Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee. (b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii). (c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense. (d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim. (e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement. (f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party. (g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim. (h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 6 contracts
Samples: Distribution Agreement (LTC Healthcare Inc), Distribution Agreement (LTC Healthcare Inc), Distribution Agreement (LTC Properties Inc)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if If an Indemnitee shall receive notice or otherwise learn of the assertion by a Person person (including, without limitation, including any governmental entity) who is not a party to this Agreement or to any of the Related Agreements Transaction Documents of any claim or of the commencement by any such Person of any Action action (a "“Third-Party Claim"”) with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, each such Indemnitee shall give each such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided provided, however, that the failure of any Indemnitee to give notice as required by this Section 5.04 5.5 shall not relieve the each Indemnifying Party of its obligations under this Article V, except to the extent that each such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by each such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's ’s own expense and by such Indemnifying Party's ’s own counselcounsel reasonably acceptable to each Indemnitee, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the each Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a5.5(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the each Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the each Indemnitee of its election within 30 days after receipt of such notice from the each Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such each Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an each Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to each such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by each such Indemnitee in connection with the defense thereof; provided provided, however, that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' ’ reasonable judgment there exists a conflict of interest between such Indemnitees and such the Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by each such Indemnifying Party. If an any Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 5.2 or 5.025.3, as the case may be) ), each such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim Claim without prior written notice to the each such Indemnifying Party, which shall have the option within ten fifteen days following the receipt of such notice (i) to disapprove reject the settlement and assume all past and future responsibility for the claim, including reimbursing the each Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove reject the settlement and continue to refrain from participation in the defense of the claim, in which event the each such Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the each Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the each such Indemnifying Party's ’s right to contest the each Indemnitee's ’s right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the such Indemnifying Party makes no response to such written notice from the an Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the each Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense, within the reasonable discretion of each such Indemnifying Party.
(d) Notwithstanding anything else in this Section 5.04 5.5 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless (i) such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the each Indemnitee of a written release from all liability in respect of such Third-Party Claim Claim, and (and provided further that ii) such settlement may does not provide for any non-monetary relief by any Indemnitee without the written consent of Indemnitee)unless each such Indemnitee consents thereto. In the event the any Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, each such Indemnitee may continue to contest such Third-Party Claim, Claim free of any participation by such Indemnifying Party, at each such Indemnitee's ’s sole expense. In such event, the obligation of such Indemnifying Party to each such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of each such Indemnitee prior to the date such Indemnifying Party notifies each such Indemnitee of the such offer to settle of settlement or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) ), plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which each such Indemnitee declined to accept and (B) the actual out-of-pocket amount each such Indemnitee is obligated to pay subsequent to such date as a result of each such Indemnitee's ’s continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the an Indemnitee to the each applicable Indemnifying Party. Such Each such Indemnifying Party shall have a period of 15 30 days after the receipt of such notice within which to respond theretonotify each applicable Indemnitee of the Indemnifying Party’s response to the claim. If each such Indemnifying Party does not respond within so notify each such 15Indemnitee during such 30-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If each such Indemnifying Party does not respond within such 1530-day period or rejects such claim in whole or in part, each such Indemnitee shall be free to pursue such remedies as may be available to such party Party under applicable law or under this AgreementAgreement or any other agreement or arrangement between the Parties.
(f) In addition to any adjustments required pursuant to Section 5.035.4, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the each Indemnitee to the each Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 6 contracts
Samples: Separation and Distribution Agreement (Teton Advisors, Inc.), Separation and Distribution Agreement (Teton Advisors, Inc.), Separation and Distribution Agreement (Teton Advisors, Inc.)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 4 contracts
Samples: Distribution Agreement (Evercel Inc), Distribution Agreement (Energy Research Corp /Ny/), Distribution Agreement (Evercel Inc)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an Indemnitee The following provisions shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or apply to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") with respect to Claims for which an Indemnifying Party may be obligated to provide indemnification indemnify an Indemnified Party pursuant to this Agreement, such Indemnitee shall give such Indemnifying : (a) upon receipt from a third party by the Indemnified Party written of notice thereof promptly after of a Claim or the Indemnified party becoming aware of such Third-a Claim in respect of which the Indemnified Party Claim; proposes to demand indemnification from the Indemnifying Party, the Indemnified Party shall give notice to that effect to the Indemnifying Party with reasonable promptness, provided that the failure of any Indemnitee to give such notice as required by this Section 5.04 shall not relieve the an Indemnifying Party of its obligations under this Article V, from any liability it may have to the Indemnified Party except to the extent that such the Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
thereby; (b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that in the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect case of such Third-Party Claim. Within 30 days of the receipt of notice Claims arising from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires)third parties, the Indemnifying Party shall notify have the Indemnitee of its election whether right by notice to assume responsibility for such Third-Party Claim the Indemnified party not later than thirty (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 30) days after receipt of such the notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate described in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice paragraph (i) above to disapprove assume the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense control of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of the Claims, provided that such Pending Action prior assumption shall, by its terms, be without costs to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Indemnified Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, at the Indemnified Party's request furnish it with reasonable security against any costs or other liabilities to which it may be or become exposed by reason of such defense, compromise or settlement; (c) upon the assumption of control by the Indemnifying Party as aforesaid, the Indemnifying Party shall diligently proceed with the defense, compromise or settlement of the Claims at its sole expense, including employment of counsel reasonably satisfactory to the Indemnified Party and, in connection therewith, the Indemnified Party shall co-operate fully, but at the expense of the Indemnifying Party, to make available to the Indemnifying Party all pertinent information and witnesses under the Indemnified Party's control, make such assignments and take such other steps as in the opinion of counsel for the Indemnifying Party are necessary to enable the Indemnifying Party to conduct such defense; provided always that the Indemnified Party shall be entitled to reasonable security from the Indemnifying Party for the expense, costs of other liabilities to which it may be or may become exposed by reason of such co-operation; (d) the final determination of any such Claims arising from third parties, including all related costs and expenses, will be binding and conclusive upon the Parties as to the validity or invalidity, as the case may be of such Claims against the Indemnifying Party hereunder; and (e) should the Indemnifying Party fail to give notice to the Indemnified Party as provided in paragraph (ii) above, the Indemnified Party shall be entitled to make such settlement of the Claims as in its sole discretion may appear advisable, and such settlement or any other final determination of the Claims shall be binding upon the Indemnifying Party.
Appears in 4 contracts
Samples: Share Exchange Agreement (Playandwin Inc), Share Exchange Agreement (Playandwin Inc), Share Exchange Agreement (Playandwin Inc)
Procedure for Indemnification. (a) Except as may be set forth An Indemnified Party seeking indemnification hereunder, within the relevant limitation period provided for in a Related AgreementSection 7.1 above, if shall give written notice (the “Claim Notice”) of any Indemnification Claim (i) in the case of an Indemnitee shall receive notice or otherwise learn Indemnification Claim against Buyer, to Buyer and (ii) in the case of an Indemnification Claim against Shareholder, to Shareholder, reasonably promptly, but in any event (A) prior to expiration of the Survival Period and (B) if such Indemnification Claim relates to the assertion against an Indemnified Party of any Claim by a Person (including, without limitation, any governmental entity) who is not a third party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-“Third Party Claim"”), within fifteen (15) with respect to which an Indemnifying days after receipt by the Indemnified Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party of written notice thereof promptly after becoming aware of a legal process relating to such Third-Third Party Claim; provided provided, however, that the failure of any Indemnitee or delay to give notice as required by this Section 5.04 so notify the Indemnifying Party shall not relieve the Indemnifying Party of its obligations under this Article Vany obligation or liability that the Indemnifying Party may have to the Indemnified Party, except unless, and then only to the extent that such that, the Indemnifying Party demonstrates that the Indemnifying Party’s ability to defend or resolve such Indemnification Claim is prejudiced by thereby. Any such failure to give notice. Such notice Claim Notice shall describe in reasonable detail the Third-facts and circumstances on which the asserted Indemnification Claim is based and specify the amount of such Indemnification Claim if then ascertainable. Any Claim Notice relating to a Third Party Claim in reasonable detailshall be accompanied by copies of all relevant documentation with respect to such Third Party Claim, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has including any summons, complaint or other pleading which may have been served, any written demand or may be sustained by such Indemniteeany other document or instrument.
(b) An The Indemnifying Party may elect shall have thirty (30) days after receipt of any such Indemnification Claim pursuant hereto to defend give notice to the Indemnified Party disputing such Indemnification Claim or the claimed amount set forth therein (a “Dispute Notice”). Absent delivery of a Dispute Notice or affirmative indication of agreement during such thirty (30) day period, the Indemnifying Party shall automatically be deemed to seek have agreed to settle the amount or compromisemethod of determination set forth in the Indemnification Claim. All disputed Indemnification Claims shall be resolved by Buyer and Shareholder, at such in accordance with either (i) a mutual agreement among Buyer and Shareholder, which shall be memorialized in writing, or (ii) the final determination of a final non-appealable order of a court of competent jurisdiction.
(c) Upon receipt of a Claim Notice for indemnity from an Indemnified Party pursuant to Section 7.4 in respect of a Third Party Claim the Indemnifying Party's own expense and by such Indemnifying Party's own counselParty shall have the right, any Third-upon written notice given to the Indemnified Party delivered within thirty (30) days after receipt of a Claim Notice relating to a Third Party Claim, to assume the defense or handling of such Third Party Claim at the Indemnifying Party’s sole expense, but shall allow the Indemnified Party a reasonable opportunity to participate in the defense of such Third Party Claim with its own counsel and at its own expense; provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is shall not be entitled to indemnification hereunder in respect assume control of such Third-defense (which shall be controlled by the Indemnified Party) and shall pay the fees and expenses of counsel retained by the Indemnified Party if (i) in the reasonable opinion of the Indemnified Party’s outside counsel, a conflict, or potential conflict, of interests exists between the Indemnified Party and the Indemnifying Party in connection with such Third Party Claim, or (ii) the Indemnification Claim relates to or arises in connection with any criminal proceeding, action, indictment, allegation or investigation, or the Indemnification Claim seeks an injunction or similar equitable relief against the Indemnified Party or any its Affiliates.
(d) If the Indemnifying Party chooses to defend any Third Party Claim, the parties hereto shall reasonably cooperate in the defense of such Third Party Claim. Within 30 days The Indemnifying Party shall select counsel (and local counsel, as necessary) to conduct the defense or handling of such Third Party Claim reasonably satisfactory to the Indemnified Party. The Indemnifying Party shall defend or handle such Third Party Claim in such manner as is reasonable under the circumstances and shall keep the Indemnified Party reasonably apprised of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature status of such Third-Third Party Claim so requires)Claim. The Indemnifying Party shall not, without the prior express written consent of the Indemnified Party, (A) consent to a settlement of, compromise or discharge of, or consent to the entry of any judgment with respect to, any Third Party Claim, unless such settlement, compromise, discharge or entry of judgment does not involve any finding or admission of any violation of Law or admission of any wrongdoing by the Indemnified Party and the Indemnifying Party shall notify pay or cause to be paid all amounts arising out of such settlement or judgment concurrently with the Indemnitee effectiveness of its election whether to assume responsibility such settlement or judgment (except as otherwise provided in such judgment). The Indemnified Party shall make available all information and assistance reasonably available and necessary for such Third-the defense of the Third Party Claim as the Indemnifying Party may reasonably request and shall cooperate with the Indemnifying Party in such defense. Notwithstanding anything to the contrary in this Section 7.5(d), the Indemnified Party shall not, without the prior written consent of the Indemnifying Party (provided which consent may not be unreasonably withheld, conditional or delayed), agree to a settlement of any Third Party Claim that if is being defended and handled by the Indemnifying Party.
(e) If the Indemnifying Party does not so notify give written notice to the Indemnitee of its election Indemnified Party within 30 days ten (10) Business Days after receipt of such notice the Claim Notice from the Indemnitee, Indemnified Party of a Third Party Claim that the Indemnifying Party shall be deemed to have has elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise handling of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Third Party Claim, such Indemnifying the Indemnified Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by may, at the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim’s expense, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate select counsel reasonably satisfactory to the Indemnifying Party) shall be paid by Party to defend or handle such Indemnifying Party. If an Third Party Claim in consultation with the Indemnifying Party elects not to assume responsibility for and in a Third-manner that is reasonable under the circumstances; provided, however, that the Indemnified Party Claim (which election may be made only in shall keep the event Indemnifying Party timely apprised of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) status of such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Third Party Claim. Notwithstanding The Indemnified Party shall not agree to a settlement of, or consent to the foregoing, an Indemnitee may not settle entry of any judgment to any Third Party Claim or compromise demand for which it is seeking indemnification from the Indemnifying Party or admit to any liability with respect to such claim or demand without the prior express written notice to consent of the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures consent may be granted or denied in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest ’s sole discretion. If the Indemnitee's right to indemnity, Indemnified Party defends or (iv) to approve and agree to pay the settlement. In the event the Indemnifying handles such Third Party makes no response to such written notice from the IndemniteeClaim, the Indemnifying Party shall cooperate with the Indemnified Party and shall be deemed entitled to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, participate in but not control the Indemnitee shall make available to defense of such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Third Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (with its own counsel and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole its own expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 Agreement to the contrary, with respect to any Action pending at for the time purposes of determining the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request failure of any other party, cause representations or warranties to be true and correct or the employee(s) who were handling the defense, compromise or settlement breach of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress ofany covenants and agreements, and calculating Losses or a party’s indemnification obligation hereunder, any materiality or similar qualifications in the Indemnifying Party representations, warranties, covenants and agreements shall cooperate in, such defense, compromise or settlementbe disregarded.
Appears in 4 contracts
Samples: Stock Purchase Agreement (Match Group, Inc.), Stock Purchase Agreement (Match Group, Inc.), Stock Purchase Agreement (Match Group, Inc.)
Procedure for Indemnification. (a) Except If an Investor Indemnified Person or a Company Indemnified Person (such Person being referred to as may be set forth in a Related Agreement, if an Indemnitee the "Indemnitee") shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action action (a "Third-Party Claim") with respect to which an the other party (the "Indemnifying Party Party") may be obligated to provide indemnification pursuant to this Agreementindemnification, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided provided, that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 8.3 shall not relieve the applicable Indemnifying Party of its obligations under this Article VVIII, except to the extent that such Indemnifying Party is materially prejudiced by such failure to give notice; provided, further, that the applicable Indemnifying Party shall have no obligations under Section 8.2(a)(i) or Section 8.2(b)(i), as applicable, unless such written notice is received by the Indemnifying Party within the survival periods set forth in Section 8.1. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by or is claimed against such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to compromise, settle or compromisedefend, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim; provided, provided however, that the Indemnifying Party must confirm in writing that it agrees that shall not compromise, settle or defend a Claim without the consent of the Indemnitee is entitled (which consent shall not be unreasonably withheld). If an Indemnifying Party elects to indemnification hereunder in respect of such Third-Party compromise, settle or defend a Claim. Within , it shall, within 30 days of the receipt of notice from an Indemnitee in accordance with pursuant to Section 5.04(a8.3(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the applicable Indemnitee of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)do so, and such Indemnitee shall cooperate in a commercially reasonable manner in the defense compromise or settlement of, or compromise of defense against, such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for the defense of a Third-Party Claim, the Indemnitee shall have the right to participate in the defense thereof, at its own expense, and such Indemnifying Party shall not be liable to such Indemnitee under this Article V VIII for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereofthereof (except expenses approved in advance by the Indemnitee); provided provided, that such Indemnitee shall have the right to employ one separate counsel reasonably satisfactory to the Indemnifying Party to represent such Indemnitee if (i) in the reasonable judgment of the Indemnitee, there are legal defenses available to such Indemnitee that are different from or additional to those available to the Indemnifying Party, (ii) the Indemnifying Party shall authorize in writing the Indemnitee to retain a single, separate counsel at the Indemnifying Party's expense or (iii) the defendants in any such claim Claim include both the Indemnifying Party and one or more Indemnitees and the Indemnitee and, in such Indemnitees' Indemnitee's reasonable judgment judgment, a conflict of interest between such Indemnitees Indemnitee and such Indemnifying Party exists in respect of such claimClaim, such Indemnitees and only in the events listed in clauses (i) through (iii) of this paragraph (b) shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for compromise, settle or defend against a Third-Party Claim (which Claim, or fails to notify an Indemnitee of its election may be made only as provided in this Section 8.3 within 30 days of notice from the event of a good faith dispute that a claim was inappropriately tendered under Indemnitee pursuant to Section 5.01 or 5.028.3(a), as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoingcompromise, an Indemnitee may not settle or compromise any claim without prior written notice to defend such Claim at the expense of such Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claimclaim, the applicable Indemnitee shall make available to such Indemnifying Party any personnel and or any books, records or other documents within its control or which it otherwise has the ability to make available that are reasonably necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to If the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the aggregate amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by pursuant to this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less net of any expenses incurred in connection therewiththerewith or additional Losses incurred, shall promptly be repaid by the applicable Indemnitee to the applicable Indemnifying Party.
(ge) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and and, at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 4 contracts
Samples: Stock Purchase Agreement (Hexcel Corp /De/), Stock Purchase Agreement (Goldman Sachs Group Inc/), Stock Purchase Agreement (Hexcel Corp /De/)
Procedure for Indemnification. (a) Except If an Investor Indemnified Person or an Indemnified Person (such Person being referred to as may be set forth in a Related Agreement, if an Indemnitee the "Indemnitee") shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action action (a "Third-Party Claim") with respect to which an the other party (the "Indemnifying Party Party") may be obligated to provide indemnification pursuant to this Agreementindemnification, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided provided, that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 9.3 shall not relieve the applicable Indemnifying Party of its obligations under this Article VIX, except to the extent that such Indemnifying Party is materially prejudiced by such failure to give notice; provided, further, that the applicable Indemnifying Party shall have no obligations under Section 9.2(a)(i) or Section 9.2(b)(i), as applicable, unless such written notice is received by the Indemnifying Party within the survival periods set forth in Section 9.1. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by or is claimed against such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to compromise, settle or compromisedefend, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim; provided, provided however, that the Indemnifying Party must confirm in writing that it agrees that shall not compromise, settle or defend a Claim without the consent of the Indemnitee is entitled (which consent shall not be unreasonably withheld, conditioned or delayed). If an Indemnifying Party elects to indemnification hereunder in respect of such Third-Party compromise, settle or defend a Claim. Within , it shall, within 30 days of the receipt of notice from an Indemnitee in accordance with pursuant to Section 5.04(a9.3(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the applicable Indemnitee of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)do so, and such Indemnitee shall cooperate in a commercially reasonable manner in the defense compromise or settlement of, or compromise of defense against, such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for the defense of a Third-Party Claim, the Indemnitee shall have the right to participate in the defense thereof, at its own expense, and such Indemnifying Party shall not be liable to such Indemnitee under this Article V IX for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereofthereof (except expenses approved in advance by the Indemnitee); provided provided, that such Indemnitee shall have the right to employ one separate counsel reasonably satisfactory to the Indemnifying Party to represent such Indemnitee if (i) in the reasonable judgment of the Indemnitee, there are legal defenses available to such Indemnitee that are different from or additional to those available to the Indemnifying Party, (ii) the Indemnifying Party shall authorize in writing the Indemnitee to retain a single, separate counsel at the Indemnifying Party's expense or (iii) the defendants in any such claim Claim include both the Indemnifying Party and one or more Indemnitees and the Indemnitee and, in such Indemnitees' Indemnitee's reasonable judgment judgment, a conflict of interest between such Indemnitees Indemnitee and such Indemnifying Party exists in respect of such claimClaim, such Indemnitees and only in the events listed in clauses (i) through (iii) of this paragraph (b) shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for compromise, settle or defend against a Third-Party Claim (which Claim, or fails to notify an Indemnitee of its election may be made only as provided in this Section 9.3 within 30 days of notice from the event of a good faith dispute that a claim was inappropriately tendered under Indemnitee pursuant to Section 5.01 or 5.029.3(a), as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoingcompromise, an Indemnitee may not settle or compromise any claim without prior written notice to defend such Claim at the expense of such Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claimclaim, the applicable Indemnitee shall make available to such Indemnifying Party any personnel and or any books, records or other documents within its control or which it otherwise has the ability to make available that are reasonably necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to If the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the aggregate amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by pursuant to this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less net of any expenses incurred in connection therewiththerewith or additional Losses incurred, shall promptly be repaid by the applicable Indemnitee to the applicable Indemnifying Party.
(ge) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and and, at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 4 contracts
Samples: Investment Agreement (Global Signal Inc), Investment Agreement (Fortress Investment Group LLC), Investment Agreement (Brookdale Senior Living Inc.)
