf of any the indemnified party, and (y) the indemnifying party reaffirms its indemnification obligations pursuant to this Agreement. (d) If the indemnification provided for in this Section 6 5 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) or (b) of this Section 5 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with respect to the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the respect to such offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total proceeds (net proceeds from the offering of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company from the Shares sold under this Agreement, on the one hand, and the total underwriting discount discounts and commissions received by the UnderwritersUnderwriters with respect to the Shares purchased under this Agreement, on the other hand, bear to the total gross proceeds from the offering of the Shares under this Agreement, in each case as set forth in the table on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover page of the Prospectus. The relative fault of the Company on the one hand and the Underwriters on the other hand shall be determined by reference to, among other things, (x) whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and Underwriters, (y) the intent of the parties, and (z) their relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 5(d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of losses5(d)(i) and, liabilitiesif applicable, claimsSection 5(d)(ii), damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 65, no Underwriter (i) none of the Underwriters shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omission. No Underwriters and, (ii) no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxAct) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this in Section 6 are 5(d) shall be several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting obligations and not joint. The indemnity and contribution contained in this Section 5 shall remain operative and in full force and effect regardless of (i) any termination of this Agreement and (ii) any investigation made by or on behalf of the Underwriters or the Company and the Subsidiaries and such party’s officers or directors or any person controlling such parties.

Appears in 2 contracts

Samples: Underwriting Agreement (Neurobiological Technologies Inc /Ca/), Underwriting Agreement (Neurobiological Technologies Inc /Ca/)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: Exchange Act, and the respective affiliates, directors, officers, employees and agents of each Underwriter from and against (i1) against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) that, jointly or severally, any such indemnified party may incur arising under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), including any Issuer Free Writing Prospectus that the Rule 430B InformationCompany has filed or was required to file with the Commission or is otherwise required to retain, any other Free Writing Prospectus that was approved by the Company, any Written Testing-the-Waters Communications or the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company); (B) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, or necessary to make the statements made therein not misleading misleading; (C) any omission or arising out alleged omission from any such Issuer Free Writing Prospectus, any Written Testing-the-Waters Communications, any other Free Writing Prospectus that was approved by the Company or the Prospectus of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (D) any untrue statement or alleged untrue statement of a any material fact contained in any preliminary prospectusaudio or visual materials used in connection with the marketing of the Shares, including, without limitation, slides, videos, films and tape recordings; or (E) any untrue statement or alleged untrue statement of any material fact in any Issuer Free Writing Prospectus material prepared by or with the Prospectus consent of the Company for distribution to Participants in connection with the Directed Share Program (or any amendment or supplement thereto) or in any road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” Directed Share Program Materials”), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; misleading (iiexcept, in each case, insofar as any such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement, Prospectus, or Application (that information being limited to that described in the last sentence of the first paragraph of Section 9(c) against any hereof)); and (2) all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement including without limitationrelated to, by means of a Consent to Judgment of any litigationarising out of, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected in connection with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this Directed Share Program. The indemnity agreement set forth in this Section 9(a) shall not apply be in addition to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to liability which the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)may otherwise have. (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of If any action commenced is brought against it an Underwriter or controlling person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder to against the extent it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. In the case of parties indemnified Company pursuant to Section 6(a) abovesubsection (a), counsel to such Underwriter shall promptly notify the indemnified parties Company in writing of the institution of such action, and the Company shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of any such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify any indemnifying party under this Section 9 will not relieve such indemnifying party of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also be counsel to party or parties or the named parties in any such proceeding (including any impleaded parties included by the Company and the indemnified party. In no event person)) or representation by both parties by the same counsel would be inappropriate due to a conflict or potential differing interests between such parties, in any of which events such fees and expenses shall be borne by the indemnifying parties Company and paid as incurred (it being understood, however, that the Company shall not be liable for fees and the expenses of more than one counsel (separate firm of attorneys for the Underwriters or controlling persons in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than one local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding and subject to the proviso in this sentence, the Company shall not be liable for any settlement of any such claim or action effected without its written consent; provided, however, that if at any time an indemnified party under this Section 9 shall have requested an indemnifying party under this Section 9 to reimburse such indemnified party for fees and expenses of counsel as contemplated by this Section 9, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 60 days after receipt by the Company of the same general allegations aforesaid request (or circumstances90 days after receipt by the Underwriter of the aforesaid request in the event the Underwriter is the indemnifying party), (ii) such indemnifying party shall have received notice of the terms such settlement at least 30 days prior to such settlement being entered into, and (iii) such indemnifying party shall not have (x) reimbursed the indemnified party in accordance with such request, (y) disputed in good faith the indemnified party’s entitlement to such reimbursement prior to the date of such settlement, or (z) disputed in good faith the terms of such settlement. No indemnifying party shall, without the prior written consent of the indemnified partiesparty, settle or compromise or consent to the entry effect any settlement of any judgment with respect to any litigation, pending or any investigation or threatened proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which any indemnified party is or could have been a party and indemnification or contribution could be have been sought under this Section 6 (whether or not the hereunder by such indemnified parties are actual or potential parties thereto)party, unless such settlement, compromise or consent settlement (ix) includes an unconditional release of each such indemnified party party, in form and substance reasonably satisfactory to such indemnified party, from all liability arising out on claims that are the subject matter of such litigation, investigation, proceeding or claim and (iiy) does not include a any statement as to or an any admission of fault, culpability or a failure to act by or on behalf of any indemnified party. (c) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Company’s directors, the Company’s officers that signed the Registration Statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment), any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission, any Written Testing-the-Waters Communications, or the Prospectus, or any Application, (B) any omission or alleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, or (C) any omission or alleged omission from any such Issuer Free Writing Prospectus, any Free Writing Prospectus, any Written Testing-the-Waters Communications, Prospectus or any Application of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, but in each case only insofar as such untrue statement or alleged untrue statement or omission or alleged omission was made in such Registration Statement, Issuer Free Writing Prospectus, Written Testing-the-Waters Communications, Prospectus or Application in reliance upon and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use therein. The statements set forth in the third paragraph under the caption “Underwriting” and the first and second paragraphs under the heading identified by “Stabilization” under the caption “Underwriting” in the Preliminary Prospectus, the Disclosure Package and the Prospectus (to the extent such statements relate to the Underwriters) constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company for purposes of this Agreement. If any action is brought against the Company or any such person in respect of which indemnity may be sought against any Underwriter pursuant to the foregoing paragraph, the Company or such person shall promptly notify the Representatives in writing of the institution of such action and the Representative, on behalf of the Underwriters, shall assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that the Underwriters shall not be liable for the expenses of more than one separate firm of attorneys in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of any such claim or action effected without the written consent of the Representative, except as provided in Section 9(b). (d) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable lawLaw, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which that resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take into account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (d)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint. (f) The remedies provided for in this Section are not exclusive and shall not limit any rights or remedies that may otherwise be available to any indemnified party at law or in equity.

Appears in 2 contracts

Samples: Underwriting Agreement (Turning Point Brands, Inc.), Underwriting Agreement (Turning Point Brands, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, and the directors, officers, employees and agents of each Underwriter, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any and all lossbreach of any representation, liabilitywarranty or covenant of the Company contained herein, claim, damage and expense whatsoever, as incurred, arising out of (ii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), including the Rule 430B Information, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Prospectus (Commission or any amendment or supplement thereto) or in otherwise retain, any “road show” (as defined in Rule 433 under of the Securities ActAct Regulations) not constituting an Issuer Free Writing Prospectus (a Non-Prospectus Road Show”), any “issuer information” as defined in Rule 433 of the Securities Act Regulations used or referred to by any Underwriter or contained in the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (iii) any omission or alleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, or (iv) any omission or alleged omission from any such Issuer Free Writing Prospectus,” , Non-Prospectus Road Show or the omission or alleged omission therefrom Prospectus of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against ; except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement or Prospectus (that any such settlement is effected with information being limited to that described in the written consent last sentence of the Company; (iiifirst paragraph of Section 9(b) hereof). The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against any Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such Underwriter or controlling person shall promptly notify the Company in writing of the institution of such action, and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) aboveand payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless (A) the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, (B) the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time after delivery of notice of such action or alleged untrue statement (C) such indemnified party or omission made in reliance upon and in conformity with written information furnished parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s director nominees that consented to be named in the Registration Statement, the Company’s officers who that signed the Registration Statement, Statement and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection or claim arises out of or is based upon (ai) of this Section, as incurred, but only with respect to any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), or any preliminary prospectus, any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission, any Non-Prospectus Road Show or the Prospectus, (ii) any omission or alleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, or (iii) any omission or alleged omission from any such Issuer Free Writing Prospectus, Non-Prospectus Road Show or Prospectus of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, but in the case of clause (i), (ii) or any amendment (iii) only insofar as such untrue statement or supplement thereto) alleged untrue statement or omission or alleged omission was made in such Registration Statement, Issuer Free Writing Prospectus, Non-Prospectus Road Show or Prospectus in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representative to the Company by such Underwriter expressly for use therein. . The date on which the Underwriters expect to deliver the shares on the front cover, the information in the table listing the Underwriters and the number of shares of Common Stock each has agreed to purchase and the statements set forth in the “Underwriting” section of the Preliminary Prospectus and the Prospectus (ci) Each indemnified party shall give notice as promptly as reasonably practicable in the first two sentences in the third paragraph and (ii) under the sub-heading “Stabilization” and (iii) under the sub-heading “Discretionary Accounts” (to each indemnifying party the extent such statements relate to the Underwriters) constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company for purposes of Section 3(n) and Section 3(o) of this Agreement and this Section 9. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action, and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless (A) the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action; provided, (B) the Representative shall not have employed counsel to have charge of the defense of such action within a reasonable time or (C) such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under Section 9(a) and 9(b) hereof in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of losses9(c)(i) hereof and, liabilitiesif applicable, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission9(c)(ii) hereof. Notwithstanding the other provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Shares underwritten by it such Underwriter and distributed to the public were offered to the public exceeds the amount of any damages which that such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionpay. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of The Underwriters’ obligations to contribute pursuant to this Section 6, 9 are several in proportion to their respective underwriting commitments and not joint. (e) The Company agrees to indemnify and hold harmless each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, its affiliates and each person, if any, who controls the Company each Underwriter and its affiliates within the meaning of either Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act shall have from and against any and all losses, expenses, liabilities, damages and claims (including any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) (i) caused by any untrue statement or alleged untrue statement of a material fact contained in any material prepared by or with the same rights consent of the Company for distribution to contribution participants in connection with the Directed Share Program, or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; (ii) as a result of the Company. The Underwriters’ respective obligations failure of any participant to contribute pursuant pay for and accept delivery of Directed Shares that the participant has agreed to this Section 6 are several purchase; or (iii) related to, arising out of, or in proportion to connection with the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not jointDirected Share Program.

Appears in 1 contract

Samples: Underwriting Agreement (Imperial Holdings, LLC)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, and the respective directors, officers, employees and agents of each Underwriter from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus, (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), including any Issuer Free Writing Prospectus that the Rule 430B InformationCompany has filed or was required to file with the Commission, or the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (D) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an “Application”), (E) any omission or alleged omission therefrom to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, (F) any omission or alleged omission from any such Issuer Free Writing Prospectus, Prospectus or any Application of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, or (G) any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials used in connection with the marketing of the Shares, including, without limitation, slides, videos, films and tape recordings; except in the case of (C), (E) and (F) above only insofar as any such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement, Prospectus or Application. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. Without limitation of and in addition to its obligations under the other paragraphs of this Section 9, the Company agrees to indemnify, defend and hold harmless each Underwriter and any person who controls any Underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and the respective directors, officers, employees and agents of each Underwriter from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act, or otherwise, insofar as such loss, expense, liability, damage or claim (1) arises out of or is based upon any untrue statement or alleged untrue statement or alleged untrue statement of a material fact contained in any material prepared by or on behalf or with the consent of the Company for distribution to Directed Share Participants in connection with the Directed Share Program or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading misleading; (2) is or arising was caused by the failure of any Directed Share Participant to pay for and accept delivery of the Directed Shares that the Directed Share Participant has agreed to purchase; or (3) otherwise arises out of or is based upon the Directed Share Program, provided, however, that the Company shall not be responsible under this clause (3) for any loss, expense, liability, damage or claim that is finally judicially determined to have resulted from the gross negligence or willful misconduct of the Representative in conducting the Directed Share Program. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its consent. (b) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Company’s directors, the Company’s officers that signed the Registration Statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which the Company may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any preliminary prospectusamendment), in any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission, or the Prospectus (Prospectus, or any amendment Application, (B) any omission or supplement thereto) or alleged omission to state a material fact required to be stated in any “road show” such Registration Statement, or necessary to make the statements made therein not misleading, or (as defined in Rule 433 under the Securities ActC) not constituting an “any omission or alleged omission from any such Issuer Free Writing Prospectus,” , Prospectus or the omission or alleged omission therefrom any Application of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoever, but in each case only insofar as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement omission was made in such Registration Statement, Issuer Free Writing Prospectus, Prospectus or omission made Application in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representative to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use therein. . The following statements under the caption “Underwriting” beginning on page 127 of the Preliminary Prospectus: (ci) Each indemnified party shall give notice as promptly as reasonably practicable the third paragraph on page 127, (ii) the eighth paragraph on page 128 of the Preliminary Prospectus beginning with “The representative of the underwriters may engage…” until and including the last bullet of that paragraph ending with “…at which a stabilizing bid is made” on page 129 of the Preliminary Prospectus and (iii) the last three paragraphs on page 129 of the Preliminary Prospectus] (and the corresponding sections of the Disclosure Package and the Prospectus, to each indemnifying party the extent such statements relate to the Underwriters) constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company for purposes of Section 3(l) and Section 3(m) and this Section 9. If any action commenced is brought against it the Company in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable, claimssubsection (c)(ii), damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Cadence Financial Corp)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees and the Operating Partnership, jointly and severally, agree to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, and the respective affiliates, directors, officers, employees and agents of each Underwriter from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such indemnified party may incur arising under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company or Operating Partnership contained herein, (B) an untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), including any Issuer Free Writing Prospectus that the Rule 430B InformationCompany has filed or was required to file with the Commission or is otherwise required retain, or the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (C) any application or other document, or any amendment or supplement thereto, executed by the Company or the Operating Partnership or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an “Application”), (D) an omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, or necessary to make the statements made therein not misleading or arising out of any untrue statement misleading, (E) an omission or alleged untrue statement of a material fact contained in omission from any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “such Issuer Free Writing Prospectus,” , Prospectus or the omission or alleged omission therefrom any Application of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , (iiF) against an untrue statement or alleged untrue statement of a material fact contained in any audio or visual materials used in connection with the marketing of the Shares, including, without limitation, slides, videos, films and all tape recordings; except, in each case of (B), (D) and (E) above only, insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such an untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected omission or alleged omission of a material fact contained in and in conformity with the written consent of statements set forth in the Company; first paragraph under the heading “Underwriting–Commissions and Discounts,” the information in the first paragraph under the heading “Underwriting–Short Positions” and the information under the heading “Underwriting–Electronic Distribution” in the Preliminary Prospectus, the Disclosure Package and the Prospectus (iii) against any and all expense whatsoever, as incurred (including to the fees and disbursements of counsel chosen by extent such statements relate to the Underwriters), reasonably incurred . The indemnity agreement set forth in investigating, preparing this Section 10(a) shall be in addition to any liability which the Company or defending the Operating Partnership may otherwise have. If any action is brought against any litigation, an Underwriter or any investigation controlling person in respect of which indemnity may be sought against the Company or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, the Operating Partnership pursuant to the extent that any such expense is not paid under subsection (i) or (iia) above, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company, (in which case neither the Company shall have the right to direct the defense of such action on behalf of the indemnified party or parties or the named parties in any such proceeding (including any impleaded parties included by the Company and the indemnified person)) or representation by both parties by the same counsel would be inappropriate due to a conflict or potential differing interests between such parties, in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any untrue statement such claim or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, and the Operating Partnership from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which the Company, the Operating Partnership or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection or claim arises out of or is based upon (aA) of this Section, as incurred, but only with respect to an untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), or any preliminary prospectus, any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission, or the Prospectus (Prospectus, or any amendment Application, (B) an omission or supplement theretoalleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, or (C) an omission or alleged omission from any such Issuer Free Writing Prospectus, Free Writing Prospectus. Prospectus or any Application of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, but in each case only insofar as such untrue statement or alleged untrue statement or omission or alleged omission was made in such Registration Statement, Issuer Free Writing Prospectus, Prospectus or Application in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representative to the Company by such Underwriter or the Operating Partnership expressly for use therein. . The statements set forth in the first paragraph under the heading “Underwriting–Commissions and Discounts,” the information in the first paragraph under the heading “Underwriting–Short Positions” and the information under the heading “Underwriting–Electronic Distribution” in the Preliminary Prospectus, the Disclosure Package and the Prospectus (cto the extent such statements relate to the Underwriters) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company or the Operating Partnership for purposes of this Agreement. If any action commenced is brought against it the Company, the Operating Partnership, the Manager or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company, the Operating Partnership, the Manager or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company, the Operating Partnership, the Manager or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company, the Operating Partnership, the Manager or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (dc) If the indemnification provided for in this Section 6 10 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on Company, the one hand Operating Partnership and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on Company, the one hand Operating Partnership and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company or the Operating Partnership bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on Company, the one hand Operating Partnership and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company Company, the Operating Partnership or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company, the Operating Partnership and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (d)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required pursuant to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionthis Agreement. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Great Ajax Corp.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, and the respective directors, officers, employees and agents of each Underwriter from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company or the Bank contained herein, (B) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus, (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoor part thereof), including any Issuer Free Writing Prospectus that the Rule 430B InformationCompany has filed or was required to file with the Commission, or the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (D) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an “Application”), (E) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, or necessary to make the statements made therein not misleading or arising out of misleading, (F) any untrue statement omission or alleged untrue statement of a material fact contained in omission from any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “such Issuer Free Writing Prospectus,” , Prospectus or the omission or alleged omission therefrom any Application of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , (iiG) against any and all untrue statement or alleged untrue statement of any material fact contained in or any road show as defined under Rule 433 of the Securities Act, including slides used in connection therewith or (H) any omission or alleged omission to state a material fact required to be stated in any such road show as defined under Rule 433 of the Securities Act, including slides used in connection therewith, or necessary to make the statements made therein not misleading; except insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement, Prospectus or Application (that any such settlement is effected with information being limited to that described in the written consent last sentence of the Company; first paragraph of Section 9(b) hereof). The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to this subsection (iii) against any a), such Underwriter shall promptly notify the Company in writing of the institution of such action, and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) aboveand payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time after delivery of written notice of such action or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them that are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) that the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection or claim arises out of or is based upon (aA) of this Section, as incurred, but only with respect to any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in the Registration Statement (or any amendment theretoor part thereof), or any preliminary prospectus, any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission, or the Prospectus (Prospectus, or any amendment Application, (B) any omission or supplement theretoalleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, or (C) any omission or alleged omission from any such Issuer Free Writing Prospectus, Prospectus or any Application of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, but in the case of clause (A), (B) or (C) only insofar as such untrue statement or alleged untrue statement or omission or alleged omission was made in such Registration Statement, Issuer Free Writing Prospectus, Prospectus or Application in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representative to the Company by such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party . The statements in the fourth and twelfth paragraphs under the caption “Underwriting” in the Preliminary Prospectus and the Prospectus constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company for purposes of Section 3(b), Section 3(c) and Section 3(d) and this Section 9. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action and in any event the Representative, on behalf of the Underwriters shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them that are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall not be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which that resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable, claims(c)(ii), damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no such Underwriter shall not be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Customers Bancorp, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act as follows: (i) from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company) or in a Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), including the Rule 430B Information, or the arises out of or is based upon any omission or alleged omission therefrom of to state a material fact required to be stated therein in either such Registration Statement or Prospectus or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against , except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omissionalleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement or such Prospectus, provided, however, that the indemnity agreement contained in this subsection (a) with respect to the Preliminary Prospectus or the Prospectus shall not inure to the benefit of an Underwriter (or to the benefit of any person controlling such Underwriter) with respect to any person asserting any such loss, expense, liability, damage or claim which is the subject thereof if the Prospectus or any supplement thereto prepared with the consent of the Representatives and furnished to the Underwriters prior to the Closing Time corrected any such alleged untrue statement or omission; provided that any omission and if such settlement is effected with Underwriter failed to send or give a copy of the Prospectus or supplement thereto to such person at or prior to the written consent confirmation of the Company; (iiisale of Shares to such person, unless such failure resulted from noncompliance by the Company with Section 4(a) of this Agreement. If any action is brought against an Underwriter or any person who controls any Underwriter in respect of which indemnity may be sought against the Company pursuant to the preceding paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters)and payment of out-of-pocket expenses, reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action or the Company shall not apply have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company and which counsel to the Underwriter believes may present a conflict for counsel representing the Company and the Underwriter (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without the its written consent. (b) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Subsidiaries, their trustees and directors, the officers that signed the Registration Statement and any person who controls the Company or any Subsidiary within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any loss, expense, liability, claim, damage or expense to claim (including the extent arising reasonable cost of investigation) which, jointly or severally, the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or omission or alleged untrue statement or omission made of a material fact contained in reliance upon and in conformity with written information furnished in writing by such Underwriter through the Representatives to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (as amended by any post-effective amendment thereof by the Company) or any amendment thereto)in a Prospectus, or arises out of or is based upon any preliminary prospectus, any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in the Registration Statement or Prospectus or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth under the caption "Underwriting" regarding (i) concessions to dealers in connection with the sale of Shares and (ii) stabilizing and the beneficial ownership of Shares by the Underwriters, and entities associated with the Underwriters, in the Preliminary Prospectus and the Prospectus (or any amendment or supplement theretoto the extent such statements relate to the Underwriters) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company by such Underwriter expressly for use therein. (cpurposes of Section 3(l) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of and this Section 9. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representatives in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company, on the one hand, and the Underwriters Underwriters, on the other, agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective ' obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint. (e) Each of the Underwriters agrees to look solely to the assets, properties and rights of the Company for satisfaction of all claims against the Company brought pursuant to this Section 9, and in no event shall any shareholder of the Company have any personal liability for the obligations of the Company under this Agreement.

Appears in 1 contract

Samples: Underwriting Agreement (American Mortgage Acceptance Co)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriters and each person, if any, any person who controls any Underwriter the Underwriters within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, and the directors, officers, employees and agents of each Underwriter from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which the Underwriters or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any and all lossbreach of any representation, liabilitywarranty or covenant of the Company contained herein, claim(ii) any failure on the part of the Company to comply with any applicable law, damage and expense whatsoeverrule or regulation relating to the offering of securities being made pursuant to the Prospectus, as incurred, arising out of (iii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoor part thereof), including any Issuer Free Writing Prospectus that the Rule 430B InformationCompany has filed or was required to file with the Commission or is otherwise required to retain, or the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include the Base Prospectus, any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company) or in any audio-visual materials (including, without limitation, slides, videos, films and tape recordings) used in connection with the offer or sale of the Shares, which materials were prepared by or reviewed by the Company prior to such use and which materials do not constitute an Issuer Free-Writing Prospectus (“Non-Prospectus Materials”), (iv) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an “Application”), (v) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, or necessary to make the statements made therein not misleading or arising out of (vi) any untrue statement omission or alleged untrue statement of a material fact contained in omission from any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “such Issuer Free Writing Prospectus,” , Prospectus or the omission any Application or alleged omission therefrom Non-Prospectus Materials of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , except, in the case of (iiiii), (v) against and (vi) above only, the Company will not be liable insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters to the Company expressly for use therein. (b) If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such settlement is effected with Underwriter shall promptly notify the written consent Company in writing of the Company; (iii) against any institution of such action, and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) aboveand payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them that are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (bc) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which the Company may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection or claim arises out of or is based upon (ai) of this Section, as incurred, but only with respect to any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), or any preliminary prospectus, any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission, or the Prospectus (Prospectus, or any amendment Application, (ii) any omission or supplement theretoalleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading or (iii) any omission or alleged omission from any such Issuer Free Writing Prospectus, Prospectus or any Application of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, but in each case only insofar as such untrue statement or alleged untrue statement or omission or alleged omission was made therein in reliance upon and in conformity with written information furnished in writing by the Underwriters to the Company by such Underwriter expressly for use therein. . The statements set forth in the third paragraph and the paragraphs under the heading “Stabilization” under the caption “Underwriting” in the Preliminary Prospectus, the Disclosure Package and the Prospectus (cto the extent such statements relate to the Underwriters) Each indemnified party shall give notice as promptly as reasonably practicable constitute the only information furnished by the Underwriters to each indemnifying party the Company for purposes of Section 3(a)(ii), Section 3(a)(iii) and this Section 9. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Underwriters in writing of the institution of such action and in any event the Underwriters shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Underwriters in connection with the defense of such action or the Underwriters shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Underwriters shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Underwriters and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out of the same general allegations or circumstances. No indemnifying party shall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of (other than local counsel in any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not such jurisdiction) representing the indemnified parties who are actual or potential parties theretoto such action). Anything in this paragraph to the contrary notwithstanding, unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does its Underwriters shall not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf be liable for any settlement of any indemnified partysuch claim or action effected without its written consent. (d) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) or (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering of the Shares pursuant to this Agreement (before deducting expenses) received by the Company and bear to the total underwriting discount discounts and commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by an indemnified party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any claim or action. (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (d)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter the Underwriters shall not be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriters. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of The remedies provided for in this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act 9 are not exclusive and shall not limit any rights or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights remedies that might otherwise be available to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act any indemnified party at law or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not jointequity.

Appears in 1 contract

Samples: Purchase Agreement (Quantum Fuel Systems Technologies Worldwide, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, and the directors, officers, employees and agents of each Underwriter, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any and all lossbreach of any representation, liabilitywarranty or covenant of the Company contained herein, claim, damage and expense whatsoever, as incurred, arising out of (ii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), including the Rule 430B Information, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Prospectus (Commission or any amendment or supplement thereto) or in otherwise retain, any “road show” (as defined in Rule 433 under of the Securities ActAct Regulations) not constituting an Issuer Free Writing Prospectus (a Non-Prospectus Road Show”), any “issuer information” as defined in Rule 433 of the Securities Act Regulations used or referred to by any Underwriter or contained in the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (iii) any omission or alleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, or (iv) any omission or alleged omission from any such Issuer Free Writing Prospectus,” , Non-Prospectus Road Show or the omission or alleged omission therefrom Prospectus of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against ; except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement or Prospectus (that any such settlement is effected with information being limited to that described in the written consent last sentence of the Company; (iiifirst paragraph of Section 9(b) hereof). The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against any Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such Underwriter or controlling person shall promptly notify the Company in writing of the institution of such action, and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) aboveand payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless (A) the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, (B) the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time after delivery of notice of such action or alleged untrue statement (C) such indemnified party or omission made in reliance upon and in conformity with written information furnished parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s director nominees that consented to be named in the Registration Statement, the Company’s officers who that signed the Registration Statement, Statement and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection or claim arises out of or is based upon (ai) of this Section, as incurred, but only with respect to any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), or any preliminary prospectus, any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission, any Non-Prospectus Road Show or the Prospectus, (ii) any omission or alleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, or (iii) any omission or alleged omission from any such Issuer Free Writing Prospectus, Non-Prospectus Road Show or Prospectus of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, but in the case of clause (i), (ii) or any amendment (iii) only insofar as such untrue statement or supplement thereto) alleged untrue statement or omission or alleged omission was made in such Registration Statement, Issuer Free Writing Prospectus, Non-Prospectus Road Show or Prospectus in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representatives to the Company by such Underwriter expressly for use therein. . The date on which the Underwriters expect to deliver the shares on the front cover, the information in the table listing the Underwriters and the number of shares of Common Stock each has agreed to purchase and the statements set forth in the “Underwriting” section of the Preliminary Prospectus and the Prospectus (ci) Each indemnified party shall give notice as promptly as reasonably practicable in the first two sentences in the third paragraph and (ii) under the sub-heading “Stabilization” and (iii) under the sub-heading “Discretionary Accounts” (to each indemnifying party the extent such statements relate to the Underwriters) constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company for purposes of Section 3(n) and Section 3(o) of this Agreement and this Section 9. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representatives in writing of the institution of such action, and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless (A) the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action; provided, (B) the Representatives shall not have employed counsel to have charge of the defense of such action within a reasonable time or (C) such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under Section 9(a) and 9(b) hereof in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of losses9(c)(i) hereof and, liabilitiesif applicable, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission9(c)(ii) hereof. Notwithstanding the other provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Shares underwritten by it such Underwriter and distributed to the public were offered to the public exceeds the amount of any damages which that such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionpay. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Imperial Holdings, LLC)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act as follows: (i) from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company) or in a Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), including the Rule 430B Information, or the arises out of or is based upon any omission or alleged omission therefrom of to state a material fact required to be stated therein in either such Registration Statement or Prospectus or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against , except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omissionalleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement or such Prospectus, provided, however, that the indemnity agreement contained in this subsection (a) with respect to the Preliminary Prospectus or the Prospectus shall not inure to the benefit of an Underwriter (or to the benefit of any person controlling such Underwriter) with respect to any person asserting any such loss, expense, liability, damage or claim which is the subject thereof if the Prospectus or any supplement thereto prepared with the consent of the Representatives and furnished to the Underwriters prior to the Closing Time corrected any such alleged untrue statement or omission; provided that any omission and if such settlement is effected with Underwriter failed to send or give a copy of the Prospectus or supplement thereto to such person at or prior to the written consent confirmation of the Company; (iiisale of Shares to such person, unless such failure resulted from noncompliance by the Company with Section 4(c) of this Agreement. If any action is brought against any an Underwriter or controlling person in respect of which indemnity may be sought against the Company or the Operating Partnership pursuant to the preceding paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters)and payment of expenses, reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company and which counsel to the Underwriter believes may present a conflict for counsel representing the Company and the Underwriter (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement (same jurisdiction representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company and the Operating Partnership shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) action effected without their written consent. Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directorsOperating Partnership, the Significant Subsidiaries, and each of the Company’s 's trustees and officers who that signed the Registration Statement, Statement and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, the Company, the Operating Partnership or each such other person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection (a) or claim arises out of this Section, as incurred, but only with respect to or is based upon any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representatives to the Company expressly for use in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereto)thereof by the Company) or in a Prospectus, or arises out of or is based upon any preliminary prospectus, any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in the Registration Statement or Prospectus or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth (A) on the cover page of the Prospectus and under the caption "Underwriting" in the Prospectus regarding the names of each of the Representatives and (or any amendment or supplement theretoB) under the caption "Underwriting" in reliance upon the Prospectus regarding (i) concessions and reallowances to dealers in conformity connection with written the sale of Shares, (ii) stabilizing the price of the Shares by the Underwriters, and (iii) entities associated with the Underwriters which provide investment banking services to the Company, (in each case, to the extent such statements relate to the Underwriters) constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company by such Underwriter expressly for use therein. (cpurposes of Section 3(k) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of and this Section 9. If any action commenced is brought against it the Company, the Operating Partnership or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company, the Operating Partnership or such person shall promptly notify the Representatives in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company, the Operating Partnership or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company, the Operating Partnership or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party. (d) Representatives. If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Operating Partnership on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company and the Operating Partnership on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company and the Operating Partnership on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company or the Operating Partnership bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company and the Operating Partnership on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or the Operating Partnership or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. The Company and the Underwriters Operating Partnership, on the one hand, and the Underwriters, on the other, agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of The Underwriters' obligations to contribute pursuant to this Section 69 are several in proportion to their respective underwriting commitments and not joint. Survival: The indemnity and contribution agreements contained in Section 9 and the covenants, each personwarranties and representations of the Company and the Operating Partnership contained in this Agreement shall remain in full force and effect regardless of any investigation made by or on behalf of any Underwriter, if any, or any person who controls an any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such UnderwriterExchange Act, and each director or by or on behalf of the Company, each officer of the Company who signed Operating Partnership or the Registration Statement, Company's trustees or directors and each person, if any, officers or any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, and shall have survive any termination of this Agreement or the same rights sale and delivery of the Shares. The Company, the Operating Partnership and each Underwriter agree promptly to contribution as notify the others of the commencement of any litigation or proceeding against it and, in the case of the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 are several , against any of the Company's officers and directors, in proportion to connection with the principal amount sale and delivery of Shares set forth opposite their respective names the Shares, or in Schedule A hereto and not jointconnection with the Registration Statement or Prospectus.

Appears in 1 contract

Samples: Underwriting Agreement (Crown American Realty Trust)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any and all lossbreach of any representation, liability, claim, damage and expense whatsoever, as incurred, arising out warranty or covenant of the Company contained herein or (ii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company) or in a Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), including the Rule 430B Information, or the arises out of or is based upon any omission or alleged omission therefrom of to state a material fact required to be stated therein in either such Registration Statement or Prospectus or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against , except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omissionalleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement or such Prospectus, PROVIDED, HOWEVER, that the indemnity agreement contained in this subsection (a) with respect to the Preliminary Prospectus or the Prospectus shall not inure to the benefit of an Underwriter (or to the benefit of any person controlling such Underwriter) with respect to any person asserting any such loss, expense, liability, damage or claim which is the subject thereof if the Prospectus or any supplement thereto prepared with the consent of the Representatives and furnished to the Underwriters prior to the Closing Time corrected any such alleged untrue statement or omission; provided omission and if such Underwriter failed to send or give a copy of the Prospectus or supplement thereto to such person at or prior to the written confirmation of the sale of Shares to such person, unless such failure resulted from noncompliance by the Company with Section 4(a) of this Agreement. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the preceding paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses, PROVIDED, HOWEVER, that any such settlement is effected with failure or delay to so notify the written consent Company will not relieve the Company of the Company; (iii) against any and all expense whatsoeverobligation hereunder, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense is of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company and which counsel to the Underwriter believes may present a conflict for counsel representing the Company and the Underwriter (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid under as incurred (i) or (ii) above; providedit being understood, however, that this indemnity agreement the Company shall not apply be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without the its written consent. (b) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Subsidiaries, their trustees and directors, the officers that signed the Registration Statement and any person who controls the Company or any Subsidiary within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any loss, expense, liability, claim, damage or expense to claim (including the extent arising reasonable cost of investigation) which, jointly or severally, the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or omission or alleged untrue statement or omission made of a material fact contained in reliance upon and in conformity with written information furnished in writing by such Underwriter through the Representatives to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement as amended by any post-effective amendment thereof by the Company) or in a Prospectus, or arises out of or is based upon any omission or alleged omission to state a material fact in connection with such information required to be stated either in the Registration Statement or Prospectus or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth under the caption "Underwriting" regarding stabilizing and the beneficial ownership of Shares by Friedman, Billings, Rxxxxx & Co., Inc. (or any amendment thereto"FBR"), or any preliminary prospectusand entities associated with FBR, any Issuer Free Writing in the Preliminary Prospectus or and the Prospectus (or any amendment or supplement theretoto the extent such statements relate to the Underwriters) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company by such Underwriter expressly for use therein. (cpurposes of Section 3(k) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of and this Section 9. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representatives in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company, on the one hand, and the Underwriters Underwriters, on the other, agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective ' obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (America First Mortgage Investments Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify and the Investment Adviser and the Administrator, jointly and severally, agree to indemnify and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, each selling agent of any Underwriter and each director, officer, member, shareholder or affiliate of any Underwriter within the meaning of Rule 405 under the Securities Act as follows: (ieach, an “Underwriter Indemnified Party”) from and against any and all losslosses, liabilityclaims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim), damage and expense whatsoever, as incurredcaused by, arising out of of, related to or based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment thereto)thereof, including any preliminary prospectus, any Omitting Prospectus, any Road Show Material, the Rule 430B InformationPreliminary Prospectus, or the Prospectus or any amendment or supplement thereto, or caused by any omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading misleading, except insofar as such losses, claims, damages or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding liabilities are caused by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made in reliance based upon and in conformity with written information furnished to the Company by the Representative on behalf of any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)therein. (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify and hold harmless each of the Company, the Company’s Investment Adviser and the Administrator, and each of their respective partners, directors, trustees, managers, members and shareholders (as the case may be), and each officer of the Company’s officers Company who signed signs the Registration Statement, Statement and each person, if any, who controls the Company Company, the Investment Adviser and/or the Administrator within the meaning of either Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act against any (each, a “Company Indemnified Party”) to the same extent as the foregoing indemnity from the Company, the Investment Adviser and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurredAdministrator to such Underwriter, but only with respect reference to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information relating to the Underwriters furnished to the Company by such the Representative on behalf of any Underwriter expressly for use thereinin the Registration Statement, as originally filed with the Commission, or any amendment thereof, any Preliminary Prospectus, any Omitting Prospectus, or any Road Show Material. (c) Each indemnified party In case any proceeding (including any governmental investigation) shall give notice as promptly as reasonably practicable to each indemnifying party of be instituted involving any action commenced against it person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a10(a) aboveor 10(b), such person (the “indemnified party”) shall promptly notify the person against whom such indemnity may be sought (the “indemnifying party”) in writing and the indemnifying party, upon request of the indemnified party, shall retain counsel reasonably satisfactory to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant party to Section 6(b) above, counsel to represent the indemnified parties shall be selected by party and any others the Company. An indemnifying party may participate at designate in such proceeding and shall pay the fees and disbursements reasonably incurred of such counsel related to such proceeding. In any such proceeding, any indemnified party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense in of such indemnified party unless (i) the defense indemnifying party and the indemnified party shall have mutually agreed to the retention of such counsel, (ii) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with an actual conflict of interest, or (iii) the named parties to any such action; provided, however, proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and the indemnified party shall have reasonably concluded that counsel there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party. It is understood that the indemnifying party shall not (except with the consent not, in respect of the legal expenses of any indemnified party) also be counsel to party in connection with any proceeding or related proceedings in the indemnified party. In no event shall the indemnifying parties same jurisdiction, be liable for (i) the fees and expenses reasonably incurred of more than one counsel separate firm (in addition to any local counsel) separate from their own counsel for all Underwriter Indemnified Parties, collectively, and (ii) the fees and expenses reasonably incurred of more than one separate firm (in addition to any local counsel) for all Company Indemnified Parties, collectively. In the case of any such separate firm for the Underwriter Indemnified Parties, such firm shall be designated in writing by the Representative. In the case of any such separate firm for the Company Indemnified Parties, such firm shall be designated in writing by the Company. The indemnifying party shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there is a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified parties in connection with party from and against any one action loss or separate but similar liability by reason of such settlement or related actions in judgment. Notwithstanding the same jurisdiction arising out foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for the reasonable fees and expenses of counsel as contemplated by the second and third sentences of this Section 10(c), the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by such indemnifying party of the same general allegations or circumstancesaforesaid request, (ii) such indemnifying party shall have received notice of the material terms of such settlement at least 30 days prior to such settlement being entered into, and (iii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to the date of such settlement. No indemnifying party shall, without the prior written consent of the indemnified partiesparty, settle or compromise or consent to the entry effect any settlement of any judgment with respect to any litigation, pending or any investigation or threatened proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification any indemnified party is or contribution could be have been a party and indemnity could have been sought under this Section 6 (whether or not the hereunder by such indemnified parties are actual or potential parties thereto)party, unless such settlement, compromise or consent (i) settlement includes an unconditional release of each such indemnified party from all liability arising out on claims that are the subject matter of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyproceeding. (d) If To the extent the indemnification provided for in this Section 6 10(a) or 10(b) is for any reason unavailable to or insufficient to hold harmless an indemnified party or insufficient in respect of any losses, liabilities, claims, damages or expenses liabilities referred to therein, then each indemnifying party under such paragraph, in lieu of indemnifying such indemnified party thereunder, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company Company, the Investment Adviser and/or the Administrator on the one hand and the Underwriters on the other hand from or in connection with the offering of the Shares pursuant to this Agreement, or (ii) if the allocation provided by clause (id)(i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (id)(i) above but also the relative fault of the Company Company, the Investment Adviser and/or the Administrator on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which that resulted in such losses, liabilities, claims, damages or expensesliabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company Company, the Investment Adviser and/or the Administrator on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions as the total net proceeds from the offering of the Shares pursuant to this Agreement (before deducting expenses) received by the Company and the total underwriting discount discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the ProspectusShares. The relative fault of the Company Company, the Investment Adviser and/or the Administrator on the one hand and the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company Company, the Investment Adviser or the Administrator or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company Underwriters’ respective obligations to contribute pursuant to this Section 10 are several in proportion to the respective number of Shares they have purchased hereunder, and not joint. (e) The Company, the Investment Adviser, the Administrator and the Underwriters agree that it would not be just and or equitable if contribution pursuant to this Section 6 10 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take account of the equitable considerations referred to above in this Section 610(d). The aggregate amount paid or payable by an indemnified party as a result of the losses, liabilities, claims, damages and expenses incurred by an indemnified party and liabilities referred to above in this Section 6 10(d) shall be deemed to include include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing connection with investigating or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue action or alleged untrue statement or omission or alleged omissionclaim. Notwithstanding the provisions of this Section 610, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Shares underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages which that such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of The remedies provided for in this Section 610 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. (f) The indemnity and contribution provisions contained in this Section 10 and the representations, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act warranties and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director other statements of the Company, each officer the Investment Adviser and the Administrator contained in this Agreement shall remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of any Underwriter Indemnified Party or by or on behalf of any Company Indemnified Party and (iii) acceptance of and payment for any of the Company who signed the Registration Statement, and each person, Shares. (g) No party shall be entitled to indemnification under this Section 10 if any, who controls the Company within the meaning such indemnification of such party would violate Section 15 17(i) of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not joint1940 Act.