Procedure for Indemnification. (a) Except If any Indemnified Party becomes aware that any amounts are or will be owed to it pursuant to Section 6.1, then it shall promptly notify the Indemnifying Party thereof and, promptly thereafter, it shall submit to the Indemnifying Party a certificate indicating the amounts owing to it and the calculation thereof; provided, however, that the Indemnified Party shall notify the Indemnifying Party in writing as may be set forth in a Related Agreement, if an Indemnitee shall receive notice or otherwise learn soon as reasonably practicable following receipt of the any written assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement (or to an Affiliate or an officer, director or employee of any of the Related Agreements foregoing) of any claim or of the commencement by any such Person of any Action action or proceeding (each, a "“Third-Party Claim"”) with respect to which an the Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is prejudiced by such failure to give noticehereunder. Such written notice shall describe the Third-Party Claim in reasonable detail, and . Failure to deliver such notices shall indicate not impact the Indemnified Parties’ right to indemnity hereunder or the amount (estimated if necessary) of thereof, except to the Indemnifiable Loss that has been or may be sustained extent the Indemnifying Party’s rights are actually materially prejudiced by such Indemniteedelay.
(b) An The Indemnifying Party may elect to defend compromise or to seek to settle or compromisedefend, at such the Indemnifying Party's ’s own expense and by such the Indemnifying Party's ’s own counsel, any Third-Party Claim, provided that . If the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled elects to indemnification hereunder in respect of such defend a Third-Party Claim. Within 30 Claim it shall, within fifteen (15) days of the receipt of the notice from an Indemnitee in accordance with Section 5.04(a) referred to above (or sooner, if the nature of such Third-Party Claim so requires), notify the Indemnifying Indemnified Party of its intent to do so, and the Indemnified Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall reasonably cooperate in the defense or settlement or compromise of or defense against such Third-Party Claim. After notice from an The Indemnifying Party shall pay the Indemnified Party’s fees and expenses reasonably incurred in connection with such cooperation. If the Indemnifying Party elects not to an Indemnitee of its election to assume responsibility for defend against a Third-Party Claim, such Indemnifying or fails to notify the Indemnified Party shall not be liable to such Indemnitee under of its election as provided in this Article V for any legal or other expenses (except expenses approved in advance by Section, the Indemnified Party may, at the Indemnifying Party) subsequently incurred by ’s cost and expense, defend such Indemnitee Third-Party Claim reasonably and in connection with good faith on behalf of and for the defense thereof; provided that if the defendants in any such claim include both account and risk of the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such but only to the extent that the Indemnified Party is entitled to receive indemnification from the Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory hereunder. Notwithstanding anything herein to the Indemnifying Party) contrary, no Party shall be paid by such Indemnifying Party. If an Indemnifying Party elects not consent to assume responsibility for entry of any judgment nor enter into or consent to any settlement or compromise with respect to any part of a Third-Party Claim without the written consent of the other Party and consent shall not be unreasonably withheld, unless such judgment, settlement or compromise (i) provides solely for money damage or other payments which election may be made only in the event Indemnifying Party agrees to pay and (ii) includes an unconditional release by the claimant or plaintiff of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject Indemnified Party from all liability relating to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding This Section 6.2 shall survive the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt termination of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 4 contracts
Samples: Servicing Agreement (Santander Drive Auto Receivables LLC), Servicing Agreement (Santander Drive Auto Receivables LLC), Servicing Agreement (Santander Drive Auto Receivables LLC)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an Indemnitee Indemnified Person shall receive written notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entityGovernmental Authority) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this AgreementAgreement (a "THIRD-PARTY CLAIM"), such Indemnitee Indemnified Person shall give such the Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided PROVIDED, that the failure of any Indemnitee Indemnified Person to give notice as required by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is materially prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been claimed against or may be sustained by such IndemniteeIndemnified Person.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 15 days of the receipt of notice from an Indemnitee Indemnified Person in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee Indemnified Person of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee Indemnified Person of its election within 30 15 days after receipt of such notice from the IndemniteeIndemnified Person, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim). An election not to assume responsibility for such Third-Party Claim may only be made in the event of a good faith dispute that a Third-Party Claim is not covered as an Indemnifiable Loss under the grounds specified in Section 5.01 or 5.02, as the case may be. Subject to Section 5.04(e) hereof, an Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by counsel reasonably satisfactory to the Indemnified Person, any Third-Party Claim, PROVIDED that (i) the Indemnifying Party must confirm in writing that it agrees that the Indemnified Person is entitled to indemnification hereunder in respect of such Indemnitee Third-Party Claim and (ii) no compromise or settlement shall be made without the prior written consent of the Indemnified Person, which consent shall not be unreasonably withheld.
(c) In the event that the Indemnifying Party elects to assume responsibility for the Third-Party Claim, pursuant to Section 5.04(b) above, (i) the Indemnified Person shall cooperate in the defense or settlement or compromise of such Third-Party Claim, including making available to the Indemnifying Party any personnel and any books, records or other documents within the Indemnified Person's control or which it otherwise has the ability to make available that are necessary or appropriate for the defense of the Third-Party Claim, (ii) the Indemnifying Party shall keep the Indemnified Person reasonably informed regarding the strategy, status and progress of the defense of the Third-Party Claim, and (iii) the Indemnifying Party shall consider, in good faith, the opinions and suggestions of the Indemnified Person with respect the Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee Indemnified Person of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee Indemnified Person under this Article V for any legal or other costs or expenses (except costs or expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee Indemnified Person in connection with the defense thereof; provided PROVIDED, that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees Indemnified Persons and in such IndemniteesIndemnified Persons' reasonable judgment a conflict of interest between such Indemnitees Indemnified Persons and such Indemnifying Party exists in respect of such claim, such Indemnitees Indemnified Persons shall have the right to employ separate counsel and in that event the reasonable fees fees, costs and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. .
(d) If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in Claim, the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee Indemnified Person may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee Indemnified Person may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and to then assume all past and future responsibility for the claim, including immediately reimbursing the Indemnitee Indemnified Person for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnified Person may, in its sole discretion, proceed with the settlement and the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewithsettlement, or (iii) to approve and pay the amount of the settlement, reserving the Indemnifying Party's right to contest the IndemniteeIndemnified Person's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemniteenotice, the Indemnifying Party shall be deemed to have elected option (ii). When the Indemnifying Party chooses, or is deemed to have chosen, option (ii) or (iii), the issue of whether the Indemnified Person has a right to indemnity under this Article V shall be resolved by arbitration pursuant to the provisions of Section 9.14 hereof. If the Indemnifying Party does not prevail at such arbitration, the Indemnifying Party shall promptly reimburse the Indemnified Person for all Indemnifiable Losses, plus interest on such amounts at the lower of (i) 10 % or (ii) the highest legal interest rate, accruing from the date of payment by the Indemnified Person.
(ce) If Notwithstanding the foregoing, if an Indemnified Person reasonably and in good faith determines that (i) the Indemnifying Party chooses is not financially capable to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any a Third-Party Claim unless such and to provide full indemnification with respect to any settlement thereof or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify ii) the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, attorney is not adequately representing the obligation of such Indemnifying Party to such Indemnitee Indemnified Person's interests with respect to such Third-Party Claim shall be equal to (i) Claim, the costs and expenses of such Indemnitee prior Indemnified Person may, by notice to the date Indemnifying Party, assume the exclusive right to defend, compromise or settle such Third-Party Claim and the Indemnifying Party notifies such Indemnitee of shall remain responsible for, and be bound by the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-resolution of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue , such Third-Party Claim.
(ef) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee Indemnified Person to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee Indemnified Person shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(fg) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee Indemnified Person to the Indemnifying Party.
(gh) In the event of payment by an Indemnifying Party to any Indemnitee Indemnified Person in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee Indemnified Person as to any events or circumstances in respect of which such Indemnitee Indemnified Person may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party ClaimClaim or against any other party that may be liable. Such Indemnitee Indemnified Person shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 4 contracts
Samples: Distribution Agreement (Park Place Entertainment Corp), Distribution Agreement (Hilton Hotels Corp), Merger Agreement (Hilton Hotels Corp)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if If an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, including any governmental entity) who is not a party to this Agreement or to any of the Related Ancillary Agreements of any claim or of the commencement by any such Person of any Action action (a "“Third-Party Claim"”) with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, each such Indemnitee shall give each such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided provided, however, that the failure of any Indemnitee to give notice as required by this Section 5.04 6.6 shall not relieve the each Indemnifying Party of its obligations under this Article VARTICLE VI, except to the extent that each such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, detail and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by each such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's ’s own expense and by such Indemnifying Party's ’s own counselcounsel reasonably acceptable to each Indemnitee, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the each Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a6.6(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the each Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the each Indemnitee of its election within 30 days after receipt of such notice from the each Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such each Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an each Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to each such Indemnitee under this Article V ARTICLE VI for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by each such Indemnitee in connection with the defense thereof; provided provided, however, that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' ’ reasonable judgment there exists a conflict of interest between such Indemnitees and such the Indemnifying Party exists in respect of such claimParty, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by each such Indemnifying Party. If an any Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 6.2 or 5.026.3, as the case may be) ), each such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim Claim without prior written notice to the each such Indemnifying Party, which shall have the option within ten fifteen days following the receipt of such notice (i) to disapprove reject the settlement and assume all past and future responsibility for the claim, including reimbursing the each Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove reject the settlement and continue to refrain from participation in the defense of the claim, in which event the each such Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the each Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the each such Indemnifying Party's ’s right to contest the each Indemnitee's ’s right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the such Indemnifying Party makes no response to such written notice from the an Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the each Indemnitee shall make available to such Indemnifying Party any personnel and any books, records records, or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense, within the reasonable discretion of each such Indemnifying Party.
(d) Notwithstanding anything else in this Section 5.04 6.6 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless (i) such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the each Indemnitee of a written release from all liability in respect of such Third-Party Claim and (and provided further that ii) such settlement may does not provide for any non-monetary relief by any Indemnitee without the written consent of Indemnitee)unless each such Indemnitee consents thereto. In the event the any Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, each such Indemnitee may continue to contest such Third-Party Claim, Claim free of any participation by such Indemnifying Party, at each such Indemnitee's ’s sole expense. In such event, the obligation of such Indemnifying Party to each such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of each such Indemnitee prior to the date such Indemnifying Party notifies each such Indemnitee of the such offer to settle of settlement or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which each such Indemnitee declined to accept and (B) the actual out-of-pocket amount each such Indemnitee is obligated to pay subsequent to such date as a result of each such Indemnitee's ’s continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the an Indemnitee to the each applicable Indemnifying Party. Such Each such Indemnifying Party shall have a period of 15 30 days after the receipt of such notice within which to respond theretonotify each applicable Indemnitee of the Indemnifying Party’s response to the claim. If each such Indemnifying Party does not respond within so notify each such 15Indemnitee during such 30-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If each such Indemnifying Party does not respond within such 1530-day period or rejects such claim in whole or in part, each such Indemnitee shall be free to pursue such remedies as may be available to such party Party under applicable law or under this AgreementAgreement or any other agreement or arrangement between the Parties.
(f) In addition to any adjustments required pursuant to Section 5.036.5, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement settlement, or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the each Indemnitee to the each Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 4 contracts
Samples: Separation and Distribution Agreement (M-Tron Industries, Inc.), Separation and Distribution Agreement (M-Tron Industries, Inc.), Separation and Distribution Agreement (M-Tron Industries, Inc.)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an If any Indemnitee shall receive receives notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Third Party Claim") Claim with respect to which an Indemnifying Party may be is obligated under this Agreement to provide indemnification pursuant to this Agreementindemnification, such Indemnitee shall give such promptly deliver to the Indemnifying Party a written notice thereof promptly after becoming aware of such Third-Party Claimthereof; provided provided, however, that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 4.04 shall not relieve the any Indemnifying Party of its obligations under this Article VIV, except to the extent that such Indemnifying Party is actually prejudiced by such failure to give notice. Such written notice shall describe the Third-such Third Party Claim in reasonable detaildetail and, and if practicable, shall indicate the estimated amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee. Thereafter, such Indemnitee shall deliver to the Indemnifying Party, promptly after the Indemnitee’s receipt thereof, copies of all notices and documents (including court papers) received by the Indemnitee relating to such Third Party Claim.
(b) An Indemnifying Party, at the Indemnifying Party’s own expense and through counsel chosen by the Indemnifying Party (which counsel shall be reasonably satisfactory to the Indemnitee), may elect to defend or any Third Party Claim. If the Indemnifying Party elects to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-defend a Third Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect then, within fifteen Business Days after receiving notice of such Third-Third Party Claim. Within 30 days of the receipt of notice from an Indemnitee Claim or sooner (but in accordance with Section 5.04(ano event less than five Business Days) (or sooner, if the nature of such Third-Third Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether intent to assume responsibility for do so. The Indemnitee shall thereupon use commercially reasonable efforts to make available to the Indemnifying Party, at the Indemnifying Party’s expense, such Third-Party Claim (provided that if assistance in support of the prosecution or defense of such litigation as the Indemnifying Party does not so notify may reasonably request, including without limitation, the right to assert in the name of the Indemnitee such rights, claims, counterclaims or defenses that the Indemnitee would be or would have been permitted to assert in such litigation or in the prosecution of its election within 30 days after receipt of a claim or counterclaim against a Third Party or in defense against such notice from Third Party Claim had the Indemnitee, the Distribution not occurred. The Indemnifying Party shall be deemed to have elected not to assume responsibility for pay the Indemnitee’s reasonable out-of-pocket expenses incurred in connection with such Third-Party Claim)cooperation consistent with the provisions of this Article IV. Except as provided herein, and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After after notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for the defense of a Third-Third Party Claim, such the Indemnifying Party shall not be liable to such the Indemnitee under this Article V IV for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such the Indemnitee in connection with the defense thereof; provided that if , unless the defendants in any Indemnitee reasonably shall have concluded (upon advice of its counsel) that, with respect to such claim include both claims, the Indemnitee and the Indemnifying Party and one may have different, conflicting, or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Partyadverse legal positions or interests. If an Indemnifying Party elects not to assume responsibility for defend against a Third-Third Party Claim Claim, or fails to notify an Indemnitee of its election as provided in this Section 4.04 within the period of fifteen (which election may be made only in or five, if applicable) Business Days described above, the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to defend, compromise and settle such Third Party Claim; provided, however, that no the following sentence) seek to Indemnitee may compromise or settle any such Third-Third Party Claim. Notwithstanding Claim without the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to consent of the Indemnifying Party, which consent shall have not be unreasonably withheld or delayed.
(c) Notwithstanding the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemniteeforegoing, the Indemnifying Party shall be deemed not, without the prior written consent of the Indemnitee, settle or compromise any Third Party Claim or consent to have elected option (ii)the entry of any judgment which does not include as an unconditional term thereof the delivery by the claimant or plaintiff to the Indemnitee of a written release from all Liability in respect of such Third Party Claim.
(cd) If an the Indemnifying Party chooses to defend or to seek to compromise any Third-Third Party Claim, the Indemnitee shall make available to such the Indemnifying Party any personnel and or any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(de) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free Upon obtaining knowledge of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Third Party Claim Claim, the Indemnitee shall be asserted by promptly give written notice given by the Indemnitee to the applicable Indemnifying PartyParty specifying the facts constituting the basis for such claim and the amount, to the extent known, of the claim asserted. Such If the Indemnifying Party disputes such claim of indemnification, the Indemnifying Party shall have a period of 15 notify the Indemnitee within thirty days after the receipt of such notice within which to respond theretonotice. If such Indemnifying Party does not respond within such 15thirty-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15thirty-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under Article X of this Agreement. If the Indemnifying Party does not dispute the Indemnitee’s claim of indemnification, the Indemnifying Party shall pay the amount of any valid claim within thirty days after receipt of notice from the Indemnitee.
(f) In addition to any adjustments required pursuant to Section 5.03, if If the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Third Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Third Party Claim against any claimant or plaintiff asserting such Third-Third Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreementincluding without limitation, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep permitting the Indemnifying Party reasonably informed to bring suit against such Third Party in the name of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlementIndemnitee.
Appears in 3 contracts
Samples: Distribution Agreement (Sun Healthcare Group Inc), Distribution Agreement (SHG Services, Inc.), Distribution Agreement (Sabra Health Care REIT, Inc.)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.to
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying 33 Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided provided, that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and or (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.the
Appears in 3 contracts
Samples: Reorganization and Distribution Agreement (Getty Petroleum Marketing Inc), Reorganization and Distribution Agreement (Getty Petroleum Marketing Inc), Reorganization and Distribution Agreement (Getty Petroleum Corp)
Procedure for Indemnification. (a) Except as may Each claim for indemnification, including Third Party Claims, shall be set forth in a Related Agreement, if an Indemnitee shall receive made by delivery by the Person seeking to be indemnified (the “Indemnified Party”) to the Party from whom indemnification is sought (the “Indemnifying Party”) of written notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim"“Claim Notice”) with respect containing details reasonably sufficient to which an Indemnifying Party may be obligated disclose to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required by this Section 5.04 shall not relieve the Indemnifying Party the nature and scope of its the claim including an estimate of the amount of claimed Adverse Consequences and copies of all relevant pleadings, documents and information, in each case to the extent reasonably practicable, within thirty (30) days after the Indemnified Party obtains knowledge of such claim. Any failure in the delivery of a Claim Notice shall not affect the obligations under this Article Vof the Indemnifying Party, except to the extent that such the rights and remedies of the Indemnifying Party is are actually materially prejudiced by such as a result of the failure to give notice. Such notice shall describe the Third-Party give, or delay in giving, such Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such IndemniteeNotice.
(b) An If, pursuant to a Third Party Claim, any Action is brought against an Indemnified Party for which the Indemnifying Party may elect be required to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-indemnify the Indemnified Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemniteehereunder, the Indemnifying Party shall be deemed entitled to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate participate in the defense or settlement or compromise of such ThirdAction and, to the extent that it elects, by written notice to the Indemnified Party within ten (10) Business Days after receipt of the relevant Claim Notice, to assume and control the defense of such Action (unless (i) the Indemnified Party determines in good faith that a conflict of interest may exist such that joint representation of the Indemnified Party and the Indemnifying Party would be inappropriate, (ii) greater than 50% of the Adverse Consequences resulting from such claim are reasonably anticipated to be incurred by the Indemnified Party because such Adverse Consequences exceed the Cap (if applicable), (iii) material equitable or other non-monetary relief is sought from any Indemnified Party Claimpursuant to such Action, or (iv) the claim is brought by a Governmental Authority). After notice from an the Indemnifying Party to an Indemnitee the Indemnified Party of its election to assume responsibility for a Third-Party Claimand control the defense of such Action, such the Indemnifying Party shall not not, so long as it diligently conducts such defense, be liable to such Indemnitee the Indemnified Party under this Article V VIII for any legal fees of other counsel or any other expenses (except expenses approved with respect to the defense of such Action, in advance by the Indemnifying Party) each case subsequently incurred by such Indemnitee the Indemnified Party in connection with the defense thereof; provided of such Action, other than reasonable costs of investigation. If the Indemnifying Party assumes the defense of such Action, (i) such assumption will, unless additional information emerges after the assumption to change this conclusion, conclusively establish for purposes of this Agreement that if the defendants Third Party Claims are within the scope of and subject to indemnification (but no such assumption shall affect the applicability of any limit on indemnification contained in Section 8.5), and (ii) the Indemnifying Party shall not, without the Indemnified Party’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed, compromise or settle such Action, or consent to the entry of any judgment with respect to such claim include both Action, that (A) does not involve only the payment of monetary damages by the Indemnifying Party and one does not otherwise result in a final resolution of the Indemnified Person’s liability with respect to the Third Party Claim (including, in the case of a compromise or more Indemnitees settlement, an unconditional written release of the Indemnified Part), (B) is reasonably expected to materially and adversely affect the Indemnified Party, including the imposition of any materially adverse restriction, condition, injunction or other equitable relief upon the Indemnified Party, (C) encumbers any of the assets of the Indemnified Party, (D) involves any finding or omission of any violation of Law or admission of any wrong doing by the Indemnified Party. If the Indemnified Party withholds its consent unreasonably, the Indemnified Party shall be obligated for any future expenses and excess settlement amounts. The Indemnifying Person shall pay all amounts of such permissible compromise, settlement or judgment concurrently with the effectiveness thereof and otherwise remain responsible for any Adverse Consequences the Indemnified Party may suffer that are caused by, relating to, or arising out of the Third Person Claim to the fullest extent provided in this Article VIII. If a Claim Notice regarding a Third Party Claim is given to an Indemnifying Party and the Indemnifying Party does not, within ten (10) Business Days after the Indemnifying Party’s receipt of such Claim Notice, give notice to the Indemnified Party of its election to assume the defense of such Action, the Indemnifying Party will be deemed bound by any determination made in such Indemnitees' Action or any compromise or settlement effected by the Indemnified Party. The Indemnified Party shall fully cooperate at its expense in connection with the defense of any such Third Party Claims, including providing reasonable judgment a conflict of interest between such Indemnitees access to the Indemnified Party’s records and such Indemnifying Party exists in respect of personnel relating to such claim, such Indemnitees and will have the right to participate in the defense of any Third Party Claim by counsel of its own choosing and at its own expense.
(c) Notwithstanding the provisions of Section 8.2(b), if the Indemnifying Party does not, or is not permitted under the terms hereof to, assume or retain control of the defense of an Action relating to a Third Party Claim, then the Indemnified Person (i) shall have the right to employ separate defend against the Third Person Claim (at the sole cost and expense of the Indemnifying Person (but subject to the limitations set forth in this Article VIII)), with counsel of the Indemnified Person’s choosing; and in that event the reasonable fees and expenses (ii) shall have full control of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02defense and Action, as the case may be) such Indemnitee may defend or including (subject to the following sentenceprovisions of this Section 8.2(c)) seek any compromise or settlement thereof, and need not otherwise consult with the Indemnifying Person in connection therewith. If the Indemnified Person has assumed the defense pursuant to this Section 8.2(c), it shall not, without the prior written consent of the Indemnified Person, which consent shall not be unreasonably withheld, conditioned or delayed, compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle any Third Person Claim or compromise any claim without prior written notice consent to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free entry of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee judgment with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claimthereto.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 3 contracts
Samples: Contribution Agreement (Dominion Midstream Partners, LP), Contribution Agreement (New Jersey Resources Corp), Contribution Agreement (Dominion Midstream Partners, LP)
Procedure for Indemnification. (a) Except If a Purchaser Indemnified Party or a Sellers Indemnified Person (such Person being referred to as may be set forth in a Related Agreement, if an Indemnitee the "Indemnitee") shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action action (a "Third-Party Claim") with respect to which an the other party (the "Indemnifying Party Party") may be obligated to provide indemnification pursuant to this Agreementindemnification, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided provided, that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 7.3 shall not relieve the applicable Indemnifying Party of its obligations under this Article VVII, except to the extent that such Indemnifying Party is prejudiced by such failure to give notice; provided, further, that the applicable Indemnifying Party shall have no obligations under this Article VII unless such written notice is received by the Indemnifying Party within the survival periods set forth in Section 7.1. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by or is claimed against such Indemnitee. Such notice shall be a condition precedent to any liability of any Indemnifying Party for any Claim under the provisions for indemnification contained in this Agreement.
(b) An Indemnifying Party may elect to defend or to seek to compromise, settle or compromisedefend, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim; provided, provided however, that the Indemnifying Party must confirm in writing that it agrees that shall not compromise, settle or defend a Claim without the consent of the Indemnitee is entitled (which consent shall not be unreasonably withheld). If an Indemnifying Party elects to indemnification hereunder in respect of such Third-Party compromise, settle or defend a Claim. Within , it shall, within 30 days of the receipt of notice from an Indemnitee in accordance with pursuant to Section 5.04(a7.3(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the applicable Indemnitee of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)do so, and such Indemnitee shall cooperate in the defense compromise or settlement of, or compromise of defense against, such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for the defense of a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V VII for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereofthereof (except expenses approved in advance by the Indemnitee); provided provided, that such Indemnitee shall have the right to employ one separate counsel reasonably satisfactory to the Indemnifying Party to represent such Indemnitee if the defendants in any such claim include included both the Indemnifying Party and one or more Indemnitees and the Indemnitee and, in such Indemnitees' Indemnitee's reasonable judgment judgment, a conflict of interest between such Indemnitees Indemnitee and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for compromise, settle or defend against a Third-Party Claim (which Claim, or fails to notify an Indemnitee of its election may be made only as provided in this Section 7.3 within 30 days of notice from the event of a good faith dispute that a claim was inappropriately tendered under Indemnitee pursuant to Section 5.01 or 5.027.3(a), as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoingcompromise, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of defend such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii)Claim.
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claimclaim, the applicable Indemnitee shall make available to such Indemnifying Party any personnel and or any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) If the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by pursuant to this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the applicable Indemnitee to the applicable Indemnifying Party.
(ge) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and and, at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 3 contracts
Samples: Investment Agreement (Hexcel Corp /De/), Stock Purchase Agreement (Goldman Sachs Group Inc), Stock Purchase Agreement (Ciba Specialty Chemicals Holding Inc /Fi/)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if If an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) person who is not a party to this Separation Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person person of any Action (a "Third-“Third Party Claim"”) with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreementunder Section 5.1 or Section 5.2, such Indemnitee shall give such Indemnifying Party written prompt notice thereof promptly after becoming aware of such Third-Third Party Claim; provided provided, that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 5.4 shall not relieve the related Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is actually and materially prejudiced by such failure to give notice. Such notice shall describe the Third-Third Party Claim in reasonable detail, and and, if practicable, shall indicate the estimated amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained or asserted by such Indemnitee.
(b) An Indemnifying If an Indemnitee gives notice of a Third Party may elect Claim to defend or to seek to settle or compromise, at such an Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall have 30 days after receipt of notice to elect, at its option, to take responsibility for resolving, and assume and control the defense of, at its own expense and by its own counsel, any such Third Party Claim and shall be entitled to assert any and all defenses available to the Indemnitee to the fullest extent permitted by Law. If the Indemnifying Party shall undertake to defend and resolve any such Third Party Claim, it shall promptly notify the Indemnitee of its election whether intention to assume responsibility for such Third-Party Claim (provided that if do so, and the Indemnitee agrees to cooperate as reasonably requested by the Indemnifying Party does not so notify and its counsel in the Indemnitee of its election within 30 days after receipt of resolution of, or defense against, any such notice from the IndemniteeThird Party Claim; provided, however, that the Indemnifying Party shall be deemed not admit any liability with respect to have elected not to assume responsibility for such Third-Third Party Claim)Claim without the prior written consent of the Indemnitee, and shall not resolve, settle, compromise or discharge any such Third Party Claim without the prior written consent of the Indemnitee (which consent will not be unreasonably withheld or delayed) unless the relief consists solely of the payment of money and includes a provision whereby the plaintiff or claimant in the matter releases the Indemnitees from all liability with respect thereto. Notwithstanding the foregoing, the Indemnitee shall cooperate in have the defense right to defend (but not admit liability, compromise, settle or settlement or compromise otherwise resolve such Third Party Claim without the prior written consent of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred any Third Party Claim as to itself by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both its own separate counsel, and the Indemnifying Party shall pay the reasonable fees, costs and one expenses of such separate counsel, as incurred, if the Indemnitee shall have determined in good faith that an actual or more Indemnitees and in such Indemnitees' reasonable judgment a potential conflict of interest between such Indemnitees and such makes representation by the same counsel or the counsel selected by the Indemnifying Party exists in respect of such claiminappropriate. Further, such Indemnitees the Indemnitee shall have the right to employ separate counsel and to participate in that event the reasonable defense of any Third Party Claim (though such separate counsel shall not appear of record), at the expense of the Indemnitee (unless the Indemnifying Party agrees to pay the fees and expenses of such separate counsel). In any event, the Indemnitee and Indemnifying Party and their counsel (but not more than one separate counsel reasonably satisfactory shall cooperate in the defense of any Third Party Claim and keep such persons informed of all developments relating to any such Third Party Claim, and provide copies of all relevant correspondence and documentation relating thereto consistent with applicable rules of privilege and legal ethics. All costs and expenses incurred in connection with the Indemnifying Party) Indemnitee’s cooperation shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which as incurred. If the Indemnifying Party receiving a notice of Third Party Claim does not elect timely to take responsibility for resolving, and defend, such Third Party Claim or does not defend such Third Party Claim in good faith, the Indemnitee shall have the option within ten days following right, in addition to any other right or remedy it may have hereunder, at the receipt of Indemnifying Party’s expense, to defend such notice Third Party Claim; provided, however, that (i1) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures shall not have any obligation to participate in connection with the claimdefense of, or defend, any such Third Party Claim; (ii2) to disapprove the settlement and continue to refrain from Indemnitee’s defense of or participation in the defense of any such claim shall not in any way diminish or lessen the claim, in which event obligations of the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or under this Article V; and (iii3) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to not resolve, settle, compromise or discharge any such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Third Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the prior written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 3 contracts
Samples: Purchase and Separation Agreement (New Aloha CORP), Purchase and Separation Agreement (Albertsons Inc /De/), Purchase and Separation Agreement (Supervalu Inc)
Procedure for Indemnification. (a) Except Notices of claims under this Agreement by any Indemnified Party shall be given to the Purchaser or the Seller, as the case may be set forth (the “Indemnifying Party”) within the relevant period specified in a Related AgreementArticle 8.3, if an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, but in any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any event no later than 60 calendar days after such Person of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after Indemnified Party’s first becoming aware of such Thirdclaim. In case of claims for inaccuracy in or breach of representations and warranties, such notice shall be made within the relevant survival period pursuant to Article 8.3. Such notice of claim shall specify in reasonable detail the factual basis of the claim and a non-Party Claim; provided that binding estimate of the failure amount of Losses which are, or are to be, the subject of the claim (including any Losses which are contingent on the occurrence of any Indemnitee future event). If any Party fails to give notice as required by pursuant to this Section 5.04 Article 8.4(a) within the relevant period specified in Article 8.3, such Party shall not relieve be entitled to make the relevant claim under this Agreement. Upon receipt of such notice, in the event that the Indemnifying Party does not agree with the contents of its obligations under this Article Vsuch notice of claim, except to it must notify the extent that Indemnified Party of such Indemnifying Party is prejudiced by such failure to give notice. Such disagreement within 14 Business Days of receiving the notice shall describe the Third-Party Claim in reasonable detailof claim, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by Parties agree to resolve such Indemniteedispute through Article 10.3.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying If any claim is instituted by a third party against any Indemnified Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify have the Indemnitee right, at its expense, to participate in or assume control of the negotiation, settlement or defense of such claim by advising the Indemnified Party of its election whether to assume responsibility for such Third-Party Claim (provided that within 15 days of the date it receives notice of the claim. Even if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt elects to participate in or assume control of such negotiation, settlement or defense, the Indemnified Party shall have the right to participate in the negotiation, settlement or defense of such third party claim and to retain counsel to act on its behalf; provided, however, that the fees and disbursements of such counsel shall be paid by the Indemnified Party. The Indemnified Party shall cooperate at the Indemnifying Party’s expense with the Indemnifying Party so as to permit the Indemnifying Party to conduct such negotiation, settlement and defense and for this purpose shall preserve all relevant documents in relation to the third party claim, allow the Indemnifying Party access on reasonable notice from to inspect and take copies of all such documents and require its personnel to provide such statements as the IndemniteeIndemnifying Party may reasonably require and to attend and give evidence at any trial or hearing in respect of the third party claim. If, having elected to assume control of the negotiation, settlement or defense of the third party claim, the Indemnifying Party thereafter fails to conduct such negotiation, settlement or defense with reasonable diligence, then the Indemnified Party shall be entitled to assume such control at its own cost and the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-bound by the results obtained by the Indemnified Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable with respect to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such third part claim, such Indemnitees provided, however, that in no event shall have the right to employ separate counsel and in that event Indemnified Party settle the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to proceeding without the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to consent of the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claimnot be unreasonably withheld, including reimbursing the Indemnitee for prior expenditures in connection with the claim, delayed or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii)conditioned.
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 3 contracts
Samples: Share Purchase Agreement, Share Purchase Agreement (SolarEdge Technologies Inc), Share Purchase Agreement (SolarEdge Technologies Inc)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if 4.3.1 If an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided provided, that the failure of any Indemnitee to give notice as required by this Section 5.04 4.3 shall not relieve the Indemnifying Party of its obligations under this Article VIV, except to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) 4.3.2 An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of after the receipt of notice from an Indemnitee in accordance with Section 5.04(a) 4.3.1 hereof (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or defense, settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V IV for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided provided, however, that if the defendants or parties against which relief is sought in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 4.1 or 5.024.2 hereof, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 3 contracts
Samples: Plan of Reorganization and Distribution Agreement (Abf Capital Corp), Plan of Reorganization and Distribution Agreement (Abf Capital Corp), Plan of Reorganization and Distribution Agreement (Abf Capital Corp)
Procedure for Indemnification. The procedure for indemnification shall be as follows:
(a) Except as may be set forth in a Related Agreement, if an Indemnitee The Party seeking indemnification under this Article VIII (the “Claimant”) shall receive give notice or otherwise learn of to the assertion by a Person Party from whom indemnification is sought (including, without limitation, any governmental entitythe “Indemnitor”) who is not a party to this Agreement or to any of the Related Agreements of any claim or liability that might result in an indemnified Loss (an “Indemnified Claim”), specifying in reasonable detail (i) the factual basis for and circumstances surrounding the Indemnified Claim; and (ii) the amount of the commencement by any such Person potential Loss pursuant to the Indemnified Claim if then known, and including copies of any Action material correspondence or written documents relating to the Indemnified Claim. If the Indemnified Claim relates to a Proceeding filed by a third party against Claimant, notice shall be given by Claimant as soon as practical, but in all events within fifteen (a "Third-Party Claim"15) with respect Business Days after Claimant learns of the Proceeding or written notice of the Proceeding is given to which an Indemnifying Party may Claimant. In all other circumstances, notice shall be obligated given by Claimant as soon as practical, but in all events within twenty (20) Business Days after Claimant becomes aware of the facts giving rise to provide indemnification the potential Loss; provided, however, that should the Claimant fail to notify the Indemnitor in the time required above, the Indemnitor shall only be relieved of its obligations pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article V, except VIII to the extent that such Indemnifying Party the Indemnitor is materially prejudiced by such delay or failure to timely give notice. Such notice shall describe the Third-Party of an Indemnified Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemniteepotential Loss.
(b) An Indemnifying Party The Claimant shall make available to Indemnitor and/or its authorized representatives the information relied upon by the Claimant to substantiate the Indemnified Claim or Loss and shall make available any information or documentation in Claimant’s possession, custody or control that is or may elect be helpful in defending or responding to defend the Indemnified Claim or Loss.
(c) The Indemnitor shall have thirty (30) days after receipt of the indemnification notice referred to seek in sub-section (a) to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that notify the Indemnifying Party must confirm Claimant in writing that it agrees that elects to conduct and control the Indemnitee defense of any such Indemnified Claim; provided, however, such thirty (30) day period shall be reduced to such shorter period of time set forth in the applicable indemnification notice if the Indemnified Claim or Loss is entitled based upon a third-party claim requiring a response in fewer than thirty (30) days, but in no event fewer than ten (10) days.
(d) If the Indemnitor does not advise the Claimant of its intent to indemnification hereunder in respect of such Third-Party Claim. Within 30 days conduct and control the defense of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (Indemnified Claim or sooner, if Proceeding within the nature of such Third-Party Claim so requires)time period specified above, the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees Claimant shall have the right to employ separate defend, contest, settle, or compromise such Indemnified Claim or Proceeding. If the Indemnitor properly advises the Claimant that it will conduct and control the Indemnified Claim or Proceeding, the Indemnitor shall have the right to undertake, conduct, defend, and control, through counsel of its own choosing and at its sole expense, the conduct, defense, and settlement of the Indemnified Claim or Proceeding, and the Claimant shall cooperate with the Indemnitor in that event connection therewith; provided, however, that: (i) the reasonable Indemnitor shall not consent to the imposition of any injunction against the Claimant without the prior written consent of the Claimant, which consent shall not be unreasonably withheld; (ii) the Indemnitor shall permit the Claimant to participate in such conduct or settlement through counsel chosen by the Claimant, but the fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid borne by the Claimant; (iii) upon a final determination of Proceeding, the Indemnitor shall promptly reimburse the Claimant for the full amount of any indemnified Loss or indemnified portion of any Loss resulting from the Indemnified Claim or Proceeding and all reasonable expenses related to such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility indemnified Loss incurred by the Claimant, except (A) fees and expenses of counsel for a Third-Party Claim (which election may be made only the Claimant in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 Indemnitor has conducted or 5.02, as controlled the case may beProceeding and (B) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may any Loss not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement indemnifiable by Indemnitor; and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay no Indemnitor may, without the settlement. In prior written consent of the event the Indemnifying Party makes no response to such written notice from the IndemniteeClaimant, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend settle or to seek to compromise any Third-Party Claimcompromise, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 consent to the contraryentry of any judgment in connection with, an Indemnifying Party shall not settle or compromise any Third-Party Claim Proceeding with respect to the claim described in the indemnification notice unless (A) such settlement or compromise contemplates as involves only the payment of money; (B) there is no finding or admission of liability, any violation of any Law or any violation of the rights of any Person by the Claimant; and (C) the Indemnitor obtains an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee release of a written release each Claimant from all liability Indemnified Claims or potential Loss arising out of the claim described in respect the indemnification notice and any Indemnified Claim or Proceeding related thereto. If the Claimant is controlling the defense of such Third-Party an Indemnified Claim (and provided further that such or Proceeding pursuant to this Section 8.3(d), then it shall not agree to any settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemniteethe Indemnitor (which consent shall not be unreasonably withheld or delayed). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 3 contracts
Samples: Contribution and Distribution Agreement (Mediaco Holding Inc.), Contribution and Distribution Agreement (Mediaco Holding Inc.), Contribution and Distribution Agreement (Emmis Communications Corp)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if If an Indemnitee indemnitee shall receive notice or otherwise learn of the assertion by a Person person (including, without limitation, any governmental entity) who is not a party to this Agreement agreement or to any of the Related Ancillary Agreements of any claim or of the commencement by any such Person person of any Action action (a "Third-Party Claimthird party claim") with respect to which an Indemnifying Party indemnifying party may be obligated to provide indemnification pursuant to this Agreementagreement, such Indemnitee indemnitee shall give such Indemnifying Party indemnifying party written notice thereof of it promptly after becoming aware of such Third-Party Claimthird party claim; provided that the failure of any Indemnitee indemnitee to give notice as required by provided in this Section 5.04 4.04 shall not relieve the Indemnifying Party related indemnifying party of its obligations under this Article VIV, except to the extent that such Indemnifying Party indemnifying party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim third party claim in reasonable detaildetail and, and if ascertainable, shall indicate the amount (estimated if necessary) of the Indemnifiable Loss liability that has been or may be sustained by such Indemniteeindemnitee.
(b) An Indemnifying Party indemnifying party may elect to defend or to seek to settle or compromise, at such Indemnifying Partyindemnifying party's own expense and by such Indemnifying Partyindemnifying party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claimthird party claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a4.04(a) (or sooner, if the nature of such Third-Party Claim so requiresthird party claim requires it), the Indemnifying Party indemnifying party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that related indemnitee if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party indemnifying party elects not to assume responsibility for a Third-Party Claim (defend or to seek to settle or compromise such third party claim, which election may be made only in the event of a good faith dispute assertion by the indemnifying party that a claim was inappropriately tendered under Section 5.01 4.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii)4.
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 3 contracts
Samples: Separation Agreement (Card Activation Technologies Inc), Separation Agreement (Card Activation Technologies Inc), Split Off Agreement (Gift Liquidators Inc)
Procedure for Indemnification. (a) Except If an Investor Indemnified Person or a Company Indemnified Person (such Person being referred to as may be set forth in a Related Agreement, if an Indemnitee the "Indemnitee") shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action action (a "Third-Party Claim") with respect to which an the other party (the "Indemnifying Party Party") may be obligated to provide indemnification pursuant to this Agreementindemnification, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided provided, that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 7.3 shall not relieve the applicable Indemnifying Party of its obligations under this Article VVII, except to the extent that such Indemnifying Party is prejudiced by such failure to give notice; provided, further, that the applicable Indemnifying Party shall have no obligations under this Article VII unless such written notice is received by the Indemnifying Party within the survival periods set forth in Section 7.1. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by or is claimed against such Indemnitee. Such notice shall be a condition precedent to any liability of any Indemnifying Party for any Claim under the provisions for indemnification contained in this Agreement.
(b) An Indemnifying Party may elect to defend or to seek to compromise, settle or compromisedefend, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim; provided, provided however, that the Indemnifying Party must confirm in writing that it agrees that shall not compromise, settle or defend a Claim without the consent of the Indemnitee is entitled (which consent shall not be unreasonably withheld). If an Indemnifying Party elects to indemnification hereunder in respect of such Third-Party compromise, settle or defend a Claim. Within , it shall, within 30 days of the receipt of notice from an Indemnitee in accordance with pursuant to Section 5.04(a7.3(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the applicable Indemnitee of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)do so, and such Indemnitee shall cooperate in the defense compromise or settlement of, or compromise of defense against, such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for the defense of a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V VII for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereofthereof (except expenses approved in advance by the Indemnitee); provided provided, that such Indemnitee shall have the right to employ one separate counsel reasonably satisfactory to the Indemnifying Party to represent such Indemnitee if the defendants in any such claim include included both the Indemnifying Party and one or more Indemnitees and the Indemnitee and, in such Indemnitees' Indemnitee's reasonable judgment judgment, a conflict of interest between such Indemnitees Indemnitee and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for compromise, settle or defend against a Third-Party Claim (which Claim, or fails to notify an Indemnitee of its election may be made only as provided in this Section 7.3 within 30 days of notice from the event of a good faith dispute that a claim was inappropriately tendered under Indemnitee pursuant to Section 5.01 or 5.027.3(a), as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoingcompromise, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of defend such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii)Claim.
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claimclaim, the applicable Indemnitee shall make available to such Indemnifying Party any personnel and or any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) If the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by pursuant to this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the applicable Indemnitee to the applicable Indemnifying Party.