Appears in 1 contract

Samples: Underwriting Agreement (Sound Point Meridian Capital, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act as follows: (i) from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company) or in a Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include the Prospectus and the Prospectus as amended or supplemented by the Company), including the Rule 430B Information, or the arises out of or is based upon any omission or alleged omission therefrom of to state a material fact required to be stated therein in either such Registration Statement or Prospectus or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against , except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omissionalleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement or such Prospectus, provided, however, that the indemnity agreement contained in this subsection (a) with respect to the Prospectus shall not inure to the benefit of an Underwriter (or to the benefit of any person controlling such Underwriter) with respect to any person asserting any such loss, expense, liability, damage or claim which is the subject thereof if the Prospectus or any supplement thereto prepared with the consent of the Representative and furnished to the Underwriters prior to the Closing Time corrected any such alleged untrue statement or omission; provided that any omission and if such settlement is effected with Underwriter failed to send or give a copy of the Prospectus or supplement thereto to such person at or prior to the written consent confirmation of the Company; (iiisale of Shares to such person, unless such failure resulted from noncompliance by the Company with Section 4(a) of this Agreement. If any action is brought against any an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the preceding paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters)and payment of out-of-pocket expenses, reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action or the Company shall not apply have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company and which counsel to the Underwriter believes may present a conflict for counsel representing the Company and the Underwriter (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without the its written consent. (b) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Subsidiaries, their trustees and directors, the officers that signed the Registration Statement and any person who controls the Company or any Subsidiary within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any loss, expense, liability, claim, damage or expense to claim (including the extent arising reasonable cost of investigation) which, jointly or severally, the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or omission or alleged untrue statement or omission made of a material fact contained in reliance upon and in conformity with written information furnished in writing by such Underwriter through the Representative to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (as amended by any post-effective amendment thereof by the Company) or any amendment thereto)in a Prospectus, or arises out of or is based upon any preliminary prospectus, any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in the Registration Statement or Prospectus or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth under the caption "Underwriting" regarding (i) concessions to dealers in connection with the sale of Shares and (ii) stabilizing and the beneficial ownership of Shares by the Underwriters, and entities associated with the Underwriters, in the Prospectus (or any amendment or supplement theretoto the extent such statements relate to the Underwriters) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company by such Underwriter expressly for use therein. (cpurposes of Section 3(j) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of and this Section 9. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company, on the one hand, and the Underwriters Underwriters, on the other, agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective ' obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Entertainment Properties Trust)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliatesofficers and employees, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, from and against any and all loss, liability, claimdamage, damage and expense whatsoeverclaim (including the reasonable cost of investigation) or expenses, as incurred, arising which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or other federal or state statutory law or regulation, or at common law or otherwise (including in settlement of any litigation, if such settlement is effected with the written consent of the Company), insofar as such loss, expense, liability, damage or claim arises out of or is based upon (i) in whole or in part upon any inaccuracy or any breach of any representation, warranty or covenant of the Company or the Originator contained herein, (ii) in whole or in part upon any failure on the part of the Company or the Originator to perform its obligations hereunder or to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus, (iii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereto)thereof by the Company, including the Rule 430B InformationComputational Materials and ABS Term Sheets), or the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein in the light of the circumstances under which they were made not misleading or arising out of misleading, (iv) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (the term Prospectus for the purpose of this Section 10 being deemed to include Computational Materials and ABS Term Sheets) or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” , or the omission or alleged omission therefrom of to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; misleading or (iiv) against any act or failure to act or any alleged act or failure to act by any Underwriter in connection with, or relating in any manner to, the Offered Securities or the offering contemplated hereby, and which is included as part of or referred to in any loss, claim, damage, liability or action arising out of or based upon any matter covered by clauses (iii) or (iv) above, provided that the Company shall not be liable under this clause (v) to the extent that a court of competent jurisdiction shall have determined by a final judgment that such loss, claim, damage, liability or action resulted directly from any such acts or failures to act undertaken or omitted to be taken by such Underwriter through its bad faith or willful misconduct; and to reimburse each Underwriter and each such controlling person for any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred expenses (including the fees and disbursements of counsel chosen by the Underwriters), Representative) as such expenses are reasonably incurred by such Underwriter or such controlling person in connection with investigating, preparing defending, settling, compromising or defending against paying any litigationsuch loss, claim, damage, liability, expense or action; except insofar as any investigation such loss, expense, liability, damage or proceeding by any governmental agency claim arises out of or body, commenced or threatened, or any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omissionomission or alleged omission of a material fact contained in and in conformity with information furnished in writing by any Underwriter through the Representative to the Company expressly for use in such Registration Statement or Prospectus and any information in any Computational Materials or ABS Term Sheets required to be provided by any Underwriter to the Company pursuant to Section 3(b), except to the extent that such material misstatement or omission is based upon the Pool Information provided by such Underwriter. The indemnity agreement set forth in this Section 10(a) shall be in addition to any such expense liability which the Company may otherwise have. If any action is not paid under brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (i) or (iia) above, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished the Company, or such person shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (or other than local counsel in any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or such jurisdiction) representing the Prospectus (or any amendment or supplement theretoindemnified parties who are parties to such action). (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act against any and all lossExchange Act, liability, claim, damage and expense described in to the same extent as the indemnity contained set forth in subsection (aSections 10(a)(iii) of this Section, as incurredand 10(a)(iv) above from the Company to each Underwriter, but only with respect to untrue statements Underwriter Information (as set forth below) and any Computational Materials, the ABS Term Sheets or omissionsthe Collateral Term Sheets, or alleged untrue statements or omissionsproduced by such Underwriter, made as applicable, except to the extent of any errors in the Registration Statement Computational Materials or ABS Term Sheets that are caused by errors in the Pool Information. The Company hereby acknowledges that the statements set forth in the second paragraph under the caption “Underwriting” in the Prospectus (to the extent such statements relate to the Underwriters) constitute the only information furnished by or on behalf of any amendment theretoUnderwriter through the Representative to the Company for purposes of Section 4(d) and this Section 10 (the “Underwriter Information”). The indemnity agreement set forth in this Section 10(b) shall be in addition to any liabilities that such Underwriter may otherwise have. If any action is brought against the Company, any such director or officer of the Company, or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of any action commenced against it person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company, any such director or officer of the Company, or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company, any such action; provideddirector or officer of the Company, or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company, any such director or officer of the Company, or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the defense of such action within a reasonable time or the Company any such director or officer of the Company, or such person shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). (c) The indemnifying party under this Section 10 shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party against any loss, claim, damage, liability or expense by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by Sections 10(a) and (b) hereof, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by such indemnifying party of the same general allegations or circumstancesaforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to the date of such settlement. No indemnifying party shall, without the prior written consent of the indemnified partiesparty, settle or effect any settlement, compromise or consent to the entry of judgment in any judgment with respect to any litigationpending or threatened action, or any investigation suit or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification any indemnified party is or contribution could be have been a party and indemnity was or could have been sought under this Section 6 (whether or not the hereunder by such indemnified parties are actual or potential parties thereto)party, unless such settlement, compromise or consent (i) includes an unconditional release of each such indemnified party from all liability arising out on claims that are the subject matter of such litigationaction, investigation, proceeding suit or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyproceeding. (d) If the indemnification provided for in this Section 6 10 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 10 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Originator on the one hand hand, and the Underwriters Underwriters, on the other hand hand, from the offering of the Shares Offered Securities pursuant to this Agreement, Agreement or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company and the Originator on the one hand hand, and of the Underwriters Underwriters, on the other hand hand, in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand hand, and the Underwriters Underwriters, on the other hand hand, in connection with the offering of the Shares Offered Securities pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand Company, and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact or any such inaccurate or alleged inaccurate representation or warranty relates to information supplied by the Company on one hand, or by the Underwriters Underwriters, on the other hand, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. The provisions set forth in Sections 10(a) and (b) with respect to notice of commencement of any action shall apply if a claim for contribution is to be made under this Section 10(d); provided, however, that no additional notice shall be required with respect to any action for which notice has been given under Section (a) and (b) for purposes of indemnification. (e) The Company, and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 10(d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (d)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 610, no Underwriter shall be required to contribute or otherwise be responsible for any amount in excess of the amount by which the total price at which the Shares underwritten by it underwriting discounts and distributed commissions applicable to the public were offered to the public exceeds the amount of any damages which Offered Securities purchased by such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations to contribute pursuant to this Section 10 are several in proportion to their respective underwriting commitments and not joint. For purposes of this Section 610, each officer and employee of an Underwriter and each person, if any, who controls an Underwriter within the meaning of the Section 15 of the 1933 Securities Act or and Section 20 of the 1934 Exchange Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director and each officer of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within with the meaning of Section 15 of the 1933 Securities Act or and Section 20 of the 1934 Exchange Act shall have the same rights to contribution as the Company. The Underwriters’ respective . (f) First NLC agrees with each Underwriter, for the sole and exclusive benefit of such Underwriter and each person who controls an Underwriter within the meaning of either the Securities Act or the Exchange Act and not for the benefit of any assignee thereof or any other person or persons dealing with such Underwriter, to indemnify and hold harmless each Underwriter and each person who controls an Underwriter within the meaning of either the Securities Act or the Exchange Act against any failure by the Company to perform any of its obligations to contribute pursuant to this under Section 6 and Section 10 of this Agreement. First NLC agrees that there are several in proportion no conditions precedent to the principal amount obligations of Shares set forth opposite their respective names in Schedule A hereto and not jointFirst NLC hereunder other than written demand to First NLC to perform its obligations under this Agreement.

Appears in 1 contract

Samples: Underwriting Agreement (First NLC Securitization, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, and the respective directors, officers, employees and agents of each Underwriter, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoor part thereof), including the Rule 430B InformationTime of Sale Prospectus, the Sales Materials or the Prospectus, (ii) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, or necessary to make the statements made therein not misleading, (iii) any omission or alleged omission from any such Time of Sale Prospectus, Sales Materials or Prospectus of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading or arising (iv) any untrue statement or alleged untrue statement of any material fact contained in the Roadshow Material; except in each case of (i), (ii), (iii) and (iv) above insofar as any such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with the information set forth in the last sentence of the first paragraph of Section 10(b). The indemnity agreement set forth in this Section 10(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time after delivery of notice of such action or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its consent. (b) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Company’s directors, the Company’s officers that signed the Registration Statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus Registration Statement (or any amendment or supplement theretopart thereof), the Time of Sale Prospectus or Prospectus, (ii) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements therein not misleading, or (iii) any omission or alleged omission from any such Time of Sale Prospectus or Prospectus of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoever, but in each case only insofar as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement omission was made in such Registration Statement, Time of Sale Prospectus or omission made Prospectus in reliance upon and in conformity with written information furnished in writing by or on behalf of the Underwriters through the Representative to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use therein. . The following statements under the caption “Underwriting” beginning on page [ ] of the Registration Statement: (cA) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party the names of the Underwriters, (B) the first sentence of the third paragraph on page [ ], (C) the last paragraph on page [ ], and (D) the first paragraph and the third sentence of the second paragraph on page [ ] constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company for purposes of Section 3(r), Section 3(s) and this Section 10. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action, and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of any such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Representative will not relieve the Representative or any Underwriter of any obligation hereunder, except to the extent that the Representative’s ability to defend is actually impaired by such failure or delay. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time after delivery of notice of such action or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by such Underwriter and paid as incurred (it being understood, however, that the indemnified party. In no event Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (dc) If the indemnification provided for in this Section 6 10 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 10 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus, bear to the aggregate initial public offering price Time of the Shares as set forth on the cover of the Sale Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 10 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable, claimssubsection (c)(ii), damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 610, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 10 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (OFS Credit Company, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, and the respective directors, officers, employees and agents of each Underwriter from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus, (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoor part thereof), including any Issuer Free Writing Prospectus that the Rule 430B InformationCompany has filed or was required to file with the Commission, the Prospectus (the term “Prospectus” for the purpose of this Section 9 being deemed to include the Base Prospectus, any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (D) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an “Application”), (E) any omission or alleged omission therefrom of to state in the Registration Statement a material fact required to be stated therein or necessary to make the statements made therein not misleading or arising out of misleading, (F) any untrue statement omission or alleged untrue statement of a material fact contained in omission from any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “such Issuer Free Writing Prospectus,” , Prospectus or the omission or alleged omission therefrom any Application of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , (iiG) against any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials approved by the Company for use in connection with the marketing of the Shares, including, without limitation, slides, videos, films and all tape recordings; except in the case of (C), (E), (F) and (G) above only insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement, Issuer Free Writing Prospectus, Prospectus, Application or audio or visual materials. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such settlement is effected with Underwriter shall promptly notify the written consent Company in writing of the Company; (iii) against any institution of such action, and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) aboveand payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired or prejudiced by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made such indemnified party or parties shall have reasonably concluded (based on the written advice of counsel in reliance upon and in conformity consultation with written information furnished the counsel employed by the Company) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties but shall retain the right to direct its own defense), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons (as a group) in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its written consent. (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection or claim arises out of or is based upon (aA) of this Section, as incurred, but only with respect to any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in the Registration Statement (or any amendment theretoor part thereof), or any preliminary prospectus, any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission, or the Prospectus (Prospectus, or any amendment Application, (B) any omission or supplement theretoalleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, or (C) any omission or alleged omission from any such Issuer Free Writing Prospectus, Prospectus or any Application of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, but in each case only insofar as such untrue statement or alleged untrue statement or omission or alleged omission was made in such Registration Statement, Issuer Free Writing Prospectus, Prospectus or Application in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representatives to the Company by such Underwriter expressly for use therein. . The following statements under the caption “Underwriting” beginning on page S-32 of the Preliminary Prospectus Supplement: (ci) Each indemnified party shall give notice as promptly as reasonably practicable the third paragraph on page S-32, (ii) the fourth full paragraph on page S-33 of the Preliminary Prospectus Supplement beginning with “The representatives of the underwriters may engage…” until and including the last bullet of that paragraph ending with “…at which a stabilizing bid is made” on page S-33 of the Preliminary Prospectus Supplement and (iii) the last three paragraphs on page S-34 of the Preliminary Prospectus Supplement (and the corresponding sections of the Disclosure Package and the Prospectus, to each indemnifying party the extent such statements relate to the Underwriters) constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company for purposes of Section 3(l) and Section 3(m) and this Section 9. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representatives in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) or (b) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable, claimssubsection (c)(ii), damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Orion Marine Group Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees and the Seller, jointly and severally, agree to indemnify and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents each officer and director of each Underwriter and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the 1933 Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, from and against any and all losslosses, liabilityclaims, claim, damage damages and expense whatsoever, as incurred, arising liabilities (or actions in respect thereof) that arise out of or are based upon any (a) (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (for the registration of the Certificates as originally filed or in any amendment thereto)thereof, including or in the Rule 430B Base Prospectus or the Prospectus or the Time of Sale Information or the Static Pool Information, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein therein, in light of the circumstances under which they were made, not misleading or arising out of misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the any Issuer Information contained in any Free Writing Prospectus (prepared by or on behalf of any amendment or supplement thereto) Underwriter or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” Prospectus which is required to be filed pursuant to Section 3(f) or Section 3(h), or the omission or alleged omission therefrom to state a material fact required to make the statements therein, in light of the circumstances under which they were made, not misleading, which was not corrected by Corrective Information subsequently supplied by the Company to such Underwriter within a reasonable period of time prior to the Time of Sale, and (iii) any breach of the representation and warranty in Section 1(s), and will reimburse each Underwriter and any officer, director or controlling person for any legal or other expenses reasonably incurred by such Underwriter or such officer, director or controlling person in connection with investigating or defending any such loss, claim, damage, liability or action as such expenses are incurred, except insofar as such losses, claims, damages, or liabilities are caused by any such untrue statement or omission or alleged untrue statement or omission in reliance upon and in conformity with any information with respect to which each Underwriter has agreed to indemnify the Company pursuant to Section 9(b) hereof. (b) Each Underwriter, severally and not jointly, agrees to indemnify and hold harmless the Company, each of its directors, each of its officers who signs the Registration Statement and each person who controls the Company within the meaning of either the Act or the Exchange Act, to the same extent as the indemnity set forth in Section 9(a) above from the Company and the Seller to the Underwriters, but only with reference to any untrue statements or alleged untrue statements of a material fact, or omissions or alleged omissions to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use thereinUnderwriting Information. (c) Each indemnified party In case any proceeding (including any governmental investigation) shall give notice as promptly as reasonably practicable to each indemnifying party of be instituted involving any action commenced against it person in respect of which indemnity may be sought hereunderpursuant to either Section 9(a) or 9(b) hereof, such person (the "INDEMNIFIED PARTY") shall promptly notify the person against whom such indemnity may be sought (the "INDEMNIFYING PARTY") in writing, but failure the omission so to so notify an the indemnifying party shall will not relieve such the indemnifying party from any liability that the indemnifying party may have to any indemnified party hereunder except to the extent it is not such indemnifying party has been materially prejudiced as a result thereof thereby, and in any event the indemnifying party, upon request of the indemnified party, shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, retain counsel reasonably satisfactory to the indemnified parties party to represent the indemnified party and any others that the indemnifying party may designate in such proceeding and shall pay the reasonable fees and disbursements of such counsel related to such proceeding. In any such proceeding, any indemnified party shall have the right to retain its own counsel, but the reasonable fees and expenses of such counsel shall be selected at the expense of such indemnified party unless (i) the indemnifying party and the indemnified party shall have mutually agreed to the retention of such counsel, (ii) the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of commencement of the action or (iii) the named parties to any such proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties by the Underwriterssame counsel would be inappropriate due to actual or potential differing interests between them. In any case described in subclauses (i), and(ii) or (iii) of the immediately preceding sentence, the fees and disbursements of counsel for the indemnified party shall be paid by the indemnifying party. It is understood that the indemnifying party shall not, in connection with any proceeding or related proceedings involving the same general allegations in the same jurisdiction, be liable for the reasonable fees and expenses of more than one separate firm (plus one local counsel, as necessary) for all such indemnified parties. Such firm shall be designated in writing by the relevant Underwriter, in the case of parties indemnified pursuant to Section 6(b9(a) abovehereof and by the Company or the Seller, counsel in the case of parties indemnified pursuant to Section 9(b) hereof. The indemnifying party may, at its option, at any time upon written notice to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in party, assume the defense of any proceeding and may designate counsel reasonably satisfactory to the indemnified party in connection therewith; provided that the counsel so designated would have no actual or potential conflict of interest in connection with such action; provided, however, that counsel to representation. Unless it shall assume the defense of any proceeding the indemnifying party shall not (except be liable for any settlement of any proceeding, effected without its written consent, which consent shall not be unreasonably withheld, but if settled with such consent or if there be a final judgment for the consent of plaintiff, the indemnifying party agrees to indemnify the indemnified party) also be counsel party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party. In no event shall the indemnifying parties be liable party for fees and expenses of counsel as contemplated herein, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (y) such settlement is entered into more than one counsel (in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or related actions in the same jurisdiction arising out 90 days after receipt by such indemnifying party of the same general allegations or circumstancesaforesaid request and (z) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to the date of such settlement. No indemnifying party shall, without the prior written consent of the indemnified partiesparty, settle or compromise or consent to the entry effect any settlement of any judgment with respect to any litigation, pending or any investigation or threatened proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification any indemnified party is or contribution could be have been a party and indemnity could have been sought under this Section 6 (whether or not the hereunder by such indemnified parties are actual or potential parties thereto)party, unless such settlement, compromise or consent settlement (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (iiA) does not include a statement as to to, or an admission of of, fault, culpability or a failure to act by or on behalf of any such indemnified partyparty and (B) includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding. (d) If the indemnification provided for in this Section 6 Article 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under Section 9(a) or 9(b) hereof or is insufficient in respect of any losses, liabilities, claims, damages damages, expenses or expenses liabilities referred to therein, then each indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, claims, damages, expenses or liabilities, claims, damages and expenses incurred by such indemnified party, as incurred (i) in such proportion as is appropriate to reflect (i) the relative benefits received by the Company on the one hand and the Underwriters related Underwriter on the other hand from the offering of the Shares pursuant to this Agreement, Certificates or (ii) if the allocation provided by clause (ia) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters related Underwriter on the other hand in connection with the statements or omissions which or alleged statements or alleged omissions that resulted in such losses, liabilities, claims, damages damages, expenses or expensesliabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and by the Underwriters related Underwriter on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions as that the total net proceeds from the offering of the Shares pursuant to this Agreement (before deducting expenses) received purchase price paid by the Company and the total underwriting discount received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear related Underwriter to the aggregate initial public offering price Company for the Certificates ("NET PROCEEDS") bears to the excess of (a) the Shares as set forth on purchase prices paid by investors to each Underwriter for the cover of Certificates (the Prospectus"PUBLIC OFFERING PRICE") over (b) Net Proceeds. The relative fault of the Company on the one hand and of the Underwriters related Underwriter on the other hand shall be determined by reference to, among other things, whether any such the untrue or alleged allegedly untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters related Underwriter and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. . (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take account of the equitable considerations referred to above in this Section 69(d) above. The aggregate amount of losses, liabilities, claims, damages and expenses incurred paid or payable by an indemnified party as a result of the losses, claims, damages, expenses and liabilities referred to above in this Section 6 9 shall be deemed to include include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing connection with investigating or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue action or alleged untrue statement or omission or alleged omissionclaim except where the indemnified party is required to bear such expenses pursuant to Section 9(d), which expenses the indemnifying party shall pay as and when incurred, at the request of the indemnified party, to the extent such expenses are required to be paid by such indemnifying party under this Section 9. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which aggregate Public Offering Price of the Shares Certificates underwritten by it and distributed to the public were offered by such Underwriter exceeds the related Net Proceeds. In the event that any expenses so paid by the indemnifying party are subsequently determined not to be required to be borne by the indemnifying party hereunder, the party that received such payment shall promptly refund the amount so paid to the public exceeds the amount of any damages which party that made such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionpayment. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxAct) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of . (f) The indemnity and contribution agreements contained in this Section 6, each person, if any, who controls an Underwriter within 9 and the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act representations and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer warranties of the Company who signed and the Registration StatementSeller set forth in this Agreement shall remain operative and in full force and effect regardless of (i) any termination of this Agreement, and each person, if any, who controls (ii) any investigation made by the Underwriters or on behalf of the Underwriters or any person controlling any Underwriter or by or on behalf of the Company within and its respective directors or officers or any person controlling the meaning Company and (iii) acceptance of Section 15 and payment for any of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not jointUnderwritten Securities.

Appears in 1 contract

Samples: Underwriting Agreement (Luminent Mortgage Trust 2006-6)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, and the respective directors, officers, employees and agents of each Underwriter from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such indemnified party may incur arising under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus, (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), the ADS Registration Statement, any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission or is otherwise required retain, the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company) or any Written Testing-the-Waters Communication, (D) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Offered ADSs (including the Rule 430B InformationUnderlying Shares) under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an “Application”), or the (E) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement or ADS Registration Statement or necessary to make the statements made therein not misleading or arising out of misleading, (F) any untrue statement omission or alleged untrue statement of a material fact contained in omission from any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “such Issuer Free Writing Prospectus,” , Prospectus, Testing-the-Waters Communication or the omission or alleged omission therefrom any Application of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , (iiG) against any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials used in connection with the marketing of the Offered ADSs, including, without limitation, slides, videos, films, tape recordings and all any Testing-the-Waters Communication; except, in the case of (C), (E) and (F) above only, insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement, Prospectus or Application. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. (b) If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to Section 9(a), such settlement is effected with Underwriter shall promptly notify the written consent Company in writing of the Company; (iii) against any institution of such action, and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) aboveand payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (bc) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection or claim arises out of or is based upon (aA) of this Section, as incurred, but only with respect to any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), or any preliminary prospectus, any Issuer Free Writing Prospectus or any Written Testing-the-Waters Communication that the Prospectus (Company has filed or submitted or was required to file or submit with the Commission, or the Prospectus, or any amendment Application, (B) any omission or supplement theretoalleged omission to state a material fact required to be stated in any such Registration Statement or ADS Registration Statement, or necessary to make the statements made therein not misleading, or (C) any omission or alleged omission from any such Issuer Free Writing Prospectus, Prospectus or any Testing-the-Waters Communication or any Application of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, but in each case only insofar as such untrue statement or alleged untrue statement or omission or alleged omission was made in such Registration Statement, Issuer Free Writing Prospectus, Prospectus or Testing-the-Waters Communication or Application in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representatives to the Company by such Underwriter expressly for use therein. . The statements set forth in the paragraphs identified by “Syndicate Short Sales,” “Stabilization” and “Passive Market Making” under the caption “Underwriting” in the Preliminary Prospectus, the Disclosure Package and the Prospectus (cto the extent such statements relate to the Underwriters) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company for purposes of Section 3(n), Section 3(p) and Section 3(q) and this Section 9. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representatives in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (d) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, Offered ADSs or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (d)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Shares underwritten by it underwriting discounts and distributed commissions applicable to the public were offered to the public exceeds the amount of any damages which Offered ADSs purchased by such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of The Underwriters’ obligations to contribute pursuant to this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act 9 are several in proportion to their respective underwriting commitments and not joint. (f) The Company agrees to indemnify and hold harmless each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Companyits affiliates, each officer of the Company who signed the Registration StatementPiper, Jaffray & Co. and each person, if any, who controls the Company each Underwriter, its affiliates, and Piper, Jaffray & Co. within the meaning of either Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act shall have Exchange Act, from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) (i) caused by any untrue statement or alleged untrue statement of a material fact contained in any material prepared by or with the same rights consent of the Company for distribution to contribution participants in connection with the Directed Share Program, or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; (ii) as a result of the Companyfailure of any participant to pay for and accept delivery of Directed Shares that the participant has agreed to purchase; or (iii) related to, arising out of, or in connection with the Directed Share Program. (g) The Company will indemnify, defend and hold each Underwriter harmless against any taxes, duties or fees and any transaction levies, commissions or brokerage charges imposed by any government, or any political subdivision or tax authority thereof or therein, including any interest and penalties, which are required to be paid in connection with the creation, allotment, issuance, offer and distribution of the Underlying Shares and Offered ADSs to be sold by the Company and the execution and delivery of this Agreement and the Deposit Agreement. The Underwriters’ respective obligations For the avoidance of doubt, this indemnity does not extend to contribute pursuant to this Section 6 are several in proportion to any income tax assessed on the principal amount net income of Shares set forth opposite their respective names in Schedule A hereto and not jointany Underwriter.

Appears in 1 contract

Samples: Underwriting Agreement (Sky Solar Holdings, Ltd.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents officers and each person, if any, employees and any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter, officer, employee or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company), the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented), (B) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company (and approved by the Company) filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange relating to the Shares offered hereby (each an “Application”), or (C) any omission or alleged omission to state a material fact required to be stated in any such Registration Statement, Prospectus or any Application or necessary to make the statements made therein not misleading. The foregoing indemnity agreement (i) shall not apply to any loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement, Prospectus or Application and (ii) with respect to any Preliminary Prospectus shall not inure to the benefit of any Underwriter from whom the person asserting any loss, liability, claim, damage or expense purchased Shares, or any person controlling such Underwriter, if a copy of the Prospectus (as then amended or supplemented if the Company shall have furnished any amendments or supplements thereto) was not sent or given by or on behalf of such Underwriter to such person, if required by law so to have been delivered, at or prior to the written confirmation of the sale of the Shares to such person, and if the Prospectus (as so amended or supplemented) was provided to such Underwriter in a timely manner and would have cured the defect giving rise to such losses, liabilities, claims, damages or expenses. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against an Underwriter, officer, employee or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the Rule 430B Informationemployment of counsel reasonably satisfactory to the indemnified party and payment of expenses; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay and, provided further, that the failure to notify the Company shall not relieve it from any liability which it may have to an indemnified party otherwise than under this Section 9. Such Underwriter, officer, employee or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter, officer, employee or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters, officers, employees or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its consent. (b) Each Underwriter agrees, severally and not jointly, to indemnify and hold harmless the Company, the Company’s directors, officers and employees and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, but only insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company), the Prospectus, or any Application, or (B) the omission or alleged omission therefrom of a to state in the Registration Statement, Prospectus or Application, any material fact required to be stated therein or necessary to make the statements therein not misleading or arising out of any misleading, but in each case only to the extent that the untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission was made in reliance upon and in conformity with written information 27 concerning such Underwriter furnished to the Company through the Representative by any or on behalf of that Underwriter expressly specifically for use inclusion therein. The statements set forth in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing paragraphs identified by “Stabilization” and “Passive Market Making” under the caption “Underwriting” in the Preliminary Prospectus or and the Prospectus (to the extent such statements relate to the Underwriters) constitute the only information furnished by or on behalf of any amendment or supplement thereto). (bUnderwriter through the Representative to the Company for purposes of Section 3(l) Each and this Section 9. The indemnity agreement set forth in this Section 9(b) shall be in addition to any liabilities that such Underwriter severally agrees to indemnify and hold harmless may otherwise have. If any action is brought against the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of any action commenced against it person in respect of which indemnity may be sought hereunderagainst any Underwriter pursuant to the foregoing paragraph, but the Company, or such person shall promptly notify the Representative in writing of the institution of such action and the Representative, on behalf of the Underwriters, shall assume the defense of such action, including the employment of counsel reasonably satisfactory to the indemnified party and payment of expenses provided, however, that any failure or delay to so notify an indemnifying party the Representative will not relieve any Underwriter of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay and, provided further, that the failure to notify the Representative shall not relieve such indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a result thereof and in any event shall not relieve it Underwriter from any liability which it may have to an indemnified party otherwise than on account under this Section 9. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, such counsel to the indemnified parties shall be selected at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Underwriters, and, Representative in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such action; providedfees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) or (b) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9(c) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of losses(c)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the contribution provisions of this Section 69(c), no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Midwest Banc Holdings Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) that, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any and all lossfailure on the part of the Company to comply with any applicable law, liabilityrule or regulation relating to the offering of securities being made pursuant to the Prospectus (including the failure to comply with any law, claimrule or regulation of foreign jurisdictions where Directed Shares have been offered), damage and expense whatsoever, as incurred, arising out of (ii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement Statement, the Prospectus (or the term Prospectus for the purpose of this Section 9 being deemed to include the Preliminary Prospectus and any amendment theretoother preliminary prospectus, the Prospectus and any prospectus wrapper material), including the Rule 430B Information, or the (iii) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement or Prospectus or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against ; except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected omission or alleged omission of a material fact contained in and in conformity with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen information furnished in writing by the Underwriters)Underwriters through the Representatives to the Company expressly for use in such Registration Statement or Prospectus; and except that, reasonably incurred in investigatingwith respect to the Preliminary Prospectus or other preliminary prospectus, preparing the foregoing indemnity agreement shall not inure to the benefit of any Underwriter from whom the person asserting any loss, expense, liability, damage or defending against any litigationclaim purchased Shares, or any investigation or proceeding by any governmental agency or bodyperson controlling such Underwriter, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, if copies of the Prospectus were timely delivered to the extent Underwriter pursuant to Section 1 hereof and a copy of the Prospectus (as then amended or supplemented if the Company shall have furnished any amendments or supplements thereto) was not sent or given by or on behalf of such Underwriter to such person, if required by law so to have been delivered, at or prior to the written confirmation of the sale of the Shares to such person, and if the Prospectus (as so amended or supplemented) would have cured the defect giving rise to such loss, expense, liability, damage or claim. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liabilities that the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such expense is not paid under (i) or (ii) aboveUnderwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (or other than local counsel in any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or such jurisdiction) representing the Prospectus (or any amendment or supplement theretoindemnified parties who are parties to such action). (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who that signed the Registration Statement, Statement and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) that, damage and expense described in jointly or severally, the indemnity contained in subsection (a) of this SectionCompany or any such person may incur under the Securities Act, as incurredthe Exchange Act or otherwise, but only with respect to insofar as such loss, expense, liability, damage or claim arises out of or is based upon (i) any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representatives to the Company expressly for use in the Registration Statement (or any amendment thereto)the Prospectus, or (ii) any preliminary prospectus, any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in such Registration Statement or Prospectus or necessary to make such information, in the light of the circumstances under which made, not misleading; provided, however, that the statements set forth in the [ ] paragraphs under the caption “Underwriting” in the Preliminary Prospectus and the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company by for purposes of Section 3(n) and this Section 9. The indemnity agreement set forth in this Section 9(b) shall be in addition to any liabilities that such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of may otherwise have. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representatives in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of any such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Representatives will not relieve the Underwriters of any obligation hereunder, except to the extent that their ability to defend is actually impaired by such failure or delay. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them that are different from or additional to those available to the Underwriters (in which case the Representatives shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by the indemnified party. In no event Underwriters and paid as incurred (it being understood, however, that the Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). (c) The indemnifying party under this Section 9 shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the same general allegations plaintiff, the indemnifying party agrees to indemnify (to the extent provided in this Section 9) the indemnified party against any loss, expense, liability, damage or circumstancesclaim by reason of such settlement or judgment. No indemnifying party shall, without the prior written consent of the indemnified partiesparty, settle or effect any settlement, compromise or consent to the entry of judgment in any judgment with respect to any litigationpending or threatened action, or any investigation suit or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification any indemnified party is or contribution could be have been a party and indemnity was or could have been sought under this Section 6 (whether or not the hereunder by such indemnified parties are actual or potential parties thereto)party, unless such settlement, compromise or consent (i) includes an unconditional release of each such indemnified party from all liability arising out on claims that are the subject matter of such litigationaction, investigation, suit or proceeding or claim and (ii) does not include a statement as to to, or an admission of of, fault, culpability or a failure to act by or on behalf of any indemnified party. (d) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and by the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above above, but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which that resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and by the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount clause (i) and, if applicable clause (ii), of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionsubsection (d) above. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations to contribute pursuant to this Section 9 are several in proportion to their respective underwriting commitments and not joint. For purposes of this Section 69, each officer and director of an Underwriter and each person, if any, who controls an Underwriter within the meaning of the Section 15 of the 1933 Securities Act or and Section 20 of the 1934 Exchange Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Securities Act or and Section 20 of the 1934 Exchange Act shall have the same rights to contribution as the Company. . (f) The Company agrees to indemnify and hold harmless each Underwriter and its affiliates and each person, if any, who controls any Underwriter or its affiliates within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) (i) caused by any untrue statement or alleged untrue statement of a material fact contained in any material prepared by the Company or delivered to and approved by the Company for distribution to participants in connection with the Directed Share Program, or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; (ii) as a result of the failure of any participant to pay for and accept delivery of Directed Shares that the participant has agreed to purchase; or (iii) related to, arising out of, or in connection with the Directed Share Program, other than losses, claims, damages and liabilities (or expenses relating thereto) that are finally judicially determined to have resulted from the bad faith or gross negligence of the Underwriters’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Capital Lease Funding Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (eachand its and their officers, an “Affiliate”)directors, its selling agents employees, partners and members and each person, if any, who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) that, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus (the term Prospectus for the purpose of this Section 8 being deemed to include any preliminary prospectus, the Prospectus and all lossany amendment or supplement thereto and any prospectus wrapper material), liability, claim, damage and expense whatsoever, as incurred, arising out of (ii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (Statement, any Issuer Free Writing Prospectus or any amendment thereto), including the Rule 430B InformationProspectus, or the (iii) any omission or alleged omission therefrom of to state a material fact required to be stated therein or necessary to make in the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectusRegistration Statement, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against ; except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made of a material fact contained in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representative to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectusStatement, any Issuer Free Writing Prospectus or the Prospectus Prospectus. The indemnity agreement set forth in this Section 8(a) shall be in addition to any liabilities that the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any amendment of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or supplement theretocontrolling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who that signed the Registration Statement, Statement and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) that, damage and expense described in jointly or severally, the indemnity contained in subsection (a) of this SectionCompany or any such person may incur under the Securities Act, as incurredthe Exchange Act or otherwise, but only with respect to insofar as such loss, expense, liability, damage or claim arises out of or is based upon (i) any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representative to the Company expressly for use in the Registration Statement (Statement, any Issuer Free Writing Prospectus or any amendment thereto)the Prospectus, or (ii) any preliminary prospectusomission or alleged omission to state a material fact in connection with such information required to be stated in the Registration Statement, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) necessary to make such information, in reliance upon and the light of the circumstances under which made, not misleading; provided, however, that the statements identified in conformity with written Schedule IV attached hereto constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company by for purposes of this Section 8. The indemnity agreement set forth in this Section 8(b) shall be in addition to any liabilities that such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of may otherwise have. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of any such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Representative will not relieve the Underwriters of any obligation hereunder, except to the extent that their ability to defend is actually impaired by such failure or delay. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them that are different from or additional to those available to the Underwriters (in which case the Representative shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by the indemnified party. In no event Underwriters and paid as incurred (it being understood, however, that the Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). (c) The indemnifying party under this Section 8 shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the same general allegations plaintiff, the indemnifying party agrees to indemnify (to the extent provided in this Section 8) the indemnified party against any loss, expense, liability, damage or circumstancesclaim by reason of such settlement or judgment. No indemnifying party shall, without the prior written consent of the indemnified partiesparty, settle or effect any settlement, compromise or consent to the entry of judgment in any judgment with respect to any litigationpending or threatened action, or any investigation suit or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification any indemnified party is or contribution could be have been a party and indemnity was or could have been sought under this Section 6 (whether or not the hereunder by such indemnified parties are actual or potential parties thereto)party, unless such settlement, compromise or consent (i) includes an unconditional release of each such indemnified party from all liability arising out on claims that are the subject matter of such litigationaction, investigation, suit or proceeding or claim and (ii) does not include a statement as to to, or an admission of of, fault, culpability or a failure to act by or on behalf of any indemnified party. (d) If the indemnification provided for in this Section 6 8 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 8 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and by the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above above, but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which that resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and by the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering sale of the Shares pursuant to this Agreement (net of underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 8 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount clause (i) and, if applicable clause (ii), of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionsubsection (d) above. Notwithstanding the provisions of this Section 68, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations to contribute pursuant to this Section 8 are several in proportion to their respective underwriting commitments and not joint. For purposes of this Section 68, each affiliate of an Underwriter, each officer, director, employee, partner, and member of an Underwriter or its affiliates and each person, if any, who controls an any Underwriter within the meaning of the Section 15 of the 1933 Securities Act or and Section 20 of the 1934 Exchange Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Securities Act or and Section 20 of the 1934 Exchange Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (CapLease, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act, the Securities Act Regulations, the Exchange Act Regulations or otherwise, but only insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus, (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company), the Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company ), (D) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an “Application”), including the Rule 430B Information, or the (E) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, Prospectus or any Application or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall the Company will not apply to be liable in any such case insofar as any such loss, expense, liability, claim, damage or expense to the extent arising claim arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged untrue statement or omission made of a material fact contained in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representatives to the Company by any Underwriter expressly for use in the such Registration Statement (or any amendment thereto)Statement, including any preliminary prospectusPreliminary Prospectus, any Issuer Free Writing Prospectus or the Prospectus (Prospectus, or any amendment or supplement thereto, or Application, provided, further, that the foregoing indemnity with respect to any Preliminary Prospectus shall not inure to the benefit of any Underwriter from whom the person asserting any such loss, claim, damage, or liability purchased the Shares that are the subject thereof, if the Company delivered the Prospectus (or the Prospectus as supplemented) to the Underwriters promptly as provided in Section 4(c) or in the case of the initial delivery not later than 12:00 a.m. (New York City time) on the day following the execution and delivery of this Agreement and such person did not receive a copy of the Prospectus (or the Prospectus as supplemented) at or prior to the confirmation of the sale to such person in any case where such delivery is required by the Act and the untrue statement or omission of a material fact contained in such Preliminary Prospectus was corrected in the Prospectus (or the Prospectus as supplemented). The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. (b) If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the written advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid on a monthly basis (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its consent. (c) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, damage and expense described in jointly or severally, the indemnity contained in subsection (a) of this SectionCompany, as incurredor any such person may incur under the Securities Act, the Exchange Act, the Securities Act Regulations, the Exchange Act Regulations or otherwise, but only with respect to insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representatives to the Company expressly for use in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereto)thereof by the Company),the Preliminary Prospectus, the Prospectus, the Prospectus as amended or supplemented by the Company, or any preliminary prospectusApplication, or (B) any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in such Registration Statement, Preliminary Prospectus, Prospectus and Prospectus as amended or supplemented by the Company or any Application or necessary to make such information, in the light of the circumstances under which made, not misleading. The Company and the Underwriters acknowledge that the statements set forth in the last paragraph of the cover page regarding the delivery of the Shares, and, under the caption “Underwriting,” (i) the list of Underwriters and their respective participation in the sale of the Shares, (ii) the sentences related to concessions and reallowances and the manner in which the Underwriters propose to offer the Shares, and (iii) the paragraph related to stabilization, syndicate covering transactions and penalty bids in any Preliminary Prospectus, the Prospectus (and the Prospectus as amended or supplemented by the Company constitute the only information furnished in writing by or on behalf of the several Underwriters for inclusion in any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company. If any action is brought against the Company or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of any action commenced against it person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company, or such person shall promptly notify the Representatives in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the written advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (d) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (d)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Levitt Corp)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify shall indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which the Underwriters or any such controlling person may incur insofar as follows: such loss, expense, liability, damage or claim arises out of or, is based upon (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company) or the Prospectus (the term Prospectus for the purpose of this Section 5 being deemed to include any Preliminary Prospectus, Pricing Prospectus, Issuer Free Writing Prospectus, the Prospectus and any Prospectus supplements, in each case as amended or supplemented by the Company), (ii) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or “blue sky” laws thereof or filed with the Commission or any securities association or securities exchange (each an “Application”), including the Rule 430B Information, or the (iii) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, Prospectus or Application or necessary to make the statements made therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; ; except, in the case of each of clauses (i), (ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; providedloss, however, that this indemnity agreement shall not apply to any lossexpense, liability, claim, damage or expense to the extent arising claim arises out of or is based upon (x) any such untrue statement or omission or alleged untrue statement or omission made of a material fact contained in reliance upon and in conformity with written information furnished in writing by or on behalf of the Underwriters to the Company by any Underwriter expressly for use in the such Registration Statement or such Prospectus or (y) sales to any person asserting any such loss, expense, liability, damage or any amendment thereto)claim incurred from purchasing the Shares, including any preliminary prospectus, any Issuer Free Writing Prospectus if a copy of the Disclosure Package or the Prospectus (in each case, as then amended or supplemented if the Company shall have timely furnished any amendment amendments or supplement supplements thereto) was not sent or given by or on behalf of such Underwriter to such person, if required by law to have been delivered, at or prior to the written confirmation of the sale of the Shares to such person, and if the Disclosure Package or the Prospectus (in each case, as so amended or supplemented), as applicable, would have cured the defect giving rise to such loss, expense, liability, damage or claim, unless such failure is the result of noncompliance by the Company. (b) Each Underwriter of the Underwriters shall, severally agrees to indemnify and not jointly, indemnify, defend and hold harmless the Company, the Company’s Company and its directors, officers, employees and agents, each of the Company’s officers who signed the Registration Statement, and each person, if any, person who controls the Company Company, as the case may be, within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, the Company, or any such person may incur but only insofar as such loss, expense, liability, damage and expense described in the indemnity or claim arises out of or is based upon (i) any untrue statement of a material fact contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus thereof by the Company) or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished in writing by or on behalf of such Underwriter to the Company expressly for inclusion in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company) or the Prospectus, as specified in the last sentence of this Section 5(b), or (ii) any omission to state a material fact regarding such Underwriter expressly required to be stated in such Registration Statement or the Prospectus or necessary to make such statement not misleading. The obligation of each of the Underwriters to indemnify the Company (including any director, officer, employee, agent or control person thereof) shall only relate to any untrue statement or omission which applies to the Underwriter. The Company and the Underwriters acknowledge that the information set forth (x) on the cover page of the Prospectus concerning the Underwriters, relating to the delivery of the Shares, and (y) under the caption “Underwriting” in the Prospectus with respect to (1) the concession and reallowance figures and (2) passive market and stabilization activities by the Underwriters, constitute the only information furnished by or on behalf of the Underwriters to the Company for use thereinpurposes of this Section 5. (c) Each Promptly after receipt by an indemnified party shall give under subsection (a) or (b) above of notice as promptly as reasonably practicable of any claims or the commencement of any action, such indemnified party shall, if a claim in respect thereof is to each be made against the indemnifying party of any action commenced under such subsection, notify in writing each party against it in respect of which indemnity may whom indemnification is to be sought hereunder, of the claim or the commencement thereof (but the failure so to so notify an indemnifying party shall not (i) relieve such the indemnifying party from any liability hereunder which it may have under this Section 7, to the extent that it is did not otherwise learn of such action and such failure does not materially prejudiced prejudice the indemnifying party as a result thereof thereof, and (ii) in any event shall not relieve it from any liability which it that such indemnifying party may have otherwise than on account of this the indemnity agreementagreement hereunder). In The indemnifying party shall be entitled to appoint counsel of the indemnifying party’s choice at the indemnifying party’s expense to represent the indemnified party in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be responsible for the fees and expenses of any separate counsel retained by the indemnified party or parties indemnified pursuant to Section 6(a) aboveexcept as set forth below); provided, however, that such counsel shall be reasonably satisfactory to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Companyparty. An The indemnifying party may participate at its own expense in the defense of any such actionaction at its own expense, and to the extent it may elect, by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, the indemnifying party may assume the defense thereof with counsel reasonably satisfactory to such indemnified party; provided, however, that counsel to the indemnifying party shall not (except with the written consent of the indemnified party) also be counsel to the indemnified party. In no event Notwithstanding the foregoing, the indemnified party or parties shall have the indemnifying parties be liable for right to employ its or their own counsel in any such case, but the fees and expenses of more than such counsel shall be at the expense of such indemnified party or parties unless (i) the employment of such counsel shall have been authorized in writing by one of the indemnifying parties in connection with the defense of such action, (ii) the indemnifying parties shall not have employed reasonably satisfactory counsel to have charge of the defense of such action within a reasonable time after notice of commencement of the action, (iii) the indemnifying party does not diligently defend the action after assumption of the defense, or (iv) such indemnified party or parties shall have reasonably concluded based on the advice of the advice of counsel that there may be defenses available to it or them which are different from or additional to those available to one or all of the indemnifying parties (in which case the indemnifying parties shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events the fees and expenses of one counsel selected by all of the indemnified parties to represent them all (in addition to one local counsel selected by all of the indemnified parties to represent them all in each applicable jurisdiction) shall be borne by the indemnifying parties. In the case of any local counsel) separate from their own counsel for all indemnified parties the Company and its officers, directors and control persons, such counsel shall be designated in connection with writing by the Company. In the case of any one action or separate but similar or related actions counsel for the Underwriters and their respective officers, directors and control persons, such counsel shall be designated in the same jurisdiction arising out of the same general allegations or circumstanceswriting by SMH Capital. No indemnifying party shall, without the prior written consent of the indemnified parties, settle effect any settlement or compromise of, or consent to the entry of any judgment with respect to to, any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be have been sought under this Section 6 5 (whether or not the indemnified parties are actual or potential parties thereto), unless (x) such settlement, compromise or consent (iI) includes an unconditional release of each the indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (iiII) does not include a statement as to to, or an admission of of, fault, culpability or a failure to act act, by or on behalf of any the indemnified party, and (y) the indemnifying party reaffirms its indemnification obligations pursuant to this Agreement. (d) If the indemnification provided for in this Section 6 5 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) or (b) of this Section 5 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with respect to the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the respect to such offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total proceeds (net proceeds from the offering of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company from the Shares sold under this Agreement, on the one hand, and the total underwriting discount discounts and commissions received by the UnderwritersUnderwriters with respect to the Shares purchased under this Agreement, on the other hand, bear to the total gross proceeds from the offering of the Shares under this Agreement, in each case as set forth in the table on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover page of the Prospectus. The relative fault of the Company on the one hand and the Underwriters on the other hand shall be determined by reference to, among other things, (i) whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and Underwriters, (ii) the intent of the parties, and (iii) their relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 5(d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of losses5(d)(i) and, liabilitiesif applicable, claimsSection 5(d)(ii), damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 65, no Underwriter (i) none of the Underwriters shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omission. No Underwriters and, (ii) no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxAct) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this in Section 6 are 5(d) shall be several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting obligations and not joint. The indemnity and contribution contained in this Section 5 shall remain operative and in full force and effect regardless of (i) any termination of this Agreement and (ii) any investigation made by or on behalf of the Underwriters or the Company and such party’s officers or directors or any person controlling such parties.