(ge) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and and, at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 3 contracts
Samples: Investment Agreement (Hexcel Corp /De/), Agreement (Goldman Sachs Group Inc), Investment Agreement (Ciba Specialty Chemicals Holding Inc /Fi/)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if If an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) person who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person person of any Action (a "Third-“Third Party Claim"”) with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreementunder Section 5.1 or Section 5.2, such Indemnitee shall give such Indemnifying Party written prompt notice thereof promptly after becoming aware of such Third-Third Party Claim; provided provided, that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 5.4 shall not relieve the related Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is actually prejudiced by such failure to give notice. Such notice shall describe the Third-Third Party Claim in reasonable detail, and and, if practicable, shall indicate the estimated amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained or asserted by such Indemnitee.
(b) An Indemnifying If an Indemnitee gives notice of a Third Party may elect Claim to defend or to seek to settle or compromise, at such an Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall have 30 days after receipt of notice to elect, at its option, to take responsibility for resolving, and assume and control the defense of, at its own expense and by its own counsel, any such Third Party Claim and shall be entitled to assert any and all defenses available to the Indemnitee to the fullest extent permitted by Law. If the Indemnifying Party shall undertake to defend and resolve any such Third Party Claim, it shall promptly notify the Indemnitee of its election whether intention to assume responsibility for such Third-Party Claim (provided that if do so, and the Indemnitee agrees to cooperate as reasonably requested by the Indemnifying Party does not so notify and its counsel in the Indemnitee of its election within 30 days after receipt of resolution of, or defense against, any such notice from the IndemniteeThird Party Claim; provided, however, that the Indemnifying Party shall be deemed not admit any liability with respect to have elected not to assume responsibility for such Third-Third Party Claim)Claim without the prior written consent of the Indemnitee, and shall not resolve, settle, compromise or discharge any such Third Party Claim without the prior written consent of the Indemnitee (which consent will not be unreasonably withheld or delayed) unless the relief consists solely of the payment of money and includes a provision whereby the plaintiff or claimant in the matter releases the Indemnitees from all liability with respect thereto. Notwithstanding the foregoing, the Indemnitee shall cooperate in have the defense right to defend (but not admit liability, compromise, settle or settlement or compromise otherwise resolve such Third Party Claim without the prior written consent of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred any Third Party Claim as to itself by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both its own separate counsel, and the Indemnifying Party shall pay the reasonable fees, costs and one expenses of such separate counsel, as incurred, if the Indemnitee shall have determined in good faith that an actual or more Indemnitees and in such Indemnitees' reasonable judgment a potential conflict of interest between such Indemnitees and such makes representation by the same counsel or the counsel selected by the Indemnifying Party exists in respect of such claiminappropriate. Further, such Indemnitees the Indemnitee shall have the right to employ separate counsel and to participate in that event the reasonable defense of any Third Party Claim (though such separate counsel shall not appear of record), at the expense of the Indemnitee (unless the Indemnifying Party agrees to pay the fees and expenses of such separate counsel). In any event, the Indemnitee and Indemnifying Party and their counsel (but not more than one separate counsel reasonably satisfactory shall cooperate in the defense of any Third Party Claim and keep such persons informed of all developments relating to any such Third Party Claim, and provide copies of all relevant correspondence and documentation relating thereto consistent with applicable rules of privilege and legal ethics. All costs and expenses incurred in connection with the Indemnifying Party) Indemnitee’s cooperation shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which as incurred. If the Indemnifying Party receiving a notice of Third Party Claim does not elect timely to take responsibility for resolving, and defend, such Third Party Claim or does not defend such Third Party Claim in good faith, the Indemnitee shall have the option within ten days following right, in addition to any other right or remedy it may have hereunder, at the receipt of Indemnifying Party’s expense, to defend such notice Third Party Claim; provided, however, that (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures shall not have any obligation to participate in connection with the claimdefense of, or defend, any such Third Party Claim; (ii) to disapprove the settlement and continue to refrain from Indemnitee’s defense of or participation in the defense of any such claim shall not in any way diminish or lessen the claim, in which event obligations of the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or under this Article V; and (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to not resolve, settle, compromise or discharge any such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Third Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the prior written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 2 contracts
Samples: Transaction Agreement (Instinet Group Inc), Transaction Agreement (Nasdaq Stock Market Inc)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if If an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) person who is not a party to of this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person person of any Action (a "Third-Third Party Claim") with respect to which an Indemnifying Party is or may be obligated to provide indemnification pursuant to this Agreementmake an Indemnity Payment, such Indemnitee shall give such Indemnifying Party written prompt notice thereof promptly after becoming aware of such Third-Third Party Claim, specifying in reasonable detail the nature of such Third Party Claim and the amount or estimated amount thereof to the extent then feasible (which estimate shall not be conclusive of the final amount of such claim); provided provided, however, that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 4.03 shall not relieve the related Indemnifying Party of its obligations under this Article VIV, except to the extent that such Indemnifying Party is actually prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromisedefend, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Third Party Claim. If an Indemnifying Party elects to defend a Third Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect shall, within 10 days of notice of such Third-Third Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) Claim (or sooner, if the nature of such Third-Third Party Claim so requires), the Indemnifying Party shall notify the related Indemnitee of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)do so, and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Third Party Claim. Such Indemnifying Party shall pay such Indemnitee's actual out-of-pocket expenses (other than officers' or employees' salaries) reasonably incurred in connection with such cooperation. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for the defense of a Third-Third Party Claim, such an Indemnifying Party shall not be liable to such Indemnitee under this Article V IV for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided provided, however, that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees Indemnitee shall have the right to employ separate counsel to represent such Indemnitee if, in such Indemnitee's reasonable judgment, a conflict of interest between such Indemnitee and such Indemnifying Party exists with respect to such claim, and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. Except as so provided, if an Indemnitee desires to participate in the defense of a Third Party Claim, it may do so but it shall not control the defense and such participation shall be at its sole cost and expense. If an Indemnifying Party elects not to assume responsibility for defend against a Third-Third Party Claim (which Claim, or fails to notify an Indemnitee of its election may be made only as provided in the event of a good faith dispute that a claim was inappropriately tendered under this Section 5.01 or 5.024.03, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to defend, compromise and settle such Third Party Claim; provided, however, that no such Indemnitee may compromise or settle any such Third-Third Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim Claim without prior written notice to the such Indemnifying Party, which shall have the option within ten days following the receipt Party and except by payment of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, monetary damages or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the other money payments. No Indemnifying Party shall have no further right consent to contest entry of any judgment or enter into any compromise or settlement which does not include as an unconditional term thereof the amount giving by the claimant or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response plaintiff to such written notice Indemnitee of a release from the Indemnitee, the Indemnifying all liability in respect to such Third Party shall be deemed to have elected option (ii)Claim.
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claimclaim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defensedefense (the cost of copying thereof to be paid by the Indemnifying Party).
(d) Notwithstanding anything else in this Section 5.04 to the contrary4.03, if an offer of settlement or compromise for non-monetary damages is received by an Indemnifying Party shall not with respect to a Third Party Claim and such Indemnifying Party notifies the related Indemnitee in writing of such Indemnifying Party's willingness to settle or compromise any Third-such Third Party Claim unless on the basis set forth in such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (notice and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Third Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Upon any final determination of a Third Party Claim pursuant to this Section 4.03, except as provided by Section 4.03(d), the Indemnifying Party shall pay promptly on behalf of the Indemnitee, or to the Indemnitee in reimbursement of any amount therefore required to be paid by it, the amount so determined. Upon the payment in full by the Indemnifying Party of any such amount, the Indemnifying Party shall be subrogated to the rights of such Indemnitee, to the extent not waived in settlement, against the persons who made such Third Party Claim with respect to the subject matter of such claim.
(f) Notwithstanding the foregoing provisions of this Section 4.03, there may be Third Party Claims which reasonably could result in both IGC and ACPT being liable to the other under indemnification provisions of this Agreement. In any such events, the parties shall endeavor, acting reasonably and in good faith, to agree upon a manner of conducting the defense of or settlement of the Third Party Claim with a view to minimizing the legal expense and associated costs that might otherwise be incurred by the parties, including the use of the same legal counsel for the defense of such claim.
(g) Except to the extent expressly provided otherwise in this Section 4.03, the indemnification provided for by this Section 4.03 shall not inure to the benefit of any third party or parties and shall not relieve any insurer who would otherwise be obligated to pay any claim of the responsibility with respect thereto or, solely by virtue of the indemnification provisions hereof, provide any subrogation rights with respect thereto.
(h) Any claim on account of an Indemnifiable Loss which does not result from a Third-Third Party Claim shall be asserted by written notice given by the related Indemnitee to the applicable related Indemnifying Party. Such Indemnifying Party shall have a period of 15 sixty (60) days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15sixty-day period, such Indemnifying Party shall be deemed to have refused to accept accepted responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee payment and shall be free have no further right to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if contest the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount validity of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 2 contracts
Samples: Restructuring Agreement (American Community Properties Trust), Restructuring Agreement (American Community Properties Trust)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an If any Indemnitee shall receive receives notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") Claim with respect to which an Indemnifying Party may be is obligated hereunder to provide indemnification pursuant to this Agreementindemnification, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided provided, however, that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 5.05 shall not relieve the any Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is actually prejudiced by such failure to give notice. Such notice shall describe the such Third-Party Claim in reasonable detaildetail and, and if practicable, shall indicate the estimated amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromiseParty, at such Indemnifying Party's ’s own expense and through counsel chosen by such Indemnifying Party's own counselParty (which counsel shall be reasonably satisfactory to the Indemnitee), may elect to defend any Third-Party Claim, provided that with such an election by the Indemnifying Party must confirm in writing that it agrees that being deemed an admission of its obligation to indemnify the Indemnitee is entitled with respect to indemnification hereunder in respect of such Third-Party Claim. Within 30 days If an Indemnifying Party elects to defend a Third-Party Claim, then, within ten Business Days after receiving notice of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) such Third-Party Claim (or sooner, if the nature of such Third-Party Claim so requires), the such Indemnifying Party shall notify the Indemnitee of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)do so, and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. Such Indemnifying Party shall pay such Indemnitee’s reasonable out-of-pocket expenses incurred in connection with such cooperation. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for the defense of a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided provided, however, that if such Indemnitee shall have the defendants in any right to employ one law firm as counsel to represent such claim include both Indemnitee (which firm shall be reasonably satisfactory to the Indemnifying Party and one or more Indemnitees and Party) if, in such Indemnitees' Indemnitee’s reasonable judgment judgment, either a conflict of interest between such Indemnitees Indemnitee and such Indemnifying Party exists in respect of such claimclaim or there may be defenses available to such Indemnitee that are different from or in addition to those available to such Indemnifying Party, such Indemnitees shall have the right to employ separate counsel and in that event (1) the reasonable fees and expenses of one such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) for all such Indemnitees shall be paid by such Indemnifying PartyParty and (2) each of such Indemnifying Party and such Indemnitee shall have the right to conduct its own defense in respect of such claim. If an Indemnifying Party elects not to assume responsibility for defend against a Third-Party Claim (which Claim, or fails to notify an Indemnitee of its election may be made only as provided in this Section 5.05 within the event period of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02ten Business Days described above, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to defend, compromise or and settle such Third-Party Claim; provided, however, that no such Indemnitee may compromise or settle any such Third-Party Claim without the prior written consent of the Indemnifying Party, which consent shall not be withheld unreasonably. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest not, without the amount or reasonableness prior written consent of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c1) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates consent to the entry of any judgment that does not include as an unconditional term thereof the giving delivery by such the claimant or plaintiff to the Indemnitee of a written release from all liability Liability in respect of such Third-Party Claim or (and provided further that such settlement may not provide for 2) settle or compromise any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of in any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as manner that may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by adversely affect the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 2 contracts
Samples: Separation and Distribution Agreement (Moneygram International Inc), Separation and Distribution Agreement (Moneygram International Inc)
Procedure for Indemnification. (a) 5.4.1 Except as may be set forth in a Related any other Transaction Agreement, if an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Transaction Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided provided, that the failure of any Indemnitee to give notice as required by this Section 5.04 5.4 shall not relieve the Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) 5.4.2 An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of after the receipt of notice from an Indemnitee in accordance with Section 5.04(a) 5.4.1 hereof (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Third- Party Claim), and such Indemnitee shall cooperate in the defense or defense, settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided provided, however, that if the defendants or parties against which relief is sought in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 5.1 or 5.025.2 hereof, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) 5.4.3 If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defensedefense or compromise.
(d) 5.4.4 Notwithstanding anything else in this Section 5.04 5.4 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee)) and unless such settlement or compromise does not involve any new or additional contractual or other burdens on the Indemnitee. In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (Aa) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (Bb) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) 5.4.5 Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) 5.4.6 In addition to any adjustments required pursuant to Section 5.035.3 hereof, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) 5.4.7 In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 2 contracts
Samples: Plan of Reorganization and Distribution Agreement (WHG Resorts & Casinos Inc), Plan of Reorganization and Distribution Agreement (WMS Industries Inc /De/)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an If any Indemnitee shall receive receives notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") Claim with respect to which an Indemnifying Party may be is obligated under this Agreement to provide indemnification pursuant to this Agreementindemnification, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided provided, however, that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 3.4 shall not relieve the any Indemnifying Party of its obligations under this Article VIII, except to the extent that such Indemnifying Party is actually prejudiced by such failure to give notice. Such notice shall describe the such Third-Party Claim in reasonable detaildetail and, and if practicable, shall indicate the estimated amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromiseParty, at such Indemnifying Party's own expense and through counsel chosen by such Indemnifying Party's own counselParty (which counsel shall be reasonably satisfactory to the Indemnitee), may elect to defend any Third-Party Claim; provided, provided however, that such an election by the Indemnifying Party must confirm in writing that it agrees that shall be deemed an admission of its obligation to indemnify the Indemnitee is entitled with respect to indemnification hereunder in respect of such Third-Party Claim. Within 30 days If an Indemnifying Party elects to defend a Third-Party Claim, then, within ten Business Days after receiving notice of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) such Third-Party Claim (or sooner, if the nature of such Third-Party Claim so requires), the such Indemnifying Party shall notify the Indemnitee of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)do so, and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. Such Indemnifying Party shall pay such Indemnitee's reasonable out-of-pocket expenses incurred in connection with such cooperation. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.a
Appears in 2 contracts
Samples: Distribution Agreement (SLH Corp), Distribution Agreement (SLH Corp)
Procedure for Indemnification. (a) Except as If any Indemnitee determines that it is or may be set entitled to indemnification by any Indemnifying Party (other than in connection with any Third Party Claim), the Indemnitee will deliver to the Indemnifying Party a written notice specifying, to the extent reasonably practicable, the basis for its claim for indemnification and the amount for which the Indemnitee reasonably believes it is entitled to be indemnified. Within 60 calendar days after receipt of such notice, the Indemnifying Party will pay the Indemnitee such amount in cash or other immediately available funds unless the Indemnifying Party objects to the claim for indemnification or the amount by written notice setting forth in a Related Agreementthe grounds therefor within such 60 calendar day period. If the Indemnifying Party does not give the Indemnified Party written notice objecting to such indemnity claim and setting forth the grounds therefor within 60 calendar days after receipt of such notice, if an the Indemnifying Party will be deemed to have acknowledged its liability for such claim and the Indemnitee shall receive may exercise any and all of its rights under applicable law to collect such amount.
(b) If any Indemnitee receives notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") Claim with respect to which an Indemnifying Party may be is obligated under this Agreement to provide indemnification pursuant to this Agreementindemnification, such Indemnitee shall will give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Third- Party Claim; provided provided, however, that the failure of any Indemnitee to give such notice as required by this Section 5.04 shall will not relieve the any Indemnifying Party of its obligations under this Article VIV, except to the extent that such Indemnifying Party is actually prejudiced by such failure to give notice. Such notice shall will describe the such Third-Party Claim in reasonable detaildetail and, and shall if practicable, will indicate the estimated amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(bc) An Indemnifying Party may elect to defend or to seek to settle or compromiseParty, at such Indemnifying Party's own expense and through counsel chosen by such Indemnifying Party's own counselParty (which counsel shall be reasonably satisfactory to the Indemnitee), may elect to defend any Third-Third- Party Claim. If an Indemnifying Party elects to defend a Third- Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect then, within fifteen calendar days after receiving notice of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) Claim (or sooner, if the nature of such Third-Party Claim so requires), the such Indemnifying Party shall will notify the Indemnitee of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)do so, and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. Such Indemnifying Party will pay such Indemnitee's reasonable out-of- pocket expenses incurred in connection with such cooperation. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for the defense of a Third-Party Claim, such Indemnifying Party shall will not be liable to such Indemnitee under this Article V IV for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided provided, however, that if such Indemnitee will have the defendants in any right to employ one law firm as counsel to represent such claim include both Indemnitee (which firm shall be reasonably acceptable to the Indemnifying Party and one or more Indemnitees and Party) if, in such Indemnitees' Indemnitee's reasonable judgment judgment, either a conflict of interest between such Indemnitees Indemnitee and such Indemnifying Party exists in respect of such claimclaim or there may be defenses available to such Indemnitee which are different from or in addition to those available to such Indemnifying Party, such Indemnitees shall have the right to employ separate counsel and in that event (i) the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnitee and (ii) each of such Indemnifying PartyParty and such Indemnitee shall have the right to run its own defense in respect of such claim. If an Indemnifying Party elects not to assume responsibility for defend against a Third-Party Claim (which Claim, or fails to notify an Indemnitee of its election may be made only as provided in this Section 4.02 within the event period of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02fifteen calendar days described above, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to defend, compromise or and settle such Third-Party Claim; provided, however, that no such Indemnitee may compromise or settle any such Third- Party Claim without the prior written consent of the Indemnifying Party, which consent shall not be withheld unreasonably. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest not, without the amount or reasonableness prior written consent of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(ci) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates consent to the entry of any judgment which does not include as an unconditional term thereof the giving delivery by such the claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim or (and provided further ii) settle or compromise any Third- Party Claim in any manner that such settlement may not provide in the reasonable judgment of the Indemnifying Party, is likely to adversely affect the Indemnitee.
(d) If for any non-monetary relief reason the indemnification provided by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify this Agreement is unenforceable, the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior will contribute to the date such Indemnifying Party notifies such amount payable by the Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing the related losses an amount appropriate to pursue such Third-Party Claimreflect equitable considerations.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 2 contracts
Samples: Separation Agreement (Kiewit Peter Sons Inc), Separation Agreement (Level 3 Communications Inc)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an If any Indemnitee shall receive receives notice or otherwise learn of the assertion of any claim or of the commencement of any claim, action, or proceeding made or brought by a any Person (including, without limitation, any governmental entity) who is not a party to this Agreement or any Affiliate of a Party to any of the Related Agreements of any claim or of the commencement by any such Person of any Action this Agreement (a "Third-“Third Party Claim"”) with respect to which indemnification is to be sought from an Indemnifying Party may be obligated to provide indemnification pursuant to this AgreementParty, such the Indemnitee shall give such Indemnifying Party reasonably prompt written notice thereof promptly thereof, but in any event such notice shall not be given later than 20 days after becoming aware the Indemnitee’s receipt of notice of such Third-Third Party Claim; provided that the failure of any Indemnitee to give notice as required by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-nature of the Third Party Claim in reasonable detail, detail and shall indicate the amount (estimated amount, if necessary) practicable, of the Indemnifiable Loss that has been or may be sustained by such the Indemnitee.
(b) An . The Indemnifying Party may will have the right to participate in or, by giving written notice to the Indemnitee, to elect to defend or to seek to settle or compromise, assume the defense of any Third Party Claim at such Indemnifying Party's own ’s expense and by such Indemnifying Party's ’s own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), counsel for the Indemnifying Party who shall notify conduct the Indemnitee defense of its election whether to assume responsibility for such Third-Third Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from shall be reasonably satisfactory to the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such . The Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and good faith in such Indemnitees' reasonable judgment a conflict of interest between defense at such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying PartyIndemnitee’s own expense. If an Indemnifying Party elects not to assume responsibility for a Third-the defense of any Third Party Claim (which election may be made only in Claim, the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Third Party Claim. Notwithstanding Claim over the foregoingobjection of the Indemnifying Party, which settlement or compromise shall conclusively establish the Indemnifying Party’s liability pursuant to this Agreement.
(b) If, within 20 days after an Indemnitee may not settle or compromise any claim without prior provides written notice to the Indemnifying PartyParty of any Third Party Claims, which shall have the option within ten days following Indemnitee receives written notice from the receipt Indemnifying Party that such Indemnifying Party has elected to assume the defense of such notice (i) to disapprove Third Party Claim as provided in Section 6.03(a), the settlement and assume all past and future responsibility Indemnifying Party will not be liable for the claim, including reimbursing any legal expenses subsequently incurred by the Indemnitee for prior expenditures in connection with the claimdefense thereof; provided, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claimhowever, in which event that if the Indemnifying Party shall have no further right fail to contest the amount or reasonableness of the settlement if take reasonable steps necessary to defend diligently such Third Party Claim within 20 days after receiving notice from the Indemnitee elects to proceed therewith, or (iii) to approve that the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event Indemnitee believes the Indemnifying Party makes no response has failed to take such steps, the Indemnitee may assume its own defense and the Indemnifying Party shall be liable for all reasonable expenses thereof. Without the prior written notice from consent of the Indemnitee, the Indemnifying Party shall be deemed not enter into any settlement of any Third Party Claim which would lead to have elected option (ii).