Appears in 1 contract

Samples: Underwriting Agreement (Firepond, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees and the Seller, jointly and severally, agree to indemnify and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents each officer and director of each Underwriter and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the 1933 Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, from and against any and all losslosses, liabilityclaims, claim, damage damages and expense whatsoever, as incurred, arising liabilities (or actions in respect thereof) that arise out of or are based upon any (a) (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (for the registration of the Certificates as originally filed or in any amendment thereto)thereof, including or in the Rule 430B Base Prospectus or the Prospectus or the Time of Sale Information or the Static Pool Information, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein therein, in light of the circumstances under which they were made, not misleading or arising out of misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the any Issuer Information contained in any Free Writing Prospectus (prepared by or on behalf of any amendment or supplement thereto) Underwriter or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” Prospectus which is required to be filed pursuant to Section 3(f) or Section 3(h), or the omission or alleged omission therefrom to state a material fact required to make the statements therein, in light of the circumstances under which they were made, not misleading, which was not corrected by Corrective Information subsequently supplied by the Company to such Underwriter within a reasonable period of time prior to the Time of Sale, and (iii) any breach of the representation and warranty in Section 1(s), and will reimburse each Underwriter and any officer, director or controlling person for any legal or other expenses reasonably incurred by such Underwriter or such officer, director or controlling person in connection with investigating or defending any such loss, claim, damage, liability or action as such expenses are incurred, except insofar as such losses, claims, damages, or liabilities are caused by any such untrue statement or omission or alleged untrue statement or omission in reliance upon and in conformity with any information with respect to which each Underwriter has agreed to indemnify the Company pursuant to Section 9(b) hereof. (b) Each Underwriter, severally and not jointly, agrees to indemnify and hold harmless the Company, each of its directors, each of its officers who signs the Registration Statement and each person who controls the Company within the meaning of either the Act or the Exchange Act, to the same extent as the indemnity set forth in Section 9(a) above from the Company and the Seller to the Underwriters, but only with reference to any untrue statements or alleged untrue statements of a material fact, or omissions or alleged omissions to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use thereinUnderwriting Information. (c) Each indemnified party In case any proceeding (including any governmental investigation) shall give notice as promptly as reasonably practicable to each indemnifying party of be instituted involving any action commenced against it person in respect of which indemnity may be sought hereunderpursuant to either Section 9(a) or 9(b) hereof, such person (the "indemnified party") shall promptly notify the person against whom such indemnity may be sought (the "indemnifying party") in writing, but failure the omission so to so notify an the indemnifying party shall will not relieve such the indemnifying party from any liability that the indemnifying party may have to any indemnified party hereunder except to the extent it is not such indemnifying party has been materially prejudiced as a result thereof thereby, and in any event the indemnifying party, upon request of the indemnified party, shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, retain counsel reasonably satisfactory to the indemnified parties party to represent the indemnified party and any others that the indemnifying party may designate in such proceeding and shall pay the reasonable fees and disbursements of such counsel related to such proceeding. In any such proceeding, any indemnified party shall have the right to retain its own counsel, but the reasonable fees and expenses of such counsel shall be selected at the expense of such indemnified party unless (i) the indemnifying party and the indemnified party shall have mutually agreed to the retention of such counsel, (ii) the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of commencement of the action or (iii) the named parties to any such proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties by the Underwriterssame counsel would be inappropriate due to actual or potential differing interests between them. In any case described in subclauses (i), and(ii) or (iii) of the immediately preceding sentence, the fees and disbursements of counsel for the indemnified party shall be paid by the indemnifying party. It is understood that the indemnifying party shall not, in connection with any proceeding or related proceedings involving the same general allegations in the same jurisdiction, be liable for the reasonable fees and expenses of more than one separate firm (plus one local counsel, as necessary) for all such indemnified parties. Such firm shall be designated in writing by the relevant Underwriter, in the case of parties indemnified pursuant to Section 6(b9(a) abovehereof and by the Company or the Seller, counsel in the case of parties indemnified pursuant to Section 9(b) hereof. The indemnifying party may, at its option, at any time upon written notice to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in party, assume the defense of any proceeding and may designate counsel reasonably satisfactory to the indemnified party in connection therewith; provided that the counsel so designated would have no actual or potential conflict of interest in connection with such action; provided, however, that counsel to representation. Unless it shall assume the defense of any proceeding the indemnifying party shall not (except be liable for any settlement of any proceeding, effected without its written consent, which consent shall not be unreasonably withheld, but if settled with such consent or if there be a final judgment for the consent of plaintiff, the indemnifying party agrees to indemnify the indemnified party) also be counsel party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party. In no event shall the indemnifying parties be liable party for fees and expenses of counsel as contemplated herein, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (y) such settlement is entered into more than one counsel (in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or related actions in the same jurisdiction arising out 90 days after receipt by such indemnifying party of the same general allegations or circumstancesaforesaid request and (z) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to the date of such settlement. No indemnifying party shall, without the prior written consent of the indemnified partiesparty, settle or compromise or consent to the entry effect any settlement of any judgment with respect to any litigation, pending or any investigation or threatened proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification any indemnified party is or contribution could be have been a party and indemnity could have been sought under this Section 6 (whether or not the hereunder by such indemnified parties are actual or potential parties thereto)party, unless such settlement, compromise or consent settlement (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (iiA) does not include a statement as to to, or an admission of of, fault, culpability or a failure to act by or on behalf of any such indemnified partyparty and (B) includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding. (d) If the indemnification provided for in this Section 6 Article 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under Section 9(a) or 9(b) hereof or is insufficient in respect of any losses, liabilities, claims, damages damages, expenses or expenses liabilities referred to therein, then each indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, claims, damages, expenses or liabilities, claims, damages and expenses incurred by such indemnified party, as incurred (i) in such proportion as is appropriate to reflect (i) the relative benefits received by the Company on the one hand and the Underwriters related Underwriter on the other hand from the offering of the Shares pursuant to this Agreement, Certificates or (ii) if the allocation provided by clause (ia) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters related Underwriter on the other hand in connection with the statements or omissions which or alleged statements or alleged omissions that resulted in such losses, liabilities, claims, damages damages, expenses or expensesliabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and by the Underwriters related Underwriter on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions as that the total net proceeds from the offering of the Shares pursuant to this Agreement (before deducting expenses) received purchase price paid by the Company and the total underwriting discount received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear related Underwriter to the aggregate initial public offering price Company for the Certificates ("Net Proceeds") bears to the excess of (a) the Shares as set forth on purchase prices paid by investors to each Underwriter for the cover of Certificates (the Prospectus"Public Offering Price") over (b) Net Proceeds. The relative fault of the Company on the one hand and of the Underwriters related Underwriter on the other hand shall be determined by reference to, among other things, whether any such the untrue or alleged allegedly untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters related Underwriter and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. . (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take account of the equitable considerations referred to above in this Section 69(d) above. The aggregate amount of losses, liabilities, claims, damages and expenses incurred paid or payable by an indemnified party as a result of the losses, claims, damages, expenses and liabilities referred to above in this Section 6 9 shall be deemed to include include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing connection with investigating or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue action or alleged untrue statement or omission or alleged omissionclaim except where the indemnified party is required to bear such expenses pursuant to Section 9(d), which expenses the indemnifying party shall pay as and when incurred, at the request of the indemnified party, to the extent such expenses are required to be paid by such indemnifying party under this Section 9. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which aggregate Public Offering Price of the Shares Certificates underwritten by it and distributed to the public were offered by such Underwriter exceeds the related Net Proceeds. In the event that any expenses so paid by the indemnifying party are subsequently determined not to be required to be borne by the indemnifying party hereunder, the party that received such payment shall promptly refund the amount so paid to the public exceeds the amount of any damages which party that made such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionpayment. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxAct) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes . (f) The indemnity and contribution agreements contained in this Section 9 and the representations and warranties of the Company and the Seller set forth in this Agreement shall remain operative and in full force and effect regardless of (i) any termination of this Section 6Agreement, (ii) any investigation made by the Underwriters or on behalf of the Underwriters or any person controlling any Underwriter or by or on behalf of the Company and its respective directors or officers or any person controlling the Company and (iii) acceptance of and payment for any of the Underwritten Securities. (g) Luminent Mortgage Capital, Inc. ("Luminent") agrees with each personUnderwriter, if any, for the sole and exclusive benefit of such Underwriter and each person who controls an Underwriter within the meaning of Section 15 of either the 1933 Securities Act or Section 20 of the 1934 Exchange Act and each Underwriter’s Affiliates and selling agents shall have not for the same rights to contribution as benefit of any assignee thereof or any other person or persons dealing with such Underwriter, to indemnify and hold harmless each Underwriter and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, person who controls the Company an Underwriter within the meaning of Section 15 of either the 1933 Securities Act or the Exchange Act against any failure by the Company to perform any of its obligations under Section 20 5 and Section 9 of the 1934 Act shall have the same rights to contribution as the Companythis Agreement. The Underwriters’ respective obligations to contribute pursuant to this Section 6 Luminent agrees that there are several in proportion no conditions precedent to the principal amount obligations of Shares set forth opposite their respective names in Schedule A hereto and not jointLuminent hereunder other than written demand to Luminent to perform its obligations under this Agreement.

Appears in 1 contract

Samples: Underwriting Agreement (Luminent Mortgage Trust 2007-1)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act as follows: (i) from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company) or in a Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), including the Rule 430B Information, or the arises out of or is based upon any omission or alleged omission therefrom of to state a material fact required to be stated therein in either such Registration Statement or Prospectus or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against , except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omissionalleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement or such Prospectus, PROVIDED, HOWEVER, that the indemnity agreement contained in this subsection (a) with respect to the Preliminary Prospectus or the Prospectus shall not inure to the benefit of an Underwriter (or to the benefit of any person controlling such Underwriter) with respect to any person asserting any such loss, expense, liability, damage or claim which is the subject thereof if the Prospectus or any supplement thereto prepared with the consent of the Representatives and furnished to the Underwriters prior to the Closing Time corrected any such alleged untrue statement or omission; provided omission and if such Underwriter failed to send or give a copy of the Prospectus or supplement thereto to such person at or prior to the written confirmation of the sale of Shares to such person, unless such failure resulted from noncompliance by the Company with Section 4(a) of this Agreement. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the preceding paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses, PROVIDED, HOWEVER, that any such settlement is effected with failure or delay to so notify the written consent Company will not relieve the Company of the Company; (iii) against any and all expense whatsoeverobligation hereunder, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense is of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company and which counsel to the Underwriter believes may present a conflict for counsel representing the Company and the Underwriter (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid under as incurred (i) or (ii) above; providedit being understood, however, that this indemnity agreement the Company shall not apply be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without the its written consent. (b) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Subsidiaries, their trustees and directors, the officers that signed the Registration Statement and any person who controls the Company or any Subsidiary within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any loss, expense, liability, claim, damage or expense to claim (including the extent arising reasonable cost of investigation) which, jointly or severally, the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or omission or alleged untrue statement or omission made of a material fact contained in reliance upon and in conformity with written information furnished in writing by such Underwriter through the Representatives to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement as amended by any post-effective amendment thereof by the Company) or in a Prospectus, or arises out of or is based upon any omission or alleged omission to state a material fact in connection with such information required to be stated either in the Registration Statement or Prospectus or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth under the caption "Underwriting" regarding (or any amendment theretoi) concessions to dealers in connection with the sale of Shares and (ii) stabilizing and the beneficial ownership of Shares by Friedman, Billings, Xxxxxx & Co., Inc. ("FBR"), or any preliminary prospectusand entities associated with FBR, any Issuer Free Writing in the Preliminary Prospectus or and the Prospectus (or any amendment or supplement theretoto the extent such statements relate to the Underwriters) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company by such Underwriter expressly for use therein. (cpurposes of Section 3(k) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of and this Section 9. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representatives in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company, on the one hand, and the Underwriters Underwriters, on the other, agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective ' obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (America First Mortgage Investments Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, and the respective directors, officers, employees and agents of each Underwriter from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus, (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), including any Issuer Free Writing Prospectus that the Rule 430B InformationCompany has filed or was required to file with the Commission, or the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (D) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an “Application”), (E) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, or necessary to make the statements therein not misleading or arising out of misleading, (F) any untrue statement omission or alleged untrue statement of a material fact contained in omission from any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “such Issuer Free Writing Prospectus,” , Prospectus or the omission or alleged omission therefrom any Application of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; , (iiG) against any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials used in connection with the marketing of the Shares, including, without limitation, slides, videos, films and all tape recordings; except in the case of (C), (E) and (F) above only insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement, Prospectus or Application. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such settlement is effected with Underwriter shall promptly notify the written consent Company in writing of the Company; (iii) against any institution of such action, and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) aboveand payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which the Company may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection or claim arises out of or is based upon (aA) of this Section, as incurred, but only with respect to any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), or any preliminary prospectus, any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission, or the Prospectus (Prospectus, or any amendment Application, (B) any omission or supplement theretoalleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements therein not misleading, or (C) any omission or alleged omission from any such Issuer Free Writing Prospectus, Prospectus or any Application of a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, but in each case only insofar as such untrue statement or alleged untrue statement or omission or alleged omission was made in such Registration Statement, Issuer Free Writing Prospectus, Prospectus or Application in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representative to the Company by such Underwriter expressly for use therein. The following statements under the caption “Underwriting” beginning on page 99 of the Preliminary Prospectus: (i) the first two sentences of the third paragraph on page 99, (ii) the third paragraph on page 100 of the Preliminary Prospectus beginning with “The representative of the underwriters may engage...” until and including the last bullet of that paragraph ending with “...at which a stabilizing bid is made. ” on page 101 of the Preliminary Prospectus and (ciii) Each indemnified party shall give notice as promptly as reasonably practicable the last three paragraphs on page 101 of the Preliminary Prospectus (and the corresponding sections of the Disclosure Package and the Prospectus, to each indemnifying party the extent such statements relate to the Underwriters) constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company for purposes of Section 3(l) and Section 3(m) and this Section 9. If any action commenced is brought against it the Company in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable, claimssubsection (c)(ii), damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Goldleaf Financial Solutions Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (or action in respect thereof) (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim (or action in respect thereof) arises out of or is based upon (A) any breach or alleged breach of any representation, warranty or covenant of the Company contained herein, (B) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus, or (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereto)thereof by the Company) or in a Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company) or in any audio or visual materials prepared, approved or used by the Company in connection with the marketing of the Shares, including the Rule 430B Informationwithout limitation, slides, videos, films and tape recordings, or the arises out of or is based upon any omission or alleged omission therefrom of to state a material fact required to be stated therein in either such Registration Statement or Prospectus or necessary to make the statements therein made therein, in the case of the Registration Statement, not misleading misleading, and in the case of the Prospectus, in light of the circumstances under which they were made, not misleading, and will promptly reimburse any Underwriter for all reasonable expenses (including reasonable counsel fees and expenses) as they are incurred in connection with the investigation of, preparation for or defense arising from any threatened or pending claim, except insofar as any such loss, expense, liability, damage or claim (or action in respect thereof) arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission of a material fact contained in and made in reliance upon and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement or such Prospectus; provided, however, that the indemnity agreement contained in this subsection (a) with respect to the Preliminary Prospectus or the Prospectus shall not inure to the benefit of an Underwriter (or to the benefit of any person controlling such Underwriter) with respect to any person asserting any such loss, expense, liability, damage or claim which is the subject thereof if (A) the Prospectus or any supplement thereto prepared with the consent of the Representatives and furnished to the Underwriters prior to the Closing Time corrected any such alleged untrue statement or omission, (B) such correction would have then resulted in no such loss, expense, liability, damage or claim and (C) such Underwriter failed to send or give a copy of the corrected Prospectus or supplement thereto to such person at or prior to the written confirmation of the sale of Shares to such person, unless such failure resulted from noncompliance by the Company with Section 4(b) above). If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its written consent. (b) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Company's directors, the Company's officers who signed the Registration Statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any loss, expense, liability, damage or claim (or action in respect thereof) (including the reasonable cost of investigation) which, jointly or severally, the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, but only insofar as such loss, expense, liability, damage or claim (or action in respect thereof) arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, and made in any Issuer Free Writing Prospectus or reliance upon and in conformity with information furnished in writing by such Underwriter through the Prospectus Representative to the Company expressly for use in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment or supplement theretothereof by the Company) or in a Prospectus, or arises out of or is based upon any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of to state a material fact in connection with such information required to be stated either in such Registration Statement or Prospectus or necessary in order to make the statements thereinsuch information, in the case of the Registration Statement, not misleading, and in the case of the Prospectus, in light of the circumstances under which they were made, not misleading; (ii) against any , and will promptly reimburse the Company for all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred reasonable expenses (including the reasonable counsel fees and disbursements of counsel chosen by the Underwriters), reasonably expenses) as they are incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of any action commenced against it in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in the defense of any such action; provided, however, that counsel to the indemnifying party shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and expenses of more than one counsel (in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances. No indemnifying party shall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party. (d) If the indemnification provided for in this Section 6 is for any reason unavailable to or insufficient to hold harmless an indemnified party in respect of any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying party shall contribute to the aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements investigation of, preparation for or omissions which resulted in such losses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions as the total net proceeds from the offering of the Shares pursuant to this Agreement (before deducting expenses) received by the Company and the total underwriting discount received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and the Underwriters on the other hand shall be determined by reference to, among other things, whether any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 6, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Shares underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 Xxx) shall be entitled to contribution defense arising from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not joint.threatened or

Appears in 1 contract

Samples: Underwriting Agreement (Americredit Corp)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus, (B) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company), the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include the Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (C) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the NASD or the Nasdaq Stock Market (each an "Application"), including the Rule 430B Information, or the (D) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement or necessary to make the statements made therein not misleading misleading, or arising (E) any omission or alleged omission to state a material fact required to be stated in any such Prospectus or necessary to make the statements made therein, in light of the circumstances under which they were made, not misleading; except insofar as any such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement, Prospectus or Application; provided, further, that with respect to any untrue statement or alleged untrue statement in or omission or alleged omission from the Preliminary Prospectus the foregoing indemnity agreement shall not inure to the benefit of any Underwriter from whom the person asserting any such losses, expenses, liabilities, damages or claims purchased the Shares, or any person controlling such Underwriter, if a copy of the Prospectus (as then amended or supplemented if the Company shall have furnished any amendments or supplements thereto) was not sent or given by or on behalf of such Underwriter to such person, if required by law so to have been delivered, at or prior to the written confirmation of the sale of the Shares to such person, and if the Prospectus (as so amended or supplemented) would have cured the defect giving rise to such losses, expenses, liabilities, damages or claims, unless such failure is the result of noncompliance by the Company in furnishing copies of the Prospectus (or amendments or supplements thereto) pursuant to Section 4(c) hereof. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time after notice of the institution of such action is given by the Underwriter or controlling person or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its consent. (b) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Company's directors, the Company's officers that signed the Registration Statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, but only insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, and in any Issuer Free Writing Prospectus or conformity with information furnished in writing by such Underwriter through the Prospectus Representatives to the Company expressly for use in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company), the Prospectus, or supplement theretoany Application, (B) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of to state a material fact in connection with such information required to be stated in such Registration Statement or necessary in order to make the statements thereinsuch information not misleading, or (C) any omission or alleged omission to state a material fact in connection with such information required to be stated in such Prospectus or any Application or necessary to make such information, in the light of the circumstances under which they were made, not misleading; . The concession and reallowance figures appearing in the fourth paragraph and the statements set forth in the seventh, tenth, twelfth and fourteenth paragraphs under the caption "Underwriting" in the Preliminary Prospectus and the Prospectus (ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of such statements relate to the aggregate amount paid in settlement including without limitation, Underwriters) constitute the only information furnished by means of a Consent to Judgment or on behalf of any litigation, or Underwriter through the Representatives to the Company for purposes of Section 3(m) and this Section 9. The indemnity agreement set forth in this Section 9(b) shall be in addition to any investigation or proceeding by liabilities that such Underwriters may otherwise have. If any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, action is brought against the Company or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of any action commenced against it person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representatives in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the defense of such action within a reasonable time after notice of the institution of such action is given by the Company or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required pursuant to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionthis Agreement. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of The Underwriters' obligations to contribute pursuant to this Section 6, 9 are several in proportion to their respective underwriting commitments and not joint. (e) The Company agrees to indemnify and hold harmless each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, its affiliates and each person, if any, who controls the Company each Underwriter and its affiliates within the meaning of either Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) (i) caused by any untrue statement or alleged untrue statement of a material fact contained in any material prepared by or with the consent of the Company for distribution to participants in connection with the Directed Share Program, or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; (ii) as a result of the failure of any participant to pay for and accept delivery of Directed Shares that the participant has agreed to purchase, except to the extent such Directed Shares are offered to the public and purchased as part of the public offering contemplated herein; or (iii) related to, arising out of, or in connection with the Directed Share Program; provided, however, that the Company shall not be liable under this clause (iii) to the extent that a court of competent jurisdiction shall have the same rights determined by a final judgment that such loss, claim, damage, liability or action resulted directly from any such acts or failures to contribution as the Company. The Underwriters’ respective obligations act undertaken or omitted to contribute pursuant to this Section 6 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not jointbe taken by any Underwriter through its bad faith or willful misconduct.

Appears in 1 contract

Samples: Underwriting Agreement (Seabright Insurance Holdings Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) that, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any and all lossfailure on the part of the Company to comply with any applicable law, liabilityrule or regulation relating to the offering of securities being made pursuant to the Prospectus, claim, damage and expense whatsoever, as incurred, arising out of (ii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement Statement, the Prospectus (or the term Prospectus for the purpose of this Section 9 being deemed to include the Preliminary Prospectus and any other preliminary prospectus, the Prospectus and any amendment theretoor supplement thereto and any prospectus wrapper material), including the Rule 430B Information, or the (iii) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement or Prospectus or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against ; except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected omission or alleged omission of a material fact contained in and in conformity with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen information furnished in writing by the Underwriters)Underwriters through the Representative to the Company expressly for use in such Registration Statement or Prospectus; and except that, reasonably incurred in investigatingwith respect to the Preliminary Prospectus or other preliminary prospectus, preparing the foregoing indemnity agreement shall not inure to the benefit of any Underwriter from whom the person asserting any loss, expense, liability, damage or defending against any litigationclaim purchased Shares, or any investigation or proceeding by any governmental agency or bodyperson controlling such Underwriter, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, if copies of the Prospectus were timely delivered to the extent Underwriter pursuant to Section 1 hereof and a copy of the Prospectus (as then amended or supplemented if the Company shall have furnished any amendments or supplements thereto) was not sent or given by or on behalf of such Underwriter to such person, if required by law so to have been delivered, at or prior to the written confirmation of the sale of the Shares to such person, and if the Prospectus (as so amended or supplemented) would have cured the defect giving rise to such loss, expense, liability, damage or claim. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liabilities that the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such expense is not paid under (i) or (ii) aboveUnderwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (or other than local counsel in any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or such jurisdiction) representing the Prospectus (or any amendment or supplement theretoindemnified parties who are parties to such action). (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s 's directors, each of the Company’s 's officers who that signed the Registration Statement, Statement and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) that, damage and expense described in jointly or severally, the indemnity contained in subsection (a) of this SectionCompany or any such person may incur under the Securities Act, as incurredthe Exchange Act or otherwise, but only with respect to insofar as such loss, expense, liability, damage or claim arises out of or is based upon (i) any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representative to the Company expressly for use in the Registration Statement (or any amendment thereto)the Prospectus, or (ii) any preliminary prospectus, any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in such Registration Statement or Prospectus or necessary to make such information, in the Prospectus (or any amendment or supplement thereto) light of the circumstances under which made, not misleading; provided, however, that the statements identified in reliance upon and in conformity with written Schedule III attached hereto constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company by for purposes of this Section 9. The indemnity agreement set forth in this Section 9(b) shall be in addition to any liabilities that such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of may otherwise have. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of any such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Representative will not relieve the Underwriters of any obligation hereunder, except to the extent that their ability to defend is actually impaired by such failure or delay. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them that are different from or additional to those available to the Underwriters (in which case the Representative shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by the indemnified party. In no event Underwriters and paid as incurred (it being understood, however, that the Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). (c) The indemnifying party under this Section 9 shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the same general allegations plaintiff, the indemnifying party agrees to indemnify (to the extent provided in this Section 9) the indemnified party against any loss, expense, liability, damage or circumstancesclaim by reason of such settlement or judgment. No indemnifying party shall, without the prior written consent of the indemnified partiesparty, settle or effect any settlement, compromise or consent to the entry of judgment in any judgment with respect to any litigationpending or threatened action, or any investigation suit or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification any indemnified party is or contribution could be have been a party and indemnity was or could have been sought under this Section 6 (whether or not the hereunder by such indemnified parties are actual or potential parties thereto)party, unless such settlement, compromise or consent (i) includes an unconditional release of each such indemnified party from all liability arising out on claims that are the subject matter of such litigationaction, investigation, suit or proceeding or claim and (ii) does not include a statement as to to, or an admission of of, fault, culpability or a failure to act by or on behalf of any indemnified party. (d) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and by the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above above, but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which that resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and by the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering sale of the Shares pursuant to this Agreement (net of underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount clause (i) and, if applicable clause (ii), of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionsubsection (d) above. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters' obligations to contribute pursuant to this Section 9 are several in proportion to their respective underwriting commitments and not joint. For purposes of this Section 69, each officer and director of an Underwriter and each person, if any, who controls an Underwriter within the meaning of the Section 15 of the 1933 Securities Act or and Section 20 of the 1934 Exchange Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Securities Act or and Section 20 of the 1934 Exchange Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Capital Lease Funding Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees and the Seller, jointly and severally, agree to indemnify and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents each officer and director of each Underwriter and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the 1933 Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, from and against any and all losslosses, liabilityclaims, claim, damage damages and expense whatsoever, as incurred, arising liabilities (or actions in respect thereof) that arise out of or are based upon any (a) (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (for the registration of the Certificates as originally filed or in any amendment thereto)thereof, including or in the Rule 430B Base Prospectus or the Prospectus or the Time of Sale Information or the Static Pool Information, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein therein, in light of the circumstances under which they were made, not misleading or arising out of misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the any Issuer Information contained in any Free Writing Prospectus (prepared by or on behalf of any amendment or supplement thereto) Underwriter or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” Prospectus which is required to be filed pursuant to Section 3(f) or Section 3(h), or the omission or alleged omission therefrom to state a material fact required to make the statements therein, in light of the circumstances under which they were made, not misleading, which was not corrected by Corrective Information subsequently supplied by the Company to such Underwriter within a reasonable period of time prior to the Time of Sale, and (iii) any breach of the representation and warranty in Section 1(s), and will reimburse each Underwriter and any officer, director or controlling person for any legal or other expenses reasonably incurred by such Underwriter or such officer, director or controlling person in connection with investigating or defending any such loss, claim, damage, liability or action as such expenses are incurred, except insofar as such losses, claims, damages, or liabilities are caused by any such untrue statement or omission or alleged untrue statement or omission in reliance upon and in conformity with any information with respect to which each Underwriter has agreed to indemnify the Company pursuant to Section 9(b) hereof. (b) Each Underwriter, severally and not jointly, agrees to indemnify and hold harmless the Company, each of its directors, each of its officers who signs the Registration Statement and each person who controls the Company within the meaning of either the Act or the Exchange Act, to the same extent as the indemnity set forth in Section 9(a) above from the Company and the Seller to the Underwriters, but only with reference to any untrue statements or alleged untrue statements of a material fact, or omissions or alleged omissions to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use thereinUnderwriting Information. (c) Each indemnified party In case any proceeding (including any governmental investigation) shall give notice as promptly as reasonably practicable to each indemnifying party of be instituted involving any action commenced against it person in respect of which indemnity may be sought hereunderpursuant to either Section 9(a) or 9(b) hereof, such person (the "indemnified party") shall promptly notify the person against whom such indemnity may be sought (the "indemnifying party") in writing, but failure the omission so to so notify an the indemnifying party shall will not relieve such the indemnifying party from any liability that the indemnifying party may have to any indemnified party hereunder except to the extent it is not such indemnifying party has been materially prejudiced as a result thereof thereby and in any event shall not relieve it the indemnifying party from any liability which it may have otherwise than on account of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties party otherwise than under this Section 9, and the indemnifying party, upon request of the indemnified party, shall retain counsel reasonably satisfactory to the indemnified party to represent the indemnified party and any others that the indemnifying party may designate in such proceeding and shall pay the fees and disbursements of such counsel related to such proceeding. In any such proceeding, any indemnified party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be selected at the expense of such indemnified party unless (i) the indemnifying party and the indemnified party shall have mutually agreed to the retention of such counsel, (ii) the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of commencement of the action or (iii) the named parties to any such proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties by the Underwriterssame counsel would be inappropriate due to actual or potential differing interests between them. In any case described in subclauses (i), and(ii) or (iii) of the immediately preceding sentence, the fees and disbursements of counsel for the indemnified party shall be paid by the indemnifying party as they are incurred. It is understood that the indemnifying party shall not, in connection with any proceeding or related proceedings involving the same general allegations in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (plus one local counsel, as necessary) for all such indemnified parties. Such firm shall be designated in writing by the relevant Underwriter, in the case of parties indemnified pursuant to Section 6(b9(a) abovehereof and by the Company or the Seller, counsel in the case of parties indemnified pursuant to Section 9(b) hereof. The indemnifying party may, at its option, at any time upon written notice to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in party, assume the defense of any proceeding and may designate counsel reasonably satisfactory to the indemnified party in connection therewith; provided that the counsel so designated would have no actual or potential conflict of interest in connection with such action; provided, however, that counsel to representation. Unless it shall assume the defense of any proceeding the indemnifying party shall not (except be liable for any settlement of any proceeding, effected without its written consent, which consent shall not be unreasonably withheld, but if settled with such consent or if there be a final judgment for the consent of plaintiff, the indemnifying party agrees to indemnify the indemnified party) also be counsel party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party. In no event shall the indemnifying parties be liable party for fees and expenses of counsel as contemplated herein, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (y) such settlement is entered into more than one counsel (in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or related actions in the same jurisdiction arising out 30 days after receipt by such indemnifying party of the same general allegations or circumstancesaforesaid request and (z) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to the date of such settlement. No indemnifying party shall, without the prior written consent of the indemnified partiesparty, settle or compromise or consent to the entry effect any settlement of any judgment with respect to any litigation, pending or any investigation or threatened proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification any indemnified party is or contribution could be have been a party and indemnity could have been sought under this Section 6 (whether or not the hereunder by such indemnified parties are actual or potential parties thereto)party, unless such settlement, compromise or consent settlement (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (iiA) does not include a statement as to to, or an admission of of, fault, culpability or a failure to act by or on behalf of any such indemnified partyparty and (B) includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding. (d) If the indemnification provided for in this Section 6 Article 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under Section 9(a) or 9(b) hereof or is insufficient in respect of any losses, liabilities, claims, damages damages, expenses or expenses liabilities referred to therein, then each indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, claims, damages, expenses or liabilities, claims, damages and expenses incurred by such indemnified party, as incurred (i) in such proportion as is appropriate to reflect (i) the relative benefits received by the Company on the one hand and the Underwriters related Underwriter on the other hand from the offering of the Shares pursuant to this Agreement, Certificates or (ii) if the allocation provided by clause (ia) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters related Underwriter on the other hand in connection with the statements or omissions which or alleged statements or alleged omissions that resulted in such losses, liabilities, claims, damages damages, expenses or expensesliabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and by the Underwriters related Underwriter on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions as that the total net proceeds from the offering of the Shares pursuant to this Agreement (before deducting expenses) received purchase price paid by the Company and the total underwriting discount received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear related Underwriter to the aggregate initial public offering price Company for the Certificates ("Net Proceeds") bears to the excess of (a) the Shares as set forth on purchase prices paid by investors to each Underwriter for the cover of Certificates (the Prospectus"Public Offering Price") over (b) Net Proceeds. The relative fault of the Company on the one hand and of the Underwriters related Underwriter on the other hand shall be determined by reference to, among other things, whether any such the untrue or alleged allegedly untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters related Underwriter and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. . (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take account of the equitable considerations referred to above in this Section 69(d) above. The aggregate amount of losses, liabilities, claims, damages and expenses incurred paid or payable by an indemnified party as a result of the losses, claims, damages, expenses and liabilities referred to above in this Section 6 9 shall be deemed to include include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing connection with investigating or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue action or alleged untrue statement or omission or alleged omissionclaim except where the indemnified party is required to bear such expenses pursuant to Section 9(d), which expenses the indemnifying party shall pay as and when incurred, at the request of the indemnified party, to the extent such expenses are required to be paid by such indemnifying party under this Section 9. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which aggregate Public Offering Price of the Shares Certificates underwritten by it and distributed to the public were offered by such Underwriter exceeds the related Net Proceeds. In the event that any expenses so paid by the indemnifying party are subsequently determined not to be required to be borne by the indemnifying party hereunder, the party that received such payment shall promptly refund the amount so paid to the public exceeds the amount of any damages which party that made such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionpayment. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxAct) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes . (f) The indemnity and contribution agreements contained in this Section 9 and the representations and warranties of the Company and the Seller set forth in this Agreement shall remain operative and in full force and effect regardless of (i) any termination of this Section 6Agreement, (ii) any investigation made by the Underwriters or on behalf of the Underwriters or any person controlling any Underwriter or by or on behalf of the Company and its respective directors or officers or any person controlling the Company and (iii) acceptance of and payment for any of the Underwritten Securities. (g) Luminent Mortgage Capital, Inc. ("Luminent") agrees with each personUnderwriter, if any, for the sole and exclusive benefit of such Underwriter and each person who controls an Underwriter within the meaning of Section 15 of either the 1933 Securities Act or Section 20 of the 1934 Exchange Act and each Underwriter’s Affiliates and selling agents shall have not for the same rights to contribution as benefit of any assignee thereof or any other person or persons dealing with such Underwriter, to indemnify and hold harmless each Underwriter and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, person who controls the Company an Underwriter within the meaning of Section 15 of either the 1933 Securities Act or the Exchange Act against any failure by the Company to perform any of its obligations under Section 20 5 and Section 9 of the 1934 Act shall have the same rights to contribution as the Companythis Agreement. The Underwriters’ respective obligations to contribute pursuant to this Section 6 Luminent agrees that there are several in proportion no conditions precedent to the principal amount obligations of Shares set forth opposite their respective names in Schedule A hereto and not jointLuminent hereunder other than written demand to Luminent to perform its obligations under this Agreement.

Appears in 1 contract

Samples: Underwriting Agreement (Luminent Mortgage Trust 2007-2)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any and all lossbreach of any representation, liability, claim, damage and expense whatsoever, as incurred, arising out warranty or covenant of the Company contained herein or (ii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company) or in a Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), including the Rule 430B Information, or the arises out of or is based upon any omission or alleged omission therefrom of to state a material fact required to be stated therein in either such Registration Statement or Prospectus or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against , except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omissionalleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement or such Prospectus, provided, however, that the indemnity agreement contained in this subsection (a) with respect to the Preliminary Prospectus or the Prospectus shall not inure to the benefit of an Underwriter (or to the benefit of any person controlling such Underwriter) with respect to any person asserting any such loss, expense, liability, damage or claim which is the subject thereof if the Prospectus or any supplement thereto prepared with the consent of the Representative and furnished to the Underwriters prior to the Closing Time corrected any such alleged untrue statement or omission; provided that any omission and if such settlement is effected with Underwriter failed to send or give a copy of the Prospectus or supplement thereto to such person at or prior to the written consent confirmation of the Company; (iii) sale of Shares to such person, unless such failure resulted from noncompliance by the Company with Section 4(b). If any action is brought against any an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the preceding paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters)and payment of expenses, reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company and which counsel to the Underwriter believes may present a conflict for counsel representing the Company and the Underwriter (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement (same jurisdiction representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its written consent. (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s its directors, each of the Company’s officers who that signed the Registration Statement, Statement and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection (a) or claim arises out of this Section, as incurred, but only with respect to or is based upon any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representative to the Company expressly for use in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereto)thereof by the Company) or in a Prospectus, or arises out of or is based upon any preliminary prospectus, any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in such Registration Statement or Prospectus or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth in the paragraph below the table on the cover page and under the caption "Underwriting" in the Preliminary Prospectus and the Prospectus (or any amendment or supplement theretoto the extent such statements relate to the Underwriters) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company by such Underwriter expressly for use therein. (cpurposes of Section 3(k) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of and this Section 9. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable (c)(ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective ' obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Devx Energy Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as followssuch loss, expense, liability, damage or claim arises out of or is based upon: (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out untrue statement or alleged untrue statement made by the Company in Section 3 of this Agreement; (ii) any untrue statement or alleged untrue statement of a material fact contained in in: (A) the Registration Statement (or any amendment thereto), any Preliminary Prospectus or the Prospectus or any amendment or supplement thereto and including the any Rule 430B Information462(b) Registration Statement; or (B) any application or other document, or any amendment or supplement thereto, executed by the Company or any Subsidiary or based upon written information furnished by or on behalf of the Company or any Subsidiary filed in any jurisdiction in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an "Application"); (iii) any omission or alleged omission therefrom of to state in any such Registration Statement or any amendment thereto, a material fact required to be stated therein or necessary to make the statements made therein not misleading misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing such Preliminary Prospectus or the Prospectus (Prospectus, or any amendment or supplement thereto) , or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of Application a material fact required to be stated therein or necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading;; or (iiiv) against any and all lossuntrue statement or alleged untrue statement of any material fact contained in any audio or visual materials prepared, liability, claim, damage and expense whatsoever, as incurred, to approved or used by the extent Company in connection with the marketing of the aggregate amount paid in settlement Shares, including without limitation, by means slides, videos, films and tape recordings; Except insofar as any such loss, expense, liability, damage or claim under this Section 9(a) arises out of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omissionalleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement, Preliminary Prospectus, Prospectus, or Application (as set forth in subsection (b) below); provided, however, that the indemnity agreement contained in this subsection (a) with respect to the Preliminary Prospectus or the Prospectus shall not inure to the benefit of an Underwriter (or to the benefit of any person controlling such Underwriter) with respect to any person asserting any such loss, expense, liability, damage or claim which is the subject thereof if the Prospectus or any supplement thereto prepared with the consent of the Representative and furnished to the Underwriters prior to the Closing Time corrected any such alleged untrue statement or omission; provided that any omission and if such settlement is effected with Underwriter failed to send or give a copy of the Prospectus or supplement thereto to such person at or prior to the written consent confirmation of the Company; (iiisale of Shares to such person, unless such failure resulted from noncompliance by the Company with Section 4(a) of this Agreement. If any action is brought against any an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to this Section 9(a), such Underwriter shall promptly notify the Company in writing of the institution of such action and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters)and payment of expenses, reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action or the Company shall not apply have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company and which counsel to the Underwriter believes may present a conflict for counsel representing the Company and the Underwriter (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its written consent. (b) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Subsidiaries, their trustees and directors, the officers that signed the Registration Statement and any person who controls the Company or any Subsidiary within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any loss, expense, liability, claim, damage or expense to claim (including the extent arising reasonable cost of investigation) which, jointly or severally, the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or omission or alleged untrue statement or omission made of a material fact contained in reliance upon and in conformity with written information furnished in writing by such Underwriter through the Representative to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (as amended by any post-effective amendment thereof by the Company) or any amendment thereto)in a Prospectus, or arises out of or is based upon any preliminary prospectus, any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in the Registration Statement or Prospectus or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth under the caption "Underwriting" regarding (i) concessions to dealers in connection with the sale of Shares and (ii) stabilizing in the Preliminary Prospectus and the Prospectus (or any amendment or supplement theretoto the extent such statements relate to the Underwriters) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company by such Underwriter expressly for use therein. (cpurposes of Section 3(k) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of and this Section 9. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company, on the one hand, and the Underwriters Underwriters, on the other, agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective ' obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (One Liberty Properties Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 the Securities Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the 1933 Securities Act, the Exchange Act or Section 20 otherwise, insofar as such loss, expense, liability, damage or claim arises out of the 1934 Act as follows: or is based upon (i) against any and all lossbreach of any representation, liabilitywarranty or covenant of the Company contained herein, claim(ii) any failure on the part of the Company to comply with any applicable law, damage and expense whatsoeverrule or regulation relating to the offering of securities being made pursuant to the Prospectus, as incurred, arising out of (iii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company) or in a Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), including the Rule 430B Information, or the (iv) any omission or alleged omission therefrom of to state a material fact required to be stated therein in either such Registration Statement or Prospectus or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against , except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omissionalleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement or such Prospectus, provided, however, that the indemnity agreement contained in this subsection (a) with respect to the Preliminary Prospectus or the Prospectus shall not inure to the benefit of an Underwriter (or to the benefit of any person controlling such Underwriter) with respect to any person asserting any such loss, expense, liability, damage or claim which is the subject thereof if the Prospectus or any supplement thereto prepared with the consent of the Representative and furnished to the Underwriters prior to the Closing Time corrected any such alleged untrue statement or omission; provided that any omission and if such settlement is effected with Underwriter failed to send or give a copy of the Prospectus or supplement thereto to such person at or prior to the written consent confirmation of the Company;sale of Shares to such person, unless such failure resulted from noncompliance by the Company with Section 4(b) above). (iiib) If any action is brought against any and all expense whatsoeveran Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such Underwriter shall promptly notify the Company, as incurred (applicable, in writing of the institution of such action, and the Company, as applicable, shall assume the defense of such action, including the fees and disbursements employment of counsel chosen by the Underwriters)of its choosing and payment of expenses, reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that any failure or delay to so notify the Company, as applicable, will not relieve the Company, as applicable, of any obligation hereunder, except to the extent that its ability to defend is actually impaired or otherwise prejudiced by such failure or delay, and after notice from the Company to such indemnified party of its election so to assume the defense thereof, the Company will not be liable to such indemnified party under this indemnity agreement Section for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company, as applicable, in connection with the defense of such action, or the Company, as applicable, shall not apply have employed counsel to have charge of the defense of such action within a reasonable time after notice of such action by such indemnified party or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there exists an actual and material conflict of interest between the interests of the Company and such indemnified party in connection with such action (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company, as applicable, and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its prior written consent. (c) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Company’s directors and officers, and any person who controls the Company within the meaning of the Securities Act, from and against any loss, expense, liability, claim, damage or expense to claim (including the extent arising reasonable cost of investigation) which, jointly or severally, the Company, or any such person may incur under the Securities Act, the Exchange Act or otherwise, but only insofar as such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or omission or alleged untrue statement or omission made of a material fact contained in reliance upon and in conformity with written information furnished in writing by such Underwriter through the Representative to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (as amended by any post-effective amendment thereof by the Company) or any amendment thereto)in a Prospectus, or arises out of or is based upon any preliminary prospectus, any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in such Registration Statement or Prospectus or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth (i) in the last paragraph on the cover page and (ii) under the caption “Underwriting” in the Preliminary Prospectus and the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company by such Underwriter expressly for use thereinpurposes of Section 3(j) and this Section 9. (cd) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action and in any event the Representative, on behalf of the Underwriters, shall not relieve it from any liability which it may have otherwise than on account assume the defense of this indemnity agreement. In such action, including the case employment of parties indemnified pursuant to Section 6(a) abovecounsel of its choosing (who shall not, except with the reasonable consent of the Company, be counsel to the indemnified parties shall be selected by Representative or the Underwriters, and, in the case ) and payment of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in the defense of any such actionexpenses; provided, however, that any failure or delay to so notify the Representative, as applicable, will not relieve the Representative or the Underwriters, as applicable, of any obligation hereunder, except to the extent that their ability to defend is actually impaired or otherwise prejudiced by such failure or delay, and after notice from such Underwriter to such indemnified party of its election so to assume the defense thereof, such Underwriter will not be liable to such indemnified party under this Section for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time after notice of such action by such indemnified party or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there exists an actual and material conflict of interest between the interests of the Company and such indemnified party in connection with such action (in which case the Representative shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by such Underwriter and paid as incurred (it being understood, however, that the indemnified party. In no event Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (de) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b), (c) and (d) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions as proportion as, the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company and Company, as applicable, bear to the total underwriting discount discounts and commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 were determined amount paid or payable by pro rata allocation (even if the Underwriters were treated a party as one entity for such purpose) or by any other method of allocation which does not take account a result of the equitable considerations referred to above in this Section 6. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and liabilities referred to above in the first sentence of this Section 6 subsection (e) shall be deemed to include any legal or other fees or expenses reasonably incurred by such indemnified party in investigating, preparing connection with investigating or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. action which is the subject of this subsection (e). (f) Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Anworth Mortgage Asset Corp)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify and hold harmless each Underwriter, its affiliatesthe directors, as such term is defined in Rule 501(b) under the 1933 Act (eachofficers, an “Affiliate”)employees, its selling Affiliates and agents of each Underwriter and each person, if any, person who controls any Underwriter within the meaning of Section 15 of either the 1933 Act or Section 20 of the 1934 Exchange Act as follows: (i) against any and all losslosses, liabilityclaims, claimdamages or liabilities, damage and expense whatsoever, as incurredjoint or several, arising out of of, or based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement for the registration of the Securities as originally filed or in any amendment thereof, or in the Prospectus (or any amendment or supplement thereto), any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission or is otherwise required to retain, any preliminary prospectus supplement, any road show as defined in Rule 433(h) under the Act (a “road show”) or any Disclosure Package (including the Rule 430B Informationany Disclosure Package that has subsequently been amended), or arising out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectusmisleading, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order and agrees to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoeverreimburse each such indemnified party, as incurred, to the extent of the aggregate amount paid for any legal or other expenses reasonably incurred by them in settlement including without limitation, by means of a Consent to Judgment of any litigation, connection with investigating or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon defending any such untrue statement loss, claim, damage, liability or omissionaction; provided, or however, that the Company will not be liable in any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, case to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising liability arises out of or is based upon any such untrue statement or omission or alleged untrue statement or omission made therein in reliance upon and in conformity with written information furnished to the Company by or on behalf of any Underwriter expressly specifically for use inclusion therein, it being understood and agreed that the only such information furnished by or on behalf of any Underwriter consists of the information described as such in Section 9(b) hereof. This indemnity agreement will be in addition to any liability which the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)Company may otherwise have. (b) Each Underwriter severally and not jointly agrees to indemnify and hold harmless the Company, the Company’s each of its directors, each of the Company’s its officers who signed signs the Registration Statement, and each person, if any, person who controls the Company within the meaning of Section 15 of either the 1933 Act or Section 20 of the 1934 Act against any and all lossExchange Act, liability, claim, damage and expense described in to the same extent as the indemnity contained from the Company to each Underwriter set forth in subsection (aparagraph 9(a) of this Section, as incurredabove, but only with respect reference to untrue statements written information relating to such Underwriter furnished to the Company by or omissions, or alleged untrue statements or omissions, made on behalf of such Underwriter specifically for inclusion in the Registration Statement (documents referred to in the foregoing indemnity; and each Underwriter agrees to reimburse each such indemnified party for any documented legal fees or other expenses reasonably incurred by them in connection with investigating or defending any amendment thereto)such loss, claim, damage, liability or action. This indemnity agreement will be in addition to any preliminary prospectus, liability which any Issuer Free Writing Prospectus Underwriter may otherwise have. The Company acknowledges that there has been no information furnished in writing by or on behalf of the several Underwriters for inclusion in the documents referred to in the foregoing indemnity other than the second paragraph under “Commissions and Discounts,” and the first three sentences of the first paragraph under the caption “—Other Relationships” in the Underwriting section in each of the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use thereinPreliminary Prospectus. (c) Each indemnified party shall give Promptly after the receipt by any person in respect of which indemnification may be sought pursuant to either Section 9(a) or 9(b) above of notice of the commencement of any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand, such person (the “Indemnified Person”) will, if a claim in respect thereof is to be made against whom such indemnification may be sought (the “Indemnifying Person”) notify the Indemnifying Person in writing as promptly as reasonably practicable of the commencement thereof; provided that the failure so to each indemnifying party of any action commenced against it in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a result thereof and in any event shall Indemnifying Person (i) will not relieve it from any liability which that it may have under this Section 9 unless and to the extent that it did not otherwise learn of such action and such failure results in the forfeiture by the Indemnifying Person of substantial rights and defenses and (ii) will not, in any event, relieve the Indemnifying Person from any obligations to an Indemnified Person other than on account the indemnification obligation provided in Section 9(a) or Section 9(b) above. If any such proceeding shall be brought or asserted against an Indemnified Person and it shall have notified the Indemnifying Person thereof, the Indemnifying Person shall be entitled to appoint counsel of this indemnity agreement. In the case of parties indemnified Indemnifying Person’s choice at the Indemnifying Person’s expense to represent the Indemnified Person in any action, and any others entitled to indemnification pursuant to this Section 6(a) abovethat the Indemnifying Person may designate in such action, for which indemnification is sought (in which case the Indemnifying Person shall not thereafter be responsible for the fees and expenses of any separate counsel to the indemnified parties shall be selected retained by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in the defense of any such action; Indemnified Person or Indemnified Persons except as set forth below); provided, however, that such counsel shall be reasonably satisfactory to the Indemnified Person. Notwithstanding the Indemnifying Person’s election to appoint counsel to represent the indemnifying party Indemnified Person in an action, the Indemnified Person shall have the right to employ separate counsel (including local counsel), and the Indemnifying Person shall bear the reasonable fees, costs and expenses of such separate counsel if (A) the use of counsel chosen by the Indemnifying Person to represent the Indemnified Person would present such counsel with a conflict of interest, (B) the actual or potential defendants in, or targets of, any such action include both the Indemnified Person and the Indemnifying Person and the Indemnified Person shall have reasonably concluded that there may be legal defenses available to it and/or other Indemnified Persons which are different from or additional to those available to the Indemnifying Person, (C) the Indemnifying Person shall not (except with have employed counsel satisfactory to the consent Indemnified Person to represent the Indemnified Person within a reasonable time after notice of the indemnified partyinstitution of such action or (D) also be the Indemnifying Person shall authorize the Indemnified Person to employ separate counsel to at the indemnified partyexpense of the Indemnifying Person. In no event It is understood and agreed that the Indemnifying Person shall not, in connection with any proceeding or related proceeding in the indemnifying parties same jurisdiction, be liable for the reasonable fees and expenses of more than one counsel separate firm (in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any Indemnified Persons and that all such reasonable fees and expenses shall be paid or reimbursed as they are incurred. Any such separate firm for one action or separate but similar or related actions in the same jurisdiction arising out more of the same general allegations or circumstancesUnderwriters and any of their affiliates, directors and officers and their control persons, if any, shall be designated in writing by the Underwriters, as applicable, and any such separate firm for the Company, its directors, its officers who signed the Registration Statement and its control persons, if any, shall be designated in writing by the Company. No indemnifying party shallAn Indemnifying Person will not, without the prior written consent of the indemnified partiesIndemnified Persons, settle or compromise or consent to the entry of any judgment with respect to any litigationpending or threatened claim, or any investigation action, suit or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could may be sought under this Section 6 hereunder (whether or not the indemnified parties Indemnified Persons are actual or potential parties thereto), to such claim or action) unless such settlement, compromise or consent includes (i) includes an unconditional release of each indemnified party Indemnified Person from all liability arising out of such litigationclaim, investigationaction, proceeding suit or claim proceeding; and (ii) does not include a statement as to to, or an admission of of, fault, culpability or a failure to act act, by or on behalf of any indemnified partyIndemnified Person. (d) If In the indemnification event that the indemnity provided for in paragraph (a) or (b) of this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party in respect of Indemnified Person for any losses, liabilities, claims, damages or expenses referred to thereinreason, then each indemnifying party shall Indemnifying Person agrees to contribute to the aggregate amount of such losses, liabilities, claims, damages and liabilities (including legal or other expenses reasonably incurred by such indemnified partyin connection with investigating or defending the same) (collectively, as incurred (i“Losses”) to which the Company and one or more of the Underwriters may be subject in such proportion as is appropriate to reflect the relative benefits received by the Company Company, on the one hand hand, and the Underwriters Underwriters, on the other hand other, from the offering and sale of the Shares Securities pursuant to this Agreement, or (ii) if . If the allocation provided by clause (i) the immediately preceding sentence is not permitted by applicable lawunavailable for any reason, the Company and the Underwriters severally shall contribute in such proportion as is appropriate to reflect not only the such relative benefits referred to in clause (i) above but also the relative fault of the Company Company, on the one hand hand, and of the Underwriters Underwriters, on the other hand other, in connection with the statements or omissions which that resulted in such losses, liabilities, claims, damages or expenses, Losses as well as any other relevant equitable considerations. The relative benefits Benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions as equal to the total net proceeds from the offering sale of the Shares pursuant to this Agreement Securities (before deducting expenses) received by the Company and the total underwriting discount received by the Underwriters, in each case it as set forth for the on the cover page of the Prospectus, bear and benefits received by the Underwriters shall be deemed to be equal to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectustotal underwriting fee. The relative Relative fault of the Company Company, on the one hand hand, and the Underwriters Underwriters, on the other hand other, shall be determined by reference to, among other things, whether any such untrue or any alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by each such party, the Company or by intent of the Underwriters parties and the parties’ their relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. (e) In no case shall any Underwriter (except as may be provided in any agreement among Underwriters relating to the offering of the Securities) be responsible for any amount pursuant to this paragraph 9(e) in excess of the underwriting fee. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 6paragraph 9(e), no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Shares underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxAct) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 69, each person, if any, person who controls an Underwriter within the meaning of Section 15 of either the 1933 Act or Section 20 of the 1934 Exchange Act and each Underwriter’s Affiliates director, officer, employee and selling agents agent of an Underwriter shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, person who controls the Company within the meaning of Section 15 either the Act or the Exchange Act, each officer of the 1933 Act or Section 20 Company who shall have signed the Registration Statement and each director of the 1934 Act Company shall have the same rights to contribution as the Company. , subject in each case to the applicable terms and conditions of this paragraph 9(e). (f) The Underwriters’ respective obligations to contribute pursuant to remedies provided for in this Section 6 9 are several not exclusive and shall not limit any rights or remedies which may otherwise be available to any Indemnified Person at law or in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not jointequity.

Appears in 1 contract

Samples: Underwriting Agreement (Lilium N.V.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees and the Operating Partnership, jointly and severally, agree to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company or the Operating Partnership contained herein, (B) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus, (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company), the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus, each as amended or supplemented by the Company), (D) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an "Application"), including the Rule 430B Information, or the (E) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, Prospectus or any Application or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , or (iiF) against any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials used in connection with the marketing of the Shares, including, without limitation, slides, videos, films and all tape recordings; except insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement, Prospectus or Application. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company or the Operating Partnership may otherwise have. (b) If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such settlement is effected with Underwriter shall promptly notify the written consent Company in writing of the Company; (iii) against any institution of such action, and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) aboveand payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel reasonably satisfactory to the Underwriter or omission made in reliance upon and in conformity with written information furnished controlling person, as the case may be, to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (bc) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Operating Partnership, the Company’s 's directors, each of the Company’s 's officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, damage and expense described in jointly or severally, the indemnity contained in subsection (a) of this SectionCompany, as incurredthe Operating Partnership or any such person may incur under the Securities Act, the Exchange Act or otherwise, but only with respect to insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriters through the Representative to the Company expressly for use in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company), the Prospectus, or any preliminary prospectusApplication or (B) any omission or alleged omission to state a material fact in connection with such information required to be stated either in such Registration Statement, the Prospectus, or any Issuer Free Writing Application, or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth in the paragraphs under the caption "Underwriting" in the Preliminary Prospectus or and the Prospectus (or any amendment or supplement theretoto the extent such statements relate to the Underwriters) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company by for purposes of Section 3(p) and this Section 9. The indemnity agreement set forth in this Section 9(c) shall be in addition to any liabilities that such Underwriter expressly for use thereinmay otherwise have. (cd) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of If any action commenced is brought against it the Company, or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company, or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company, or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company, or such person unless the employment of such counsel shall have been authorized in writing by the Representative, with respect to the Company, or the Company, with respect to any such person, in connection with the defense of such action or the Representative or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (de) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand Company, and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand Company, and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand Company, and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand Company, and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company Company, or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (f) The Company, the Operating Partnership and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (e)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter Underwriters shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective ' obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Feldman Mall Properties, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act as follows: (i) and, with respect to Sandler X'Xxxxx & Partners, L.P., each limited partner), from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company), including the Rule 430B InformationProspectus (the term Prospectus for the purpose of this Section 10 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company) or any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement or Prospectus or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against ; except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such settlement is effected Registration Statement or Prospectus. The statements set forth in (1) paragraphs under the caption "Underwriting" in the Preliminary Prospectus and the Prospectus and (2) the information contained in Exhibits 99.07 and 99.08 filed with the written consent Registration Statement constitute the only information furnished by or on behalf of any Underwriter through the Company; (iiiRepresentative to the Company for purposes of this Section 10(a). The indemnity agreement set forth in this Section 10(a) against shall be in addition to any and all expense whatsoever, as incurred (including liability which the fees and disbursements of counsel chosen by Company may otherwise have to the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, Underwriters or any such alleged untrue statement controlling person. If any action is brought against an Underwriter or omission, controlling person in respect of which indemnity may be sought against the Company pursuant to the extent that any such expense is not paid under subsection (i) or (iia) above, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s 's directors, each of the Company’s 's officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, damage and expense described in jointly or severally, the indemnity contained in subsection (a) of this SectionCompany, as incurredor any such person may incur under the Securities Act, the Exchange Act or otherwise, but only with respect to insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representative to the Company expressly for use in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company), or the Prospectus, or (B) any preliminary prospectusomission or alleged omission to state a material fact in connection with such information required to be stated either in such Registration Statement, any Issuer Free Writing or Prospectus or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth in the paragraphs under the caption "Underwriting" in the Preliminary Prospectus and the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company by for purposes of Section 3(a) and this Section 10 (b). The indemnity agreement set forth in this Section 10(b) shall be in addition to any liabilities that such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of may otherwise have. If any action commenced is brought against it the Company, or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company, or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of any such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Representative will not relieve any Underwriter of any obligation hereunder, except to the extent that its ability to defend is actually impaired or prejudiced by such failure or delay. The Company, or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company, or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by such Underwriter and paid as incurred (it being understood, however, that the indemnified party. In no event Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (dc) If the indemnification provided for in this Section 6 10 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 10 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand Company, and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand Company, and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand Company, and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand Company, and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company Company, or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company, and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 10 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 610, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of The Underwriters' obligations to contribute pursuant to this Section 6, 10 are several in proportion to their respective underwriting commitments and not joint. (e) The Company agrees to indemnify and hold harmless each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, its affiliates and each person, if any, who controls the Company each Underwriter and its affiliates within the meaning of either Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act shall have Exchange Act, from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) (i) caused by any untrue statement or alleged untrue statement of a material fact contained in any material prepared by or with the same rights consent of the Company for distribution to contribution participants in connection with the Directed Share Program, or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; (ii) as a result of the Company. The Underwriters’ respective obligations failure of any participant to contribute pursuant pay for and accept delivery of Directed Shares that the participant has agreed to this Section 6 are several purchase; or (iii) related to, arising out of, or in proportion to connection with the principal amount Directed Share Program, in each case, other than as a result of Shares set forth opposite their respective names in Schedule A hereto and not jointthe willful misconduct or bad faith of the Representative.

Appears in 1 contract

Samples: Underwriting Agreement (KMG America CORP)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each UnderwriterUnderwriter (including, its affiliatesfor this purpose, any affiliate of an Underwriter acting as a selling agent of such term is defined Underwriter in Rule 501(b) under connection with the 1933 Act (each, an “Affiliate”distribution of the Shares), its selling agents and each person, if any, any person who controls any an Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, the Forward Seller, the Forward Counterparty and any person who controls the Forward Seller or the Forward Counterparty within the meaning of Section 15 of the Securities Act as follows: (i) or Section 20 of the Exchange Act from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) that may be incurred by such persons, jointly or severally, under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (1) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretothereof), including any Issuer Free Writing Prospectus that the Rule 430B InformationCompany has filed or was required to file with the Commission, the Disclosure Package or the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include the Preliminary Prospectus and the Prospectus as of their respective dates and as amended or supplemented by the Company), (2) any omission or alleged omission therefrom to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, or (3) any omission or alleged omission from any such Issuer Free Writing Prospectus, when considered together with the Disclosure Package, or Prospectus of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading; except, in the case of each of clauses (1), (2) and (3), insofar as any such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of the Prospectus and any Issuer Free Writing Prospectus, in the light of the circumstances under which they were made) not misleading misleading, in each such case, to the extent contained in and in conformity with information furnished in writing by the Forward Seller, the Forward Counterparty or arising any Underwriter through the Representatives to the Company expressly for use therein (that information being limited to that described in the penultimate sentence of Section 9(b) hereof). The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against any person in respect of which indemnity may be sought against the Company pursuant to this Section 9(a), such person (for purposes of this Section 9(a), such person is referred to as the “indemnified party”) shall promptly notify the Company in writing of the institution of such action and the Company shall if it so elects, assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is materially prejudiced by such failure or delay. Such indemnified party shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such indemnified party unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action or the Company shall not have employed counsel reasonably satisfactory to such indemnified party to have charge of the defense of such action within a reasonable time or such indemnified party shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of such indemnified party), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for all such indemnified parties in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing all such indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its written consent. (b) Each Underwriter agrees, severally and not jointly, based on the percentage of the total number of Initial Shares being purchased by such Underwriter as shown on Schedule I hereto, to indemnify, defend and hold harmless the Company, the Company’s directors, the Company’s officers who signed the Registration Statement, any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, the Forward Seller, the Forward Counterparty and any person who controls the Forward Seller or the Forward Counterparty within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) that may be incurred by such persons, jointly or severally, under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon (1) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any preliminary prospectusamendment thereof), any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission, the Disclosure Package, the Preliminary Prospectus or the Prospectus, (2) any omission or alleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, or (3) any omission or alleged omission from any such Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoever, but in each case only insofar as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement omission was made in such Registration Statement, Issuer Free Writing Prospectus, Preliminary Prospectus or omission made Prospectus in reliance upon and in conformity with written information furnished in writing by the Forward Seller, the Forward Counterparty or any Underwriter through the Representatives to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use therein. (c. The statements set forth in the third and the twenty-first through twenty-sixth paragraphs under the caption “Underwriting” in the Preliminary Prospectus, the Prospectus and the Disclosure Package constitute the only information furnished by or on behalf of the Underwriters through the Representatives to the Company. The indemnity agreement set forth in this Section 9(b) Each indemnified party shall give notice as promptly as reasonably practicable be in addition to each indemnifying party of any liabilities that such Underwriter may otherwise have. If any action commenced is brought against it a person in respect of which indemnity may be sought hereunderagainst an Underwriter pursuant to this Section 9(b), but failure to so notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account person (for purposes of this indemnity agreement. In Section 9(b), such person is referred to as an “indemnified party”), shall promptly notify the case Representatives in writing of parties indemnified pursuant to Section 6(a) abovethe institution of such action and the Representatives, counsel to the indemnified parties shall be selected by on behalf of the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in if they so elect assume the defense of any such action, including the employment of counsel and payment of expenses; provided, however, that counsel any failure or delay to so notify the Representatives will not relieve the Underwriters of any obligation hereunder, except to the indemnifying extent that their ability to defend is materially prejudiced by such failure or delay. Such indemnified party shall not (except have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such indemnified party unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the consent defense of such action or the Representatives shall not have employed counsel reasonably satisfactory to such indemnified party to have charge of the defense of such action within a reasonable time or such indemnified party shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it which are different from or additional to those available to the Underwriters (in which case the Representatives shall not have the right to direct the defense of such action on behalf of such indemnified party) also ), in any of which events such fees and expenses shall be counsel to the indemnified party. In borne by such Underwriter and paid as incurred (it being understood, however, that no event Underwriter shall the indemnifying parties be liable for fees and the expenses of more than one counsel (in addition to any local counsel) separate from their own counsel firm of attorneys for all such indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing all such indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party under subsections (a) and (b) of this Section 9, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company Company, on the one hand hand, and by the Underwriters, the Forward Counterparty and the Underwriters Forward Seller, on the other hand other, in any case, from the offering of the Shares pursuant to this AgreementShares, or (ii) if (but only if) the allocation provided by clause (i) of this Section 9(c) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company Company, on the one hand hand, and of the Underwriters Underwriters, the Forward Counterparty and the Forward Seller, on the other hand other, in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in equal to the same respective proportions as the total net gross proceeds from the offering of the Shares pursuant to this Agreement (before deducting discounts and expenses) received by the Company and Company, which such proceeds shall include the total underwriting discount proceeds to be received by the Underwriters, in each case as set forth Company pursuant to the Forward Sale Agreement assuming full Physical Settlement on the cover Effective Date (each as defined in the Forward Sale Agreement). The relative benefits received by the Underwriters shall be deemed to be equal to the underwriting discounts and commissions received by them from the offering of the Prospectus, bear Shares. The relative benefits received by the Forward Counterparty and the Forward Seller shall be deemed to be equal to the aggregate initial public offering price of Spread (as defined in the Shares Forward Sale Agreement) deducted from the Forward Purchase Price (as set forth on defined in the cover of the ProspectusForward Sale Agreement). The relative fault of the Company on Company, the one hand Underwriters, the Forward Counterparty and the Underwriters on the other hand Forward Seller shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters Underwriters, the Forward Counterparty or the Forward Seller, respectively, and the parties’ intent of the parties and their relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company, the Underwriters, the Forward Counterparty and the Underwriters Forward Seller agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount clause (i) and, if applicable, clause (ii) of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionsubsection (c) above. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in underwriting commitments as shown on Schedule A I hereto and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Northstar Realty Finance Corp.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, from and against any and all loss, expense, liability, damage or claim (including, without limitation, legal fees and other expenses incurred in connection with any suit, action or proceeding or any claim asserted and any out-of-pocket expenses reasonably incurred by any Underwriter, its affiliates, directors and officers or any person who controls such Underwriter, its affiliates, directors and officers or any person who controls such Underwriter in connection with investigating or defending any such loss, claim, damage and expense whatsoeveror liability, action or proceeding or in responding to a subpoena or governmental inquiry related to the offering of the Shares, whether or not such Underwriter or person is a party to any action or proceeding, as such fees and expenses are incurred), arising which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus, (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company), the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (D) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an "Application"), including the Rule 430B Information, or the (E) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, Prospectus or any Application or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , or (iiF) against any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials used in connection with the marketing of the Shares, including, without limitation, slides, videos, films and all tape recordings; except insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected omission or alleged omission of a material fact contained in and in conformity with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen information furnished in writing by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, Underwriters through the Representative to the extent that any Company expressly for use in such expense is not paid under (i) Registration Statement, Prospectus or (ii) aboveApplication; provided, however, that this the Company shall not be liable to any Underwriter under the indemnity agreement shall not apply in this Section 9 to any the extent, but only to the extent, that (i) such loss, liability, claim, damage damage, or expense to liability of such Underwriter results from an untrue statement of a material fact or an omission of a material fact contained in the extent arising out of any Preliminary Prospectus, which untrue statement or omission was completely corrected in the Prospectus and (ii) the Company had previously furnished sufficient quantities (as requested by the Underwriters) of the Prospectus to the Underwriters within a reasonable amount of time prior to such sale or alleged untrue statement such confirmation and (iii) such Underwriter failed to deliver the Prospectus, if required by law to have so delivered it, and such delivery would have cured the defect giving rise to such loss, claim, liability, expense or omission made damage. The indemnity agreement set forth in reliance upon this Section 9(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in conformity any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with written information furnished the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s 's directors, each of the Company’s 's officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, damage and expense described in jointly or severally, the indemnity contained in subsection (a) of this SectionCompany, as incurredor any such person may incur under the Securities Act, the Exchange Act or otherwise, but only with respect to insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representative to the Company expressly for use in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company), the Prospectus, or any preliminary prospectusApplication, or (B) any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in such Registration Statement, Prospectus or any Application or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth in the fourth, fifth, eighth, ninth, tenth, eleventh, twelfth and fourteenth paragraphs under the caption "Underwriting" in the Preliminary Prospectus and the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company by for purposes of Section 3(k) and this Section 9. The indemnity agreement set forth in this Section 9(b) shall be in addition to any liabilities that such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of may otherwise have. If any action commenced is brought against it the Company, or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company, or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company, or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company, or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand Company, and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand Company, and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand Company, and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand Company, and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company Company, or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company, and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective ' obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Meridian Resource Corp)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, and the respective directors, officers, employees and agents of each Underwriter from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus, (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), including any Issuer Free Writing Prospectus that the Rule 430B InformationCompany has filed or was required to file with the Commission or is otherwise required retain, or the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (D) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an “Application”), (E) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, or necessary to make the statements made therein not misleading or arising out of misleading, (F) any untrue statement omission or alleged untrue statement of a material fact contained in omission from any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “such Issuer Free Writing Prospectus,” , Prospectus or the omission or alleged omission therefrom any Application of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , (iiG) against any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials used in connection with the marketing of the Shares, including, without limitation, slides, videos, films and all tape recordings; except, in the case of (C), (E) and (F) above only, insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement, Prospectus or Application. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. (b) If any action is brought against an Underwriter or any controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such settlement is effected with Underwriter shall promptly notify the written consent Company in writing of the Company; (iii) against any institution of such action, and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) aboveand payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (bc) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection or claim arises out of or is based upon (aA) of this Section, as incurred, but only with respect to any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), or any preliminary prospectus, any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission, or the Prospectus (Prospectus, or any amendment Application, (B) any omission or supplement theretoalleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, or (C) any omission or alleged omission from any such Issuer Free Writing Prospectus, Prospectus or any Application of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, but in each case only insofar as such untrue statement or alleged untrue statement or omission or alleged omission was made in such Registration Statement, Issuer Free Writing Prospectus, Prospectus or Application in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representative to the Company by such Underwriter expressly for use therein. . The statements set forth in the paragraph identified by “Stabilization” under the caption “Underwriting” in the Preliminary Prospectus, the Disclosure Package and the Prospectus (cto the extent such statements relate to the Underwriters) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company for purposes of Section 3(d), Section 3(f) and this Section 9. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (d) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (d)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (ConnectOne Bancorp, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify shall indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which the Underwriters or any such controlling person may incur insofar as follows: such loss, expense, liability, damage or claim arises out of or, is based upon (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company) or the Prospectus (the term Prospectus for the purpose of this Section 6 being deemed to include any Preliminary Prospectus, Pricing Prospectus, Issuer Free Writing Prospectus, the Prospectus and any Prospectus supplements, in each case as amended or supplemented by the Company), (ii) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or “blue sky” laws thereof or filed with the Commission or any securities association or securities exchange (each an “Application”), including the Rule 430B Information, or the (iii) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, Prospectus or Application or necessary to make the statements made therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, except to the extent that any such expense is not paid under (i) or (ii) above; providedloss, however, that this indemnity agreement shall not apply to any lossexpense, liability, claim, damage or expense to the extent arising claim arises out of or is based upon (x) any such untrue statement or omission of a material fact contained in and in conformity with information furnished in writing by or alleged on behalf of the Underwriters to the Company expressly for use in such Registration Statement or such Prospectus or (y) sales to any person asserting any such loss, expense, liability, damage or claim incurred from purchasing the Shares, if a copy of the Pricing Disclosure Package or the Prospectus (in each case, as then amended or supplemented if the Company shall have timely furnished any amendments or supplements thereto) was not sent or given by or on behalf of such Underwriter to such person, if required by law to have been delivered, at or prior to the written confirmation of the sale of the Shares to such person, and if the Pricing Disclosure Package or the Prospectus (in each case, as so amended or supplemented), as applicable, would have cured the defect giving rise to such loss, expense, liability, damage or claim, unless such failure is the result of noncompliance by the Company. (b) Each of the Underwriters shall, severally and not jointly, indemnify, defend and hold harmless the Company and its directors, officers, employees and agents, each person who controls the Company, as the case may be, within the meaning of Section 15 of the Act or Section 20 of the 1934 from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, the Company, or any such person may incur but only insofar as such loss, expense, liability, damage or claim arises out of or is based upon (i) any untrue statement of a material fact contained in the Registration Statement (or omission made in the Registration Statement as amended by any post-effective amendment thereof by the Company) or the Prospectus in reliance upon and in conformity with written information furnished in writing by such Underwriter to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (as amended by any post-effective amendment thereof by the Company) or any amendment theretothe Prospectus, as specified in the last sentence of this Section 6(c), or (ii) any preliminary prospectus, any Issuer Free Writing Prospectus omission to state a material fact regarding such Underwriter required to be stated in such Registration Statement or the Prospectus or necessary to make such statement not misleading. The obligation of each of the Underwriters to indemnify the Company (including any director, officer, employee, agent or control person thereof) shall only relate to any amendment untrue statement or supplement theretoomission which applies to the Underwriter. The Company and the Underwriters acknowledge that the information set forth (x) on the cover page of the Prospectus concerning the Underwriters, relating to the delivery of the Shares and (y) under the caption “Underwriting” in reliance upon the Prospectus with respect to passive market and in conformity with written stabilization activities by the Underwriter constitute the only information furnished by or on behalf of the Underwriters to the Company by such Underwriter expressly for use thereinpurposes of this Section 6. (c) Each Promptly after receipt by an indemnified party shall give under subsection (a), (b) or (c) above of notice as promptly as reasonably practicable of any claims or the commencement of any action, such indemnified party shall, if a claim in respect thereof is to each be made against the indemnifying party of any action commenced under such subsection, notify in writing each party against it in respect of which indemnity may whom indemnification is to be sought hereunder, of the claim or the commencement thereof (but the failure so to so notify an indemnifying party shall not (i) relieve such the indemnifying party from any liability hereunder which it may have under this Section 6 to the extent that it is did not otherwise learn of such action and such failure does not materially prejudiced prejudice the indemnifying party as a result thereof and (ii) in any event shall not relieve it from any liability which it that such indemnifying party may have otherwise than on account of this the indemnity agreementagreement hereunder). In The indemnifying party shall be entitled to appoint counsel of the indemnifying party’s choice at the indemnifying party’s expense to represent the indemnified party in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be responsible for the fees and expenses of any separate counsel retained by the indemnified party or parties indemnified pursuant to Section 6(a) aboveexcept as set forth below); provided, however, that such counsel shall be satisfactory to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Companyparty. An The indemnifying party may participate at its own expense in the defense of any such actionaction at its own expense, and to the extent it may elect, by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, the indemnifying party may assume the defense thereof with counsel reasonably satisfactory to such indemnified party; provided, however, that counsel to the indemnifying party shall not (except with the written consent of the indemnified party) also be counsel to the indemnified party. In no event Notwithstanding the foregoing, the indemnified party or parties shall have the indemnifying parties be liable for right to employ its or their own counsel in any such case, but the fees and expenses of more than such counsel shall be at the expense of such indemnified party or parties unless (i) the employment of such counsel shall have been authorized in writing by one of the indemnifying parties in connection with the defense of such action, (ii) the indemnifying parties shall not have employed satisfactory counsel to have charge of the defense of such action within a reasonable time after notice of commencement of the action, (iii) the indemnifying party does not diligently defend the action after assumption of the defense, or (iv) such indemnified party or parties shall have reasonably concluded based on the advice of the advice of counsel that there may be defenses available to it or them which are different from or additional to those available to one or all of the indemnifying parties (in which case the indemnifying parties shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events the fees and expenses of one counsel selected by all of the indemnified parties to represent them all (in addition to any one local counsel) separate from their own counsel for selected by all of the indemnified parties to represent them all in connection with any one action or separate but similar or related actions in each applicable jurisdiction) shall be borne by the same jurisdiction arising out of the same general allegations or circumstancesindemnifying parties. No indemnifying party shall, without the prior written consent of the indemnified parties, settle effect any settlement or compromise of, or consent to the entry of any judgment with respect to to, any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be have been sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless (x) such settlement, compromise or consent (iI) includes an unconditional release of each the indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (iiII) does not include a statement as to to, or an admission of of, fault, culpability or a failure to act act, by or on behalf of any the indemnified partyparty and (y) the indemnifying party reaffirms its indemnification obligations pursuant to this Agreement. (d) If the indemnification provided for in this Section 6 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b), (c) or (f) of this Section 6 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Principal Subsidiaries on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company and the Principal Subsidiaries on the one hand and of the Underwriters on the other hand in connection with respect to the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company and the Principal Subsidiaries on the one hand and the Underwriters on the other hand in connection with the respect to such offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total proceeds (net proceeds from the offering of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company from the Shares sold under this Agreement, on the one hand, and the total underwriting discount discounts and commissions received by the UnderwritersUnderwriters with respect to the Shares purchased under this Agreement, on the other hand, bear to the total gross proceeds from the offering of the Shares under this Agreement, in each case as set forth in the table on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover page of the Prospectus. The relative fault of the Company and the Principal Subsidiaries on the one hand and the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company Company, the Principal Subsidiaries or by the Underwriters Underwriters, the intent of the parties and the parties’ their relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company, the Principal Subsidiaries and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 6(d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of losses6(d)(i) and, liabilitiesif applicable Section 6(d)(ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 6, no Underwriter (i) none of the Underwriters shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omission. No Underwriters and, (ii) no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxAct) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this The Underwriters’ obligations in Section 66(d) shall be several in proportion to their respective underwriting obligations and not joint. (f) The Company and the Principal Subsidiaries, each personjointly and severally, if any, who controls an Underwriter within to indemnify and hold harmless the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, Underwriters and each person, if any, who controls the Company Underwriters within the meaning of either Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) (a) caused by any untrue statement or alleged untrue statement of a material fact contained in the prospectus wrapper material prepared by or with the consent of the Company for distribution in foreign jurisdictions in connection with the Directed Share Program attached to the Prospectus or any preliminary prospectus, or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statement therein, when considered in conjunction with the Prospectus or any applicable preliminary prospectus, not misleading; (b) caused by the failure of any Participant to pay for and accept delivery of the shares which, immediately following the effectiveness of the Registration Statement, were subject to a properly confirmed agreement to purchase; or (c) related to, arising out of, or in connection with the Directed Share Program. Notwithstanding anything contained herein to the contrary, if indemnity may be sought pursuant to Section 6(f) hereof in respect of such action or proceeding, then in addition to such separate firm for the indemnified parties, the indemnifying party shall be liable for the reasonable fees and expenses of not more than one separate firm (in addition to any local counsel) for the Underwriters for the defense of any losses, claims, damages and liabilities arising out of the Directed Share Program, and all persons, if any, who control the Underwriters within the meaning of either Section 15 of the Act shall have or Section 20 of the same rights to contribution as the CompanyExchange Act. The Underwriters’ respective obligations to contribute pursuant to indemnity and contribution contained in this Section 6 are several shall remain operative and in proportion to full force and effect regardless of (i) any termination of this Agreement and (ii) any investigation made by or on behalf of the principal amount of Shares set forth opposite their respective names in Schedule A hereto Underwriters or the Company, the Parent or the Subsidiaries and not jointsuch party’s officers or directors or any person controlling such parties.