(c) liability or create any financial or other obligation on the part of the Indemnitee for which the Indemnitee is not entitled to indemnification hereunder. If an a firm offer is made to settle a Third Party Claim without leading to liability or the creation of a financial or other obligation on the part of the Indemnitee for which the Indemnitee is not entitled to indemnification hereunder and the Indemnifying Party chooses desires to defend or accept and agree to seek to compromise any Third-Party Claimsuch offer, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff give written notice to the Indemnitee of a written release from all liability in respect to that effect. If the Indemnitee fails to consent to such firm offer within 10 days after its receipt of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify notice, the Indemnifying Party in writing that shall be relieved of its obligations to defend such Indemnitee declines to accept any such settlement or compromise, such Third Party Claim and the Indemnitee may continue to contest or defend such Third-Third Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation maximum liability of the Indemnifying Party as to such Third Party Claim will be the amount of such Indemnifying Party to such settlement offer plus reasonable costs or expenses paid or incurred by Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior up to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claimsaid notice.
(ec) Any claim by an Indemnitee on account of an Indemnifiable Loss which does not result from a Third-Third Party Claim (a “Direct Claim”) shall be asserted by giving the Indemnifying Party reasonably prompt written notice thereof, stating the nature of such claim in reasonable detail and indicating the estimated amount, if practicable, but in any event such notice shall not be given by later than 30 days after the Indemnitee to becomes aware of such Direct Claim, and the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 30 days after the receipt of such notice within which to respond theretoto such Direct Claim. If such the Indemnifying Party does not respond within such 15-thirty 30 day period, such the Indemnifying Party shall be deemed to have refused to accept responsibility to make paymentaccepted such claim. If such the Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in partclaim, such the Indemnitee shall will be free to pursue such remedies as may be available seek enforcement of its right to such party under applicable law or indemnification under this Agreement.
(fd) In addition to any adjustments required pursuant to Section 5.03, if If the amount of any Indemnifiable Loss shallLoss, at any time subsequent to the making of an indemnity payment required by this Agreementin respect thereof, be is reduced by recovery, settlement or otherwiseotherwise under or pursuant to any insurance coverage, or pursuant to any claim, recovery, settlement or payment by, from or against any other entity, the amount of such reduction, less any costs, expenses or premiums incurred in connection therewith, therewith (together with interest thereon from the date of payment thereof at the Prime Rate) shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In . Upon making any indemnity payment, the event Indemnifying Party, to the extent of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claimsuch indemnity payment, such Indemnifying Party shall be subrogated to and shall stand in all rights of the place of such Indemnitee as to against any events or circumstances third party in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect Indemnifiable Loss to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreementthe indemnity payment relates; provided, LTC or Healthcare shallhowever, at the request of any other party, cause the employee(sthat (i) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall then be in compliance with its obligations under this Agreement in respect of such Indemnifiable Loss and (ii) until the Indemnitee recovers full payment of its Indemnifiable Loss, any and all claims of the Indemnifying Party against such third party on account of said indemnity payment are hereby made subordinate in right of payment to the Indemnitee’s rights against such third party. Without limiting the generality or effect of any other provision hereof, each such Indemnitee and Indemnifying Party shall duly execute upon request all instruments reasonably necessary to evidence and perfect the above-described subrogation and subordination rights, and otherwise cooperate inin the prosecution of such claims at the direction of the Indemnifying Party. Nothing in this Section 6.03(d) shall require any Party hereto to obtain or maintain any insurance coverage.
(e) A failure to give timely notice as provided in this Section 6.03 shall not affect the rights or obligations of any Party hereunder except if, and only to the extent that, as a result of such defensefailure, compromise or settlementthe Party which was entitled to receive such notice was actually and materially prejudiced as a result of such failure.
Appears in 2 contracts
Samples: Asset Purchase Agreement (Cincinnati Gas & Electric Co), Asset Purchase Agreement (Cincinnati Gas & Electric Co)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an Indemnitee Indemnified Person shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person or its Affiliate of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this AgreementAgreement (a "Third-Party Claim"), such Indemnitee Indemnified Person ----------------- shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided provided, that the failure of any Indemnitee -------- Indemnified Person to give notice as required by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such IndemniteeIndemnified Person.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee Indemnified Person is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee Indemnified Person in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee Indemnified Person of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee Indemnified Person of its election within 30 days after receipt of such notice from the IndemniteeIndemnified Person, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee Indemnified Person shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee Indemnified Person of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee Indemnified Person under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee Indemnified Person in connection with the defense thereof; provided provided, that if the defendants in any -------- such claim include both the Indemnifying Party and one or more Indemnitees Indemnified Persons and in such IndemniteesIndemnified Persons' reasonable judgment a conflict of interest between such Indemnitees Indemnified Persons and such Indemnifying Party exists in respect of such claim, such Indemnitees Indemnified Persons shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee Indemnified Person may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee Indemnified Person may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee Indemnified Person for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee Indemnified Person elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the IndemniteeIndemnified Person's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the IndemniteeIndemnity, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee Indemnified Person shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee Indemnified Person to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee Indemnified Person shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(fe) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee Indemnified Person to the Indemnifying Party.
(gf) In the event of payment by an Indemnifying Party to any Indemnitee Indemnified Person in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee Indemnified Person as to any events or circumstances in respect of which such Indemnitee Indemnified Person may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party ClaimClaim or against any other party that may be liable. Such Indemnitee Indemnified Person shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 2 contracts
Samples: Distribution Agreement (Choice Hotels International Inc/), Distribution Agreement (Choice Hotels International Inc)
Procedure for Indemnification. (a) Except as In the event that any Indemnitee shall incur or suffer any Losses in respect of which indemnification may be set forth in sought hereunder, the Indemnitee shall assert a Related Agreement, if claim for indemnification by written notice (the "Notice") to the Indemnitor stating the nature and basis of such claim. Promptly after receipt by an Indemnitee shall receive of written notice or otherwise learn of the assertion by of a Person (including, without limitation, any governmental entity) who is not a party to this Agreement claim or to any of the Related Agreements commencement of any claim action, litigation or of the commencement proceeding by any such Person of any Action third party (a "Third-Party Claim") with respect to any matter for which an Indemnifying Party indemnification is or may be obligated to provide indemnification owing pursuant to this AgreementSection 11.3, such the Indemnitee shall give notice to the Indemnitor and shall thereafter keep the Indemnitor informed of all other information it receives with respect thereto; provided, that failure of the Indemnitee to give the Indemnitor prompt notice and such Indemnifying Party written notice thereof promptly after becoming aware other information as provided herein shall not relieve the Indemnitor of any of its obligations hereunder unless and then only to the extent that the Indemnitor shall have been actually prejudiced thereby. The parties each agree to cooperate and will cause the Indemnitor to cooperate with and render such assistance as may reasonably be requested in order to insure the proper and adequate defense of any such Third-Party Claim; provided that Claim or proceeding, which assistance shall include, without limitation, making appropriate personnel reasonably available for any discovery or trial. If the failure Indemnitor fails or refuses to undertake the defense of any Indemnitee to give notice as required by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount within thirty (estimated if necessary30) days after delivery of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromisenotice, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled shall have the right to indemnification hereunder in respect of such Third-Party Claim. Within 30 days take exclusive control of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or soonerdefense, if the nature negotiation and/or settlement of such Third-Party Claim so requires), at the Indemnifying Party shall notify Indemnitor's expense. Neither the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, Indemnitor nor the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such without the consent of the other, which consent shall not be unreasonably withheld or delayed; provided, that any settlement or compromise contemplates as includes an unconditional term thereof release of the giving by such claimant Indemnitee from all liabilities or plaintiff obligations relating to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 2 contracts
Samples: Merger Agreement (Registry Magic Inc), Merger Agreement (Registry Magic Inc)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an If any Indemnitee shall receive receives notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Third- Party Claim") Claim with respect to which an Indemnifying Party may be is obligated under this Agreement to provide indemnification pursuant to this Agreementindemnification, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided provided, however, that the failure ------------------------------------------------------ of any Indemnitee to give notice as required by provided in this Section 5.04 4.04 -------------------- shall not relieve the any Indemnifying Party of its obligations under this Article VIV, except to the extent that such Indemnifying Party is actually prejudiced by such failure to give notice. Such notice shall describe the such Third-Party Claim in reasonable detaildetail and, and if practicable, shall indicate the estimated amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromiseParty, at such Indemnifying Party's own expense and through counsel chosen by such Indemnifying Party's own counselParty (which counsel shall be reasonably satisfactory to the Indemnitee), may elect to defend any Third-Party Claim; provided, provided however, that such an election ----------------------------------------------- by the Indemnifying Party must confirm in writing that it agrees that shall be deemed ------------------- 19 an admission of its obligation to Indemnify the Indemnitee is entitled with respect to indemnification hereunder in respect of such Third-Party Claim. Within 30 days If an Indemnifying Party elects to defend a Third- Party Claim, then, within ten (10) Business Days after receiving notice of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) such Third-Party Claim (or sooner, if the nature of such Third-Party Claim so requires), the such Indemnifying Party party shall notify the Indemnitee of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)do so, and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Third- Party Claim. Such Indemnifying Party shall pay such Indemnitee's reasonable out-of-pocket expenses incurred in connection with such cooperation. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for the defense of a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V IV for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided provided, however, that if such Indemnitee shall have the defendants in any right ------------------------------------------------------------ to employ one law firm as counsel to represent such claim include both Indemnitee (which firm ----------------- shall be reasonably acceptable to the Indemnifying Party and one or more Indemnitees and Party) if, in such Indemnitees' Indemnitee's reasonable judgment judgment, either a conflict of interest between such Indemnitees Indemnitee and such Indemnifying Party exists in respect of such claimclaim or there may be defenses available to such Indemnitee which are different from or in addition to those available to such Indemnifying Party, such Indemnitees shall have the right to employ separate counsel and in that event (1) the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying PartyParty and (2) each of such Indemnifying Party and such Indemnitee shall have the right to run its own defense in respect of such claim. If an Indemnifying Party elects not to assume responsibility for defend against a Third- Party Claim, or fails to notify an Indemnitee of its election as provided in this Section 4.04 within the period of ten (10) Business Days described above, such Indemnitee may defend, compromise and settle such Third- Party Claim; provided, however, that no such Indemnitee may compromise or settle ----------------- any such Third-Party Claim (without the prior written consent of the Indemnifying Party, which election may consent shall not be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claimwithheld unreasonably. Notwithstanding the foregoing, an Indemnitee may not the Indemnifying Party shall not, without the prior consent of the Indemnitee, (1) settle or compromise any claim without prior written notice Third- Party Claim or consent to the Indemnifying Party, entry of any judgment which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall does not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates include as an unconditional term thereof the giving delivery by such the claimant or plaintiff to the Indemnitee of a written release from all liability Liability in respect of such Third- Party Claim or (2) settle or compromise any Third-Party Claim (and provided further in any manner that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by adversely affect the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 2 contracts
Samples: Distribution Agreement (Ventiv Health Inc), Distribution Agreement (Ventiv Health Inc)
Procedure for Indemnification. (a) Except An Indemnified Party shall give prompt written notice (a "Claim Notice") to the Escrow Agent, with a copy to the Major Shareholder, of any claim or event known to it which does, or in its reasonable judgment may, give rise to a claim for indemnification hereunder (an "Indemnifiable Claim") by the Indemnified Party against the Major Shareholder; provided that the failure of any Indemnified Party to give Claim Notice as may be set forth provided in a Related this Section 3(a) shall not relieve the Major Shareholder of its obligations under this Agreement, if an Indemnitee shall receive notice or otherwise learn except to the extent that such failure has materially and adversely affected the rights of the assertion Major Shareholder. A Claim Notice shall specify the basis for and estimated amount of such Indemnifiable Claim. In the case of any claim for indemnification hereunder arising out of a claim, action, suit or proceeding brought by a any Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") ), the Indemnified Party shall also give the Major Shareholder copies of any written claims, process or legal pleadings with respect to which an Indemnifying such Third-Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof Claim promptly after becoming aware such documents are received by the Indemnified Party.
(b) The Indemnified Party shall be entitled to control the defense of such any Third-Party Claim; provided, however, that the Major Shareholder may elect, at its own cost and expense, to participate in any Third-Party Claim; provided further, however, that the failure of any Indemnitee to give notice as required by this Section 5.04 Major Shareholder shall not relieve the Indemnifying Party of its obligations under this Article V, except take any action with respect to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detailbefore consulting with, and receiving the consent of, each Indemnified Party involved. The Major Shareholder shall indicate reasonably cooperate in the amount (estimated if necessary) of the Indemnifiable Loss that has been compromise of, or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromisedefense against, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days The Major Shareholder shall pay its own costs and expenses incurred in connection with such cooperation. The Indemnified Party shall not consent to entry of any judgement or enter into any settlement without the prior written consent of the receipt of notice from an Indemnitee in accordance with Section 5.04(aMajor Share holder (which consent shall not be unreasonably withheld).
(c) If the Indemnified Party elects not to compromise or defend against a Third-Party Claim, the Major Shareholder shall pay, compromise or defend such Third-Party Claim at the Major Shareholder's own cost and expense. Major Shareholder shall, within ten days (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee Indemnified Party of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemniteepay, the Indemnifying Party shall be deemed to have elected not to assume responsibility for compromise or defend such Third-Party Claim), and such Indemnitee Indemnified Party shall reasonably cooperate in the compromise of, or defense against, such Third-Party Claim. The Major Shareholder shall pay the Indemnified Party's costs and expenses incurred in connection with such cooperation. The Major Shareholder shall not consent to entry of any judgment or enter into any settlement without the prior written consent of each related Indemnified Party (which consent shall not be unreasonably withheld), unless such judgment or settlement provides solely for money damages or compromise other money payments for which such Indemnified Party is entitled to indemnification hereunder and includes as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect of such Third-Party Claim. After notice from an Indemnifying Party the Major Shareholder to an Indemnitee Indemnified Party of its election to assume responsibility for the defense of a Third-Party Claim, such Indemnifying Party the Major Shareholder shall not be liable to such Indemnitee Indemnified Party under this Article V Sections 2 or 3 hereof for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee Indemnified Party in connection with the defense thereof; provided that if such Indemnified Party shall have the defendants in any right to employ one counsel of its choice to represent such claim include both the Indemnifying Indemnified Party and one or more Indemnitees and if, in such Indemnitees' Indemnified Party's reasonable judgment judgment, a conflict of interest between such Indemnitees Indemnified Party and such Indemnifying Party the Major Shareholder exists in respect of such claim, such Indemnitees shall or if there is a reasonable likelihood that a Third-Party Claim may have the right to employ separate counsel a material adverse effect on an Indemnified Party, and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defenseMajor Shareholder.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) If the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss Losses shall, at any time subsequent to the payment required by pursuant to this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee Indemnified Party to the Indemnifying PartyMajor Shareholder.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 2 contracts
Samples: Indemnification Agreement (Eagle Merger Corp), Indemnification Agreement (Softworks Inc)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if If an Indemnitee shall receive notice or otherwise learn of the assertion by a Person person (including, without limitation, including any governmental entity) who is not a party Party to this Agreement or to any of the Related Agreements Transaction Documents of any claim or of the commencement by any such Person of any Action action (a "“Third-Party Claim"”) with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided provided, however, that the failure of any Indemnitee to give notice as required by this Section 5.04 6.6 shall not relieve the Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's ’s own expense and by such Indemnifying Party's ’s own counselcounsel reasonably acceptable to the Indemnitee, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a6.6(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 thirty (30) days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V IV for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided provided, however, that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' ’ reasonable judgment there exists a conflict of interest between such Indemnitees and such the Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 6.2 or 5.026.3, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim Claim without prior written notice to the Indemnifying Party, which shall have the option within ten fifteen (15) days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's ’s right to contest the Indemnitee's ’s right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense, within the reasonable discretion of the Indemnifying Party.
(d) Notwithstanding anything else in this Section 5.04 6.6 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless (i) such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim Claim, and (and provided further that ii) such settlement may does not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee)unless Indemnitee consents thereto. In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, Claim free of any participation by such Indemnifying Party, at such Indemnitee's ’s sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the such offer to settle of settlement or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) ), plus (ii) the lesser less of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's ’s continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 thirty (30) days after the receipt of such notice within which to respond theretonotify the Indemnitee of the Indemnifying Party’s response to the claim. If such the Indemnifying Party does not respond within so notify the Indemnitee during such 1530-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 1530-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party Party under applicable law or under this AgreementAgreement or any other agreement or arrangement between the parties.
(f) In addition to any adjustments required pursuant to Section 5.036.5, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 2 contracts
Samples: Separation and Distribution Agreement (MachTen, Inc.), Separation and Distribution Agreement (MachTen, Inc.)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an Indemnitee An Indemnified Party shall receive give written notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party ClaimClaim Notice") with respect to which an Indemnifying Party may be any entity or Person who is obligated to provide indemnification pursuant (an "Indemnifying Party") for any claim under this ARTICLE 8 (an "Indemnification Claim"), reasonably promptly, but in any event (A) prior to this Agreementexpiration of any applicable survival period set forth in Section 9.1, and (B) if such Indemnitee shall give such Indemnifying Indemnification Claim relates to the assertion against an Indemnified Party of any claim by a third party (a "third party action"), within forty-five (45) days after receipt by the Indemnified Party of written notice thereof promptly after becoming aware of a legal process relating to such Third-Party Claimthird party action; provided provided, however, that the failure of any Indemnitee to give notice as required by this Section 5.04 so notify the Indemnifying Party within such time period shall not relieve the Indemnifying Party of its obligations under this Article Vany obligation or liability to the Indemnified Party, except to the extent that such the Indemnifying Party demonstrates that its ability to resolve such Indemnification Claim is prejudiced by materially and adversely affected thereby. An Indemnified Party shall not submit a Claim Notice unless it certifies in writing that it believes in good faith that it is entitled to be indemnified with respect to the Damages specified in such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such IndemniteeNotice.
(b) Unless the Indemnifying Party contests the Indemnification Claim in a writing given to the Indemnified Party within thirty (30) days after receipt of a Claim Notice and describing in reasonable detail the basis for contesting the Indemnification Claim, the Indemnified Party shall, subject to the other terms of this ARTICLE 8, be paid the amount of Damages related to such Indemnification Claim or the uncontested portion thereof. An Indemnifying Party may elect to defend shall not contest any Indemnification Claim (or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm portion thereof) unless it certifies in writing that it agrees believes in good faith that the Indemnitee Indemnified Party is not entitled to indemnification hereunder be indemnified with respect to the Damages specified in respect of such Third-Party Claimclaim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Any disputed Indemnification Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice resolved either (i) to disapprove the settlement in a written agreement signed by Buyer and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, Seller or (ii) to disapprove by the settlement and continue to refrain from participation in the defense final decision of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records a court or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defensetrier of fact.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 2 contracts
Samples: Asset Purchase Agreement (NCR Corp), Asset Purchase Agreement (NCR Corp)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if If an Indemnitee shall receive notice or otherwise learn of the assertion by a Person person (including, without limitation, including any governmental entity) who is not a party to this Agreement or to any of the Related Ancillary Agreements or Conveyance and Assumption Instruments of any claim or of the commencement by any such Person of any Action action (a "“Third-Party Claim"”) with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, each such Indemnitee shall give each such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided provided, however, that the failure of any Indemnitee to give notice as required by this Section 5.04 6.6 shall not relieve the each Indemnifying Party of its obligations under this Article VARTICLE VI, except to the extent that each such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, detail and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by each such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's ’s own expense and by such Indemnifying Party's ’s own counselcounsel reasonably acceptable to each Indemnitee, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the each Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a6.6(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the each Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the each Indemnitee of its election within 30 days after receipt of such notice from the each Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such each Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an each Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to each such Indemnitee under this Article V ARTICLE VI for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by each such Indemnitee in connection with the defense thereof; provided provided, however, that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' ’ reasonable judgment there exists a conflict of interest between such Indemnitees and such the Indemnifying Party exists in respect of such claimParty, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by each such Indemnifying Party. If an any Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 6.2 or 5.026.3, as the case may be) ), each such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim Claim without prior written notice to the each such Indemnifying Party, which shall have the option within ten fifteen days following the receipt of such notice (i) to disapprove reject the settlement and assume all past and future responsibility for the claim, including reimbursing the each Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove reject the settlement and continue to refrain from participation in the defense of the claim, in which event the each such Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the each Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the each such Indemnifying Party's ’s right to contest the each Indemnitee's ’s right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the such Indemnifying Party makes no response to such written notice from the an Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the each Indemnitee shall make available to such Indemnifying Party any personnel and any books, records records, or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense, within the reasonable discretion of each such Indemnifying Party.