Appears in 1 contract

Samples: Underwriting Agreement (VeriChip CORP)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any and all lossbreach in any material respect of any representation, liabilitywarranty or covenant of the Company contained herein, claim, damage and expense whatsoever, as incurred, arising out of or (ii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company) or in a Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any preliminary prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), including the Rule 430B Information, or the any omission or alleged omission therefrom of to state a material fact required to be stated therein in either such Registration Statement or Prospectus or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against , except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omissionalleged untrue statement or omission or alleged omission of a material fact made in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company) or in a Prospectus in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement or such Prospectus, provided, however, that the indemnity agreement contained in this subsection (a)(ii) with respect to any preliminary prospectus or the Prospectus shall not inure to the benefit of an Underwriter (or to the benefit of any person controlling such Underwriter) with respect to any person asserting any such loss, expense, liability, damage or claim which is the subject thereof if the Prospectus or any supplement thereto furnished to the Underwriters prior to the Closing Time corrected any such alleged untrue statement or omission; provided that any omission and if such settlement is effected with Underwriter failed to send or give a copy of the Prospectus or supplement thereto to such person at or prior to the written consent confirmation of the Company; (iii) against any and all expense whatsoeversale of Shares to such person, as incurred (including the fees and disbursements of counsel chosen unless such failure resulted from noncompliance by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (iiCompany with Section 4(b) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such Underwriter or controlling person shall promptly notify the Company in writing of the institution of such action, and the Company will be entitled to participate therein and, to the extent that it may wish, jointly with any other indemnifying party similarly notified, assume the defense of such action, including the employment of counsel and payment of expenses, provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the written advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company, and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its prior written consent. (c) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement's directors and officers, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, damage and expense described in jointly or severally, the indemnity contained in subsection (a) of this SectionCompany or any such person may incur under the Securities Act, as incurredthe Exchange Act or otherwise, but only with respect to insofar as such loss, expense, liability, damage or claim arises out of or is based upon any untrue statements or omissions, statement or alleged untrue statements or omissions, statement of a material fact made in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereto), thereof by the Company) or any preliminary prospectus, any Issuer Free Writing in a Prospectus or arises out of or is based upon any omission or alleged omission to state a material fact required to be stated either in such Registration Statement or Prospectus or necessary to make such information, in the light of the circumstances under which made, not misleading, in either case in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement or such Prospectus. The statements set forth (i) in the last paragraph on the cover page and (ii) under the caption "Underwriting" in the Preliminary Prospectus and the Prospectus (or any amendment or supplement theretoto the extent such statements relate to the Underwriters) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company by such Underwriter expressly for use thereinpurposes of Section 3(k) and this Section 9. (cd) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunderagainst any Underwriter pursuant to the foregoing subsection (c), but failure the Company or such person shall promptly notify the Representatives in writing of the institution of such action and the Representatives, on behalf of the Underwriters, will be entitled to so notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder participate therein, and to the extent it is not materially prejudiced as a result thereof and in that they may wish, jointly with any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An other indemnifying party may participate at its own expense in similarly notified, assume the defense of any such action; , including the employment of counsel and payment of expenses, provided, however, that any failure or delay to so notify the Representatives will not relieve the Underwriters of any obligation hereunder, except to the extent that their ability to defend is actually impaired by such failure or delay. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the written advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by such Underwriter and paid as incurred (it being understood, however, that the indemnified party. In no event Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (de) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, severally shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand Company, and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover page of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (f) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (e)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective ' obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (First Community Bancorp /Ca/)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (eachand its and their officers, an “Affiliate”)directors, its selling agents employees, partners and members, and each person, if any, who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) that, jointly or severally, any such Underwriter or any controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any preliminary prospectus, the Prospectus and all lossany amendment or supplement thereto and any prospectus wrapper material), liability, claim, damage and expense whatsoever, as incurred, arising out of (ii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (Statement, any Issuer Free Writing Prospectus or any amendment thereto), including the Rule 430B InformationProspectus, or the (iii) any omission or alleged omission therefrom of to state a material fact required to be stated therein or necessary to make in the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectusRegistration Statement, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against ; except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made of a material fact contained in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representative to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectusStatement, any Issuer Free Writing Prospectus or the Prospectus Prospectus. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liabilities that the Company may otherwise have. If any action is brought against an Underwriter or a controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any amendment of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or supplement theretocontrolling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who that signed the Registration Statement, Statement and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) that, damage and expense described in jointly or severally, the indemnity contained in subsection (a) of this SectionCompany or any such person may incur under the Securities Act, as incurredthe Exchange Act or otherwise, but only with respect to insofar as such loss, expense, liability, damage or claim arises out of or is based upon (i) any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representative to the Company expressly for use in the Registration Statement (Statement, any Issuer Free Writing Prospectus or any amendment thereto)the Prospectus, or (ii) any preliminary prospectusomission or alleged omission to state a material fact in connection with such information required to be stated in the Registration Statement, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) necessary to make such information, in reliance upon and the light of the circumstances under which made, not misleading; provided, however, that the statements identified in conformity with written Schedule IV attached hereto constitute the only information furnished by or on behalf of the Underwriter through the Representative to the Company by for purposes of this Section 9. The indemnity agreement set forth in this Section 9(b) shall be in addition to any liabilities that such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of may otherwise have. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of any such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Representative will not relieve the Underwriters of any obligation hereunder, except to the extent that their ability to defend is actually impaired by such failure or delay. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them that are different from or additional to those available to the Underwriters (in which case the Representative shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by the indemnified party. In no event Underwriters and paid as incurred (it being understood, however, that the Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). (c) The indemnifying party under this Section 9 shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the same general allegations plaintiff, the indemnifying party agrees to indemnify (to the extent provided in this Section 9) the indemnified party against any loss, expense, liability, damage or circumstancesclaim by reason of such settlement or judgment. No indemnifying party shall, without the prior written consent of the indemnified partiesparty, settle or effect any settlement, compromise or consent to the entry of judgment in any judgment with respect to any litigationpending or threatened action, or any investigation suit or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification any indemnified party is or contribution could be have been a party and indemnity was or could have been sought under this Section 6 (whether or not the hereunder by such indemnified parties are actual or potential parties thereto)party, unless such settlement, compromise or consent (i) includes an unconditional release of each such indemnified party from all liability arising out on claims that are the subject matter of such litigationaction, investigation, suit or proceeding or claim and (ii) does not include a statement as to to, or an admission of of, fault, culpability or a failure to act by or on behalf of any indemnified party. (d) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and by the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above above, but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which that resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and by the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering sale of the Shares pursuant to this Agreement (net of underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount clause (i) and, if applicable clause (ii), of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionsubsection (d) above. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations to contribute pursuant to this Section 9 are several in proportion to their respective underwriting commitments and not joint. For purposes of this Section 69, each affiliate of an Underwriter, each officer, director, employee, partner, and member of an Underwriter or its affiliates, and each person, if any, who controls an Underwriter within the meaning of the Section 15 of the 1933 Securities Act or and Section 20 of the 1934 Exchange Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Securities Act or and Section 20 of the 1934 Exchange Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (CapLease, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents and each person, if any, who controls any Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act as follows: (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment thereto), including the Rule 430B Information, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” ), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the UnderwritersRepresentatives), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to the Company by any Underwriter through the Representatives expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter through the Representatives expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of any action commenced against it in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the UnderwritersRepresentatives, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in the defense of any such action; provided, however, that counsel to the indemnifying party shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and expenses of more than one counsel (in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances. No indemnifying party shall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party. (d) If the indemnification provided for in this Section 6 is for any reason unavailable to or insufficient to hold harmless an indemnified party in respect of any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying party shall contribute to the aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions as the total net proceeds from the offering of the Shares pursuant to this Agreement (before deducting expenses) received by the Company and the total underwriting discount received by the Underwriters, in each case as set forth on the cover of the Prospectus, Prospectus bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and the Underwriters on the other hand shall be determined by reference to, among other things, whether any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 6, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Shares underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 Xxx) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A I hereto and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Equity One, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify shall indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which the Underwriters or any such controlling person may incur insofar as follows: such loss, expense, liability, damage or claim arises out of or, is based upon (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company) or the Prospectus (the term Prospectus for the purpose of this Section 5 being deemed to include any Preliminary Prospectus, Pricing Prospectus, Issuer Free Writing Prospectus, the Prospectus and any Prospectus supplements, in each case as amended or supplemented by the Company), (ii) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or “blue sky” laws thereof or filed with the Commission or any securities association or securities exchange (each an “Application”), including the Rule 430B Information, or the (iii) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, Prospectus or Application or necessary to make the statements made therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; ; except, in the case of each of clauses (i), (ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; providedloss, however, that this indemnity agreement shall not apply to any lossexpense, liability, claim, damage or expense to the extent arising claim arises out of or is based upon (x) any such untrue statement or omission or alleged untrue statement or omission made of a material fact contained in reliance upon and in conformity with written information furnished in writing by or on behalf of the Underwriters to the Company by any Underwriter expressly for use in the such Registration Statement or such Prospectus or (y) sales to any person asserting any such loss, expense, liability, damage or any amendment thereto)claim incurred from purchasing the Shares, including any preliminary prospectus, any Issuer Free Writing Prospectus if a copy of the Pricing Disclosure Package or the Prospectus (in each case, as then amended or supplemented if the Company shall have timely furnished any amendment amendments or supplement supplements thereto) was not sent or given by or on behalf of such Underwriter to such person, if required by law to have been delivered, at or prior to the written confirmation of the sale of the Shares to such person, and if the Pricing Disclosure Package or the Prospectus (in each case, as so amended or supplemented), as applicable, would have cured the defect giving rise to such loss, expense, liability, damage or claim, unless such failure is the result of noncompliance by the Company. (b) Each Underwriter of the Underwriters shall, severally agrees to indemnify and not jointly, indemnify, defend and hold harmless the Company, the Company’s Company and its directors, officers, employees and agents, each of the Company’s officers who signed the Registration Statement, and each person, if any, person who controls the Company Company, as the case may be, within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, the Company, or any such person may incur but only insofar as such loss, expense, liability, damage and expense described in the indemnity or claim arises out of or is based upon (i) any untrue statement of a material fact contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus thereof by the Company) or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished in writing by or on behalf of such Underwriter to the Company expressly for inclusion in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company) or the Prospectus, as specified in the last sentence of this Section 5(b), or (ii) any omission to state a material fact regarding such Underwriter expressly required to be stated in such Registration Statement or the Prospectus or necessary to make such statement not misleading. The obligation of each of the Underwriters to indemnify the Company (including any director, officer, employee, agent or control person thereof) shall only relate to any untrue statement or omission which applies to the Underwriter. The Company and the Underwriters acknowledge that the information set forth (x) on the cover page of the Prospectus concerning the Underwriters, relating to the delivery of the Shares, and (y) under the caption “Underwriting” in the Prospectus with respect to passive market and stabilization activities by the Underwriters, constitute the only information furnished by or on behalf of the Underwriters to the Company for use thereinpurposes of this Section 5. (c) Each Promptly after receipt by an indemnified party shall give under subsection (a) or (b) above of notice as promptly as reasonably practicable of any claims or the commencement of any action, such indemnified party shall, if a claim in respect thereof is to each be made against the indemnifying party of any action commenced under such subsection, notify in writing each party against it in respect of which indemnity may whom indemnification is to be sought hereunder, of the claim or the commencement thereof (but the failure so to so notify an indemnifying party shall not (i) relieve such the indemnifying party from any liability hereunder which it may have under this Section 5, to the extent that it is did not otherwise learn of such action and such failure does not materially prejudiced prejudice the indemnifying party as a result thereof thereof, and (ii) in any event shall not relieve it from any liability which it that such indemnifying party may have otherwise than on account of this the indemnity agreementagreement hereunder). In The indemnifying party shall be entitled to appoint counsel of the indemnifying party’s choice at the indemnifying party’s expense to represent the indemnified party in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be responsible for the fees and expenses of any separate counsel retained by the indemnified party or parties indemnified pursuant to Section 6(a) aboveexcept as set forth below); provided, however, that such counsel shall be reasonably satisfactory to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Companyparty. An The indemnifying party may participate at its own expense in the defense of any such actionaction at its own expense, and to the extent it may elect, by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, the indemnifying party may assume the defense thereof with counsel reasonably satisfactory to such indemnified party; provided, however, that counsel to the indemnifying party shall not (except with the written consent of the indemnified party) also be counsel to the indemnified party. In no event Notwithstanding the foregoing, the indemnified party or parties shall have the indemnifying parties be liable for right to employ its or their own counsel in any such case, but the fees and expenses of more than such counsel shall be at the expense of such indemnified party or parties unless (i) the employment of such counsel shall have been authorized in writing by one of the indemnifying parties in connection with the defense of such action, (ii) the indemnifying parties shall not have employed reasonably satisfactory counsel to have charge of the defense of such action within a reasonable time after notice of commencement of the action, (iii) the indemnifying party does not diligently defend the action after assumption of the defense, or (iv) such indemnified party or parties shall have reasonably concluded based on the advice of the advice of counsel that there may be defenses available to it or them which are different from or additional to those available to one or all of the indemnifying parties (in which case the indemnifying parties shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events the fees and expenses of one counsel selected by all of the indemnified parties to represent them all (in addition to one local counsel selected by all of the indemnified parties to represent them all in each applicable jurisdiction) shall be borne by the indemnifying parties. In the case of any local counsel) separate from their own counsel for all indemnified parties the Company and its officers, directors and control persons, such counsel shall be designated in connection with writing by the Company. In the case of any one action or separate but similar or related actions counsel for the Underwriters and their respective officers, directors and control persons, such counsel shall be designated in the same jurisdiction arising out of the same general allegations or circumstances. writing by Xxxxxxxx Curhan Ford & Co. No indemnifying party shall, without the prior written consent of the indemnified parties, settle effect any settlement or compromise of, or consent to the entry of any judgment with respect to to, any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be have been sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party. (d) If the indemnification provided for in this Section 6 is for any reason unavailable to or insufficient to hold harmless an indemnified party in respect of any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying party shall contribute to the aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions as the total net proceeds from the offering of the Shares pursuant to this Agreement (before deducting expenses) received by the Company and the total underwriting discount received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and the Underwriters on the other hand shall be determined by reference to, among other things, whether any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 6, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Shares underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 Xxx) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not joint.this

Appears in 1 contract

Samples: Underwriting Agreement (Ap Pharma Inc /De/)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act as follows: (i) from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company) or in a Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), including the Rule 430B Information, or the arises out of or is based upon any omission or alleged omission therefrom of to state a material fact required to be stated therein in either such Registration Statement or Prospectus or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against , except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omissionalleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement or such Prospectus, provided, however, that the indemnity agreement contained in this subsection (a) with respect to the Preliminary Prospectus or the Prospectus shall not inure to the benefit of an Underwriter (or to the benefit of any person controlling such Underwriter) with respect to any person asserting any such loss, expense, liability, damage or claim which is the subject thereof if the Prospectus or any supplement thereto prepared with the consent of the Representatives and furnished to the Underwriters prior to the Closing Time corrected any such alleged untrue statement or omission; provided that any omission and if such settlement is effected with Underwriter failed to send or give a copy of the Prospectus or supplement thereto to such person at or prior to the written consent confirmation of the Company; (iiisale of Shares to such person, unless such failure resulted from noncompliance by the Company with Section 4(a) of this Agreement. If any action is brought against any an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the preceding paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters)and payment of out-of-pocket expenses, reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action or the Company shall not apply have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company and which counsel to the Underwriter believes may present a conflict for counsel representing the Company and the Underwriter (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without the its written consent. (b) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Subsidiaries, their trustees and directors, the officers that signed the Registration Statement and any person who controls the Company or any Subsidiary within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any loss, expense, liability, claim, damage or expense to claim (including the extent arising reasonable cost of investigation) which, jointly or severally, the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or omission or alleged untrue statement or omission made of a material fact contained in reliance upon and in conformity with written information furnished in writing by such Underwriter through the Representatives to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (as amended by any post-effective amendment thereof by the Company) or any amendment thereto)in a Prospectus, or arises out of or is based upon any preliminary prospectus, any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in the Registration Statement or Prospectus or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth under the caption "Underwriting" regarding (i) concessions to dealers in connection with the sale of Shares and (ii) stabilizing and the beneficial ownership of Shares by the Underwriters, and entities associated with the Underwriters, in the Preliminary Prospectus and the Prospectus (or any amendment or supplement theretoto the extent such statements relate to the Underwriters) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company by such Underwriter expressly for use therein. (cpurposes of Section 3(j) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of and this Section 9. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representatives in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company, on the one hand, and the Underwriters Underwriters, on the other, agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective ' obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (America First Mortgage Investments Inc)

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Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 the Securities Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of defense or investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the 1933 Securities Act, the Exchange Act or Section 20 otherwise, insofar as such loss, expense, liability, damage or claim arises out of the 1934 Act as follows: or is based upon (i) against any and all lossbreach of any representation, liabilitywarranty or covenant of the Company contained herein, claim(ii) any failure on the part of the Company to comply with any applicable law, damage and expense whatsoeverrule or regulation relating to the offering of securities being made pursuant to the Prospectus, as incurred, arising out of (iii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company) or in a Prospectus (the term Prospectus for the purpose of this Section 10 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), including the Rule 430B Information, or the (iv) any omission or alleged omission therefrom of to state a material fact required to be stated therein in either such Registration Statement or Prospectus or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against , except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission of a material fact contained in and made in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement or such Prospectus (that information being limited to that described in the last sentence of Section 10(c) hereof), provided, however, that the indemnity agreement contained in this subsection (a) with respect to the Preliminary Prospectus or the Prospectus shall not inure to the benefit of any Underwriter (or to the benefit of any person controlling such Underwriter) with respect to any person asserting any such loss, expense, liability, damage or claim which is the subject thereof if the Prospectus prepared with the consent of the Representative and furnished to the Underwriters prior to the Closing Time corrected any such alleged untrue statement or omission and if such Underwriter failed to send or give a copy of the Prospectus to such person at or prior to the written confirmation of the sale of Shares to such person, unless such failure resulted from noncompliance by the Company with Section 5(b) above). (b) If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel of its choosing and payment of expenses, provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired or otherwise prejudiced by such failure or delay, and after notice from the Company to such indemnified party of its election so to assume the defense thereof, the Company will not be liable to such indemnified party under this Section for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation, except as provided below. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time after notice of such action by such indemnified party or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there exists an actual and material conflict of interest between the interests of the Company and such indemnified party in connection with such action (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its prior written consent. (c) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Company’s directors and officers, and any person who controls the Company within the meaning of the Securities Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of defense or investigation) which, jointly or severally, the Company, or any such person may incur under the Securities Act, the Exchange Act or otherwise, but only insofar as such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in and made in reliance upon and in conformity with information furnished in writing by such Underwriter through the Representative to the Company expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (as amended by any post-effective amendment thereof by the Company) or any amendment thereto)in a Prospectus, or arises out of or is based upon any preliminary prospectus, any Issuer Free Writing omission or alleged omission to state therein a material fact in connection with such information required to be stated either in such Registration Statement or Prospectus or necessary to make such information, in the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written light of the circumstances under which made, not misleading. The following statements constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company by such Underwriter expressly for use thereinpurposes of Section 3(r) and this Section 10: (i) the names of the Underwriters set forth on the front and back cover pages of the Prospectus and (ii) the table at the end of the first paragraph and the third, tenth, twelfth, thirteenth, fourteenth, fifteenth, sixteenth, and seventeenth paragraphs under the caption “Underwriting” in the Prospectus. (cd) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder to the extent it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. In the case of parties indemnified Underwriter pursuant to Section 6(asubsection (c) above, the Company or such person shall promptly notify the Representative in writing of the institution of such action and the Representative, on behalf of the Underwriters, shall assume the defense of such action, including the employment of counsel of its choosing (who shall not, except with the reasonable consent of the Company, be counsel to the indemnified parties shall be selected by Representative or the Underwriters, and, in the case ) and payment of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in the defense of any such actionexpenses; provided, however, that any failure or delay to so notify the Representative, as applicable, will not relieve the Representative or the Underwriters, as applicable, of any obligation hereunder, except to the extent that their ability to defend is actually impaired or otherwise prejudiced by such failure or delay, and after notice from such Underwriter to such indemnified party of its election so to assume the defense thereof, such Underwriter will not be liable to such indemnified party under this Section for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation, except as provided below. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time after notice of such action by such indemnified party or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there exists an actual and material conflict of interest between the interests of the Company and such indemnified party in connection with such action (in which case the Representative shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by such Underwriter and paid as incurred (it being understood, however, that the indemnified party. In no event Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (de) If the indemnification provided for in this Section 6 10 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b), (c) and (d) of this Section 10 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions as proportion as, the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company and bear to the total underwriting discount discounts and commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to in the first sentence of this subsection (e) shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action which is the subject of this subsection (e). (f) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 10 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (e)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 610, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 10 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Saxon Reit Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation), jointly or severally, which any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment or part thereof) any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission, or the Prospectus (the term Prospectus for the purpose of this Section 10 being deemed to include the Base Prospectus, any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (C) any omission or alleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, or (D) any omission or alleged omission from the Disclosure Package of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading; except only insofar as any such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement, Prospectus or Application. The indemnity agreement set forth in this Section 10(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the fees and expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than one local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, (i) against the Company shall not be liable for any settlement of any such claim or action effected without its consent and all (ii) the foregoing indemnity with respect to the any Issuer Free Writing Prospectus and the Prospectus shall not inure to the benefit of the Underwriters to the extent that such loss, liabilityclaim, damage, liability or judgment arises out of or is based upon any untrue statement or alleged untrue statement of any material fact contained in any Issuer Free Writing Prospectus and the Prospectus, or caused by the omission or alleged omission to state in any Issuer Free Writing Prospectus and the Prospectus a material fact required to be stated therein or necessary to make the statements therein not misleading if: (x) the Company furnished to the Underwriters sufficient copies of any Issuer Free Writing Prospectus or the Prospectus, as amended or supplemented, on a timely basis to permit delivery of the Issuer Free Writing Prospectus and the Prospectus by the Underwriters to all persons at or prior to the delivery of the written confirmation of the sale of the Shares to such persons; (y) the disclosure contained in the Issuer Free Writing Prospectus and the Prospectus, as amended or supplemented, cured the defect in the Issuer Free Writing Prospectus and the Prospectus giving rise to such loss, claim, damage liability or judgment; and expense whatsoever(z) a copy of the Issuer Free Writing Prospectus and the Prospectus, as incurredamended or supplemented, arising was not sent or given by or on behalf of Underwriters to such person. (b) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Company's directors, the Company's officers that signed the Registration Statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, but only insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoor part thereof), including any Issuer Free Writing Prospectus that the Rule 430B InformationCompany has filed or was required to file with the Commission, or the Prospectus, (B) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, or necessary to make the statements made therein not misleading misleading, or arising out of (C) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom from the Disclosure Package or the Prospectus of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoever, but in each case only insofar as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement omission was made in such Registration Statement, Issuer Free Writing Prospectus, Disclosure Package or omission made Prospectus in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representative to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use therein. . The statements set forth in the paragraph identified by "Electronic Prospectus Delivery," the first paragraph under "Commissions and Expenses," and the paragraphs identified by "Stabilization" under the caption "Underwriting" in the Preliminary Prospectus, the Disclosure Package and the Prospectus (cto the extent such statements relate to the Underwriters) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company for purposes of Sections 3(l), (m) and (n) and this Section 10. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company, or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for the fees and expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than one local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (dc) If the indemnification provided for in this Section 6 10 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 10 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand Company, and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 10 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (d)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 610, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective ' obligations to contribute pursuant to this Section 6 10 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Quanta Capital Holdings LTD)

Indemnity and Contribution by the Company and the Underwriters. (a) 10.1 The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, and the respective directors, officers, employees and agents of each Underwriter from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Offering Circular, (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Offering Statement (or any amendment theretoamendment), including any Testing-the-Waters Communication that the Rule 430B InformationCompany has filed or was required to file with the Commission or is otherwise required retain, or the Offering Circular and Disclosure Package (the term Offering Circular for the purpose of this Section 10 being deemed to include any Preliminary Offering Circular, the Offering Circular and the Offering Circular as amended or supplemented by the Company), (D) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an “Application”), (E) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Offering Statement, or necessary to make the statements made therein not misleading or arising out of misleading, (F) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom from any such Testing-the-Waters Communication, Offering Circular or any Application of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , (iiG) against any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials used in connection with the marketing of the Shares, including, without limitation, slides, videos, films and all tape recordings; except, in the case of (C), (E) and (F) above only, insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Offering Statement, Offering Circular or Application. The indemnity agreement set forth in this Section 10.1 shall be in addition to any liability which the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such settlement is effected with Underwriter shall promptly notify the written consent Company in writing of the Company; (iii) against any institution of such action, and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) aboveand payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them that are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (b) 10.2 Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who that signed the Registration Offering Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection or claim arises out of or is based upon (aA) of this Section, as incurred, but only with respect to any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in the Registration Offering Statement (or any amendment theretoamendment), any Testing-the-Waters Communication that the Company has filed or was required to file with the Commission, or the Offering Circular, or any preliminary prospectusApplication, (B) any Issuer Free Writing Prospectus omission or alleged omission to state a material fact required to be stated in any such Offering Statement, or necessary to make the Prospectus statements made therein not misleading, or (C) any omission or alleged omission from any such Testing-the-Waters Communication, Offering Circular or any amendment Application of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, but in each case only insofar as such untrue statement or supplement thereto) alleged untrue statement or omission or alleged omission was made in such Offering Statement, Testing-the-Waters Communication, Offering Circular or Application in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representative to the Company by such Underwriter expressly for use therein. . The statements set forth in the paragraphs identified by “Stabilization” under the caption “Underwriting” in the Preliminary Offering Circular, the Disclosure Package, and the Offering Circular (cto the extent such statements relate to the Underwriters) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company for purposes of Section 2.12, Section 2.13 and this Section 10. If any action commenced is brought against it the Company, or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out of the same general allegations or circumstances. No indemnifying party shall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of (other than local counsel in any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not such jurisdiction) representing the indemnified parties who are actual or potential parties theretoto such action). Anything in this paragraph to the contrary notwithstanding, unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf no Underwriter shall be liable for any settlement of any indemnified party. (d) such claim or action effected without the Representative's written consent. If the indemnification provided for in this Section 6 10 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsection (a) and (b) of this Section 10 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages, and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 10 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 610, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 10 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Prometheum, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any such Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company) or in a Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), including the Rule 430B Information, or the arises out of or is based upon any omission or alleged omission therefrom of to state a material fact required to be stated therein in either such Registration Statement or Prospectus or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against , except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omissionalleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement or such Prospectus, provided, however, that the indemnity agreement contained in this subsection (a) with respect to the Preliminary Prospectus or the Prospectus shall not inure to the benefit of an Underwriter (or to the benefit of any person controlling such Underwriter) with respect to any person asserting any such loss, expense, liability, damage or claim which is the subject thereof if the Prospectus or any supplement thereto prepared with the consent of the Representative and furnished to the Underwriters prior to the Closing Time corrected any such alleged untrue statement or omission; provided that any omission and if such settlement is effected with Underwriter failed to send or give a copy of the Prospectus or supplement thereto to such person at or prior to the written consent confirmation of the Company; (iii) sale of Shares to such person, unless such failure resulted from noncompliance by the Company with Section 4(b). If any action is brought against any an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the preceding paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters)and payment of expenses, reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company and which counsel to the Underwriter believes may present a conflict for counsel representing the Company and the Underwriter (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement (same jurisdiction representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or action effected without the Prospectus (or any amendment or supplement thereto)its written consent. (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s its directors, each of the Company’s officers who that signed the Registration Statement, Statement and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection (a) or claim arises out of this Section, as incurred, but only with respect to or is based upon any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representative to the Company expressly for use in the Registration Statement (or in the Registration Statement as amended by any post- effective amendment thereto)thereof by the Company) or in a Prospectus, or arises out of or is based upon any preliminary prospectus, any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in such Registration Statement or Prospectus or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth in the last paragraph on the cover page and under the caption "Underwriting" in the Preliminary Prospectus and the Prospectus (or any amendment or supplement theretoto the extent such statements relate to the Underwriters) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company by such Underwriter expressly for use therein. (cpurposes of Section 3(m) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of and this Section 9. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of any such action; , including the employment of counsel and payment of expenses, provided, however, that any failure or delay to so notify the Representative will not relieve any such Underwriter of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by such Underwriter and paid as incurred (it being understood, however, that the indemnified party. In no event Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties', relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective ' obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (American Capital Strategies LTD)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (eachand its and their officers, an “Affiliate”)directors, its selling agents employees, partners and members and each person, if any, who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) that, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any preliminary prospectus, the Prospectus and all lossany amendment or supplement thereto and any prospectus wrapper material), liability, claim, damage and expense whatsoever, as incurred, arising out of (ii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (Statement, any Issuer Free Writing Prospectus or any amendment thereto), including the Rule 430B InformationProspectus, or the (iii) any omission or alleged omission therefrom of to state a material fact required to be stated therein or necessary to make in the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectusRegistration Statement, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against ; except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made of a material fact contained in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representatives to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectusStatement, any Issuer Free Writing Prospectus or the Prospectus Prospectus. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liabilities that the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any amendment of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or supplement theretocontrolling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who that signed the Registration Statement, Statement and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) that, damage and expense described in jointly or severally, the indemnity contained in subsection (a) of this SectionCompany or any such person may incur under the Securities Act, as incurredthe Exchange Act or otherwise, but only with respect to insofar as such loss, expense, liability, damage or claim arises out of or is based upon (i) any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representatives to the Company expressly for use in the Registration Statement (Statement, any Issuer Free Writing Prospectus or any amendment thereto)the Prospectus, or (ii) any preliminary prospectusomission or alleged omission to state a material fact in connection with such information required to be stated in the Registration Statement, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) necessary to make such information, in reliance upon and the light of the circumstances under which made, not misleading; provided, however, that the statements identified in conformity with written Schedule IV attached hereto constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company by for purposes of this Section 9. The indemnity agreement set forth in this Section 9(b) shall be in addition to any liabilities that such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of may otherwise have. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representatives in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of any such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Representatives will not relieve the Underwriters of any obligation hereunder, except to the extent that their ability to defend is actually impaired by such failure or delay. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them that are different from or additional to those available to the Underwriters (in which case the Representatives shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by the indemnified party. In no event Underwriters and paid as incurred (it being understood, however, that the Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). (c) The indemnifying party under this Section 9 shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the same general allegations plaintiff, the indemnifying party agrees to indemnify (to the extent provided in this Section 9) the indemnified party against any loss, expense, liability, damage or circumstancesclaim by reason of such settlement or judgment. No indemnifying party shall, without the prior written consent of the indemnified partiesparty, settle or effect any settlement, compromise or consent to the entry of judgment in any judgment with respect to any litigationpending or threatened action, or any investigation suit or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification any indemnified party is or contribution could be have been a party and indemnity was or could have been sought under this Section 6 (whether or not the hereunder by such indemnified parties are actual or potential parties thereto)party, unless such settlement, compromise or consent (i) includes an unconditional release of each such indemnified party from all liability arising out on claims that are the subject matter of such litigationaction, investigation, suit or proceeding or claim and (ii) does not include a statement as to to, or an admission of of, fault, culpability or a failure to act by or on behalf of any indemnified party. (d) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and by the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above above, but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which that resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and by the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering sale of the Shares pursuant to this Agreement (net of underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount clause (i) and, if applicable clause (ii), of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionsubsection (d) above. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations to contribute pursuant to this Section 9 are several in proportion to their respective underwriting commitments and not joint. For purposes of this Section 69, each affiliate of an Underwriter, each officer, director, employee, partner, and member of an Underwriter or its affiliates and each person, if any, who controls an any Underwriter within the meaning of the Section 15 of the 1933 Securities Act or and Section 20 of the 1934 Exchange Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Securities Act or and Section 20 of the 1934 Exchange Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (CapLease, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 the Securities Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the 1933 Securities Act, the Exchange Act or Section 20 otherwise, insofar as such loss, expense, liability, damage or claim arises out of the 1934 Act as follows: or is based upon (i) against any and all lossbreach of any representation, liabilitywarranty or covenant of the Company contained herein, claim(ii) any failure on the part of the Company to comply with any applicable law, damage and expense whatsoeverrule or regulation relating to the offering of securities being made pursuant to the Prospectus, as incurred, arising out of (iii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post–effective amendment theretothereof by the Company) or in a Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), including the Rule 430B Information, or the (iv) any omission or alleged omission therefrom of to state a material fact required to be stated therein in either such Registration Statement or Prospectus or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against , except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omissionalleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement or such Prospectus, provided, however, that the indemnity agreement contained in this subsection (a) with respect to the Preliminary Prospectus or the Prospectus shall not inure to the benefit of an Underwriter (or to the benefit of any person controlling such Underwriter) with respect to any person asserting any such loss, expense, liability, damage or claim which is the subject thereof if the Prospectus or any supplement thereto prepared with the consent of the Representatives and furnished to the Underwriters prior to the Closing Time corrected any such alleged untrue statement or omission; provided that any omission and if such settlement is effected with Underwriter failed to send or give a copy of the Prospectus or supplement thereto to such person at or prior to the written consent confirmation of the Company;sale of Shares to such person, unless such failure resulted from noncompliance by the Company with Section 4(b) above). (iiib) If any action is brought against any and all expense whatsoeveran Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such Underwriter shall promptly notify the Company, as incurred (applicable, in writing of the institution of such action, and the Company, as applicable, shall assume the defense of such action, including the fees and disbursements employment of counsel chosen by the Underwriters)of its choosing and payment of expenses, reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that any failure or delay to so notify the Company, as applicable, will not relieve the Company, as applicable, of any obligation hereunder, except to the extent that its ability to defend is actually impaired or otherwise prejudiced by such failure or delay, and after notice from the Company to such indemnified party of its election so to assume the defense thereof, the Company will not be liable to such indemnified party under this indemnity agreement Section for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company, as applicable, in connection with the defense of such action, or the Company, as applicable, shall not apply have employed counsel to have charge of the defense of such action within a reasonable time after notice of such action by such indemnified party or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there exists an actual and material conflict of interest between the interests of the Company and such indemnified party in connection with such action (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company, as applicable, and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its prior written consent. (c) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Company’s directors and officers, and any person who controls the Company within the meaning of the Securities Act, from and against any loss, expense, liability, claim, damage or expense to claim (including the extent arising reasonable cost of investigation) which, jointly or severally, the Company, or any such person may incur under the Securities Act, the Exchange Act or otherwise, but only insofar as such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or omission or alleged untrue statement or omission made of a material fact contained in reliance upon and in conformity with written information furnished in writing by such Underwriter through the Representatives to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (as amended by any post-effective amendment thereof by the Company) or any amendment thereto)in a Prospectus, or arises out of or is based upon any preliminary prospectus, any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in such Registration Statement or Prospectus or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth (i) in the last paragraph on the cover page and (ii) under the caption “Underwriting” in the Preliminary Prospectus and the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company by such Underwriter expressly for use thereinpurposes of Section 3(j) and this Section 9. (cd) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representatives in writing of the institution of such action and in any event the Representatives, on behalf of the Underwriters, shall not relieve it from any liability which it may have otherwise than on account assume the defense of this indemnity agreement. In such action, including the case employment of parties indemnified pursuant to Section 6(a) abovecounsel of its choosing (who shall not, except with the reasonable consent of the Company, be counsel to the indemnified parties shall be selected by Representatives or the Underwriters, and, in the case ) and payment of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in the defense of any such actionexpenses; provided, however, that any failure or delay to so notify the Representatives, as applicable, will not relieve the Representatives or the Underwriters, as applicable, of any obligation hereunder, except to the extent that their ability to defend is actually impaired or otherwise prejudiced by such failure or delay, and after notice from such Underwriter to such indemnified party of its election so to assume the defense thereof, such Underwriter will not be liable to such indemnified party under this Section for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time after notice of such action by such indemnified party or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there exists an actual and material conflict of interest between the interests of the Company and such indemnified party in connection with such action (in which case the Representatives shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by such Underwriter and paid as incurred (it being understood, however, that the indemnified party. In no event Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (de) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b), (c) and (d) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions as proportion as, the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company and Company, as applicable, bear to the total underwriting discount discounts and commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 were determined amount paid or payable by pro rata allocation (even if the Underwriters were treated a party as one entity for such purpose) or by any other method of allocation which does not take account a result of the equitable considerations referred to above in this Section 6. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and liabilities referred to above in the first sentence of this Section 6 subsection (e) shall be deemed to include any legal or other fees or expenses reasonably incurred by such indemnified party in investigating, preparing connection with investigating or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. action which is the subject of this subsection (e). (f) Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Anworth Mortgage Asset Corp)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus, (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company), the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus Supplement, in each case as amended or supplemented by the Company), (D) any application or other document, or any amendment or supplement thereto), including executed by the Rule 430B Information, Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an "Application") or (E) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, Prospectus or any Application or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against , except to the extent that any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omissionalleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement or Prospectus; PROVIDED HOWEVER, that the indemnity agreement contained in this subsection (a) with respect to the Preliminary Prospectus or the Prospectus shall not inure to the benefit of an Underwriter (or to the benefit of any person controlling such Underwriter) with respect to any person asserting such loss, expense, liability, damage or claim which is the subject thereof if the Prospectus or any supplement thereto prepared with the consent of the Representative and furnished to the Underwriters prior to the Closing Time corrected any such alleged untrue statement or omission; provided that any omission and if such settlement is effected with Underwriter was required to, but failed to, send or give a copy of such Prospectus or supplement thereto to such person at or prior to the written consent confirmation of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements sale of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any Shares to such untrue statement or omission, or any such alleged untrue statement or omissionperson, to the extent that such delivery would have prevented such loss, expense, liability, damage or claim. The indemnity agreement set forth in this Section 9(a) shall be in addition to any such expense liability which the Company may otherwise have. If any action is not paid under brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (i) or (iia) above, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel not reasonably objected to by the indemnified party and payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel (not reasonably objected to by the indemnified party) to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company and which counsel to the Underwriter is of the opinion that it presents an actual or potential conflict for counsel representing the Company and the Underwriter (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus action effected without its written consent (or any amendment or supplement theretowhich consent shall not be unreasonably withheld). (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s 's directors, each of the Company’s officers who signed the Registration Statementofficers, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, damage and expense described in jointly or severally, the indemnity contained in subsection (a) of this SectionCompany, as incurredor any such person may incur under the Securities Act, the Exchange Act or otherwise, but only with respect to insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representative to the Company expressly for use in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company), the Prospectus, or any preliminary prospectusApplication, or (B) any Issuer Free Writing failure on the part of the applicable Underwriter to comply with any applicable law, rule or regulation, or (C) any omission or alleged omission to state a material fact in connection with such information required to be stated either in such Registration Statement, Prospectus or any Application or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth in the table in paragraph 1, the third, eleventh and thirteenth paragraphs under the caption "Underwriting" in the Preliminary Prospectus (or any amendment or supplement theretoto the extent such statements relate to the Underwriters) in reliance upon and in conformity with written the final Prospectus constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company by for purposes of Section 3(k) and this Section 9. The indemnity agreement set forth in this Section 9(b) shall be in addition to any liabilities that such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of may otherwise have. If any action commenced is brought against it the Company, or any such person in respect of which indemnity may be sought hereunderagainst any Underwriter pursuant to the foregoing paragraph, but the Company, or such person shall promptly notify the Representative in writing of the institution of such action and the Representative, on behalf of the Underwriters, shall assume the defense of such action, including the employment of counsel not reasonably objected to by the indemnified party and payment of expenses; PROVIDED, HOWEVER, that any failure or delay to so notify an indemnifying party shall the Representative will not relieve such indemnifying party from the Underwriters of any liability hereunder obligations hereunder, except to the extent it that their ability to defend is not materially prejudiced as a result thereof and actually impaired by such failure or delay. The Company, or such person shall have the right to employ its own counsel in any event such case, but the fees and expenses of such counsel shall be at the expense of the Company, or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not relieve have employed counsel not reasonably objected to by the indemnified party to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from any liability or additional to those available to the Underwriters and which it may have otherwise than on account of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties Company is of the opinion that it presents an actual or potential conflict for counsel representing the Company and the Underwriter (in which case the Representative shall be selected by not have the Underwriters, and, in the case of parties indemnified pursuant right to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in direct the defense of such action on behalf of the indemnified party or parties), in any of which events such action; providedfees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of Representative (which indemnification or contribution could shall not be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties theretounreasonably withheld), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand Company, and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective ' obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (McSi Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) that, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any preliminary prospectus, the Prospectus and all lossany amendment or supplement thereto and any prospectus wrapper material), liability, claim, damage and expense whatsoever, as incurred, arising out of (ii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (Statement, any Issuer Free Writing Prospectus or any amendment thereto), including the Rule 430B InformationProspectus, or the (iii) any omission or alleged omission therefrom of to state a material fact required to be stated therein or necessary to make in the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectusRegistration Statement, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against ; except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made of a material fact contained in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representatives to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectusStatement, any Issuer Free Writing Prospectus or the Prospectus Prospectus. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liabilities that the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any amendment of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or supplement theretocontrolling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s 's directors, each of the Company’s 's officers who that signed the Registration Statement, Statement and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) that, damage and expense described in jointly or severally, the indemnity contained in subsection (a) of this SectionCompany or any such person may incur under the Securities Act, as incurredthe Exchange Act or otherwise, but only with respect to insofar as such loss, expense, liability, damage or claim arises out of or is based upon (i) any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representatives to the Company expressly for use in the Registration Statement (Statement, any Issuer Free Writing Prospectus or any amendment thereto)the Prospectus, or (ii) any preliminary prospectusomission or alleged omission to state a material fact in connection with such information required to be stated in the Registration Statement, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) necessary to make such information, in reliance upon and the light of the circumstances under which made, not misleading; provided, however, that the statements identified in conformity with written Schedule IV attached hereto constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company by for purposes of this Section 9. The indemnity agreement set forth in this Section 9(b) shall be in addition to any liabilities that such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of may otherwise have. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representatives in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of any such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Representatives will not relieve the Underwriters of any obligation hereunder, except to the extent that their ability to defend is actually impaired by such failure or delay. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them that are different from or additional to those available to the Underwriters (in which case the Representatives shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by the indemnified party. In no event Underwriters and paid as incurred (it being understood, however, that the Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). (c) The indemnifying party under this Section 9 shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the same general allegations plaintiff, the indemnifying party agrees to indemnify (to the extent provided in this Section 9) the indemnified party against any loss, expense, liability, damage or circumstancesclaim by reason of such settlement or judgment. No indemnifying party shall, without the prior written consent of the indemnified partiesparty, settle or effect any settlement, compromise or consent to the entry of judgment in any judgment with respect to any litigationpending or threatened action, or any investigation suit or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification any indemnified party is or contribution could be have been a party and indemnity was or could have been sought under this Section 6 (whether or not the hereunder by such indemnified parties are actual or potential parties thereto)party, unless such settlement, compromise or consent (i) includes an unconditional release of each such indemnified party from all liability arising out on claims that are the subject matter of such litigationaction, investigation, suit or proceeding or claim and (ii) does not include a statement as to to, or an admission of of, fault, culpability or a failure to act by or on behalf of any indemnified party. (d) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and by the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above above, but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which that resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and by the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering sale of the Shares pursuant to this Agreement (net of underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount clause (i) and, if applicable clause (ii), of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionsubsection (d) above. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters' obligations to contribute pursuant to this Section 9 are several in proportion to their respective underwriting commitments and not joint. For purposes of this Section 69, each officer and director of an Underwriter and each person, if any, who controls an Underwriter within the meaning of the Section 15 of the 1933 Securities Act or and Section 20 of the 1934 Exchange Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Securities Act or and Section 20 of the 1934 Exchange Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Capital Lease Funding Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify and hold harmless each Underwriter, its affiliatesthe directors, as such term is defined in Rule 501(b) under the 1933 Act (eachofficers, an “Affiliate”)employees, its selling Affiliates and agents of each Underwriter and each person, if any, person who controls any Underwriter within the meaning of Section 15 of either the 1933 Act or Section 20 of the 1934 Exchange Act as follows: (i) against any and all losslosses, liabilityclaims, claimdamages or liabilities, damage and expense whatsoever, as incurredjoint or several, arising out of of, or based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement for the registration of the Shares as originally filed or in any amendment thereof, or in the Prospectus (or any amendment or supplement thereto), any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission or is otherwise required to retain, any preliminary prospectus supplement, any road show as defined in Rule 433(h) under the Act (a “road show”) or any Disclosure Package (including the Rule 430B Informationany Disclosure Package that has subsequently been amended), or arising out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectusmisleading, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order and agrees to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoeverreimburse each such indemnified party, as incurred, to the extent of the aggregate amount paid for any legal or other expenses reasonably incurred by them in settlement including without limitation, by means of a Consent to Judgment of any litigation, connection with investigating or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon defending any such untrue statement loss, claim, damage, liability or omissionaction; provided, or however, that the Company will not be liable in any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, case to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising liability arises out of or is based upon any such untrue statement or omission or alleged untrue statement or omission made therein in reliance upon and in conformity with written information furnished to the Company by or on behalf of any Underwriter expressly specifically for use inclusion therein, it being understood and agreed that the only such information furnished by or on behalf of any Underwriter consists of the information described as such in Section 9(b) hereof. This indemnity agreement will be in addition to any liability which the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)Company may otherwise have. (b) Each Underwriter severally and not jointly agrees to indemnify and hold harmless the Company, the Company’s each of its directors, each of the Company’s its officers who signed signs the Registration Statement, and each person, if any, person who controls the Company within the meaning of Section 15 of either the 1933 Act or Section 20 of the 1934 Act against any and all lossExchange Act, liability, claim, damage and expense described in to the same extent as the indemnity contained from the Company to each Underwriter set forth in subsection (aparagraph 9(a) of this Section, as incurredabove, but only with respect reference to untrue statements written information relating to such Underwriter furnished to the Company by or omissions, or alleged untrue statements or omissions, made on behalf of such Underwriter specifically for inclusion in the Registration Statement (documents referred to in the foregoing indemnity; and each Underwriter agrees to reimburse each such indemnified party for any documented legal fees or other expenses reasonably incurred by them in connection with investigating or defending any amendment thereto)such loss, claim, damage, liability or action. This indemnity agreement will be in addition to any preliminary prospectus, liability which any Issuer Free Writing Prospectus Underwriter may otherwise have. The Company acknowledges that there has been no information furnished in writing by or on behalf of the several Underwriters for inclusion in the documents referred to in the foregoing indemnity other than the second paragraph under “Commissions and Discounts,” and the first three sentences of the first paragraph under the caption “—Other Relationships” in the Underwriting section in each of the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use thereinPreliminary Prospectus. (c) Each indemnified party shall give Promptly after the receipt by any person in respect of which indemnification may be sought pursuant to either Section 9(a) or 9(b) above of notice of the commencement of any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand, such person (the “Indemnified Person”) will, if a claim in respect thereof is to be made against whom such indemnification may be sought (the “Indemnifying Person”) notify the Indemnifying Person in writing as promptly as reasonably practicable of the commencement thereof; provided that the failure so to each indemnifying party of any action commenced against it in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a result thereof and in any event shall Indemnifying Person (i) will not relieve it from any liability which that it may have under this Section 9 unless and to the extent that it did not otherwise learn of such action and such failure results in the forfeiture by the Indemnifying Person of substantial rights and defenses and (ii) will not, in any event, relieve the Indemnifying Person from any obligations to an Indemnified Person other than on account the indemnification obligation provided in Section 9(a) or Section 9(b) above. If any such proceeding shall be brought or asserted against an Indemnified Person and it shall have notified the Indemnifying Person thereof, the Indemnifying Person shall be entitled to appoint counsel of this indemnity agreement. In the case of parties indemnified Indemnifying Person’s choice at the Indemnifying Person’s expense to represent the Indemnified Person in any action, and any others entitled to indemnification pursuant to this Section 6(a) abovethat the Indemnifying Person may designate in such action, for which indemnification is sought (in which case the Indemnifying Person shall not thereafter be responsible for the fees and expenses of any separate counsel to the indemnified parties shall be selected retained by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in the defense of any such action; Indemnified Person or Indemnified Persons except as set forth below); provided, however, that such counsel shall be reasonably satisfactory to the Indemnified Person. Notwithstanding the Indemnifying Person’s election to appoint counsel to represent the indemnifying party Indemnified Person in an action, the Indemnified Person shall have the right to employ separate counsel (including local counsel), and the Indemnifying Person shall bear the reasonable fees, costs and expenses of such separate counsel if (A) the use of counsel chosen by the Indemnifying Person to represent the Indemnified Person would present such counsel with a conflict of interest, (B) the actual or potential defendants in, or targets of, any such action include both the Indemnified Person and the Indemnifying Person and the Indemnified Person shall have reasonably concluded that there may be legal defenses available to it and/or other Indemnified Persons which are different from or additional to those available to the Indemnifying Person, (C) the Indemnifying Person shall not (except with have employed counsel satisfactory to the consent Indemnified Person to represent the Indemnified Person within a reasonable time after notice of the indemnified partyinstitution of such action or (D) also be the Indemnifying Person shall authorize the Indemnified Person to employ separate counsel to at the indemnified partyexpense of the Indemnifying Person. In no event It is understood and agreed that the Indemnifying Person shall not, in connection with any proceeding or related proceeding in the indemnifying parties same jurisdiction, be liable for the reasonable fees and expenses of more than one counsel separate firm (in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any Indemnified Persons and that all such reasonable fees and expenses shall be paid or reimbursed as they are incurred. Any such separate firm for one action or separate but similar or related actions in the same jurisdiction arising out more of the same general allegations or circumstancesUnderwriters and any of their affiliates, directors and officers and their control persons, if any, shall be designated in writing by the Underwriters, as applicable, and any such separate firm for the Company, its directors, its officers who signed the Registration Statement and its control persons, if any, shall be designated in writing by the Company. No indemnifying party shallAn Indemnifying Person will not, without the prior written consent of the indemnified partiesIndemnified Persons, settle or compromise or consent to the entry of any judgment with respect to any litigationpending or threatened claim, or any investigation action, suit or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could may be sought under this Section 6 hereunder (whether or not the indemnified parties Indemnified Persons are actual or potential parties thereto), to such claim or action) unless such settlement, compromise or consent includes (i) includes an unconditional release of each indemnified party Indemnified Person from all liability arising out of such litigationclaim, investigationaction, proceeding suit or claim proceeding; and (ii) does not include a statement as to to, or an admission of of, fault, culpability or a failure to act act, by or on behalf of any indemnified partyIndemnified Person. (d) If In the indemnification event that the indemnity provided for in paragraph (a) or (b) of this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party in respect of Indemnified Person for any losses, liabilities, claims, damages or expenses referred to thereinreason, then each indemnifying party shall Indemnifying Person agrees to contribute to the aggregate amount of such losses, liabilities, claims, damages and liabilities (including legal or other expenses reasonably incurred by such indemnified partyin connection with investigating or defending the same) (collectively, as incurred (i“Losses”) to which the Company and one or more of the Underwriters may be subject in such proportion as is appropriate to reflect the relative benefits received by the Company Company, on the one hand hand, and the Underwriters Underwriters, on the other hand other, from the offering and sale of the Shares pursuant to this Agreement, or (ii) if . If the allocation provided by clause (i) the immediately preceding sentence is not permitted by applicable lawunavailable for any reason, the Company and the Underwriters severally shall contribute in such proportion as is appropriate to reflect not only the such relative benefits referred to in clause (i) above but also the relative fault of the Company Company, on the one hand hand, and of the Underwriters Underwriters, on the other hand other, in connection with the statements or omissions which that resulted in such losses, liabilities, claims, damages or expenses, Losses as well as any other relevant equitable considerations. The relative benefits Benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions as equal to the total net proceeds from the offering sale of the Shares pursuant to this Agreement (before deducting expenses) received by the Company and the total underwriting discount received by the Underwriters, in each case it as set forth for the on the cover page of the Prospectus, bear and benefits received by the Underwriters shall be deemed to be equal to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectustotal underwriting fee. The relative Relative fault of the Company Company, on the one hand hand, and the Underwriters Underwriters, on the other hand other, shall be determined by reference to, among other things, whether any such untrue or any alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by each such party, the Company or by intent of the Underwriters parties and the parties’ their relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. (e) In no case shall any Underwriter (except as may be provided in any agreement among Underwriters relating to the offering of the Shares) be responsible for any amount pursuant to this paragraph 9(e) in excess of the underwriting fee. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 6paragraph 9(e), no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Shares underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxAct) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 69, each person, if any, person who controls an Underwriter within the meaning of Section 15 of either the 1933 Act or Section 20 of the 1934 Exchange Act and each Underwriter’s Affiliates director, officer, employee and selling agents agent of an Underwriter shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, person who controls the Company within the meaning of Section 15 either the Act or the Exchange Act, each officer of the 1933 Act or Section 20 Company who shall have signed the Registration Statement and each director of the 1934 Act Company shall have the same rights to contribution as the Company. , subject in each case to the applicable terms and conditions of this paragraph 9(e). (f) The Underwriters’ respective obligations to contribute pursuant to remedies provided for in this Section 6 9 are several not exclusive and shall not limit any rights or remedies which may otherwise be available to any Indemnified Person at law or in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not jointequity.

Appears in 1 contract

Samples: Underwriting Agreement (Lilium N.V.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus, (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company), the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (D) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an "Application"), including the Rule 430B Information, or the (E) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, Prospectus or any Application or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , or (iiF) against any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials used in connection with the marketing of the Shares, including, without limitation, slides, videos, films and all tape recordings; except insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement, Prospectus or Application. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. (b) If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such settlement is effected with Underwriter or controlling person shall promptly notify the written consent Company in writing of the Company; (iii) against any institution of such action, and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) aboveand payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its written consent. (bc) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s 's directors, each of the Company’s 's officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, damage and expense described in jointly or severally, the indemnity contained in subsection (a) of this SectionCompany, as incurredor any such person may incur under the Securities Act, the Exchange Act or otherwise, but only with respect to insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representative to the Company expressly for use in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company), the Prospectus, or any preliminary prospectusApplication, or (B) any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in such Registration Statement, Prospectus or any Application or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth in the second, tenth, eleventh, and twelfth paragraphs and the second sentence of the seventh paragraph under the caption "Underwriting" in the Preliminary Prospectus, and the second, sixth, eleventh, twelfth and thirteenth paragraphs and the second sentence of the eighth paragraph under the caption "Underwriting" in the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company by for purposes of Section 3(k) and this Section 9. The indemnity agreement set forth in this Section 9(c) shall be in addition to any liabilities that such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of may otherwise have. If any action commenced is brought against it the Company, or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company, or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company, or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (d) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand Company, and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand Company, and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand Company, and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand Company, and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company Company, or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company, and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (d)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective ' obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Allied Healthcare International Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus, (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company), the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (D) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an "Application"), including the Rule 430B Information, or the (E) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, Prospectus or any Application or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , or (iiF) against any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials used in connection with the marketing of the Shares, including, without limitation, slides, videos, films and all tape recordings; except insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement, Prospectus or Application. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such settlement is effected with Underwriter shall promptly notify the written consent Company in writing of the Company; (iii) against any institution of such action, and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) aboveand payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s 's directors, each of the Company’s 's officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, damage and expense described in jointly or severally, the indemnity contained in subsection (a) of this SectionCompany, as incurredor any such person may incur under the Securities Act, the Exchange Act or otherwise, but only with respect to insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representatives to the Company expressly for use in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company), the Prospectus, or any preliminary prospectusApplication, or (B) any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in such Registration Statement, Prospectus or any Application or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth in the twelfth and thirteenth paragraphs under the caption "Underwriting" in the Preliminary Prospectus and the Prospectus (or any amendment or supplement theretoto the extent such statements relate to the Underwriters) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company by for purposes of Section 3(l) and this Section 9. The indemnity agreement set forth in this Section 9(c) shall be in addition to any liabilities that such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of may otherwise have. If any action commenced is brought against it the Company, or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company, or such person shall promptly notify the Representatives in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company, or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company, or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand Company, and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective ' obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint. (e) Without limitation and in addition to its obligations under the other subsections of this Section 9, the Company agrees to indemnify and hold harmless the QIU and its affiliates, and each person, if any who controls the QIU and its affiliates within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) arising out of or based upon the QIU's acting as a "qualified independent underwriter" (within the meaning of Rule 2720 of the NASD's Conduct Rules) in connection with the offering contemplated by this Agreement; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage, liability or expense results from the gross negligence or willful misconduct of the QIU.

Appears in 1 contract

Samples: Underwriting Agreement (Integrated Alarm Services Group Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, and the respective directors, officers, employees and agents of each Underwriter, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoor part thereof), including the Rule 430B Information, Preliminary Prospectus or the Prospectus, (ii) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, or necessary to make the statements made therein not misleading, (iii) any omission or alleged omission from any such Preliminary Prospectus or Prospectus of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading or arising (iv) any untrue statement or alleged untrue statement of any material fact contained in the Roadshow Material; except in each case of (i), (ii), (iii) and (iv) above insofar as any such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with the information set forth in the last sentence of the first paragraph of Section 10(b). The indemnity agreement set forth in this Section 10(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time after delivery of notice of such action or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its consent. (b) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Company’s directors, the Company’s officers that signed the Registration Statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus Registration Statement (or any amendment or supplement theretopart thereof), the Preliminary Prospectus or Prospectus, (ii) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements therein not misleading, or (iii) any omission or alleged omission from any such Preliminary Prospectus or Prospectus of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoever, but in each case only insofar as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement omission was made in such Registration Statement, Preliminary Prospectus or omission made Prospectus in reliance upon and in conformity with written information furnished in writing by or on behalf of the Underwriters through the Representative to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use therein. . The following statements under the caption “Underwriting” beginning on page [95] of the Registration Statement: (cA) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party the names of the Underwriters, (B) the first sentence of the third paragraph on page [95], and (C) the sixth and seventh paragraphs and the third sentence of the eighth paragraph on page [96] constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company for purposes of Section 3(r), Section 3(s) and this Section 10. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action, and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of any such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Representative will not relieve the Representative or any Underwriter of any obligation hereunder, except to the extent that the Representative’s ability to defend is actually impaired by such failure or delay. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time after delivery of notice of such action or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by such Underwriter and paid as incurred (it being understood, however, that the indemnified party. In no event Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (dc) If the indemnification provided for in this Section 6 10 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 10 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth in the table on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover page of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 10 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable, claimssubsection (c)(ii), damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 610, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 10 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (OFS Credit Company, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 the Securities Act, and the respective directors, officers, employees and agents of each Underwriter, from and against any loss, expense, liability, damage or claim (including the 1933 reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or Section 20 otherwise, insofar as such loss, expense, liability, damage or claim arises out of the 1934 Act as follows: or is based upon (i) against any and all lossbreach of any representation, liabilitywarranty or covenant of the Company contained herein, claim(ii) any failure on the part of the Company to comply with any applicable law, damage and expense whatsoeverrule or regulation relating to the offering of securities being made pursuant to the Prospectus, as incurred, arising out of (iii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company), including any Issuer Free Writing Prospectus that the Rule 430B InformationCompany has filed or was required to file with the Commission, or the Prospectus (the term Prospectus for the purpose of this Section 10 being deemed to include the Base Prospectus, any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (iv) any omission or alleged omission therefrom of to state a material fact required to be stated therein in such Registration Statement or necessary to make the statements made therein not misleading or arising (v) any omission or alleged omission from any Issuer Free Writing Prospectus or Prospectus necessary to make the statements made therein, in light of the circumstances under which they were made, not misleading, except in the case of (ii), (iii), (iv) and (v) above only insofar as any such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with the Underwriter Information. (b) If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel of its choosing and payment of expenses, provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent, and only to the extent, that its ability to defend is actually impaired or otherwise prejudiced by such failure or delay, and after notice from the Company to such indemnified party of its election so to assume the defense thereof and the continued good faith assumption of such defense, the Company will not be liable to such indemnified party under this Section for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time after notice of such action by such indemnified party or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there exists an actual and material conflict of interest between the interests of the Company and such indemnified party in connection with such action (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its prior written consent, not to be unreasonably withheld. (c) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Manager, the Company’s and the Manager’s trustees, directors and officers, and any person who controls the Company or the Manager within the meaning of the Securities Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, the Company, the Manager or any such person may incur under the Securities Act, the Exchange Act or otherwise, but only insofar as such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representative to the Company expressly for use in the Registration Statement (or in the Registration Statement as amended by any preliminary prospectuspost-effective amendment thereof by the Company), any Issuer Free Writing Prospectus or in a Prospectus, or arises out of or is based upon any omission or alleged omission to state a material fact in connection with such information required to be stated in such Registration Statement, any Issuer Free Writing Prospectus or the Prospectus or necessary to make such information (or with respect to any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” Prospectus or the omission or alleged omission therefrom of a material fact necessary in order to make the statements thereinProspectus, in the light of the circumstances under which they were made, ) not misleading; . The statements set forth in the (i) first, second, fifth, sixth, eighth and ninth sentences of paragraph nine, (ii) against any and all lossthe first sentence of paragraph ten, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any the third sentence of paragraph eleven, (iv) paragraph twelve and all expense whatsoever(v) the first sentence of paragraph fourteen, as incurred (including each under Underwriting of the fees and disbursements of counsel chosen Prospectus constitute the only information furnished by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out on behalf of any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished Underwriter through the Representative to the Company by any and constitute the Underwriter expressly Information for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)purposes hereof. (bd) Each Underwriter severally agrees to indemnify and hold harmless If any action is brought against the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (Manager or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of any action commenced against it person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company, the Manager or such person shall promptly notify the Representative in writing of the institution of such action and in any event the Representative, on behalf of the Underwriters, shall not relieve it from any liability which it may have otherwise than on account assume the defense of this indemnity agreement. In such action, including the case employment of parties indemnified pursuant to Section 6(a) abovecounsel of its choosing (who shall not, except with the reasonable consent of the Company, be counsel to the indemnified parties shall be selected by Representative or the Underwriters, and, in the case ) and payment of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in the defense of any such actionexpenses; provided, however, that any failure or delay to so notify the Representative, as applicable, will not relieve the Representative or the Underwriters, as applicable, of any obligation hereunder, except to the extent, and only to the extent, that their ability to defend is actually impaired or otherwise prejudiced by such failure or delay, and after notice from such Underwriter to such indemnified party of its election so to assume the defense thereof and the continued good faith assumption of such defense, such Underwriter will not be liable to such indemnified party under this Section for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The Company, the Manager or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company, the Manager or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time after notice of such action by such indemnified party or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there exists an actual and material conflict of interest between the interests of the Company, the Manager and such indemnified party in connection with such action (in which case the Representative shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by such Underwriter and paid as incurred (it being understood, however, that the indemnified party. In no event Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (de) If the indemnification provided for in this Section 6 10 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b), (c) and (d) of this Section 10 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions as proportion as, the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company and bear to the total underwriting discount discounts and commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 were determined amount paid or payable by pro rata allocation (even if the Underwriters were treated a party as one entity for such purpose) or by any other method of allocation which does not take account a result of the equitable considerations referred to above in this Section 6. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and liabilities referred to above in the first sentence of this Section 6 subsection (e) shall be deemed to include any legal or other fees or expenses reasonably incurred by such indemnified party in investigating, preparing connection with investigating or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. action which is the subject of this subsection (e). (f) Notwithstanding the provisions of this Section 610, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 10 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (American Mortgage Acceptance Co)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, and the respective directors, officers, employees and agents of each Underwriter, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoor part thereof), including the Rule 430B Information, Preliminary Prospectus or the Prospectus, (ii) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, or necessary to make the statements made therein not misleading misleading, (iii) any omission or arising alleged omission from any such Preliminary Prospectus or Prospectus of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, or (iv) any untrue statement or alleged untrue statement of any material fact contained in the Roadshow Material; except in each case of (i), (ii), (iii) and (iv) above insofar as any such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with the information set forth in the last sentence of the first paragraph of Section 10(b). The indemnity agreement set forth in this Section 10(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time after delivery of notice of such action or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its consent. (b) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Company’s directors, the Company’s officers that signed the Registration Statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus Registration Statement (or any amendment or supplement theretopart thereof), the Preliminary Prospectus or Prospectus, (ii) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements therein not misleading, or (iii) any omission or alleged omission from any such Preliminary Prospectus or Prospectus of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoever, but in each case only insofar as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement omission was made in such Registration Statement, Preliminary Prospectus or omission made Prospectus in reliance upon and in conformity with written information furnished in writing by or on behalf of the Underwriters through the Representative to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use therein. . The following statements under the caption “Underwriting” beginning on page S-33 of the Preliminary Prospectus: (cA) Each indemnified party shall give notice as promptly as reasonably practicable the first sentence of the fifth paragraph on page S-33; and (B) the first paragraph and the first, second, fifth and sixth sentences of the second paragraph under the caption “Stabilization” on page S-34 of the Preliminary Prospectus (and the corresponding sections of the Prospectus, to each indemnifying party the extent such statements relate to the Underwriters) constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company for purposes of Section 3(u), Section 3(v) and this Section 10. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action, and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of any such action; , including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Representative will not relieve the Representative or any Underwriter of any obligation hereunder, except to the extent that the Representative’s ability to defend is actually impaired by such failure or delay. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time after delivery of notice of such action or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by such Underwriter and paid as incurred (it being understood, however, that the indemnified party. In no event Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (dc) If the indemnification provided for in this Section 6 10 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 10 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, Securities or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth in the table on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover page of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 10 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable, claimssubsection (c) (ii), damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 610, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Shares underwritten by it underwriting discounts and distributed commissions applicable to the public were offered to the public exceeds the amount of any damages which Securities purchased by such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 10 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Suro Capital Corp.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) that, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus, (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company), including the Rule 430B InformationProspectus (the term Prospectus for the purpose of this Section 9 being deemed to include the Preliminary Prospectus and any other preliminary prospectus, the Prospectus and any prospectus wrapper material distributed to residents of Canada), or the (D) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement or Prospectus or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against ; except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected omission or alleged omission of a material fact contained in and in conformity with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen information furnished in writing by the Underwriters)Underwriters through the Representatives to the Company expressly for use in such Registration Statement or Prospectus; and except that, reasonably incurred in investigatingwith respect to the Preliminary Prospectus or other preliminary prospectus, preparing the foregoing indemnity agreement shall not inure to the benefit of any Underwriter from whom the person asserting any loss, expense, liability, damage or defending against any litigationclaim purchased Shares, or any investigation or proceeding by any governmental agency or bodyperson controlling such Underwriter, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, if copies of the Prospectus were timely delivered to the extent Underwriter pursuant to Section 1 hereof and a copy of the Prospectus (as then amended or supplemented if the Company shall have furnished any amendments or supplements thereto) was not sent or given by or on behalf of such Underwriter to such person, if required by law so to have been delivered, at or prior to the written confirmation of the sale of the Shares to such person, and if the Prospectus (as so amended or supplemented) would have cured the defect giving rise to such loss, expense, liability, damage or claim. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liabilities that the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such expense is not paid under (i) or (ii) aboveUnderwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that their ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such reasonable fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (or other than local counsel in any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or such jurisdiction) representing the Prospectus (or any amendment or supplement theretoindemnified parties who are parties to such action). (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s 's directors, each of the Company’s 's officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) that, damage and expense described in jointly or severally, the indemnity contained in subsection (a) of this SectionCompany or any such person may incur under the Securities Act, as incurredthe Exchange Act or otherwise, but only with respect to insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representatives to the Company expressly for use in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereto)thereof by the Company) or the Prospectus, or (B) any preliminary prospectus, any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in such Registration Statement or Prospectus or necessary to make such information, in the light of the circumstances under which made, not misleading; provided, however, that the following statements set forth under the caption "Underwriting" in the Prospectus (or any amendment or supplement theretoto the extent such statements relate to the Underwriters) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company by for purposes of Section 3(l) and this Section 9: (1) the table in the first paragraph, (2) the first sentence of the third paragraph, (3) the tenth paragraph, (4) the first and last sentence of fifteenth paragraph and (5) the sixteenth paragraph. The indemnity agreement set forth in this Section 9(b) shall be in addition to any liabilities that such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of may otherwise have. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representatives in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them that are different from or additional to those available to the Underwriters (in which case the Representatives shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). (c) The indemnifying party under this Section 9 shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the same general allegations plaintiff, the indemnifying party agrees to indemnify (to the extent provided in this Section 9) the indemnified party against any loss, claim, damage, liability or circumstancesexpense by reason of such settlement or judgment. No indemnifying party shall, without the prior written consent of the indemnified partiesparty, settle or effect any settlement, compromise or consent to the entry of judgment in any judgment with respect to any litigationpending or threatened action, or any investigation suit or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification any indemnified party is or contribution could be have been a party and indemnity was or could have been sought under this Section 6 (whether or not the hereunder by such indemnified parties are actual or potential parties thereto)party, unless such settlement, compromise or consent (i) includes an unconditional release of each such indemnified party from all liability arising out on claims that are the subject matter of such litigationaction, investigation, proceeding suit or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyproceeding. (d) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) or (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and by the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above above, but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which that resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and by the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount clause (i) and, if applicable clause (ii), of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionsubsection (d) above. Notwithstanding the provisions of this Section 6, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Shares underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 Xxx) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not joint.Section