(d) Notwithstanding anything else in this Section 5.04 6.6 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless (i) such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the each Indemnitee of a written release from all liability in respect of such Third-Party Claim and (and provided further that ii) such settlement may does not provide for any non-monetary relief by any Indemnitee without the written consent of Indemnitee)unless each such Indemnitee consents thereto. In the event the any Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, each such Indemnitee may continue to contest such Third-Party Claim, Claim free of any participation by such Indemnifying Party, at each such Indemnitee's ’s sole expense. In such event, the obligation of such Indemnifying Party to each such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of each such Indemnitee prior to the date such Indemnifying Party notifies each such Indemnitee of the such offer to settle of settlement or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which each such Indemnitee declined to accept and (B) the actual out-of-pocket amount each such Indemnitee is obligated to pay subsequent to such date as a result of each such Indemnitee's ’s continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the an Indemnitee to the each applicable Indemnifying Party. Such Each such Indemnifying Party shall have a period of 15 30 days after the receipt of such notice within which to respond theretonotify each applicable Indemnitee of the Indemnifying Party’s response to the claim. If each such Indemnifying Party does not respond within so notify each such 15Indemnitee during such 30-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If each such Indemnifying Party does not respond within such 1530-day period or rejects such claim in whole or in part, each such Indemnitee shall be free to pursue such remedies as may be available to such party Party under applicable law or under this AgreementAgreement or any other agreement or arrangement between the Parties.
(f) In addition to any adjustments required pursuant to Section 5.036.5, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement settlement, or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the each Indemnitee to the each Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 2 contracts
Samples: Separation and Distribution Agreement (Associated Capital Group, Inc.), Separation and Distribution Agreement (Gamco Investors, Inc. Et Al)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an If any Indemnitee shall receive receives notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") Claim with respect to which an Indemnifying Party may be is obligated under this Agreement to provide indemnification pursuant to this Agreementindemnification, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided provided, however, that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 4.2 shall not relieve the any Indemnifying Party of its obligations under this Article V4, except to the extent that such Indemnifying Party is actually prejudiced by such failure to give notice. Such notice shall describe the such Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromiseParty, at such Indemnifying Party's own expense and through counsel chosen by such Indemnifying Party's own counselParty (which counsel shall be reasonably satisfactory to the Indemnitee), may elect to defend any Third-Party Claim, provided that the . If an Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled elects to indemnification hereunder in respect defend a Third-Party Claim, then, within ten (10) Business Days after receiving notice of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) Claim (or sooner, if the nature of such Third-Party Claim so requires), the such Indemnifying Party shall notify the Indemnitee of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)do so, and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for the defense of a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V 4 for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided provided, however, that if such Indemnitee shall have the defendants in any right to employ one law firm as counsel to represent such claim include both Indemnitee (which firm shall be reasonably acceptable to the Indemnifying Party and one or more Indemnitees and Party) if, in such Indemnitees' Indemnitee's reasonable judgment judgment, either a conflict of interest between such Indemnitees Indemnitee and such Indemnifying Party exists in respect of such claimclaim or there may be defenses available to such Indemnitee which are different from or in addition to those available to such Indemnifying Party, such Indemnitees shall have the right to employ separate counsel and in that event (i) the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying PartyParty (it being understood, however, that the Indemnifying Party shall not be liable for the expenses of more than one separate counsel (in addition to local counsel) with respect to any Third-Party Claim (even if against multiple Indemnitees)) and (ii) each of such Indemnifying Party and such Indemnitee shall have the right to conduct its own defense in respect of such claim. If an Indemnifying Party elects not to assume responsibility for defend against a Third-Party Claim Claim, or fails to notify an Indemnitee of its election as provided in this Section 4.2 within the period of ten (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.0210) Business Days described above, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to defend, compromise or and settle such Third-Party Claim; provided, however, that no such Indemnitee may compromise or settle any such Third-Party Claim without the prior written consent of the Indemnifying Party, which consent shall not be withheld unreasonably. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest not, without the amount or reasonableness prior written consent of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(ci) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates consent to the entry of any judgment which does not include as an unconditional term thereof the giving delivery by such the claimant or plaintiff to the Indemnitee of a written release from all liability liability, damage or claims of any nature or kind in respect of such Third-Party Claim or (and provided further that such settlement may not provide for ii) settle or compromise any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of in any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as manner that may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by adversely affect the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 2 contracts
Samples: Investment and Distribution Agreement (Demandstar Com Inc), Investment and Distribution Agreement (Demandstar Com Inc)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if If an Indemnitee shall receive notice or otherwise learn of the assertion by a Person person (including, without limitation, any governmental entityGovernmental Authority) who is not a party to this Agreement or to any of the Related Agreements Merger Agreement of any claim or of the commencement by any such Person person of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice (the "Indemnitee Notice") thereof promptly after becoming aware of such Third-Party Claim; provided provided, however, that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 5.4 shall not relieve the applicable Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice Indemnitee Notice shall describe the Third-Party Claim in reasonable detail, detail and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect The Indemnitee shall provide to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that on request all information and documentation reasonably necessary to support and verify any Losses which the Indemnitee is entitled believes give rise to a claim for indemnification hereunder and shall give the Indemnifying Party reasonable access to all books, records and personnel in respect of such Third-Party Claim. Within 30 days the possession or under the control of the Indemnitee which would have bearing on such claim.
(c) Upon receipt of notice from an the Indemnitee in accordance with Notice required by Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires5.4(a), the Indemnifying Party shall notify be entitled, if it so elects, to take control of the defense and investigation with respect to such claim and to employ and engage attorneys of its own choice to handle and defend the same, at the Indemnifying Party's cost, risk and expense, upon written notice to the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after of receipt of such notice from Indemnitee's notice. The Indemnifying Party shall not settle any third-party claim that is the subject of indemnification without the written consent of the Indemnitee, which consent shall not be unreasonably withheld; provided, however, that the Indemnifying Party shall be deemed may settle a claim without the Indemnitee's consent if such settlement (i) includes a complete release of the Indemnitee and (ii) does not require the Indemnitee to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in make any payment or take any action or otherwise materially adversely affect the defense or settlement or compromise of such Third-Party ClaimIndemnitee. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for the defense of a Third-Party Claim, such Indemnifying Party shall will not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that provided, that, if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall will have the right to employ separate counsel reasonably satisfactory to the Indemnifying Party to represent such Indemnitees, and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Partycounsel) shall will be paid by such Indemnifying Party. .
(d) If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the appropriate Indemnitee shall make available to such (x) cooperate in all reasonable respects with the Indemnifying Party in connection with such defense and (y) not admit any personnel and any booksliability with respect to, records or other documents within its control settle, compromise or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrarydischarge, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the Indemnifying Party's prior written consent of Indemnitee). In the event the Indemnitee shall notify consent.
(e) If the Indemnifying Party in writing that such Indemnitee declines shall decline to accept assume the defense of any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free or shall fail to notify the Indemnitee that it will defend such claim within 30 days after receipt of any participation by the Indemnitee Notice, the Indemnitee shall defend against such claim (provided that the Indemnitee shall not settle such claim without the consent of the Indemnifying Party). The expenses of all proceedings, at such Indemnitee's sole expense. In such event, the obligation contests or lawsuits in respect of such claims shall be borne by the Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) but only if the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such is responsible pursuant to this Article V to indemnify the Indemnitee in respect of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in with respect of to which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(hg) Notwithstanding anything else in this Section 5.04 to the contrary, with With respect to any Action pending at Third-Party Claim for which the time Indemnifying Party assumes responsibility for defense, the Indemnifying Party shall inform the Indemnitee, upon the reasonable written request of the Distribution (a "Pending Action") with Indemnitee, of the status of efforts to resolve such Third-Party Claim. With respect to any Third- Party Claim for which an the Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of does not assume such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemniteeresponsibility, the Indemnitee shall keep inform the Indemnifying Party reasonably informed Party, upon the reasonable written request of the progress ofIndemnifying Party, and of the Indemnifying status of efforts to resolve such Third-Party shall cooperate in, such defense, compromise or settlementClaim.
Appears in 2 contracts
Samples: Merger Agreement (Equity Residential Properties Trust), Merger Agreement (Equity Residential Properties Trust)
Procedure for Indemnification. The procedure for indemnification shall be as follows:
(a) Except as may be set forth in a Related Agreement, if an Indemnitee The Party seeking indemnification under this Article 12 (the “Claimant”) shall receive give notice or otherwise learn of to the assertion by a Person Party from whom indemnification is sought (including, without limitation, any governmental entitythe “Indemnitor”) who is not a party to this Agreement or to any of the Related Agreements of any claim or liability that might result in an indemnified Loss (an “Indemnified Claim”), specifying in reasonable detail (i) the factual basis for and circumstances surrounding the Indemnified Claim; and (ii) the amount of the commencement potential Loss pursuant to the Indemnified Claim if then known. If the Indemnified Claim relates to a Proceeding filed by any such Person a third party against Claimant, notice shall be given by Claimant as soon as practical, but in all events within fifteen (15) business days after Claimant learns of any Action the Proceeding or written notice of the Proceeding is given to Claimant. In all other circumstances, notice shall be given by Claimant as soon as practical, but in all events within twenty (a "Third-Party Claim"20) with respect business days after Claimant becomes aware of the facts giving rise to which an Indemnifying Party may the potential Loss; provided, however, that should the Claimant fail to notify the Indemnitor in the time required above, the Indemnitor shall only be obligated to provide indemnification relieved of its obligations pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article V, except 12 to the extent that such Indemnifying Party the Indemnitor is materially prejudiced by such delay or failure to timely give notice. Such notice shall describe the Third-Party of an Indemnified Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemniteepotential Loss.
(b) An Indemnifying Party The Claimant shall make available to Indemnitor and/or its authorized representatives the information relied upon by the Claimant to substantiate the Indemnified Claim or Loss and shall make available any information or documentation in Claimant’s possession, custody or control that is or may elect be helpful in defending or responding to defend the Indemnified Claim or Loss.
(c) The Indemnitor shall have thirty (30) days after receipt of the indemnification notice referred to seek in sub-section (a) to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that notify the Indemnifying Party must confirm Claimant in writing that it agrees that elects to conduct and control the Indemnitee defense of any such Indemnified Claim; provided, however, such thirty (30) day period shall be reduced to such shorter period of time set forth in the applicable indemnification notice if the Indemnified Claim or Loss is entitled based upon a third-party claim requiring a response in fewer than thirty (30) days.
(d) If the Indemnitor does not advise the Claimant of its intent to indemnification hereunder in respect of such Third-Party Claim. Within 30 days conduct and control the defense of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (Indemnified Claim or sooner, if Proceeding within the nature of such Third-Party Claim so requires)time period specified above, the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees Claimant shall have the right to employ separate defend, contest, settle, or compromise such Indemnified Claim or Proceeding. If the Indemnitor properly advises the Claimant that it will conduct and control the Indemnification Claim or Proceeding, the Indemnitor shall have the right to undertake, conduct, defend, and control, through counsel of its own choosing and at its sole expense, the conduct, defense, and settlement of the Indemnified Claim or Proceeding, and the Claimant shall cooperate with the Indemnitor in that event connection therewith; provided, however, that: (i) the reasonable Indemnitor shall not consent to the imposition of any injunction against the Claimant without the prior written consent of the Claimant, which consent shall not be unreasonably withheld; (ii) the Indemnitor shall permit the Claimant to participate in such conduct or settlement through counsel chosen by the Claimant, but the fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid borne by the Claimant; (iii) upon a final determination of Proceeding, the Indemnitor shall promptly reimburse the Claimant for the full amount of any indemnified Loss or indemnified portion of any Loss resulting from the Indemnified Claim or Proceeding and all reasonable expenses related to such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility indemnified Loss incurred by the Claimant, except (A) fees and expenses of counsel for a Third-Party Claim (which election may be made only the Claimant in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 Indemnitor has conducted or 5.02, as controlled the case may beProceeding and (B) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may any Loss not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement indemnifiable by Indemnitor; and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay no Indemnitor may, without the settlement. In prior written consent of the event the Indemnifying Party makes no response to such written notice from the IndemniteeClaimant, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend settle or to seek to compromise any Third-Party Claimcompromise, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 consent to the contraryentry of any judgment in connection with, an Indemnifying Party shall not settle or compromise any Third-Party Claim Proceeding with respect to the claim described in the indemnification notice unless (A) such settlement or compromise contemplates as an unconditional term thereof involves only the giving by such claimant or plaintiff to the Indemnitee payment of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and money; (B) there is no finding or admission of liability, any violation of any Law or any violation of the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result rights of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given any Person by the Indemnitee to Claimant; and (C) the applicable Indemnifying Party. Such Indemnifying Party shall have a period Indemnitor obtains an unconditional release of 15 days after each Claimant from all Indemnified Claims or potential Loss arising out of the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand described in the place of such Indemnitee as to indemnification notice and any events Indemnified Claim or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claimProceeding related thereto.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 2 contracts
Samples: Asset Purchase Agreement (Emmis Communications Corp), Asset Purchase Agreement (Emmis Communications Corp)
Procedure for Indemnification. (a) Except as may if a party entitled to be set forth in a Related Agreement, if indemnified under this Agreement (an Indemnitee shall receive "Indemnitee") receives notice or otherwise learn of the assertion by an unaffiliated third party (a Person (including, without limitation, any governmental entity"Third Party") who is not a party to this Agreement or to any of the Related Agreements of any claim or potential liability or of the commencement by any such Person person of any Action action or proceeding (a "Third-Third Party Claim") with respect to which another party hereto (an "Indemnifying Party may be Party") is obligated to provide indemnification pursuant to this Agreementindemnification, such the Indemnitee shall give such the Indemnifying Party written prompt notice thereof promptly after becoming aware of such Third-Third Party Claim; provided that the failure of any Indemnitee to give notice as required by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Third Party Claim in reasonable detail, detail and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by the Indemnitee. Such notice shall be a condition precedent to any liability of the Indemnifying Party for any Third Party Claim under the provisions for indemnification contained in this Agreement; provided, however, that the failure of the Indemnitee to give prompt notice to the Indemnifying Party of such Third Party Claim shall adversely affect the Indemnitee's rights to indemnification hereunder solely to the extent that such failure prejudices the Indemnifying Party in the defense of such Third Party Claim.
(b) An The Indemnifying Party may elect to defend compromise or to seek to settle or compromisedefend, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Third Party Claim. If the Indemnifying Party elects to compromise or defend such Third Party Claim, provided that it shall, within 30 days after receiving notice of the Third Party Claim, notify the Indemnitee of its intent to do so, and the Indemnitee shall cooperate, at the expense of the Indemnifying Party, in the compromise of, or defense against, such Third Party Claim. If the Indemnifying Party must confirm in writing that it agrees that elects not to compromise or defend against the Indemnitee is entitled to indemnification hereunder in respect of such Third-Third Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (, or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall fails to notify the Indemnitee of its election whether to assume responsibility for as herein provided, or otherwise abandons the defense of such Third-Third Party Claim, (i) the Indemnitee may pay (without prejudice of any of its rights as against the Indemnifying Party), compromise or defend such Third Party Claim and (provided that if ii) the costs and expenses of the Indemnitee incurred in connection therewith shall be indemnifiable by the Indemnifying Party does not so notify pursuant to the terms of this Agreement.
(c) In addition, in connection with any Third Party Claim in which the Indemnitee shall reasonably conclude, based upon an opinion of its election within 30 days after receipt counsel, that (i) there is a conflict of interest between the Indemnifying Party and the Indemnitee in the conduct of the defense of such notice Third Party Claim or (ii) there are specific defenses available to the Indemnitee which are different from or additional to those available to the IndemniteeIndemnifying Party and which could be materially adverse to the Indemnifying Party, then the Indemnitee shall have the right to retain separate counsel in connection with such Third Party Claim. In such an event, the Indemnifying Party shall be deemed pay the reasonable fees and disbursements of counsel to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise each of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel Indemnitee.
(but not more than one separate counsel reasonably satisfactory to the Indemnifying Partyd) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an neither the Indemnifying Party nor the Indemnitee may not settle or compromise any claim without prior written notice (unless the sole relief payable to a Third Party in respect of such Third Party Claim is monetary damages that are paid in full by the party settling or compromising such claim) over the objection of the other, provided, however, that consent to settlement or compromise shall not be unreasonably withheld.
(e) In any event, except as otherwise provided herein, the Indemnitee and the Indemnifying PartyParty may each participate, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claimat its own expense, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying such Third Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii)Claim.
(cf) If an the Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claimclaim, the Indemnitee shall make available to such the Indemnifying Party any personnel and or any books, records or other documents within its control or which it otherwise has the ability to make available that are reasonably necessary or appropriate for such defense, subject to the receipt of appropriate confidentiality agreements.
(dg) Notwithstanding anything else to the contrary stated hereinabove in this Section 5.04 section, in the event prompt action is required with respect to the contrarydefense of a Third Party Claim, an the Indemnitee shall, subject to the terms and conditions of this Article, have the right to assume the defense of such Third Party Claim; provided, however, that in the event that the Indemnifying Party subsequently elects to assume the defense of such Third Party Claim, then the provisions set forth hereinabove shall not be applicable and the Indemnifying Party shall, subject to the terms and conditions of this Article, reimburse the Indemnitee for any costs and expenses incurred by the Indemnitee prior to the date the Indemnifying Party assumes control of such Third Party Claim.
(h) Notwithstanding the foregoing, if an offer of settlement or compromise is received by or communicated to the Indemnifying Party with respect to a Third Party Claim and the Indemnifying Party notifies the Indemnitee in writing of the Indemnifying Party's willingness to settle or compromise any Third-such Third Party Claim unless on the basis set forth in such settlement or compromise contemplates as an unconditional term thereof notice and the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such the Indemnitee may continue to contest such Third-Third Party Claim, free of any participation by such the Indemnifying Party, at such the Indemnitee's sole expense. In such event, the The obligation of such the Indemnifying Party to such the Indemnitee with respect to such Third-Third Party Claim shall be equal to the lesser of (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee amount of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such the Indemnitee declined to accept plus the costs and expenses of the Indemnitee prior to the date the Indemnifying Party notifies the Indemnitee of the Indemnifying Party's willingness to settle or compromise such Third Party Claim or (Bii) the actual out-of-pocket amount such the Indemnitee is obligated to pay subsequent to such date as a result of such the Indemnitee's continuing to pursue contest such ThirdThird Party Claim including costs and expenses with respect thereto; and the Indemnifying Party shall be entitled to recover (by set-off or otherwise) from the Indemnitee any additional expenses incurred by the Indemnifying Party as a result of the Indemnitee's decision to continue to contest such Third Party Claim.
(ei) Any claim on account of an Indemnifiable a Loss which does not result from involve a Third-Third Party Claim shall be asserted by a written notice given by the Indemnitee party claiming indemnity to the applicable Indemnifying Partyparty from which indemnity is claimed. Such Indemnifying Party The recipient of such notice shall have a period of 15 for 60 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party recipient does not respond within such 1560-day period, such Indemnifying Party recipient shall be deemed to have refused to accept accepted responsibility to make payment, subject to the provisions hereof, and shall have no further right to contest the validity of such claim. If such Indemnifying Party the recipient does not respond within such 1560-day period or and rejects such claim in whole or in part, such Indemnitee the party claiming indemnity shall be free to pursue such remedies as may be available to such party under by applicable law or under this Agreementlaw.
(fj) In addition to any adjustments required pursuant to Section 5.03, if If the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by of indemnification pursuant to this Agreement, be reduced by recovery, settlement or otherwisereceipt of insurance proceeds by the Indemnitee in respect of such Loss, the amount of such reduction, reduction less any expenses incurred in connection therewith, therewith shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(hk) Notwithstanding anything else to the contrary contained in this Agreement, no claim shall be made against Seller for indemnification under Section 5.04 to the contrary, 12.1(a) with respect to any Action pending at Loss which any of Purchaser's Indemnified Parties may suffer, incur or sustain unless the time aggregate of all such Losses described in Section l2.l(a) shall exceed $150,000, and Seller shall only be required to pay or be liable for any such Losses described in Section l2.l(a) to the extent that their aggregate amount exceeds $150,000, and then only with respect to Losses incurred in excess of such amount, provided, however, that the $150,000 limitation contained in this Section 12.3(k) shall not apply to, and Purchaser's Indemnified Parties shall be entitled to dollar-for-dollar recovery with respect to, Losses suffered, incurred or sustained which arise out of, result from or are attributable to breaches of the Distribution representations contained in Sections 3.5 and 3.12 hereof.
(a "Pending Action"l) Notwithstanding anything to the contrary contained in this Agreement, no claim shall be made against Purchaser for indemnification under Section 12.2(a) with respect to any Loss which an Indemnifying Party any of Seller's Indemnified Parties may suffer, incur or sustain unless the aggregate of all such Losses described in Section 12.2(a) shall exceed $150,000, and Purchaser shall only be obligated required to provide indemnification pursuant pay or be liable for any such Losses described in Section 12.2(a) to this Agreementthe extent that their aggregate amount exceeds $150,000, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement and then only with respect to Losses incurred in excess of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlementamount.