Appears in 1 contract

Samples: Underwriting Agreement (Government Properties Trust Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company), including the Rule 430B InformationProspectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), or the (C) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement or Prospectus or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , or (iiD) against any and all untrue statement or alleged untrue statement of any material fact contained in any visual materials used in connection with the marketing of the Shares; except insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that omission or alleged omission of a material fact contained in and in conformity with information furnished (i) in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement or Prospectus or (ii) by the Underwriters through the Representatives to the Company for use in any such settlement is effected visual materials used in connection with the written marketing of the Shares; provided, however, that the indemnity contained in this Section 9(a) with respect to the Prospectus shall not inure to the benefit of any Underwriter with respect to any person asserting any loss, expense, liability, damage or claim to the extent that a court of competent jurisdiction by final and non-appealable judgment determines that (x) the Prospectus or any supplement thereto prepared with the consent of the Company; (iii) against any Underwriters and all expense whatsoever, as incurred (including furnished to the fees and disbursements of counsel chosen by Underwriters prior to the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or Closing Time corrected any such alleged untrue statement or omission, (y) such correction would have then resulted in no loss, liability, damage or claim and (z) such Underwriter failed to send or give a copy of the corrected Prospectus or supplement thereto to such person at or prior to the extent that any written confirmation of the sale of Shares to such expense is not paid under (iperson, unless such failure resulted from noncompliance by the Company with Section 4(a) or (iiSection 4(c) above. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company, will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, damage and expense described in jointly or severally, the indemnity contained in subsection (a) of this SectionCompany, as incurredor any such person may incur under the Securities Act, the Exchange Act or otherwise, but only with respect to insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representatives to the Company expressly for use in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company), the Prospectus, or any preliminary prospectusApplication, or (B) any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in such Registration Statement, Prospectus or any Application or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth in the paragraphs regarding short sales, covering transactions and stabilizing transactions under the caption “Underwriting” in the Preliminary Prospectus and the Prospectus (or any amendment or supplement theretoto the extent such statements relate to the Underwriters) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company by for purposes of Sections 3(l), 3(m) and this Section 9. The indemnity agreement set forth in this Section 9(b) shall be in addition to any liabilities that such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of may otherwise have. If any action commenced is brought against it the Company, or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company, or such person shall promptly notify the Representatives in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company, or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company, or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand Company, and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover page of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the ProspectusProspectus Supplement. The relative fault of the Company on the one hand Company, and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company Company, or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company, and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Saul Centers Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify shall indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which the Underwriters or any such controlling person may incur insofar as follows: such loss, expense, liability, damage or claim arises out of or, is based upon (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company) or the Prospectus (the term Prospectus for the purpose of this Section 5 being deemed to include any Preliminary Prospectus, Pricing Prospectus, Issuer Free Writing Prospectus, the Prospectus and any Prospectus supplements, in each case as amended or supplemented by the Company), (ii) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or “blue sky” laws thereof or filed with the Commission or any securities association or securities exchange (each an “Application”), including the Rule 430B Information, or the (iii) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, Prospectus or Application or necessary to make the statements made therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; ; except, in the case of each of clauses (i), (ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; providedloss, however, that this indemnity agreement shall not apply to any lossexpense, liability, claim, damage or expense to the extent arising claim arises out of or is based upon (x) any such untrue statement or omission or alleged untrue statement or omission made of a material fact contained in reliance upon and in conformity with written information furnished in writing by or on behalf of the Underwriters to the Company by any Underwriter expressly for use in such Registration Statement, Prospectus or Application, or (y) sales to any person asserting any such loss, expense, liability, damage or claim incurred from purchasing the Registration Statement (or any amendment thereto)Shares, including any preliminary prospectus, any Issuer Free Writing Prospectus if a copy of the Pricing Disclosure Package or the Prospectus (in each case, as then amended or supplemented if the Company shall have timely furnished any amendment amendments or supplement supplements thereto) was not sent or given by or on behalf of such Underwriter to such person, if required by law to have been delivered, at or prior to the written confirmation of the sale of the Shares to such person, and if the Pricing Disclosure Package or the Prospectus (in each case, as so amended or supplemented), as applicable, would have cured the defect giving rise to such loss, expense, liability, damage or claim, unless such failure is the result of noncompliance by the Company. (b) Each Underwriter of the Underwriters shall, severally agrees to indemnify and not jointly, indemnify, defend and hold harmless the Company, the Company’s Company and its directors, officers, employees and agents, each of the Company’s officers who signed the Registration Statement, and each person, if any, person who controls the Company Company, as the case may be, within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, the Company, or any such person may incur but only insofar as such loss, expense, liability, damage and expense described in the indemnity or claim arises out of or is based upon (i) any untrue statement of a material fact contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus thereof by the Company) or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished in writing by or on behalf of such Underwriter to the Company expressly for inclusion in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company) or the Prospectus, as specified in the last sentence of this Section 5(b), or (ii) any omission to state a material fact regarding such Underwriter expressly required to be stated in such Registration Statement or the Prospectus or necessary to make such statement not misleading. The obligation of each of the Underwriters to indemnify the Company (including any director, officer, employee, agent or control person thereof) shall only relate to any untrue statement or omission which applies to the Underwriter. The Company and the Underwriters acknowledge that the information set forth (x) on the cover page of the Prospectus concerning the Underwriters, relating to the delivery of the Shares, and (y) under the caption “Underwriting” in the Prospectus, with respect to passive market and stabilization activities by the Underwriters, constitute the only information furnished by or on behalf of the Underwriters to the Company for use thereinpurposes of this Section 5. (c) Each Promptly after receipt by an indemnified party shall give under subsection (a) or (b) above of notice as promptly as reasonably practicable of any claims or the commencement of any action, such indemnified party shall, if a claim in respect thereof is to each be made against the indemnifying party of any action commenced under such subsection, notify in writing each party against it in respect of which indemnity may whom indemnification is to be sought hereunder, of the claim or the commencement thereof (but the failure so to so notify an indemnifying party shall not (i) relieve such the indemnifying party from any liability hereunder which it may have under this Section 5, to the extent that it is did not otherwise learn of such action and such failure does not materially prejudiced prejudice the indemnifying party as a result thereof thereof, and (ii) in any event shall not relieve it from any liability which it that such indemnifying party may have otherwise than on account of this the indemnity agreementagreement hereunder). In The indemnifying party shall be entitled to appoint counsel of the indemnifying party’s choice at the indemnifying party’s expense to represent the indemnified party in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be responsible for the fees and expenses of any separate counsel retained by the indemnified party or parties indemnified pursuant to Section 6(a) aboveexcept as set forth below); provided, however, that such counsel shall be reasonably satisfactory to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Companyparty. An The indemnifying party may participate at its own expense in the defense of any such actionaction at its own expense, and to the extent it may elect, by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, the indemnifying party may assume the defense thereof with counsel reasonably satisfactory to such indemnified party; provided, however, that counsel to the indemnifying party shall not (except with the written consent of the indemnified party) also be counsel to the indemnified party. In no event Notwithstanding the foregoing, the indemnified party or parties shall have the indemnifying parties be liable for right to employ its or their own counsel in any such case, but the fees and expenses of more than such counsel shall be at the expense of such indemnified party or parties unless (i) the employment of such counsel shall have been authorized in writing by one counsel (in addition to any local counsel) separate from their own counsel for all indemnified of the indemnifying parties in connection with any one action or separate but similar or related actions in the same jurisdiction arising out defense of such action, (ii) the indemnifying parties shall not have employed reasonably satisfactory counsel to have charge of the same general allegations defense of such action within a reasonable time after notice of commencement of the action, (iii) the indemnifying party does not diligently defend the action after assumption of the defense, or circumstances(iv) such indemnified party or parties shall have reasonably concluded based on the advice of the advice of counsel that there may be defenses available to it or them which are different from or additional to those available to one or all of the indemnifying parties (in which case the indemnifying parties shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events the fees and expenses of one counsel selected by all of the indemnified parties to represent them all shall be borne by the indemnifying parties. In the case of any separate counsel for the Company and its officers, directors and control persons, such counsel shall be designated in writing by the Company. In the case of any separate counsel for the Underwriters and their respective officers, directors and control persons, such counsel shall be designated in writing by Xxxxxxxx Curhan Ford & Co. No indemnifying party shall, without the prior written consent of the indemnified parties, settle effect any settlement or compromise of, or consent to the entry of any judgment with respect to to, any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be have been sought under this Section 6 5 (whether or not the indemnified parties are actual or potential parties thereto), unless (x) such settlement, compromise or consent (iI) includes an unconditional release of each the indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (iiII) does not include a statement as to to, or an admission of of, fault, culpability or a failure to act act, by or on behalf of any the indemnified party, and (y) the indemnifying party reaffirms its indemnification obligations pursuant to this Agreement. (d) If the indemnification provided for in this Section 6 5 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) or (c) of this Section 5 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or and (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with respect to the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the respect to such offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total proceeds (net proceeds from the offering of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company from the Shares sold under this Agreement, on the one hand, and the total underwriting discount discounts and commissions received by the UnderwritersUnderwriters with respect to the Shares purchased under this Agreement, on the other hand, bear to the total gross proceeds from the offering of the Shares under this Agreement, in each case as set forth in the table on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover page of the Prospectus. The relative fault of the Company on the one hand and the Underwriters on the other hand shall be determined by reference to, among other things, (i) whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and Underwriters, (ii) the intent of the parties, and (iii) their relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 5(d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of losses5(d)(i) and, liabilitiesif applicable, claimsSection 5(d)(ii), damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 65, no Underwriter (i) none of the Underwriters shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omission. No Underwriters and, (ii) no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxAct) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this in Section 6 are 5(d) shall be several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting obligations and not joint. The indemnity and contribution contained in this Section 5 shall remain operative and in full force and effect regardless of (i) any termination of this Agreement and (ii) any investigation made by or on behalf of the Underwriters or the Company or the Subsidiaries and such party’s officers or directors or any person controlling such parties.

Appears in 1 contract

Samples: Underwriting Agreement (Fuqi International, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act as follows: (i) from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company) or in a Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), including the Rule 430B Information, or the arises out of or is based upon any omission or alleged omission therefrom of to state a material fact required to be stated therein in either such Registration Statement or Prospectus or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against , except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omissionalleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement or such Prospectus, provided, however, that the indemnity agreement contained in this subsection (a) with respect to the Preliminary Prospectus or the Prospectus shall not inure to the benefit of an Underwriter (or to the benefit of any person controlling such Underwriter) with respect to any person asserting any such loss, expense, liability, damage or claim which is the subject thereof if the Prospectus or any supplement thereto prepared with the consent of the Representatives and furnished to the Underwriters prior to the Closing Time corrected any such alleged untrue statement or omission; provided that any omission and if such settlement is effected with Underwriter failed to send or give a copy of the Prospectus or supplement thereto to such person at or prior to the written consent confirmation of the Company; (iiisale of Shares to such person, unless such failure resulted from noncompliance by the Company with Section 4(a) of this Agreement. If any action is brought against any an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the preceding paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters)and payment of out-of-pocket expenses, reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company and which counsel to the Underwriter believes may present a conflict for counsel representing the Company and the Underwriter (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement (same jurisdiction representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or action effected without the Prospectus (or any amendment or supplement thereto)Company's written consent. (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s its directors, each of the Company’s its officers who that signed the Registration Statement, Statement and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection (a) or claim arises out of this Section, as incurred, but only with respect to or is based upon any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representatives to the Company expressly for use in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereto)thereof by the Company) or in a Prospectus, or arises out of or is based upon any preliminary prospectus, any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in the Registration Statement or Prospectus or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth under the caption "Underwriting" regarding (i) concessions and reallowances to dealers in connection with the sale of Shares, (ii) stabilizing and the beneficial ownership of Shares by the Underwriters, and (iii) entities associated with the Underwriters, in the Prospectus (or any amendment or supplement theretoto the extent such statements relate to the Underwriters) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company by such Underwriter expressly for use therein. (cpurposes of Section 3(l) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of and this Section 9. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representatives in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company, on the one hand, and the Underwriters Underwriters, on the other hand, agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission(c)(ii) above. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective ' obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (America First Mortgage Investments Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any and all lossbreach of any representation, liabilitywarranty or covenant of the Company contained herein, claim(ii) any failure on the part of the Company to comply with any applicable law, damage and expense whatsoeverrule or regulation relating to the offering of securities being made pursuant to the Prospectus, as incurred, arising out of (iii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company), the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (iv) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an "Application"), including the Rule 430B Information, or the (v) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, Prospectus or any Application or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , or (iivi) against any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials used in connection with the marketing of the Shares, including, without limitation, slides, videos, films and all tape recordings; except insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement, Prospectus or Application. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. (b) If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such settlement is effected with Underwriter shall promptly notify the written consent Company in writing of the Company; (iii) against any institution of such action, and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) aboveand payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (bc) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s 's directors, each of the Company’s 's officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, damage and expense described in jointly or severally, the indemnity contained in subsection (a) of this SectionCompany, as incurredor any such person may incur under the Securities Act, the Exchange Act or otherwise, but only with respect to insofar as such loss, expense, liability, damage or claim arises out of or is based upon (i) any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representative to the Company expressly for use in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company), the Prospectus, or any preliminary prospectusApplication, or (ii) any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in such Registration Statement, Prospectus or any Application or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth in the seventh paragraph under the caption "Underwriting" in the Preliminary Prospectus and the Prospectus which addresses Syndicate Short Sales and Stabilization (or any amendment or supplement theretoto the extent such statements relate to the Underwriters) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company by for purposes of Section 3(k) and this Section 9. The indemnity agreement set forth in this Section 9(c) shall be in addition to any liabilities that such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of may otherwise have. If any action commenced is brought against it the Company, or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (d) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (d)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective ' obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Pacific Premier Bancorp Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, and the respective directors, officers, employees and agents of each Underwriter, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoor part thereof), including the Rule 430B Information, Preliminary Prospectus or the Prospectus, (ii) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, or necessary to make the statements made therein not misleading misleading, (iii) any omission or arising alleged omission from any such Preliminary Prospectus or Prospectus of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, or (iv) any untrue statement or alleged untrue statement of any material fact contained in the Roadshow Material; except in each case of (i), (ii), (iii) and (iv) above insofar as any such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with the information set forth in the last sentence of the first paragraph of Section 10(b). The indemnity agreement set forth in this Section 10(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time after delivery of notice of such action or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its consent. (b) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Company’s directors, the Company’s officers that signed the Registration Statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus Registration Statement (or any amendment or supplement theretopart thereof), the Preliminary Prospectus or Prospectus, (ii) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements therein not misleading, or (iii) any omission or alleged omission from any such Preliminary Prospectus or Prospectus of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoever, but in each case only insofar as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement omission was made in such Registration Statement, Preliminary Prospectus or omission made Prospectus in reliance upon and in conformity with written information furnished in writing by or on behalf of the Underwriters through the Representative to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use therein. . The following statements under the caption “Underwriting” beginning on page S-68 of the Preliminary Prospectus: (cA) Each indemnified party shall give notice as promptly as reasonably practicable the first sentence of the sixth paragraph on page S-68; and (B) the first paragraph and the first, second, fifth and sixth sentences of the second paragraph under the caption “Stabilization” on page S-69 of the Preliminary Prospectus (and the corresponding sections of the Prospectus, to each indemnifying party the extent such statements relate to the Underwriters) constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company for purposes of Section 3(u), Section 3(v) and this Section 10. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action, and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of any such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Representative will not relieve the Representative or any Underwriter of any obligation hereunder, except to the extent that the Representative’s ability to defend is actually impaired by such failure or delay. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time after delivery of notice of such action or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by such Underwriter and paid as incurred (it being understood, however, that the indemnified party. In no event Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (dc) If the indemnification provided for in this Section 6 10 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 10 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, Securities or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth in the table on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover page of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 10 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable, claimssubsection (c)(ii), damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 610, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Shares underwritten by it underwriting discounts and distributed commissions applicable to the public were offered to the public exceeds the amount of any damages which Securities purchased by such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 10 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (OFS Capital Corp)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, and the respective affiliates, directors, officers, employees and agents of each Underwriter from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) that, jointly or severally, any such indemnified party may incur arising under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), including any Issuer Free Writing Prospectus that the Rule 430B InformationCompany has filed or was required to file with the Commission or is otherwise required to retain, any other Free Writing Prospectus that was approved by the Company, any Written Testing-the-Waters Communications or the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company); (B) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, or necessary to make the statements made therein not misleading or arising out of misleading; (C) any untrue statement omission or alleged untrue statement of a material fact contained in omission from any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “such Issuer Free Writing Prospectus,” , any Written Testing-the-Waters Communications, any other Free Writing Prospectus that was approved by the Company or the omission or alleged omission therefrom Prospectus of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; ; (iiD) against any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials used in connection with the marketing of the Shares, including, without limitation, slides, videos, films and all tape recordings; except, in each case, insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made of a material fact contained in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representatives to the Company by any Underwriter expressly for use in the such Registration Statement (or any amendment thereto)Statement, including any preliminary prospectus, any Issuer Free Writing Prospectus or Application (that information being limited to that described in the Prospectus (or last sentence of the first paragraph of Section 9(c) hereof. The indemnity agreement set forth in this Section 9(a) shall be in addition to any amendment or supplement thereto)liability which the Company may otherwise have. (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of If any action commenced is brought against it an Underwriter or controlling person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder to against the extent it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. In the case of parties indemnified Company pursuant to Section 6(a) abovesubsection (a), counsel to such Underwriter shall promptly notify the indemnified parties Company in writing of the institution of such action, and the Company shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of any such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify any indemnifying party under this Section 9 will not relieve such indemnifying party of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also be counsel to party or parties or the named parties in any such proceeding (including any impleaded parties included by the Company and the indemnified party. In no event person)) or representation by both parties by the same counsel would be inappropriate due to a conflict or potential differing interests between such parties, in any of which events such fees and expenses shall be borne by the indemnifying parties Company and paid as incurred (it being understood, however, that the Company shall not be liable for fees and the expenses of more than one counsel (separate firm of attorneys for the Underwriters or controlling persons in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than one local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding and subject to the proviso in this sentence, the Company shall not be liable for any settlement of any such claim or action effected without its written consent; provided, however, that if at any time an indemnified party under this Section 9 shall have requested an indemnifying party under this Section 9 to reimburse such indemnified party for fees and expenses of counsel as contemplated by this Section 9, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 60 days after receipt by the Company of the same general allegations aforesaid request (or circumstances90 days after receipt by the Underwriter of the aforesaid request in the event the Underwriter is the indemnifying party), (ii) such indemnifying party shall have received notice of the terms such settlement at least 30 days prior to such settlement being entered into, and (iii) such indemnifying party shall not have (x) reimbursed the indemnified party in accordance with such request, (y) disputed in good faith the indemnified party’s entitlement to such reimbursement prior to the date of such settlement, or (z) disputed in good faith the terms of such settlement. No indemnifying party shall, without the prior written consent of the indemnified partiesparty, settle or compromise or consent to the entry effect any settlement of any judgment with respect to any litigation, pending or any investigation or threatened proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which any indemnified party is or could have been a party and indemnification or contribution could be have been sought under this Section 6 (whether or not the hereunder by such indemnified parties are actual or potential parties thereto)party, unless such settlement, compromise or consent settlement (ix) includes an unconditional release of each such indemnified party party, in form and substance reasonably satisfactory to such indemnified party, from all liability arising out on claims that are the subject matter of such litigation, investigation, proceeding or claim and (iiy) does not include a any statement as to or an any admission of fault, culpability or a failure to act by or on behalf of any indemnified party. (c) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Company’s directors, the Company’s officers that signed the Registration Statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment), any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission, any Written Testing-the-Waters Communications, or the Prospectus, or any Application, (B) any omission or alleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, or (C) any omission or alleged omission from any such Issuer Free Writing Prospectus, any Free Writing Prospectus, any Written Testing-the-Waters Communications, Prospectus or any Application of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, but in each case only insofar as such untrue statement or alleged untrue statement or omission or alleged omission was made in such Registration Statement, Issuer Free Writing Prospectus, Written Testing-the-Waters Communications, Prospectus or Application in reliance upon and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use therein. The statements set forth in the third paragraph under the caption “Underwriting” and the first and second paragraphs under the heading identified by “Stabilization” under the caption “Underwriting” in the Preliminary Prospectus, the Disclosure Package and the Prospectus (to the extent such statements relate to the Underwriters) constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company for purposes of this Agreement. If any action is brought against the Company or any such person in respect of which indemnity may be sought against any Underwriter pursuant to the foregoing paragraph, the Company or such person shall promptly notify the Representatives in writing of the institution of such action and the Representative, on behalf of the Underwriters, shall assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that the Underwriters shall not be liable for the expenses of more than one separate firm of attorneys in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of any such claim or action effected without the written consent of the Representative, except as provided in Section 9(b). (d) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable lawLaw, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which that resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take into account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (d)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint. (f) The remedies provided for in this Section are not exclusive and shall not limit any rights or remedies that may otherwise be available to any indemnified party at law or in equity.

Appears in 1 contract

Samples: Underwriting Agreement (Turning Point Brands, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, and the respective directors, officers, employees and agents of each Underwriter from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), including any Issuer Free Writing Prospectus that the Rule 430B InformationCompany has filed or was required to file with the Commission or otherwise retain, the Disclosure Package or the Final Prospectus (the term Final Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus and the Statutory Prospectus as amended or supplemented by the Company), (B) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, or necessary to make the statements made therein not misleading misleading, or arising out of (C) any untrue statement omission or alleged untrue statement of a material fact contained in omission from any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “such Issuer Free Writing Prospectus,” , Disclosure Package or the omission or alleged omission therefrom Final Prospectus of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against ; except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement, Final Prospectus, Disclosure Package or Issuer Free Writing Prospectus. The indemnity agreement set forth in this Section 9(a) shall be in addition to any such settlement is effected with liability which the written consent of the Company;Company may otherwise have. (iiib) If any action is brought against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, an Underwriter or any such alleged untrue statement officer, director or omission, controlling person in respect of which indemnity may be sought against the Company pursuant to the extent that any such expense is not paid under subsection (i) or (iia) above, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such officer, director or alleged untrue statement controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or omission made in reliance upon and in conformity with written information furnished the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that counsel selected by the Company has a conflict of interest or there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (bc) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s their respective directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection or claim arises out of or is based upon (aA) of this Section, as incurred, but only with respect to any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), or any preliminary prospectus, any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission, or the Final Prospectus, (B) any omission or alleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, or (C) any omission or alleged omission from any such Issuer Free Writing Prospectus (or any amendment Final Prospectus of a material fact necessary to make the statements made therein, in light of the circumstances under which they were made, not misleading, but in each case only insofar as such untrue statement or supplement thereto) alleged untrue statement or omission or alleged omission was made in such Registration Statement, Issuer Free Writing Prospectus or Final Prospectus in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representative to the Company by such Underwriter expressly for use therein. The statements set forth in the paragraphs identified by “Electronic Delivery” and “Stabilization”, and the concession and reallowance figures appearing in “Commissions and Expenses” under the section “Underwriting” in the Preliminary Prospectus, the Disclosure Package and the Final Prospectus (to the extent such statements relate to the Underwriters) constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company for purposes of this Section 9. (cd) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its or their own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (de) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b), (c) and (d) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (f) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (e)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Horsehead Holding Corp)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus, (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company), the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (D) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an "Application"), including the Rule 430B Information, or the (E) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, Prospectus or any Application or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , or (iiF) against any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials used in connection with the marketing of the Shares, including, without limitation, slides, videos, films and all tape recordings; except insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement, Prospectus or Application. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. (b) If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such settlement is effected with Underwriter or controlling person shall promptly notify the written consent Company in writing of the Company; (iii) against any institution of such action, and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) aboveand payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its written consent. (bc) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s 's directors, each of the Company’s 's officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, damage and expense described in jointly or severally, the indemnity contained in subsection (a) of this SectionCompany, as incurredor any such person may incur under the Securities Act, the Exchange Act or otherwise, but only with respect to insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representative to the Company expressly for use in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company), the Prospectus, or any preliminary prospectusApplication, or (B) any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in such Registration Statement, Prospectus or any Application or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth in the second, tenth, eleventh and twelfth paragraphs and the second sentence of the seventh paragraph under the caption "Underwriting" in the Preliminary Prospectus and the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company by for purposes of Section 3(k) and this Section 9. The indemnity agreement set forth in this Section 9(c) shall be in addition to any liabilities that such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of may otherwise have. If any action commenced is brought against it the Company, or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company, or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company, or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (d) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand Company, and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand Company, and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand Company, and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand Company, and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company Company, or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company, and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (d)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective ' obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Allied Healthcare International Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any and all lossbreach of any representation, liability, claim, damage and expense whatsoever, as incurred, arising out warranty or covenant of the Company contained herein or (ii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company) or in a Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), including the Rule 430B Information, or the arises out of or is based upon any omission or alleged omission therefrom of to state a material fact required to be stated therein in either such Registration Statement or Prospectus or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against , except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omissionalleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement or such Prospectus, PROVIDED, HOWEVER, that the indemnity agreement contained in this subsection (a) with respect to the Preliminary Prospectus or the Prospectus shall not inure to the benefit of an Underwriter (or to the benefit of any person controlling such Underwriter) with respect to any person asserting any such loss, expense, liability, damage or claim which is the subject thereof if the Prospectus or any supplement thereto prepared with the consent of the Representatives and furnished to the Underwriters prior to the Closing Time corrected any such alleged untrue statement or omissionomission and if such Underwriter failed to send or give a copy of the Prospectus or supplement thereto to such person at or prior to the written confirmation of the sale of Shares to such person. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the preceding paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided PROVIDED, HOWEVER, that any such settlement is effected with failure or delay to so notify the written consent Company will not relieve the Company of the Company; (iii) against any and all expense whatsoeverobligation hereunder, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense is of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company and which counsel to the Underwriter believes may present a conflict for counsel representing the Company and the Underwriter (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid under as incurred (i) or (ii) above; providedit being understood, however, that this indemnity agreement the Company shall not apply be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction representing the indemnified parties who are parties to any loss, liability, claim, damage or expense such action). Anything in this paragraph to the extent arising out contrary notwithstanding, the Company shall not be liable for any settlement of any untrue statement such claim or omission or alleged untrue statement or omission made in reliance upon and in conformity with action effected without the its written information furnished to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)consent. (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s its directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection (a) or claim arises out of this Section, as incurred, but only with respect to or is based upon any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representatives to the Company expressly for use in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereto)thereof by the Company) or in a Prospectus, or arises out of or is based upon any preliminary prospectus, any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in such Registration Statement or Prospectus or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth in the last paragraph on the cover page and under the caption "Underwriting" in the Preliminary Prospectus and the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company by such Underwriter expressly for use therein. (cpurposes of Section 3(j) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of and this Section 9. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunderagainst any Underwriter pursuant to the foregoing paragraph, but the Company or such person shall promptly notify the Representatives in writing of the institution of such action and the Representatives, on behalf of the Underwriters, shall assume the defense of such action, including the employment of counsel and payment of expenses, PROVIDED, HOWEVER, that any failure or delay to so notify an indemnifying party shall the Representatives will not relieve such indemnifying party from the Underwriters of any liability hereunder obligations hereunder, except to the extent it that their ability to defend is not materially prejudiced as a result thereof and actually impaired by such failure or delay. The Company or such person shall have the right to employ its own counsel in any event shall not relieve it from any liability which it may have otherwise than on account such case, but the fees and expenses of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, such counsel to the indemnified parties shall be selected at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Underwriters, and, Representatives in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the written opinion of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such action; providedfees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective ' obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Miami Computer Supply Corp)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, and the directors, officers, employees and agents of each Underwriter, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any and all lossbreach of any representation, liabilitywarranty or covenant of the Company contained herein, claim(ii) any failure on the part of the Company to comply with any applicable law, damage and expense whatsoeverrule or regulation relating to the offering of securities being made pursuant to the Prospectus, as incurred, arising out of (iii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), including the Rule 430B Information, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Prospectus (Commission or any amendment or supplement thereto) or in otherwise retain, any “road show” (as defined in Rule 433 under of the Securities ActAct Regulations) not constituting an Issuer Free Writing Prospectus (a Non-Prospectus Road Show”), any “issuer information” as defined in Rule 433 of the Securities Act Regulations used or referred to by any Underwriter or contained in the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (iv) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each, an “Application”), (v) any omission or alleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, (vi) any omission or alleged omission from any such Issuer Free Writing Prospectus,” , Non-Prospectus Road Show, Prospectus or the omission or alleged omission therefrom Application of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , (iivii) against any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials used in connection with the marketing of the Shares, including slides, videos, films and all tape recordings; except, in the case of clause (iii), (v) or (vi) above only, insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement, Prospectus or Application. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against any Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such settlement is effected with Underwriter or controlling person shall promptly notify the written consent Company in writing of the Company; (iii) against any institution of such action, and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) aboveand payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless (A) the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, (B) the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time after delivery of notice of such action or alleged untrue statement (C) such indemnified party or omission made in reliance upon and in conformity with written information furnished parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who that signed the Registration Statement, Statement and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection or claim arises out of or is based upon (ai) of this Section, as incurred, but only with respect to any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), or any preliminary prospectus, any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission, any Non-Prospectus Road Show, the Prospectus (or any amendment Application, (ii) any omission or supplement theretoalleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, or (iii) any omission or alleged omission from any such Issuer Free Writing Prospectus, Non-Prospectus Road Show, Prospectus or Application of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, but in the case of clause (i), (ii) or (iii) only insofar as such untrue statement or alleged untrue statement or omission or alleged omission was made in such Registration Statement, Issuer Free Writing Prospectus, Non-Prospectus Road Show, Prospectus or Application in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representative to the Company by such Underwriter expressly for use therein. . The date on which the Underwriters expect to deliver the shares on the front cover, the information in the table listing the Underwriters and the number of shares of Common Stock each has agreed to purchase and the statements set forth in the paragraphs under the “Stabilization” caption in the “Underwriting” section of the Preliminary Prospectus and the Prospectus (cto the extent such statements relate to the Underwriters) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company for purposes of Section 3(m) and Section 3(n) of this Agreement and this Section 9. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action, and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of any such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Representative will not relieve the Representative of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless (A) the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action, (B) the Representative shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time or (C) such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by such Underwriter and paid as incurred (it being understood, however, that the indemnified party. In no event Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under Section 9(a) and 9(b) hereof in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of losses9(c)(i) hereof and, liabilitiesif applicable, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission9(c)(ii) hereof. Notwithstanding the other provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of The Underwriters’ obligations to contribute pursuant to this Section 6, 9 are several in proportion to their respective underwriting commitments and not joint. (e) The Company agrees to indemnify and hold harmless each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, its affiliates and each person, if any, who controls the Company each Underwriter and its affiliates within the meaning of either Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act shall have from and against any and all losses, expenses, liabilities, damages and claims (including any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) (i) caused by any untrue statement or alleged untrue statement of a material fact contained in any material prepared by or with the same rights consent of the Company for distribution to contribution participants in connection with the Directed Share Program, or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; (ii) as a result of the Company. The Underwriters’ respective obligations failure of any participant to contribute pursuant pay for and accept delivery of Directed Shares that the participant has agreed to this Section 6 are several purchase; or (iii) related to, arising out of, or in proportion to connection with the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not jointDirected Share Program.

Appears in 1 contract

Samples: Underwriting Agreement (Patriot Risk Management, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, and the respective directors, officers, employees and agents of each Underwriter from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Offering Circular, (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Offering Statement (or any amendment theretoamendment), including any Testing-the-Waters Communication that the Rule 430B InformationCompany has filed or was required to file with the Commission or is otherwise required retain, or the Offering Circular (the term Offering Circular for the purpose of this Section 9 being deemed to include any Preliminary Offering Circular, the Offering Circular and the Offering Circular as amended or supplemented by the Company), (D) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an “Application”), (E) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Offering Statement, or necessary to make the statements made therein not misleading or arising out of misleading, (F) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom from any such Testing-the-Waters Communication, Offering Circular or any Application of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , (iiG) against any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials used in connection with the marketing of the Shares, including, without limitation, slides, videos, films and all tape recordings; except, in the case of (C), (E) and (F) above only, insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative[s] to the Company expressly for use in such Offering Statement, Offering Circular or Application. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such settlement is effected with Underwriter shall promptly notify the written consent Company in writing of the Company; (iii) against any institution of such action, and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) aboveand payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them that are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who that signed the Registration Offering Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection or claim arises out of or is based upon (aA) of this Section, as incurred, but only with respect to any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in the Registration Offering Statement (or any amendment theretoamendment), any Testing-the-Waters Communication that the Company has filed or was required to file with the Commission, or the Offering Circular, or any preliminary prospectusApplication, (B) any Issuer Free Writing Prospectus omission or alleged omission to state a material fact required to be stated in any such Offering Statement, or necessary to make the Prospectus statements made therein not misleading, or (C) any omission or alleged omission from any such Testing-the-Waters Communication, Offering Circular or any amendment Application of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, but in each case only insofar as such untrue statement or supplement thereto) alleged untrue statement or omission or alleged omission was made in such Offering Statement, Testing-the-Waters Communication, Offering Circular or Application in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representative[s] to the Company by such Underwriter expressly for use therein. . The statements set forth in the paragraphs identified by “Stabilization” under the caption “Underwriting” in the Preliminary Offering Circular, the Disclosure Package and the Offering Circular (cto the extent such statements relate to the Underwriters) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party constitute the only information furnished by or on behalf of any Underwriter through the Representative[s] to the Company for purposes of Section 3(l), Section 3(m) and this Section 9. If any action commenced is brought against it the Company, or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative[s] in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative[s], on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative[s] in connection with the defense of such action or the Representative[s] shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative[s] shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative[s]. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of The Underwriters’ obligations to contribute pursuant to this Section 6, 9 are several in proportion to their respective underwriting commitments and not joint. (e) The Company agrees to indemnify and hold harmless each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, its affiliates and each person, if any, who controls the Company each Underwriter and its affiliates within the meaning of either Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act shall have Exchange Act, from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) (i) caused by any untrue statement or alleged untrue statement of a material fact contained in any material prepared by or with the same rights consent of the Company for distribution to contribution participants in connection with the Directed Share Program, or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; (ii) as a result of the Company. The Underwriters’ respective obligations failure of any participant to contribute pursuant pay for and accept delivery of Directed Shares that the participant has agreed to this Section 6 are several purchase; or (iii) related to, arising out of, or in proportion to connection with the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not jointDirected Share Program.

Appears in 1 contract

Samples: Underwriting Agreement (Energy Hunter Resources, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, and the respective directors, officers, employees and agents of each Underwriter from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post effective amendment thereof), any Issuer Free Writing Prospectus, or the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include the Base Prospectus, any Preliminary Prospectus and expense whatsoeverthe Prospectus, as incurredthe same may be amended or supplemented by the Company), arising (C) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an "Application"), (D) any omission or alleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, or (E) any omission or alleged omission from any Issuer Free Writing Prospectus, Prospectus or any Application of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading; except in the case of (B), (C), (D) and (E) above only insofar as any such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement, Prospectus or Application. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time after notice of the institution of such action is given by the Underwriter or controlling person, or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its consent. (b) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Company's directors, the Company's officers that signed the Registration Statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, but only insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoor part thereof), including any Issuer Free Writing Prospectus that the Rule 430B InformationCompany has filed or was required to file with the Commission, or the Prospectus, or any Application, (B) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, or necessary to make the statements made therein not misleading misleading, or arising out of (C) any untrue statement omission or alleged untrue statement of a material fact contained in omission from any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “such Issuer Free Writing Prospectus,” , Prospectus or the omission or alleged omission therefrom any Application of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoever, but in each case only insofar as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement omission was made in such Registration Statement, Issuer Free Writing Prospectus, Prospectus or omission made Application in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representatives to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use therein. . The concession and reallowance figures appearing in the third paragraph and the statements set forth in the seventh, eleventh and twelfth paragraphs under the caption "Underwriting" in the Preliminary Prospectus and the Prospectus (cto the extent such statements relate to the Underwriters) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company for purposes of Section 3(p), Section 3(r) and this Section 9. The indemnity agreement set forth in this Section 9(b) shall be in addition to any liabilities that such Underwriter may otherwise have. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representatives in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of any such action; , including the employment of counsel and payment of expenses, provided, however, that any failure or delay to so notify the Representatives will not relieve the Underwriters of any obligation hereunder, except to the extent that their ability to defend is actually impaired by such failure or delay. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless (i) the Representatives shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time after notice of the institution of such action is given by the Company or such person, (ii) such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified partyparty or parties), or (iii) also the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action, in any of which events the counsel employed by the Company or such person shall be counsel reasonably acceptable to the indemnified party. In no event Representatives, and the fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that the indemnifying parties Underwriters shall not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective ' obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Tower Group, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, and the respective directors, officers, employees and agents of each Underwriter, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoor part thereof), including the Rule 430B Information, Preliminary Prospectus or the Prospectus, (ii) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, or necessary to make the statements made therein not misleading misleading, (iii) any omission or arising alleged omission from any such Preliminary Prospectus or Prospectus of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, or (iv) any untrue statement or alleged untrue statement of any material fact contained in the Roadshow Material; except in each case of (i), (ii), (iii) and (iv) above insofar as any such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with the information set forth in the last sentence of the first paragraph of Section 10(b). The indemnity agreement set forth in this Section 10(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time after delivery of notice of such action or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its consent. (b) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Company’s directors, the Company’s officers that signed the Registration Statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus Registration Statement (or any amendment or supplement theretopart thereof), the Preliminary Prospectus or Prospectus, (ii) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements therein not misleading, or (iii) any omission or alleged omission from any such Preliminary Prospectus or Prospectus of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoever, but in each case only insofar as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement omission was made in such Registration Statement, Preliminary Prospectus or omission made Prospectus in reliance upon and in conformity with written information furnished in writing by or on behalf of the Underwriters through the Representatives to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use therein. . [The following statements under the caption “Underwriting” beginning on page [154] of the Preliminary Prospectus: (cA) Each indemnified party shall give notice as promptly as reasonably practicable the third paragraph on page [154]; and (B) the [fifth] paragraph on page [155] of the Preliminary Prospectus beginning with “[t]he representatives of the underwriters may engage …” until and including the last bullet of that paragraph ending with “… at which a stabilizing bid is made” on page [156] of the Preliminary Prospectus (and the corresponding sections of the Prospectus, to each indemnifying party the extent such statements relate to the Underwriters) constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company for purposes of Section 3(m), Section 3(o) and this Section 10.] If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representatives in writing of the institution of such action, and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of any such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Representatives will not relieve the Representatives or any Underwriter of any obligation hereunder, except to the extent that the Representatives’ ability to defend is actually impaired by such failure or delay. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time after delivery of notice of such action or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by such Underwriter and paid as incurred (it being understood, however, that the indemnified party. In no event Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (dc) If the indemnification provided for in this Section 6 10 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 10 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth in the table on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover page of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 10 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable, claimssubsection (c)(ii), damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 610, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 10 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (OFS Capital Corp)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus, (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company), the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (D) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an "Application"), including the Rule 430B Information, or the (E) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, Prospectus or any Application or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , or (iiF) against any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials used in connection with the marketing of the Shares, including, without limitation, slides, videos, films and all tape recordings; except insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement, Prospectus or Application. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have (b) If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such settlement is effected with Underwriter shall promptly notify the written consent Company in writing of the Company; (iii) against any institution of such action, and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) aboveand payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (bc) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s 's directors, each of the Company’s 's officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, damage and expense described in jointly or severally, the indemnity contained in subsection (a) of this SectionCompany, as incurredor any such person may incur under the Securities Act, the Exchange Act or otherwise, but only with respect to insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representatives to the Company expressly for use in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company), the Prospectus, or any preliminary prospectusApplication, or (B) any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in such Registration Statement, Prospectus or any Application or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth in the fifth, eighth, fifteenth and sixteenth paragraphs and the third sentence of the ninth paragraph under the caption "Underwriting" in the Preliminary Prospectus and the Prospectus (or any amendment or supplement theretoto the extent such statements relate to the Underwriters) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company by for purposes of Section 3(k) and this Section 9. The indemnity agreement set forth in this Section 9(c) shall be in addition to any liabilities that such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of may otherwise have. If any action commenced is brought against it the Company, or any such person, in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company, or such person, shall promptly notify the Representatives in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company, or such person, shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company, or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (d) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand Company, and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand Company, and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (d)(i) and, liabilitiesif applicable (d)(ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of The Underwriters' obligations to contribute pursuant to this Section 6, 9 are several in proportion to their respective underwriting commitments and not joint. (f) The Company agrees to indemnify and hold harmless each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, its affiliates and each person, if any, who controls the Company each Underwriter and its affiliates within the meaning of either Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act shall have Exchange Act, from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) (i) caused by any untrue statement or alleged untrue statement of a material fact contained in any material prepared by or with the same rights consent of the Company for distribution to contribution participants in connection with the Directed Share Program, or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; (ii) as a result of the Company. The Underwriters’ respective obligations failure of any participant to contribute pursuant pay for and accept delivery of Directed Shares that the participant has agreed to this Section 6 are several purchase; or (iii) related to, arising out of, or in proportion to connection with the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not jointDirected Share Program.

Appears in 1 contract

Samples: Underwriting Agreement (TRM Corp)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 the Securities Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the 1933 Securities Act, the Exchange Act or Section 20 otherwise, insofar as such loss, expense, liability, damage or claim arises out of the 1934 Act as follows: or is based upon (i) against any and all lossbreach of any representation, liabilitywarranty or covenant of the Company contained herein, claim(ii) any failure on the part of the Company to comply with any applicable law, damage and expense whatsoeverrule or regulation relating to the offering of securities being made pursuant to the Prospectus, as incurred, arising out of (iii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company) or in a Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), including the Rule 430B Information, or the (iv) any omission or alleged omission therefrom of to state a material fact required to be stated therein in either such Registration Statement or Prospectus or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against , except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission of a material fact contained in and made in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement or such Prospectus (that information being limited to that described in the last sentence of Section 9(c) hereof), provided, however, that the indemnity agreement contained in this subsection (a) with respect to the Preliminary Prospectus or the Prospectus shall not inure to the benefit of any Underwriter (or to the benefit of any person controlling such Underwriter) with respect to any person asserting any such loss, expense, liability, damage or claim which is the subject thereof if the Prospectus prepared with the consent of the Representatives and furnished to the Underwriters prior to the Closing Time corrected any such alleged untrue statement or omission and if such Underwriter failed to send or give a copy of the Prospectus to such person at or prior to the written confirmation of the sale of Shares to such person, unless such failure resulted from noncompliance by the Company with Section 4(b) above). (b) If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel of its choosing and payment of expenses, provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired or otherwise prejudiced by such failure or delay, and after notice from the Company to such indemnified party of its election so to assume the defense thereof, the Company will not be liable to such indemnified party under this Section for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation, except as provided below. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time after notice of such action by such indemnified party or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there exists an actual and material conflict of interest between the interests of the Company and such indemnified party in connection with such action (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its prior written consent. (c) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Company's directors and officers, and any person who controls the Company within the meaning of the Securities Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, but only insofar as such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in and made in reliance upon and in conformity with information furnished in writing by such Underwriter through the Representatives to the Company expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (as amended by any post-effective amendment thereof by the Company) or any amendment thereto)in a Prospectus, or arises out of or is based upon any preliminary prospectus, any Issuer Free Writing omission or alleged omission to state therein a material fact in connection with such information required to be stated either in such Registration Statement or Prospectus or necessary to make such information, in the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written light of the circumstances under which made, not misleading. The following statements constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company by such Underwriter expressly for use thereinpurposes of Section 3(i) and this Section 9: (i) the names of the Representatives on the cover page of the Prospectus, and (ii) the table at the end of the first paragraph and the _________, __________ and _________ paragraphs under the caption "Underwriting" in the Prospectus. (cd) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder to the extent it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. In the case of parties indemnified Underwriter pursuant to Section 6(asubsection (c) above, the Company or such person shall promptly notify the Representatives in writing of the institution of such action and the Representatives, on behalf of the Underwriters, shall assume the defense of such action, including the employment of counsel of its choosing (who shall not, except with the reasonable consent of the Company, be counsel to the indemnified parties shall be selected by Representatives or the Underwriters, and, in the case ) and payment of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in the defense of any such actionexpenses; provided, however, that any failure or delay to so notify the Representatives, as applicable, will not relieve the Representatives or the Underwriters, as applicable, of any obligation hereunder, except to the extent that their ability to defend is actually impaired or otherwise prejudiced by such failure or delay, and after notice from such Underwriter to such indemnified party of its election so to assume the defense thereof, such Underwriter will not be liable to such indemnified party under this Section for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation, except as provided below. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time after notice of such action by such indemnified party or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there exists an actual and material conflict of interest between the interests of the Company and such indemnified party in connection with such action (in which case the Representatives shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by such Underwriter and paid as incurred (it being understood, however, that the indemnified party. In no event Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (de) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b), (c), and (d) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company and bear to the total underwriting discount discounts and commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to in the first sentence of this subsection (e) shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action which is the subject of this subsection (e). (f) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (e)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective ' obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Luminent Mortgage Capital Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees and the Operating Partnership, jointly and severally, agree to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company or the Operating Partnership contained herein, (B) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company) or the Prospectus as amended or supplemented by the Company), including the Rule 430B Information, or the (C) any omission or alleged omission therefrom of to state a material fact required to be stated therein in the Registration Statement or the Prospectus or necessary to make the statements made therein (with respect to the Prospectus only, in the light of the circumstances under which they were made) not misleading misleading; except insofar as any such loss, expense, liability, damage or arising claim arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Registration Statement, Prospectus or Application. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company or the Operating Partnership may otherwise have. (b) If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel reasonably satisfactory to the Underwriter or controlling person, as the case may be, to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its consent. (c) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Operating Partnership, the Company's directors, the Company's officers that signed the Registration Statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, the Company, or any such person may incur under the Securities Act, the Exchange Act or otherwise, but only insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any untrue statement or alleged untrue statement of a material fact contained in and in conformity with information furnished in writing by such Underwriters through the Representative to the Company expressly for use in the Registration Statement (or in the Registration Statement as amended by any preliminary prospectus, in any Issuer Free Writing Prospectus post-effective amendment thereof by the Company) or the Prospectus Prospectus, or (or B) any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of to state a material fact in connection with such information required to be stated either in such Registration Statement or the Prospectus or necessary in order to make the statements thereinsuch information, in the light of the circumstances under which they were made, not misleading; . The statements set forth in the paragraphs under the caption "Underwriting" in the Preliminary Prospectus and the Prospectus (ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of such statements relate to the aggregate amount paid in settlement including without limitation, Underwriters) constitute the only information furnished by means of a Consent to Judgment or on behalf of any litigation, or Underwriter through the Representative to the Company for purposes of Section 3(p) and this Section 9. The indemnity agreement set forth in this Section 9(c) shall be in addition to any investigation or proceeding by liabilities that such Underwriter may otherwise have. (d) If any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omissionaction is brought against the Company, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of any action commenced against it person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company, or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company, or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company, or such person unless the employment of such counsel shall have been authorized in writing by the Representative, with respect to the Company, or the Company, with respect to any such person, in connection with the defense of such action or the Representative or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (de) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand Company, and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand Company, and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand Company, and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand Company, and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company Company, or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (f) The Company, the Operating Partnership and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (e)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter Underwriters shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of The Underwriters' obligations to contribute pursuant to this Section 69 are several in proportion to their respective underwriting commitments and not joint. (g) The Company and the Operating Partnership, jointly and severally, agree to indemnify and hold harmless each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, its affiliates and each person, if any, who controls the Company each Underwriter and its affiliates within the meaning of either Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act shall have Exchange Act, from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) (i) caused by any untrue statement or alleged untrue statement of a material fact contained in any material prepared by or with the same rights express consent of the Company for distribution to contribution participants in connection with the Directed Share Program, or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; (ii) as a result of the Company. The Underwriters’ respective obligations failure of any participant to contribute pursuant pay for and accept delivery of Directed Shares that the participant has agreed to this Section 6 are several purchase; or (iii) related to, arising out of, or in proportion to connection with the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not jointDirected Share Program.

Appears in 1 contract

Samples: Underwriting Agreement (Highland Hospitality Corp)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, and the respective directors, officers, employees and agents of each Underwriter from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Offering Circular, (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Offering Statement (or any amendment theretoamendment), including any Testing-the-Waters Communication that the Rule 430B InformationCompany has filed or was required to file with the Commission or is otherwise required retain, or the Offering Circular and Disclosure Package (the term Offering Circular for the purpose of this Section 11 being deemed to include any Preliminary Offering Circular, the Offering Circular and the Offering Circular as amended or supplemented by the Company), (D) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an “Application”), (E) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Offering Statement, or necessary to make the statements made therein not misleading or arising out of misleading, (F) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom from any such Testing-the-Waters Communication, Offering Circular or any Application of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , (iiG) against any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials used in connection with the marketing of the Shares, including, without limitation, slides, videos, films and all tape recordings; except, in the case of (C), (E) and (F) above only, insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative to the Company expressly for use in such Offering Statement, Offering Circular or Application. The indemnity agreement set forth in this Section 11(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such settlement is effected with Underwriter shall promptly notify the written consent Company in writing of the Company; (iii) against any institution of such action, and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) aboveand payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them that are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who that signed the Registration Offering Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection or claim arises out of or is based upon (aA) of this Section, as incurred, but only with respect to any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in the Registration Offering Statement (or any amendment theretoamendment), any Testing-the-Waters Communication that the Company has filed or was required to file with the Commission, or the Offering Circular, or any preliminary prospectusApplication, (B) any Issuer Free Writing Prospectus omission or alleged omission to state a material fact required to be stated in any such Offering Statement, or necessary to make the Prospectus statements made therein not misleading, or (C) any omission or alleged omission from any such Testing-the-Waters Communication, Offering Circular or any amendment Application of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, but in each case only insofar as such untrue statement or supplement thereto) alleged untrue statement or omission or alleged omission was made in such Offering Statement, Testing-the-Waters Communication, Offering Circular or Application in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representative to the Company by such Underwriter expressly for use therein. . The statements set forth in the paragraphs identified by “Stabilization” under the caption “Underwriting” in the Preliminary Offering Circular, the Disclosure Package, and the Offering Circular (cto the extent such statements relate to the Underwriters) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company for purposes of Section 2(l), Section 2(m) and this Section 11. If any action commenced is brought against it the Company, or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out of the same general allegations or circumstances. No indemnifying party shall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of (other than local counsel in any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not such jurisdiction) representing the indemnified parties who are actual or potential parties theretoto such action). Anything in this paragraph to the contrary notwithstanding, unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf no Underwriter shall be liable for any settlement of any indemnified party. (d) such claim or action effected without the Representative's written consent. If the indemnification provided for in this Section 6 11 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsection (a) and (b) of this Section 11 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages, and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 11 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 611, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 11 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Prometheum, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, and the respective directors, officers, employees and agents of each Underwriter, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoor part thereof), including the Rule 430B InformationPreliminary Prospectus, the Sales Materials or the Prospectus, (ii) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, or necessary to make the statements made therein not misleading, (iii) any omission or alleged omission from any such Preliminary Prospectus, Sales Materials or Prospectus of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading or arising (iv) any untrue statement or alleged untrue statement of any material fact contained in the Roadshow Material; except in each case of (i), (ii), (iii) and (iv) above insofar as any such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with the information set forth in the last sentence of the first paragraph of Section 10(b). The indemnity agreement set forth in this Section 10(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time after delivery of notice of such action or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its consent. (b) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Company’s directors, the Company’s officers that signed the Registration Statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus Registration Statement (or any amendment or supplement theretopart thereof), the Preliminary Prospectus or Prospectus, (ii) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements therein not misleading, or (iii) any omission or alleged omission from any such Preliminary Prospectus or Prospectus of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoever, but in each case only insofar as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement omission was made in such Registration Statement, Preliminary Prospectus or omission made Prospectus in reliance upon and in conformity with written information furnished in writing by or on behalf of the Underwriters through the Representative to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), or any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company by such Underwriter expressly for use therein. . The following statements under the caption “Underwriting” beginning on page 96 of the Registration Statement: (cA) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party the names of the Underwriters, (B) the first sentence of the third paragraph on page 96, and (C) the sixth and seventh paragraphs and the third sentence of the eighth paragraph on page 97 constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company for purposes of Section 3(r), Section 3(s) and this Section 10. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representative in writing of the institution of such action, and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of any such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Representative will not relieve the Representative or any Underwriter of any obligation hereunder, except to the extent that the Representative’s ability to defend is actually impaired by such failure or delay. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time after delivery of notice of such action or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by such Underwriter and paid as incurred (it being understood, however, that the indemnified party. In no event Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (dc) If the indemnification provided for in this Section 6 10 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 10 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth in the table on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover page of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 10 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable, claimssubsection (c)(ii), damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 610, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 10 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (OFS Credit Company, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees shall indemnify, defend and hold harmless the Underwriters and any person who controls either of the Underwriters within the meaning of Section 15 of the Act or Section 20 of the 1934 Act, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which the Underwriters or any such controlling person may incur under the Act, the 1934 Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact, in light of the circumstances in which they were or are made, contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company) or the Prospectus (the term Prospectus for the purpose of this Section 6 being deemed to include any Preliminary Prospectus, the Prospectus and any Prospectus supplements, in each case as amended or supplemented by the Company), (ii) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or “blue sky” laws thereof or filed with the Commission or any securities association or securities exchange (each an “Application”), or (iii) any omission or alleged omission to state a material fact required to be stated in any such Registration Statement, Prospectus or Application or necessary to make the statements made therein, in the light of the circumstances under which they were or are made, not misleading; except to the extent that any such loss, expense, liability, damage or claim arises out of or is based upon any such untrue statement or omission of a material fact contained in and in conformity with information furnished in writing by or on behalf of the Underwriters to the Company expressly for use in such Registration Statement or such Prospectus as specified in the last sentence Section 6(c) hereof; provided, however, that the indemnity agreement contained in this subsection (a) with respect to the Preliminary Prospectus or Prospectus shall not inure to the benefit of the Underwriters (or to the benefit of any person controlling the Underwriters) with respect to any person asserting any such loss, expense, liability, damage or claim which is the subject thereof if copies of the Prospectus were timely delivered to the Underwriters and a copy of the Prospectus (as then amended or supplemented if the Company shall have furnished any amendments or supplements thereto) was not sent or given by or on behalf of the Underwriters to such person, if required by law so to have been delivered, at or prior to the written confirmation of the sale of the Shares to such person, and if the Prospectus (as so amended or supplemented) would have cured the defect giving rise to such loss, expense, liability, damage or claim. (b) The Selling Stockholder shall indemnify and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under of the 1933 Act (each, an “Affiliate”), its selling agents Underwriters and each person, if any, who controls any Underwriter of the Underwriters within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Act, against any and all losslosses, liabilityliabilities, claims, damages and expenses whatsoever as incurred (including but not limited to reasonable attorneys' fees and other expenses incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim, damage and expense whatsoeverany and all amounts paid in settlement of any claim or litigation in accordance with the terms of this Agreement), joint or several, to which they or any of them may become subject under the Act, the 1934 Act or otherwise, insofar as incurredsuch losses, arising liabilities, claims, damages or expenses (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact relating to the Selling Stockholder contained in the Registration Statement (Statement, as originally filed or any amendment thereto), including the Rule 430B Informationthereof, or any related Preliminary Prospectus or the Prospectus, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading or arising (ii) any action taken by a Selling Stockholder in connection with the offering and sale of the Selling Stockholder Shares; provided, however, that the indemnity agreement contained in this subsection (a) with respect to the Preliminary Prospectus or Prospectus shall not inure to the benefit of the Underwriters (or to the benefit of any person controlling the Underwriters) with respect to any person asserting any such loss, expense, liability, damage or claim which is the subject thereof if copies of the Prospectus were timely delivered to the Underwriters and a copy of the Prospectus (as then amended or supplemented if the Company shall have furnished any amendments or supplements thereto) was not sent or given by or on behalf of the Underwriters to such person, if required by law so to have been delivered, at or prior to the written confirmation of the sale of the Shares to such person, and if the Prospectus (as so amended or supplemented) would have cured the defect giving rise to such loss, expense, liability, damage or claim. (c) Each of the Underwriters shall, severally and jointly, indemnify, defend and hold harmless the Company and the Company’s directors, officers, employees and agents and the Selling Stockholder and each person who controls the Company or the Selling Stockholder within the meaning of Section 15 of the Act or Section 20 of the 1934 Act from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, the Company or any such person and the Selling Stockholder may incur under the Act, the 1934 Act or otherwise, but only insofar as such loss, expense, liability, damage or claim arises out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any preliminary prospectus, in any Issuer Free Writing Prospectus post-effective amendment thereof by the Company) or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished in writing by such Underwriter to the Company by any Underwriter and the Selling Stockholder expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (as amended by any post-effective amendment thereof by the Company) or any amendment theretothe Prospectus, as specified in the last sentence of this Section 6(c), or (ii) any preliminary prospectus, any Issuer Free Writing Prospectus omission to state a material fact regarding such Underwriter required to be stated in such Registration Statement or the Prospectus or necessary to make such statement, in light of the circumstances under which it was made, not misleading. The obligation of each of the Underwriters to indemnify the Company (including any director, officer, employee, agent or control person thereof) and the Selling Stockholder shall only relate to any amendment untrue statement or supplement theretoomission which applies to the Underwriter. The Company and the Underwriters acknowledge that the information set forth (x) on the cover page of the Prospectus concerning the Underwriters, relating to the delivery of the Shares and (y) under the caption “Underwriting” in reliance upon the Prospectus with respect to concessions and in conformity with written reallowanced passive market and stabilization activities by the Underwriter constitute the only information furnished by or on behalf of the Underwriters to the Company by such Underwriter expressly for use thereinpurposes of this Section 6. (d) Promptly after receipt by an indemnified party under subsection, (a), (b) or (c) Each above of notice of any claims or the commencement of any action, such indemnified party shall give notice as promptly as reasonably practicable shall, if a claim in respect thereof is to each be made against the indemnifying party of any action commenced under such subsection, notify in writing each party against it in respect of which indemnity may whom indemnification is to be sought hereunder, of the claim or the commencement thereof (but the failure so to so notify an indemnifying party shall not relieve such the indemnifying party from any liability hereunder which it may have under this Section 6 to the extent that it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it that such indemnifying party may have otherwise than on account of this the indemnity agreementagreement hereunder). In case any such claim or action is brought against any indemnified party, and it notifies an indemnifying party of the case of parties indemnified pursuant to Section 6(a) abovecommencement thereof, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An an indemnifying party may participate at its own expense in the defense of any such actionaction at its own expense, and to the extent it may elect, by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, the indemnifying party may assume the defense thereof with counsel reasonably satisfactory to such indemnified party; provided, however, that counsel to the indemnifying party shall not (except with the written consent of the indemnified party) also be counsel to the indemnified party. In no event Notwithstanding the foregoing, the indemnified party or parties shall have the indemnifying parties be liable for right to employ its or their own counsel in any such case, but the fees and expenses of more than such counsel shall be at the expense of such indemnified party or parties unless (i) the employment of such counsel shall have been authorized in writing by one of the indemnifying parties in connection with the defense of such action, (ii) the indemnifying parties shall not have employed satisfactory counsel to have charge of the defense of such action within a reasonable time after notice of commencement of the action, (iii) the indemnifying party does not diligently defend the action after assumption of the defense, or (iv) such indemnified party or parties shall have reasonably concluded that there may be defenses available to it or them which are different from or additional to those available to one or all of the indemnifying parties (in which case the indemnifying parties shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events the fees and expenses of one counsel selected by all of the indemnified parties to represent them all (in addition to any one local counsel) separate from their own counsel for selected by all of the indemnified parties to represent them all in connection with any one action or separate but similar or related actions in each applicable jurisdiction) shall be borne by the same jurisdiction arising out of the same general allegations or circumstancesindemnifying parties. No indemnifying party shall, without the prior written consent of the indemnified parties, settle which consent shall not be unreasonably withheld, effect any settlement or compromise of, or consent to the entry of any judgment with respect to to, any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be have been sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless (x) such settlement, compromise or consent (iI) includes an unconditional release of each the indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (iiII) does not include a statement as to to, or an admission of of, fault, culpability or a failure to act act, by or on behalf of any the indemnified partyparty and (y) the indemnifying party reaffirms its indemnification obligations pursuant to this Agreement. For purposes of this Section 6(d), it shall be deemed unreasonable for an indemnified party to withhold consent to settlement if the conditions in subsections 6(d)(x) and 6(d)(y) are satisfied. (de) If the indemnification provided for in this Section 6 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 6 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with respect to the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the respect to such offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total proceeds (net proceeds from the offering of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company from the Shares sold under this Agreement, on the one hand, and the total underwriting discount discounts and commissions received by the UnderwritersUnderwriters with respect to the Shares purchased under this Agreement, on the other hand, bear to the total gross proceeds from the offering of the Shares under this Agreement, in each case as set forth in the table on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover page of the Prospectus. The relative fault of the Company on the one hand and the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters Underwriters, the intent of the parties and the parties’ their relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (f) The Company, the Selling Stockholder and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 6(e) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of losses6(e)(i) and, liabilitiesif applicable Section 6(e)(ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 6, no Underwriter (i) none of the Underwriters shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it the Underwriters and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omission. No (ii) no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxAct) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (National Lampoon Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act, and the directors, officers, employees and agents of each Underwriter, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as follows: such loss, expense, liability, damage or claim arises out of or is based upon (i) against any and all lossbreach of any representation, liabilitywarranty or covenant of the Company contained herein, claim(ii) any failure on the part of the Company to comply with any applicable law, damage and expense whatsoeverrule or regulation relating to the offering of securities being made pursuant to the Prospectus, as incurred, arising out of (iii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), including the Rule 430B Information, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Prospectus (Commission or any amendment or supplement thereto) or in otherwise retain, any “road show” (as defined in Rule 433 under of the Securities ActAct Regulations) not constituting an Issuer Free Writing Prospectus (a Non-Prospectus Road Show”), any “issuer information” as defined in Rule 433 of the Securities Act Regulations used or referred to by any Underwriter or contained in the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (iv) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each, an “Application”), (v) any omission or alleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, (vi) any omission or alleged omission from any such Issuer Free Writing Prospectus,” , Non-Prospectus Road Show, Prospectus or the omission or alleged omission therefrom Application of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , (iivii) against any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials used in connection with the marketing of the Shares, including slides, videos, films and all tape recordings; except, in the case of clause (iii), (v) or (vi) above only, insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement, Prospectus or Application. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. If any action is brought against any Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such settlement is effected with Underwriter or controlling person shall promptly notify the written consent Company in writing of the Company; (iii) against any institution of such action, and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) aboveand payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that their ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless (A) the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, (B) the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time after delivery of notice of such action or alleged untrue statement (C) such indemnified party or omission made in reliance upon and in conformity with written information furnished parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (b) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who that signed the Registration Statement, Statement and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection or claim arises out of or is based upon (ai) of this Section, as incurred, but only with respect to any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), or any preliminary prospectus, any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission, any Non-Prospectus Road Show, the Prospectus (or any amendment Application, (ii) any omission or supplement theretoalleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, or (iii) any omission or alleged omission from any such Issuer Free Writing Prospectus, Non-Prospectus Road Show, Prospectus or Application of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, but in the case of clause (i), (ii) or (iii) only insofar as such untrue statement or alleged untrue statement or omission or alleged omission was made in such Registration Statement, Issuer Free Writing Prospectus, Non-Prospectus Road Show, Prospectus or Application in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representatives to the Company by such Underwriter expressly for use therein. . The date on which the Underwriters expect to deliver the shares on the front cover, the information in the table listing the Underwriters and the number of shares of Common Stock each has agreed to purchase and the statements set forth in the paragraphs under the “Stabilization” caption in the “Underwriting” section of the Preliminary Prospectus and the Prospectus (cto the extent such statements relate to the Underwriters) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company for purposes of Section 3(m) and Section 3(n) of this Agreement and this Section 9. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representatives in writing of the institution of such action, and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of any such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Representatives will not relieve the Representatives of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. The Company or such person shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless (A) the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action, (B) the Representatives shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time or (C) such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such fees and expenses shall be counsel to borne by such Underwriter and paid as incurred (it being understood, however, that the indemnified party. In no event Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under Section 9(a) and 9(b) hereof in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of losses9(c)(i) hereof and, liabilitiesif applicable, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission9(c)(ii) hereof. Notwithstanding the other provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of The Underwriters’ obligations to contribute pursuant to this Section 6, 9 are several in proportion to their respective underwriting commitments and not joint. (e) The Company agrees to indemnify and hold harmless each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, its affiliates and each person, if any, who controls the Company each Underwriter and its affiliates within the meaning of either Section 15 of the 1933 Securities Act or Section 20 of the 1934 Exchange Act shall have from and against any and all losses, expenses, liabilities, damages and claims (including any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) (i) caused by any untrue statement or alleged untrue statement of a material fact contained in any material prepared by or with the same rights consent of the Company for distribution to contribution participants in connection with the Directed Share Program, or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; (ii) as a result of the Company. The Underwriters’ respective obligations failure of any participant to contribute pursuant pay for and accept delivery of Directed Shares that the participant has agreed to this Section 6 are several purchase; or (iii) related to, arising out of, or in proportion to connection with the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not jointDirected Share Program.

Appears in 1 contract

Samples: Underwriting Agreement (Patriot Risk Management, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company) or in a Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), including the Rule 430B Information, or the arises out of or is based upon any omission or alleged omission therefrom of to state a material fact required to be stated therein in either such Registration Statement or Prospectus or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against , except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omissionalleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement or such Prospectus, provided, however, that the indemnity agreement contained in this subsection (a) with respect to the Preliminary Prospectus or the Prospectus shall not inure to the benefit of an Underwriter (or to the benefit of any person controlling such Underwriter) with respect to any person asserting any such loss, expense, liability, damage or claim which is the subject thereof if the Prospectus or any supplement thereto prepared with the consent of the Representatives and furnished to the Underwriters prior to the Closing Time corrected any such alleged untrue statement or omission; provided that any omission and if such settlement is effected with Underwriter failed to send or give a copy of the Prospectus or supplement thereto to such person at or prior to the written consent confirmation of the Company; (iiisale of Shares to such person, unless such failure resulted from noncompliance by the Company with Section 4(a) of this Agreement. If any action is brought against any an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to the preceding paragraph, such Underwriter shall promptly notify the Company in writing of the institution of such action and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters)and payment of expenses, reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; provided, however, that this indemnity agreement any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action or the Company shall not apply have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company and which counsel to the Underwriter believes may present a conflict for counsel representing the Company and the Underwriter (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its written consent. (b) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Subsidiaries, their trustees and directors, the officers that signed the Registration Statement and any person who controls the Company or any Subsidiary within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any loss, expense, liability, claim, damage or expense to claim (including the extent arising reasonable cost of investigation) which, jointly or severally, the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or omission or alleged untrue statement or omission made of a material fact contained in reliance upon and in conformity with written information furnished in writing by such Underwriter through the Representatives to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) Each Underwriter severally agrees to indemnify and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (as amended by any post-effective amendment thereof by the Company) or any amendment thereto)in a Prospectus, or arises out of or is based upon any preliminary prospectus, any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in the Registration Statement or Prospectus or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth in the last paragraph on the cover page and in paragraphs 3, 6, 9, 10 and 11 under the caption "Underwriting", the information regarding "Stabilizing" in the Preliminary Prospectus and the Prospectus (or any amendment or supplement theretoto the extent such statements relate to the Underwriters) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company by such Underwriter expressly for use therein. (cpurposes of Section 3(o) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of and this Section 9. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representatives in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (dc) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a) and (b) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (d) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (c)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Shares securities underwritten by it and distributed to the public were offered to the public such Underwriter exceeds the amount of any damages which such Underwriter that it has otherwise been required to pay by be reason of any such untrue or alleged untrue statement statement, or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective ' obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Anthracite Capital Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus, (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company), the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (D) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an "Application"), including the Rule 430B Information, or the (E) any omission or alleged omission therefrom of to state a material fact required to be stated therein in any such Registration Statement, Prospectus or any Application or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; , or (iiF) against any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials used in connection with the marketing of the Shares, including, without limitation, slides, videos, films and all tape recordings; except insofar as any such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement, Prospectus or Application. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company may otherwise have. (b) If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such settlement is effected with Underwriter shall promptly notify the written consent Company in writing of the Company; (iii) against any institution of such action, and all expense whatsoeverthe Company shall assume the defense of such action, as incurred (including the fees and disbursements employment of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) aboveand payment of expenses; provided, however, that this indemnity agreement shall any failure or delay to so notify the Company will not apply to relieve the Company of any lossobligation hereunder, liability, claim, damage or expense except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or alleged untrue statement the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or omission made in reliance upon and in conformity with written information furnished such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any Underwriter expressly for use one action or series of related actions in the Registration Statement same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (bc) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s 's directors, each of the Company’s 's officers who that signed the Registration Statement, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, damage and expense described in jointly or severally, the indemnity contained in subsection (a) of this SectionCompany, as incurredor any such person may incur under the Securities Act, the Exchange Act or otherwise, but only with respect to insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representatives to the Company expressly for use in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company), the Prospectus, or any preliminary prospectusApplication, or (B) any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in such Registration Statement, Prospectus or any Application or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth in the 5th and 7th through 10th paragraphs under the caption "Underwriting" in the Preliminary Prospectus and the Prospectus (or any amendment or supplement theretoto the extent such statements relate to the Underwriters) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company by for purposes of Section 3(k) and this Section 9. The indemnity agreement set forth in this Section 9(c) shall be in addition to any liabilities that such Underwriter expressly for use therein. (c) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of may otherwise have. If any action commenced is brought against it the Company, or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company or such person shall promptly notify the Representatives in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representatives, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company or such person shall have the right to employ its own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (d) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand Company, and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (d)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of The Underwriters' obligations to contribute pursuant to this Section 6, 9 are several in proportion to their respective underwriting commitments and not joint. (f) The Company agrees to indemnify and hold harmless each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, its affiliates and each person, if any, who controls the Company each Underwriter and its affiliates within the meaning of either Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act shall have Exchange Act, from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) (i) caused by any untrue statement or alleged untrue statement of a material fact contained in any material prepared by or with the same rights consent of the Company for distribution to contribution participants in connection with the Directed Share Program, or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; (ii) as a result of the Company. The Underwriters’ respective obligations failure of any participant to contribute pursuant pay for and accept delivery of Directed Shares that the participant has agreed to this Section 6 are several purchase; or (iii) related to, arising out of, or in proportion to connection with the principal amount of Shares set forth opposite their respective names in Schedule A hereto and not jointDirected Share Program.

Appears in 1 contract

Samples: Underwriting Agreement (Atlas America Inc)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, and the respective directors, officers, employees and agents of each Underwriter from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of the Company contained herein, (B) any failure on the part of the Company to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus, (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment), any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission or is otherwise required to retain, or the Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), (D) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction (domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an “Application”), (E) any omission or alleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, (F) any omission or alleged omission from any such Issuer Free Writing Prospectus, Prospectus or any Application of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, (G) any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials used in connection with the marketing of the Shares, including, without limitation, slides, videos, films and tape recordings; except, in the case of (B), (C), (D), (E) and (F) above only, insofar as any such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representative, including through counsel on behalf of the Representative, to the Company expressly for use in such Registration Statement, Prospectus or Application. The indemnity agreement set forth in this Section 9(a) shall be in addition to any liability which the Company and any “controlling” Selling Stockholders may otherwise have. (b) Each Selling Stockholder, severally and not jointly, agrees to indemnify, defend and hold harmless each Underwriter and any person who controls any Underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and the respective directors, officers, employees and agents of each Underwriter from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, but only insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any breach of any representation, warranty or covenant of such Selling Stockholder contained herein or in the Custody Agreement and Power of Attorney, (B) any failure on the part of such Selling Stockholder to comply with any applicable law, rule or regulation relating to the offering of securities being made pursuant to the Prospectus, (C) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment theretoor part thereof), including any Issuer Free Writing Prospectus that the Rule 430B InformationCompany has filed or was required to file with the Commission, or the Prospectus, or any Application, (D) any omission or alleged omission therefrom of to state a material fact required to be stated therein in such Registration Statement, or necessary to make the statements made therein not misleading misleading, or arising out of (E) any untrue statement omission or alleged untrue statement of a material fact contained in omission from any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “such Issuer Free Writing Prospectus,” , Prospectus or the omission or alleged omission therefrom any Application of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; ; except in the case of (iiC), (D) against and (E) above only insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that any omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by such settlement is effected with the written consent of the Company; (iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel chosen by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, Selling Stockholder to the extent that any Company expressly for use in such expense is not paid under (i) Registration Statement, Issuer Free Writing Prospectus, Prospectus or (ii) aboveApplication; provided, however, that this the indemnity agreement contained in this subsection (b) shall not apply require any such Selling Stockholder to reimburse the Underwriters for in excess of the gross sale price of the Shares sold by such Selling Stockholder pursuant to this Agreement. The indemnity agreement set forth in this Section 9(b) shall be in addition to any lossliabilities that the Selling Stockholders may otherwise have. If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company or any Selling Stockholder pursuant to subsection (a) or subsection (b) above, liabilitysuch Underwriter shall promptly notify the Company or such Selling Stockholder, claimas applicable, damage in writing of the institution of such action, and the Company or expense such Selling Stockholder, as applicable, shall assume the defense of such action, including the employment of counsel and payment of expenses; provided, however, that any failure or delay to so notify the Company or such Selling Stockholder, as applicable, will not relieve the Company or such Selling Stockholder, as applicable, of any obligation hereunder, except to the extent arising out that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of any untrue statement such counsel shall be at the expense of such Underwriter or omission such controlling person unless the employment of such counsel shall have been authorized in writing by the Company or alleged untrue statement such Selling Stockholder, as applicable, in connection with the defense of such action, or omission made in reliance upon and in conformity with written information furnished the Company or such Selling Stockholder, as applicable, shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company or such Selling Stockholder, as applicable, (in which case neither the Company nor such Selling Stockholder shall have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company or the Selling Stockholder, as applicable, and paid as incurred (it being understood, however, that neither the Company nor any Underwriter expressly Selling Stockholder shall be liable for use the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the Registration Statement same jurisdiction (other than one local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, neither the Company nor any Selling Stockholder shall be liable for any settlement of any such claim or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto)action effected without its consent. (bc) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the CompanyCompany and each Selling Stockholder, the Company’s directors, each of the Company’s officers who that signed the Registration Statement, and each person, if any, any person who controls the Company or any Selling Stockholder within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which the Company, the Selling Stockholder or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense described in the indemnity contained in subsection or claim arises out of or is based upon (aA) of this Section, as incurred, but only with respect to any untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in the Registration Statement (or any amendment theretoamendment), or any preliminary prospectus, any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission, or the Prospectus (Prospectus, or any amendment Application, (B) any omission or supplement theretoalleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein not misleading, or (C) any omission or alleged omission from any such Issuer Free Writing Prospectus, Prospectus or any Application of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, but in each case only insofar as such untrue statement or alleged untrue statement or omission or alleged omission was made in such Registration Statement, Issuer Free Writing Prospectus, Prospectus or Application in reliance upon and in conformity with written information furnished in writing by the Underwriters through the Representative to the Company by such Underwriter expressly for use therein. . The statements set forth in the third paragraph under the caption “Underwriting” and the paragraphs identified by “Stabilization” under the caption “Underwriting” in the Preliminary Prospectus, the Disclosure Package and the Prospectus (cto the extent such statements relate to the Underwriters) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party constitute the only information furnished by or on behalf of any Underwriter through the Representative to the Company for purposes of Section 3(l) and Section 3(m) and this Section 9. If any action commenced is brought against it the Company, any Selling Stockholder or any such person in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from against any liability hereunder Underwriter pursuant to the extent it is not materially prejudiced as a result thereof foregoing paragraph, the Company, the Selling Stockholder or such person shall promptly notify the Representative in writing of the institution of such action and in any event shall not relieve it from any liability which it may have otherwise than the Representative, on account behalf of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party may participate at its own expense in assume the defense of such action, including the employment of counsel and payment of expenses. The Company, the Selling Stockholder or such person shall have the right to employ its or their own counsel in any such action; providedcase, but the fees and expenses of such counsel shall be at the expense of the Company, the Selling Stockholder or such person unless the employment of such counsel shall have been authorized in writing by the Representative in connection with the defense of such action or the Representative shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representative shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that counsel to the indemnifying party Underwriters shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentative. (d) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on Company, the one hand Selling Stockholders and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on Company, of the one hand Selling Stockholders and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on Company, the one hand Selling Stockholders and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company or the Selling Stockholders, as applicable, bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus. The relative fault of the Company on Company, of the one hand Selling Stockholders and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company Company, by the Selling Stockholders or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company, the Selling Stockholders and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (d)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it such Underwriter, and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been no Selling Stockholder shall be required to pay contribute any amount in excess of the gross sale price of the Shares sold by reason of any such untrue or alleged untrue statement or omission or alleged omissionSelling Stockholder pursuant to this Agreement. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (NMI Holdings, Inc.)

Indemnity and Contribution by the Company and the Underwriters. (a) The Company agrees to indemnify indemnify, defend and hold harmless each Underwriter, its affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents Underwriter and each person, if any, any person who controls any Underwriter within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act as follows: (i) Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage and expense whatsoever, as incurred, arising or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or in the Registration Statement as amended by any post-effective amendment theretothereof by the Company) or in a Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the Company), including the Rule 430B Information, or the arises out of or is based upon any omission or alleged omission therefrom of to state a material fact required to be stated therein in either such Registration Statement or Prospectus or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, in any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or in any “road show” (as defined in Rule 433 under the Securities Act) not constituting an “Issuer Free Writing Prospectus,” or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (ii) against , except insofar as any and all such loss, expense, liability, claim, damage and expense whatsoever, as incurred, to the extent or claim arises out of the aggregate amount paid in settlement including without limitation, by means of a Consent to Judgment of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever is based upon any such untrue statement or omissionalleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement or such Prospectus, provided, however, that the indemnity agreement contained in this subsection (a)(i) with respect to the Preliminary Prospectus or the Prospectus shall not inure to the benefit of an Underwriter (or to the benefit of any person controlling such Underwriter) with respect to any person asserting any such loss, expense, liability, damage or claim which is the subject thereof if the Prospectus or any supplement thereto prepared with the consent of the Representatives and furnished to the Underwriters prior to the Closing Time corrected any such alleged untrue statement or omission; provided that any omission and if such settlement is effected with Underwriter failed to send or give a copy of the Prospectus or supplement thereto to such person at or prior to the written consent confirmation of the Company; (iii) against any and all expense whatsoeversale of Shares to such person, as incurred (including the fees and disbursements of counsel chosen unless such failure resulted from noncompliance by the Underwriters), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (iiCompany with Section 4(b) above; provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to the Company by any Underwriter expressly for use in the Registration Statement (or any amendment thereto), including any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). (b) If any action is brought against an Underwriter or controlling person in respect of which indemnity may be sought against the Company pursuant to subsection (a) above, such Underwriter shall promptly notify the Company in writing of the institution of such action, and the Company will be entitled to participate therein and, to the extent that it may wish, jointly with any other indemnifying party similarly notified, assume the defense of such action, including the employment of counsel and payment of expenses, provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such Underwriter or such controlling person unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such reasonable fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its written consent. (c) Each Underwriter agrees, severally agrees and not jointly, to indemnify indemnify, defend and hold harmless the Company, the Company’s directors, each of the Company’s officers who signed the Registration Statementdirectors and officers, and each person, if any, any person who controls the Company within the meaning of Section 15 of the 1933 Securities Act or Section 20 of the 1934 Act Exchange Act, from and against any and all loss, expense, liability, claimdamage or claim (including the reasonable cost of investigation) which, damage and expense described in jointly or severally, the indemnity contained in subsection (a) of this SectionCompany or any such person may incur under the Securities Act, as incurredthe Exchange Act or otherwise, but only with respect to insofar as such loss, expense, liability, damage or claim arises out of or is based upon arty untrue statements or omissions, statement or alleged untrue statements or omissions, made statement of a material fact contained in and in conformity with information furnished in writing by such Underwriter through the Representatives to the Company expressly for use in the Registration Statement (or in the Registration Statement as amended by any posteffective amendment thereto)thereof by the Company) or in a Prospectus, or arises out of or is based upon any preliminary prospectus, any Issuer Free Writing omission or alleged omission to state a material fact in connection with such information required to be stated either in such Registration Statement or Prospectus or necessary to make such information, in the light of the circumstances under which made, not misleading. The statements set forth (i) in the last paragraph on the cover page and (ii) under the caption “Underwriting” in the Preliminary Prospectus and the Prospectus (or any amendment or supplement theretoto the extent such statements relate to the Underwriters) in reliance upon and in conformity with written constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company by such Underwriter expressly for use therein. (cpurposes of Section 3(j) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of and this Section 9. If any action commenced is brought against it the Company or any such person in respect of which indemnity may be sought hereunderagainst any Underwriter pursuant to the foregoing paragraph, but failure the Company or such person shall promptly notify the Representatives in writing of the institution of such action and the Representatives, on behalf of the Underwriters, will be entitled to so notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder participate therein and, to the extent it is not materially prejudiced as a result thereof and in that they may wish, jointly with any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by the Underwriters, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected by the Company. An other indemnifying party may participate at its own expense in similarly notified, assume the defense of any such action; , including the employment of counsel and payment of expenses, provided, however, that any failure or delay to so notify the Representatives will not relieve the Underwriters of any obligation hereunder, except to the extent that their ability to defend is actually impaired by such failure or delay. The Company or such person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company or such person unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the indemnifying defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not (except with have the consent right to direct the defense of such action on behalf of the indemnified party) also party or parties), in any of which events such reasonable fees and expenses shall be counsel to borne by such Underwriter and paid as incurred (it being understood, however, that the indemnified party. In no event Underwriters shall the indemnifying parties not be liable for fees and the expenses of more than one counsel (separate firm of attorneys in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or series of related actions in the same jurisdiction arising out (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of the same general allegations any such claim or circumstances. No indemnifying party shall, action effected without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified partyRepresentatives. (d) If the indemnification provided for in this Section 6 9 is for any reason unavailable to or insufficient to hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect of any losses, expenses, liabilities, claims, damages or expenses claims referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, severally shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such losses, expenses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares pursuant to this Agreement, or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, claims, damages or expensesclaims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand in connection with the offering of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions proportion as the total net proceeds from the offering (net of the Shares pursuant to this Agreement (underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and the total underwriting discount commissions received by the Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the Shares as set forth on the cover page of the Prospectus. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether any such the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any claim or action. (e) The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 6 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 6. The aggregate amount of lossessubsection (d)(i) and, liabilitiesif applicable (ii), claims, damages and expenses incurred by an indemnified party and referred to above in this Section 6 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omissionabove. Notwithstanding the provisions of this Section 69, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which underwriting discounts and commissions applicable to the Shares underwritten purchased by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omissionUnderwriter. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 XxxSecurities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 6 9 are several in proportion to the principal amount of Shares set forth opposite their respective names in Schedule A hereto underwriting commitments and not joint.

Appears in 1 contract

Samples: Underwriting Agreement (Novastar Financial Inc)

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