Appears in 2 contracts
Samples: Purchase and Sale Agreement (First Nationwide Holdings Inc), Purchase and Sale Agreement (First Nationwide Parent Holdings Inc)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an If any Indemnitee shall receive receives notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") Claim with respect to which an Indemnifying Party may be is obligated under this Separation Agreement to provide indemnification pursuant to this Agreementindemnification, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided provided, however, that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 3.2 shall not relieve the any Indemnifying Party of its obligations under this Article V3, except to the extent that such Indemnifying Party is actually prejudiced by such failure to give notice. Such notice shall describe the such Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromiseParty, at such Indemnifying Party's own expense and through counsel chosen by such Indemnifying Party's own counselParty (which counsel shall be reasonably satisfactory to the Indemnitee), may elect to defend any Third-Party Claim, provided that the . If an Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled elects to indemnification hereunder in respect defend a Third-Party Claim, then, within ten (10) Business Days after receiving notice of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) Claim (or sooner, if the nature of such Third-Party Claim so requires), the such Indemnifying Party shall notify the Indemnitee of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)do so, and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for the defense of a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V 3 for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided provided, however, that if such Indemnitee shall have the defendants in any right to employ one law firm as counsel to represent such claim include both Indemnitee (which firm shall be reasonably acceptable to the Indemnifying Party and one or more Indemnitees and Party) if, in such Indemnitees' Indemnitee's reasonable judgment judgment, either a conflict of interest between such Indemnitees Indemnitee and such Indemnifying Party exists in respect of such claimclaim or there may be defenses available to such Indemnitee which are different from or in addition to those available to such Indemnifying Party, such Indemnitees shall have the right to employ separate counsel and in that event (i) the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying PartyParty (it being understood, however, that the Indemnifying Party shall not be liable for the expenses of more than one separate counsel (in addition to local counsel) with respect to any Third-Party Claim (even if against multiple Indemnitees)) and (ii) each of such Indemnifying Party and such Indemnitee shall have the right to conduct its own defense in respect of such claim. If an Indemnifying Party elects not to assume responsibility for defend against a Third-Party Claim Claim, or fails to notify an Indemnitee of its election as provided in this Section 3.2 within the period of ten (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.0210) Business Days described above, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to defend, compromise or and settle such Third-Party Claim; provided, however, that no such Indemnitee may compromise or settle any such Third-Party Claim without the prior written consent of the Indemnifying Party, which consent shall not be withheld unreasonably. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest not, without the amount or reasonableness prior written consent of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(ci) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates consent to the entry of any judgment which does not include as an unconditional term thereof the giving delivery by such the claimant or plaintiff to the Indemnitee of a written release from all liability liability, damage or claims of any nature or kind in respect of such Third-Party Claim or (and provided further that such settlement may not provide for ii) settle or compromise any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of in any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as manner that may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by adversely affect the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 2 contracts
Samples: Separation Agreement (Zapata Corp), Separation Agreement (Omega Protein Corp)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided PROVIDED that the failure of any Indemnitee to give notice as required by this Section 5.04 5.05 shall not relieve the Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a5.05(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided PROVIDED that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 5.01, 5.02 or 5.025.03, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 5.05 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus PLUS (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.035.04, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 5.05 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC Excel, EDV or Healthcare Legacy shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an Indemnitee If any party entitled to indemnification under Section 10.2 (which for purposes of this Section 10.5 and Section 10.7 shall include the Surviving Corporation and Parent) (the "Indemnified Party") shall receive notice or otherwise learn of the assertion by a any other Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action action (a "Third-Third Party Claim") with respect to which an Indemnifying Party a party may be obligated to provide indemnification pursuant to this AgreementSection 10.2 (the "Indemnifying Party"), such Indemnitee Indemnified Party shall give such Indemnifying Party written notice thereof promptly to the Indemnifying Party (or to the Equity Holders' Representatives if the Indemnifying Party is an Equity Holder) within 10 business days after becoming aware of such Third-Third Party Claim; provided provided, however, that the failure of any Indemnitee Indemnified Party to give notice as required by provided in this Section 5.04 10.5 shall not relieve the Indemnifying Party of its obligations under this Article VSection 10.2, except to the extent that such the Indemnifying Party actually is prejudiced by such failure to give notice. Such notice shall describe the Third-Third Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss Damages that has been or may be sustained by such IndemniteeIndemnified Party. Thereafter, such Indemnified Party shall deliver to the Indemnifying Party (or to the Equity Holders' Representatives if the Indemnifying Party is an Equity Holder) within 5 business days after the Indemnified Party's receipt thereof, copies of all notices and documents received by the Indemnified Party relating to the Third Party Claim (including court papers).
(b) An Indemnifying In case any Third Party may elect to defend or to seek to settle or compromiseClaim is brought against a Parent Indemnitee, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is Equity Holders' Representatives will be entitled to indemnification hereunder participate in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether and to assume responsibility for the defense thereof to the extent that they may wish, with counsel reasonably satisfactory to such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days Parent Indemnitee, and after receipt of such notice from the IndemniteeEquity Holders' Representatives of their election so to assume the defense thereof, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall Equity Holders will not be liable to such Parent Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Parent Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses the Equity Holders' Representatives choose to defend or to seek to compromise or settle any Third-Third Party Claim, the each related Parent Indemnitee shall make available to such Indemnifying Party the Equity Holders' Representatives any personnel and or any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense, settlement or compromise, and shall otherwise cooperate in the defense, settlement or compromise of such Third Party Claim.
(d) No Third Party Claim made against any Indemnified Party shall be settled without the prior written consent of the Indemnifying Party. Notwithstanding anything else in this Section 5.04 10.5 to the contrary, an Indemnifying Party neither the Equity Holders' Representatives nor any Parent Indemnitee shall not settle or compromise any Third-Third Party Claim unless such settlement or compromise contemplates as an unconditional term thereof of the giving by such claimant or 49 56 plaintiff to the each related Parent Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Third Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party the Equity Holders to any Parent Indemnitee in connection with any Third-Third Party ClaimClaim of the full amount payable under Section 10.2 in respect thereof, such Indemnifying Party the Equity Holders shall be subrogated to and shall stand in the place of such Parent Indemnitee as to any events or circumstances in respect of which such Parent Indemnitee may have any right or claim relating to such Third-Third Party Claim against any claimant or plaintiff asserting such Third-Third Party ClaimClaim or as against any other Person. Such In such event, such Parent Indemnitee shall cooperate with such Indemnifying Party the Equity Holders in a reasonable manner, and at the cost and expense of such Indemnifying Partythe Equity Holders, in prosecuting prospecting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Procedure for Indemnification. (a) Except as may be set forth in Any Person or entity entitled to assert a Related Agreement, if an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to claim for indemnification under this Agreement or (the "Indemnitee") shall give prompt written notice to any of the Related Agreements indemnifying party (the "Indemnitor") of any claim or of event known to it which does or may give rise to a claim for indemnification hereunder by the commencement by any such Person of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claimagainst the Indemnitor; provided that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 7.3 shall not relieve the Indemnifying Party Indemnitor of its obligations under this Article VSection 7, except to the extent that such Indemnifying failure has materially and adversely affected the rights of the Indemnitor. In the case of any claim for indemnification hereunder arising out of a claim, action, suit or pro- ceeding brought by any Person who is not a party to this Agreement (a "Third Party is prejudiced by Claim"), the Indemnitee shall also give the Indemnitor copies of any written claims, process or legal pleadings with respect to such failure to give notice. Such notice shall describe the Third-Third Party Claim in reasonable detail, and shall indicate promptly after such documents are received by the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party Indemnitor may elect to defend compromise or to seek to settle or compromisedefend, at such Indemnifying PartyIndemnitor's own expense and by such Indemnifying PartyIndemnitor's own counsel, any Third-Third Party Claim. If an Indemnitor elects to compromise or defend a Third Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within shall, within 30 days of the date of its receipt of the notice from an Indemnitee in accordance with provided pursuant to Section 5.04(a7.3(a) hereof (or sooner, if the nature of such Third-Third Party Claim so requires), the Indemnifying Party shall notify the related Indemnitee of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)do so, and such Indemnitee shall reasonably cooperate in the compromise of, or defense or settlement or compromise of against, such Third-Third Party Claim. Such Indemnitor shall pay such Indemnitee's actual out-of-pocket expenses incurred in connection with such cooperation. After notice from an Indemnifying Party Indemnitor to an Indemnitee of its election to assume responsibility for the defense of a Third-Third Party Claim, such Indemnifying Party Indemnitor shall not be liable to such Indemnitee under this Article V Section 7 for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that such Indemnitee shall have the right to employ one counsel of its choice in each applicable jurisdiction (if the defendants in any more than one jurisdiction is involved) to represent such claim include both the Indemnifying Party and one or more Indemnitees and Indemnitee if, in such Indemnitees' Indemnitee's reasonable judgment judgment, a conflict of interest between such Indemnitees Indemnitee and such Indemnifying Party Indemnitor exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying PartyIndemnitor. If an Indemnifying Party Indemnitor elects not to assume responsibility for compromise or defend against a Third-Third Party Claim (which Claim, or fails to notify an Indemnitee of its election may be made only as provided in the event of a good faith dispute that a claim was inappropriately tendered under this Section 5.01 or 5.027.3, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to pay, compromise or settle defend such Third-Third Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt Claim on behalf of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement account and continue to refrain from participation in the defense risk of the claimIndemnitor. No Indemnitor shall consent to entry of any judgment or enter into any settlement without the written consent of each related Indemnitee (which consent shall not be unreasonably withheld), in which event the Indemnifying Party shall have no further right to contest the amount unless such judgment or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records provides solely for money damages or other documents within its control or money payments for which it otherwise has the ability such Indemnitee is entitled to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates indemnification hereunder and includes as an unconditional term thereof the giving by such the claimant or plaintiff to the such Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Third Party Claim.
(ec) Any claim on account of an Indemnifiable Loss which does not result from If there is a Third-reasonable likelihood that a Third Party Claim shall be asserted by written notice given by the may adversely affect an Indemnitee, other than as a result of money damages or other money payments for which such Indemnitee is entitled to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in partindemnification hereunder, such Indemnitee shall be free will have the right, after consultation with the Indemnitor and at the cost and expense of the Indemnitor, to pursue defend such remedies as may be available to such party under applicable law or under this AgreementThird Party Claim.
(fd) In addition to any adjustments required pursuant to Section 5.03, if If the amount of any Indemnifiable Loss Losses shall, at any time subsequent to the payment required by pursuant to this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Partyrelated Indemnitor.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Samples: Asset Purchase Agreement (CVF Corp)
Procedure for Indemnification. (ai) Except as may be set forth in a Related Agreement, if Any claim for indemnification under this Section 8.1 (an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Indemnification Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance made by the Indemnifying Partyparty claiming indemnification (the "Indemnitee") subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event delivery of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, party against whom indemnification is claimed (the "Indemnitor") requesting indemnification and specifying the basis on which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement indemnification is sought and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of asserted Losses and, in the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee case of a written release from all liability in respect of such Third-Third Party Claim (and provided further that as defined below), containing (by attachment or otherwise) such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the other information as such Indemnitee shall notify the Indemnifying Party in writing that have concerning such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Third Party Claim.
(eii) Any claim on account If the Indemnification Claim involves a Third Party Claim the procedures set forth in Section 8.1(d) shall be observed by the Indemnitee and the Indemnitor.
(iii) If the Indemnification Claim involves a matter other than a Third Party Claim, the Indemnitor shall have thirty (30) days to object to such Indemnification Claim by delivery of an Indemnifiable Loss which does not result from a Third-Party written notice of such objection to such Indemnitee specifying in reasonable detail the basis for such objection. Failure to timely so object shall constitute a final and binding acceptance of the Indemnification Claim by the Indemnitor, and the Indemnification Claim shall be asserted by written notice given paid in accordance with subsection (iv) hereof. If an objection is timely interposed by the Indemnitor and the dispute is not resolved by such Indemnitee to and the applicable Indemnifying Party. Such Indemnifying Party shall have a period of Indemnitor within 15 days after from the receipt of date the Indemnitee receives such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day periodobjection, such Indemnifying Party dispute shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim resolved by arbitration as provided in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this AgreementSection 8.11.
(fiv) In addition to any adjustments required pursuant to Section 5.03, if Upon determination of the amount of an Indemnification Claim, whether by agreement between the Indemnitor and the Indemnitee or by an arbitration award or by any Indemnifiable Loss shallother final adjudication, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, Indemnitor shall pay the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
Indemnification Claim within ten (g10) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time days of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of date such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlementamount is determined.
Appears in 1 contract
Samples: Asset Purchase Agreement (Gorges Quik to Fix Foods Inc)
Procedure for Indemnification. (a) Except as may be set forth A party claiming indemnification under Sections 17.1 or 17.2 (in a Related Agreement, if this Article an Indemnitee "Indemnitee") shall receive give notice or otherwise learn of to the assertion by a Person party against which indemnification is claimed (including, without limitation, any governmental entity) who is not a party to in this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a Article an "Third-Party ClaimIndemnitor") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after reasonable promptness upon becoming aware of the claim or other facts upon which a claim for indemnification will be based. The notice shall set forth such Third-Party Claim; provided that the failure of any Indemnitee to give notice information and be accompanied by such documentation with respect thereto as required by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article V, except is then reasonably available to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect The Indemnitor shall have the right, exercisable by notice to defend or to seek to settle or compromisethe Indemnitee, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 given within 21 days following receipt of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such aforesaid notice from the Indemnitee, to undertake and assume control of the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise defence of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both asserted by a third party (in this Article a "Third Party Claim"), including the Indemnifying Party right of compromise or settlement thereof, and one or more Indemnitees and the Indemnitee shall co-operate in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees defence and such Indemnifying Party exists in make available all information and documentation requested by the Indemnitor with respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).thereto;
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party ClaimUpon the assumption of control by the Indemnitor as aforesaid, the Indemnitee Indemnitor shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has diligently proceed with the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defensedefence, compromise or settlement of such Pending Action prior Third Party Claim at the Indemnitor's sole expense, including employment of counsel reasonably satisfactory to the Distribution Indemnitee; and in connection therewith, the Indemnitee shall co-operate fully with, but at the expense of, the Indemnitor, to continue to handle such defense, compromise or settlement following the Distribution (subject make available to the last two sentences Indemnitor all pertinent information, documentation and witnesses under the Indemnitee's control and take such other steps as in the opinion of subsection counsel for the Indemnitor are necessary or desirable to enable the Indemnitor to conduct such defence.
(d) In the event that the Indemnitor fails to give notice to the Indemnitee as provided in paragraph (b) above). If of this Section 17.3 or in the event that the Indemnitor declines to undertake the defence of any such employees are employed by the IndemniteeThird Party Claim when first notified thereof, the Indemnitee shall keep the Indemnifying Party reasonably informed of Indemnitor advised as to the current status and progress ofthereof, and the Indemnifying Indemnitor shall retain the right to undertake the defence thereof as aforesaid until such Third Party Claim is fully resolved. Unless and until the Indemnitor so undertakes the defence thereof, the Indemnitee agrees not to make any offer of compromise or settlement thereof without first having given 10 days' notice to the Indemnitor. In the event that the Indemnitor so undertakes the defence of any such Third Party Claim the Indemnitee shall cooperate in, such defensenevertheless be entitled to participate in (but not control or direct) the defence, compromise or settlementsettlement thereof with counsel of its own choice, and the parties agree to co-operate fully with one another in connection with the defence, compromise or settlement thereof.
Appears in 1 contract
Samples: Asset Purchase Agreement (United Stationers Supply Co)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an Indemnitee An Indemnified Party shall receive give written notice or otherwise learn (the "Claim Notice") of any Claim for indemnification under this Article VIII to the Shareholder Representative reasonably promptly after the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements against an Indemnified Party of any claim or of the commencement by any such Person of any Action a third party (a "Third-Third Party Claim") with ), or, if such Claim is not in respect of a Third Party Claim, reasonably promptly after the discovery of facts upon which the Indemnified Party intends to which an Indemnifying Party may be obligated to provide base a Claim for indemnification pursuant to this AgreementArticle VIII hereof; provided, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided however, that the failure of any Indemnitee or delay to give notice as required by this Section 5.04 so notify the Shareholder Representative shall not relieve the Indemnifying Shareholder Representative of any obligation or liability that the Shareholder Representative may have to the Indemnified Party of its obligations under this Article V, except to the extent that the Shareholder Representative demonstrates that the indemnifying parties' ability to defend or resolve such Indemnifying Party Claim is prejudiced by adversely affected thereby. Any such failure to give notice. Such notice Claim Notice shall describe the Third-Party facts and circumstances on which the asserted Claim in reasonable detail, for indemnification is based and shall indicate specify how such Indemnified Party intends to recover such funds pursuant to this Agreement and the basis for the determination of the amount (estimated if necessary) of which the Indemnifiable Loss that has been or may be sustained by such IndemniteeIndemnified Party intend to recover.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromiseIf, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within within 30 days of the receipt by the Shareholder Representative of notice a Claim Notice, the Shareholder Representative contests in writing to the Indemnified Party that Losses identified in such Claim Notice constitute indemnifiable Claims (the "Representative Notice"), then the Indemnified Party and the Shareholder Representative, acting in good faith, shall attempt to reach agreement with respect to the contested portions of such Claims. Unless a Claim is contested within such 30-day period, the Indemnified Party shall, subject to the other terms of this Article VIII, be paid the amount of the Losses related to such Claim or the uncontested portion thereof. The Shareholder Representative shall not object to any Claim unless (i) it believes in good faith that the Indemnified Party is not entitled to be indemnified with respect to the Losses specified therein, or (ii) it lacks sufficient information to assess the validity or amount of the Claim. If the Shareholder Representative objects to a Claim on the basis that it lacks sufficient information, it shall promptly request from an Indemnitee the Indemnified Party any additional information reasonably necessary in order for it to assess such Claim and the Indemnified Party shall, to the extent the Indemnified Party reasonably can, provide additional information reasonably requested. Upon receipt of such additional information, the Shareholder Representative shall review it as soon as reasonably practicable and notify the Indemnified Party of any withdrawal or modification of the objection. If the Indemnified Party and the Shareholder Representative are unable to reach agreement with respect to any contested Claims within 45 days of the delivery of the Representative Notice, the matter shall be settled by binding arbitration in Portland, Oregon as set forth below. All claims shall be settled in accordance with Section 5.04(a) the Commercial Arbitration Rules then in effect of the American Arbitration Association (or sooner, if the nature "AAA Rules"). The Shareholder Representative and the Indemnified Party shall each designate one arbitrator within 15 days after the termination of such Third45-day period. The Shareholder Representative and the Indemnified Party Claim so requires)shall cause such designated arbitrators mutually to agree upon and designate a third arbitrator; provided, however, that (i) failing such agreement within 70 days of delivery of the Representative Notice, the Indemnifying third arbitrator shall be appointed in accordance with the AAA Rules and (ii) if either the Shareholder Representative or the Indemnified Party fails to timely designate an arbitrator, the dispute shall be resolved by the one arbitrator timely designated. All of the fees and expenses of the arbitrators shall be paid from proceeds of the Pledged Shares in the event that Amazxx.xxx xx the Purchaser is the prevailing party in a dispute, and all such fees and expenses shall be paid by Amazxx.xxx xx the event that the shareholders or the Shareholder is the prevailing party in a dispute. The Shareholder Representative and the Indemnified Party shall notify cause the Indemnitee arbitrators to decide the matter to be arbitrated pursuant hereto within 30 days after the appointment of its election the last arbitrator. The arbitrators' decision shall relate solely to whether the Indemnified Party is entitled to assume responsibility be indemnified for such Third-the contested Claim, or the contested portion thereof, pursuant to the applicable terms of this Agreement. The final decision of the majority of the arbitrators shall be furnished to the Shareholder Representative and the Indemnified Party Claim in writing and shall constitute the conclusive determination of the issue in question binding upon the Shareholder Representative, the Shareholders, and the Indemnified Party, and shall not be contested by any of them. Such decision may be used in a court of law only for the purpose of seeking enforcement of the arbitrators' decision.
(provided that if i) Subject to the Indemnifying rights of or duties to any insurer or other third party having potential liability therefor, the Shareholder Representative shall have the right, upon written notice given to the Indemnified Party does not so notify the Indemnitee of its election within 30 days after receipt of such the notice from the IndemniteeIndemnified Party of any Third Party Claim, to assume the Indemnifying defense or handling of such Third Party Claim, at the indemnifying party's sole expense, in which case the provisions of Section 8.4(b)(ii) hereof shall govern; provided, however, that, notwithstanding the foregoing, Amazxx.xxx xxx elect to assume the defense and handle any such Third Party Claim if it determines in good faith that the resolution of such Third Party Claim could result in an adverse impact on the business, operations, assets, liabilities (absolute, accrued, contingent or otherwise), condition (financial or otherwise) or prospects of Amazxx.xxx, xx which case the provisions of Section 8.4(d)(ii) hereof shall govern.
(ii) The Shareholder Representative shall select counsel reasonably acceptable to the Indemnified Party in connection with conducting the defense or handling of such Third Party Claim, and the Shareholder Representative shall defend or handle the same in consultation with the Indemnified Party and shall keep the Indemnified Party timely apprised of the status of such Third Party Claim. The Shareholder Representative shall not, without the prior written consent of the Indemnified Party, agree to a settlement of any Third Party Claim, unless (A) the settlement provides an unconditional release and discharge of the Indemnified Party and the Indemnified Party is reasonably satisfied with such discharge and release and (B) the Indemnified Party shall be deemed not have reasonably objected to have elected not to assume responsibility for any such Third-Party Claimsettlement on the ground that the circumstances surrounding the settlement could result in an adverse impact on the business, operations, assets, liabilities (absolute, accrued, contingent or otherwise), and such Indemnitee condition (financial or otherwise) or prospects of the Indemnified Party. The Indemnified Party shall cooperate with the Shareholder Representative and shall be entitled to participate in the defense or settlement or compromise handling of such Third-Third Party Claim. After notice from an Indemnifying Party to an Indemnitee of Claim with its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate own counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within at its control or which it otherwise has the ability to make available that are necessary or appropriate for such defenseown expense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of If (A) the amount Shareholder Representative does not give written notice to the Indemnified Party pursuant to Section 8.4(c)(i) within 30 days after receipt of the notice from the Indemnified Party of any offer Third Party Claim of settlement the indemnifying party's election to assume the defense or compromise which handling of such Indemnitee declined to accept and Third Party Claim or (B) Amazxx.xxx xxxcts to assume the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result defense and the handling of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Third Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise8.4(c)(ii), the amount provisions of such reduction, less any expenses incurred in connection therewith, Section 8.4(d)(ii) hereof shall promptly be repaid by the Indemnitee to the Indemnifying Partygovern.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Samples: Merger Agreement (Amazon Com Inc)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an If any Indemnitee shall receive receives notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Third Party Claim") Claim with respect to which an Indemnifying Party may be is obligated under this Agreement to provide indemnification pursuant to this Agreementindemnification, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Third Party Claim; provided provided, however, that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 4.04 shall not relieve the any Indemnifying Party of its obligations under this Article VIV, except to the extent that such Indemnifying Party is actually prejudiced by such failure to give notice. Such notice shall describe the Third-such Third Party Claim in reasonable detaildetail and, and if practicable, shall indicate the estimated amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromiseParty, at such Indemnifying Party's own expense and through counsel chosen by such Indemnifying Party's own counselParty (which counsel shall be reasonably satisfactory to the Indemnitee), may elect to defend any Third-Third Party Claim. If an Indemnifying Party elects to defend a Third Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect then, within fifteen Business Days after receiving notice of such Third-Third Party Claim. Within 30 days of the receipt of notice from an Indemnitee Claim or sooner (but in accordance with Section 5.04(ano event less than five Business Days) (or sooner, if the nature of such Third-Third Party Claim so requires), the such Indemnifying Party shall notify the Indemnitee of its election whether intent to assume responsibility for do so. Such Indemnitee shall thereupon use reasonable efforts to make available to such Third-Party Claim (provided that if Indemnifying Party, at such Indemnifying Party's expense, such assistance in support of the prosecution or defense of such litigation as the Indemnifying Party does not so notify may reasonably request, including without limitation, the right to assert in the name of the Indemnitee such rights, claims, counterclaims or defenses that such Indemnitee would be or would have been permitted to assert in such litigation or in the prosecution of its election within 30 days after receipt a claim or counterclaim against a Third Party or in defense against such Third Party Claim had the Distribution not occurred. The Indemnitee will execute a power of such notice from the Indemnitee, attorney in favor of the Indemnifying Party shall be deemed with respect to have elected not to assume responsibility for such Third-Third Party Claim), and such Indemnitee shall cooperate Claims in the defense or settlement or compromise form attached hereto as Exhibit ______. Such Indemnifying Party shall pay such Indemnitee's reasonable out-of-pocket expenses incurred in connection with such cooperation consistent with the provisions of such Third-Party ClaimArticle VI. After Except as provided herein, after notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for the defense of a Third-Third Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V IV for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for defend against a Third-Third Party Claim Claim, or fails to notify an Indemnitee of its election as provided in this Section 4.04 within the period of fifteen (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02five, as the case may beif applicable) Business Days described above, such Indemnitee may defend or (subject to the following sentence) seek to defend, compromise and settle such Third Party Claim; provided, however, -20- 21 that no such Indemnitee may compromise or settle any such Third-Third Party Claim. Notwithstanding Claim without the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to consent of the Indemnifying Party, which consent shall have not be unreasonably withheld or delayed.
(c) Notwithstanding the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemniteeforegoing, the Indemnifying Party shall be deemed not, without the prior written consent of the Indemnitee, settle or compromise any Third Party Claim or consent to have elected option (ii)the entry of any judgment which does not include as an unconditional term thereof the delivery by the claimant or plaintiff to the Indemnitee of a written release from all Liability in respect of such Third Party Claim.
(cd) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Third Party Claim, the related Indemnitee shall make available to such Indemnifying Party any personnel and or any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss arising out of or due to the failure to pay, perform or discharge in due course its respective Liabilities by any member of the Indemnifying Party's Group who has an obligation with respect thereto but which does not result from a Third-Third Party Claim shall be asserted by written notice given by the Indemnitee to the applicable related Indemnifying Party. Such Indemnifying Party shall have a period of 15 30 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 1530-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 1530-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under Article VII of this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if If the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Third Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Third Party Claim against any claimant or plaintiff asserting such Third-Third Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreementincluding without limitation, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep permitting the Indemnifying Party reasonably informed to bring suit against such Third Party in the name of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlementIndemnitee.
Appears in 1 contract
Procedure for Indemnification. (a) Except as may be set forth in If a Related Agreementthird-party claim is made against a Company Indemnitee or a Buyer Indemnitee (an "INDEMNITEE"), and if an such Indemnitee believes that such claim could give rise to a right of indemnification, then such Indemnitee shall receive give prompt written notice or otherwise learn of to the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, hereunder (an "INDEMNIFYING PARTY") of such claim after such Indemnitee shall give such Indemnifying Party written has received notice thereof promptly after becoming aware of such Third-Party Claim; (provided that the failure of any Indemnitee to give timely notice as required by this Section 5.04 shall not relieve limit the indemnification obligations of the Indemnifying Party of its obligations under this Article V, hereunder except to the extent that the delay in giving, or failure to give, such notice has materially prejudiced the ability of the Indemnifying Party is prejudiced to defend the claim). The Indemnifying Party shall have the right to defend such claim and direct such defense, at the Indemnifying Party's sole option and expense and with counsel selected by the Indemnifying Party and reasonably satisfactory to such failure Indemnitee, provided that an Indemnitee shall at all times also have the right to give noticefully participate in the defense at its own expense (and may retain its own counsel at the expense of the Indemnifying Party if it shall reasonably determine that representation of it and the Indemnifying Party by the same counsel would present an ethical conflict of interest; provided that the Indemnifying Party will only be responsible under such circumstances for the expenses of a single additional counsel for all Indemnitees). Such If the Indemnifying Party shall fail to defend such claim within thirty (30) days after notice thereof shall describe have been given by an Indemnitee to the Third-Party Claim in reasonable detailIndemnifying Party, such Indemnitee shall have the right, but not the obligation, to undertake the defense of the claim on behalf, for the account, and shall indicate at the amount risk and expense (estimated if necessaryincluding the payment of the reasonable attorneys' fees of such Indemnitee regardless of whether the Indemnitee prevails against the third party claim) of the Indemnifiable Loss that has been Indemnifying Party. If the Indemnifying Party assumes the defense of such claim, the obligation of the Indemnifying Party hereunder as to such claim shall include taking all steps necessary in the defense or may be sustained by settlement of such Indemniteeclaim.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such The Indemnifying Party shall not be liable consent to such the entry of any judgment or settle or compromise any third-party demands, claims, actions, suits or proceedings for which an Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both has sought indemnification from the Indemnifying Party unless it shall have given such Indemnitee not less than 15 days prior written notice of the proposed consent, settlement or compromise, and one or more Indemnitees and in afforded such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnitee an opportunity to consult with the Indemnifying Party exists in respect regarding the proposed consent, settlement or compromise, and shall not consent to the entry of any judgment or enter into any settlement or compromise without the prior written approval of such claim, such Indemnitees Indemnitee. An Indemnitee shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event unreasonably withhold or delay its approval of a good faith dispute that a claim was inappropriately tendered under Section 5.01 proposed consent, settlement or 5.02, as the case may be) such Indemnitee may defend or (subject compromise. In determining whether to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoinggive its approval, an Indemnitee may not settle or compromise any claim without prior written notice to consider whether the Indemnifying Partyproposed consent, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates includes as an unconditional term thereof the giving by the claimant to such claimant or plaintiff to the Indemnitee of a written release from all liability liabilities in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief claim except the liabilities satisfied by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Samples: Asset Purchase Agreement (Ivivi Technologies, Inc.)
Procedure for Indemnification. DEFENSE OF THIRD PARTY CLAIMS. -------------------------------------------------------------
(a) Except As soon as may be set forth in reasonably practicable after receipt by a Related Agreement, if Person entitled to indemnity under Section 10.2 or 10.3 (an Indemnitee shall receive "Indemnified Person") ------------ ---- ------------------ of notice or otherwise learn of the assertion by of a Person (including, without limitation, any governmental entity) who is not a third-party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action Proceeding (collectively, a "Third-Third Party Claim") with respect against it, the Indemnified Person ----------------- will, if a claim is to which be made against a Person obligated to indemnify under such Section (an "Indemnifying Person"), give notice to the Indemnifying ------------------- Person of the assertion of such claim in writing and describing in reasonable detail (to the extent known) the nature of the claim, the grounds of the claim and the calculation (or an estimate) of the amount of the claim. Thereafter, the Indemnified Person shall deliver to the Indemnifying Person, promptly after the Indemnified Person's receipt thereof, copies of all notices and documents (including court papers), if any, received by the Indemnified Person relating to the Third Party Claim. An Indemnified Person's failure to notify or delay in notifying an Indemnifying Person of a Third Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required by this Section 5.04 shall Claim will not relieve the Indemnifying Party Person of its obligations under this Article Vany Liability that it may have to the Indemnified Person, except to the extent that the Indemnifying Person demonstrates that the resolution of such Indemnifying Third Party Claim is prejudiced by such the Indemnified Person's failure or delay to give such notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An If any Third Party Claim is brought against an Indemnified Person and the Indemnified Person gives notice to the Indemnifying Person of such Third Party may elect Claim, the Indemnifying Person will be entitled to defend participate in and, to the extent that it wishes, to assume and control the defense of such Third Party Claim with counsel selected by the Indemnifying Person; provided, however, that such counsel is not reasonably objected to by the Indemnified Person (unless the Indemnifying Person is also a party to such Proceeding and the Indemnified Person shall have been advised by counsel that there are one or more legal or equitable defenses available to seek to settle or compromisethe Indemnifying Person and that the joint representation of both parties by the same counsel would create a conflict of interest, in which case the Indemnified Party may, at its option, assume and control the defense of such Third Party Claim at the Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate using counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party). If an the Indemnifying Party Person elects not to assume responsibility for the defense of any Third Party Claim, it shall within ten Business Days after its receipt of notice of a Third-Third Party Claim (which from the Indemnified Person, notify the Indemnified Person in writing of such election. After notice from the Indemnifying Person to the Indemnified Person of its election may be made only in to assume the event defense of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02such Proceeding, the Indemnifying Person will not, as the case may be) long as it diligently conducts such Indemnitee may defend or (subject defense, be liable to the following sentence) seek to compromise Indemnified Person under this Article for any fees of other counsel or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice other expenses with respect to the Indemnifying Party, which shall have the option within ten days following the receipt defense of such notice (i) to disapprove Proceeding, in each case subsequently incurred by the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures Indemnified Person in connection with the claimdefense of such Proceeding, other than reasonable costs of investigation. If the Indemnifying Person chooses to defend or prosecute a Third Party Claim, all the Indemnified Persons shall provide reasonable cooperation in the defense or prosecution thereof. Such cooperation shall include the retention and (upon the Indemnifying Person's request) the provision to the Indemnifying Person of records and information that are reasonably relevant to such Third Party Claim, and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder. If the Indemnifying Person assumes the defense of a Proceeding, (i) the Indemnified Person shall agree to any reasonable settlement, compromise or discharge of a Third Party Claim that the Indemnifying Person may recommend and that by its terms (1) obligates the Indemnifying Person to pay the full amount of the Liability in connection with such Third Party Claim, (2) expressly releases in full the Indemnified Person with respect to such Third Party Claim, (3) involves only money damages and does not seek an injunction or other equitable relief, and (4) would not otherwise adversely affect the Indemnified Person, and (ii) to disapprove the settlement and continue to refrain from participation in the defense event that the terms of the claimany settlement, in which event compromise or discharge of a Third Party Claim that the Indemnifying Person may recommend do not release the Indemnified Person completely in connection with such Third Party shall have Claim or would otherwise adversely affect the Indemnified Person, no further right to contest the amount compromise or reasonableness settlement of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving such claims may be effected by the Indemnifying PartyPerson without the Indemnified Person's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii)consent.
(c) If notice is given to an Indemnifying Person of the commencement of any Third Party chooses Claim and the Indemnifying Person does not, within ten Business Days after the Indemnified Person's notice is given, give notice to defend or the Indemnified Person of its election to seek to compromise any Third-assume the defense of such Third Party Claim, the Indemnitee shall make available Indemnifying Person will be bound by any determination made with respect to such Indemnifying Third Party Claim or any personnel and any books, records compromise or other documents within its control or which it otherwise has settlement effected in good faith by the ability to make available that are necessary or appropriate for such defenseIndemnified Person.
(d) Notwithstanding anything else the foregoing, if an Indemnified Person determines in this Section 5.04 to the contrary, an Indemnifying Party shall not settle good faith that there is a reasonable probability that a Proceeding may adversely affect it or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date its Affiliates other than as a result of monetary damages for which it would be entitled to indemnification under this Agreement, the Indemnified Person may, by notice to the Indemnifying Person, assume the exclusive right to defend, compromise or settle such Indemnitee's continuing to pursue such Third-Party ClaimProceeding, but the Indemnifying Person will not be bound by any determination of a Proceeding so defended or any compromise or settlement effected without its consent (which may not be unreasonably withheld).
(e) Any claim on account Notwithstanding the provisions of an Indemnifiable Loss which does not result Sections 10.7(a) through ---------------- 10.7(d), Buyer will be entitled to assume control of any Cleanup and related ------- Proceeding arising from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable mannerEnvironmental, Health and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claimSafety Liability.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an If any Indemnitee shall receive receives notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") Claim with respect to which an Indemnifying Party may be is obligated under this Agreement to provide indemnification pursuant to this Agreementindemnification, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided provided, however, that the failure of any Indemnitee to -------- ------- give notice as required by provided in this Section 5.04 4.04 shall not relieve the any Indemnifying Party of its obligations under this Article VIV, except to the extent that such Indemnifying Party is actually prejudiced by such failure to give notice. Such notice shall describe the such Third-Party Claim in reasonable detaildetail and, and if practicable, shall indicate the estimated amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromiseParty, at such Indemnifying Party's own expense and through counsel chosen by such Indemnifying Party's own counselParty (which counsel shall be reasonably satisfactory to the Indemnitee), may elect to defend any Third-Third- Party Claim; provided, provided however, that such an election by the Indemnifying -------- ------- Party must confirm in writing that it agrees that shall be deemed an admission of its obligation to Indemnify the Indemnitee is entitled with respect to indemnification hereunder in respect of such Third-Party Claim. Within 30 days If an Indemnifying Party elects to defend a Third-Party Claim, then, within ten (10) Business Days after receiving notice of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) such Third-Party Claim (or sooner, if the nature of such Third-Party Claim so requires), the such Indemnifying Party party shall notify the Indemnitee of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)do so, and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. Such Indemnifying Party shall pay such Indemnitee's reasonable out-of-pocket expenses incurred in connection with such cooperation. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for the defense of a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V IV for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided provided, however, that if such Indemnitee shall have the defendants in any right to employ one law -------- ------- firm as counsel to represent such claim include both Indemnitee (which firm shall be reasonably acceptable to the Indemnifying Party and one or more Indemnitees and Party) if, in such Indemnitees' Indemnitee's reasonable judgment judgment, either a conflict of interest between such Indemnitees Indemnitee and such Indemnifying Party exists in respect of such claimclaim or there may be defenses available to such Indemnitee which are different from or in addition to those available to such Indemnifying Party, such Indemnitees shall have the right to employ separate counsel and in that event (1) the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying PartyParty and (2) each of such Indemnifying Party and such Indemnitee shall have the right to run its own defense in respect of such claim. If an Indemnifying Party elects not to assume responsibility for defend against a Third-Party Claim Claim, or fails to notify an Indemnitee of its election as provided in this Section 4.04 within the period of ten (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.0210) Business Days described above, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to defend, compromise and settle such Third- Party Claim; provided, however, that no such Indemnitee may compromise or -------- ------- settle any such Third-Party ClaimClaim without the prior written consent of the Indemnifying Party, which consent shall not be withheld unreasonably. Notwithstanding the foregoing, an Indemnitee may not the Indemnifying Party shall not, without the prior consent of the Indemnitee, (1) settle or compromise any claim without prior written notice Third- Party Claim or consent to the Indemnifying Party, entry of any judgment which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall does not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates include as an unconditional term thereof the giving delivery by such the claimant or plaintiff to the Indemnitee of a written release from all liability Liability in respect of such Third-Party Claim or (and provided further that such settlement may not provide for 2) settle or compromise any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of in any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as manner that may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by adversely affect the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after Promptly upon becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to a ----------------------------- claim for indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of any third party claim, suit, action or proceeding, or in connection with any other Losses which the indemnified party deems to be within the ambit of this Article XIII), the indemnified party shall give, in accordance with the terms of Section 16.1 below and Section 2(e) of the Depository Agreement, a notice of claims ("Claims Notice") to the indemnifying party, and if applicable, to the Depository Agent pursuant to the terms of the Depository Agreement; provided, however, that to -------- ------- the extent such Indemnitee's continuing to pursue notice is given after the Distribution, and the indemnifying party consists of the Indemnifying Shareholders, such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim notice shall be asserted by written notice given by the Indemnitee to the applicable Indemnification Committee, on behalf of the Indemnifying Party. Such Indemnifying Party shall have a period Shareholders, and thereafter, all references, in this Section 13.4 and in Sections 13.5 through 13.7 of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, to the indemnifying party, shall be reduced to and mean the Indemnification Committee, on behalf of the Indemnifying Shareholders; provided, -------- further, that any claims made by recoveryany of Purchaser's Indemnified Persons shall be ------- made by Purchaser on behalf of such Indemnified Person (at the expense of such Indemnified Person who shall advance such expenses if requested by Purchaser) and any proceeds of any such claim received by Purchaser hereunder shall be forwarded promptly by Purchaser to such Indemnified Person. A Claims Notice shall set forth: (a) the aggregate amount of the indemnified party's Losses or an estimate thereof, settlement in each case to the extent known or otherwisedeterminable at the time such Claims Notice is delivered, (b) a description in reasonable detail of the individual items of such Losses included in the amount so stated, the date each such item was paid or properly accrued or arose, and the nature of the misrepresentation, breach or claim to which such item is related, and (c) where the indemnified party is Purchaser or one of Purchaser's Indemnified Persons, a calculation, based on the provisions of Section 13.3 of the number of Escrow Shares to be released to the indemnified person in satisfaction of the claim made in such Claims notice. The giving of such Claims Notice shall not be a condition precedent to indemnification hereunder; provided, however, that the failure to give reasonably prompt notice shall reduce the indemnified party's recovery from the indemnifying party only by an amount equal to the actual proved Losses caused by such delay. If the indemnifying party does not object to such claim within thirty (30) days of receiving such Claims Notice, the indemnified party shall be conclusively entitled to recover the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
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Samples: Agreement and Plan of Reorganization and Liquidation (Vertel Corp)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if If an Indemnitee Indemnified Person shall receive written notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entityGovernmental Authority) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this AgreementAgreement (a "THIRD-PARTY CLAIM"), such Indemnitee Indemnified Person shall give such the Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided PROVIDED, that the failure of any Indemnitee Indemnified Person to give notice as required by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is materially prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been claimed against or may be sustained by such IndemniteeIndemnified Person.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 15 days of the receipt of notice from an Indemnitee Indemnified Person in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee Indemnified Person of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee Indemnified Person of its election within 30 15 days after receipt of such notice from the IndemniteeIndemnified Person, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its An election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a such Third-Party Claim (which election may only be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates is not covered as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by under the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim grounds specified in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.5.01 or
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Procedure for Indemnification. (a) Except as If any Indemnitee determines that it is or may be set entitled to indemnification by any Indemnifying Party (other than in connection with any Third Party Claim), the Indemnitee will deliver to the Indemnifying Party a written notice specifying, to the extent reasonably practicable, the basis for its claim for indemnification and the amount for which the Indemnitee reasonably believes it is entitled to be indemnified. Within 60 calendar days after receipt of such notice, the Indemnifying Party will pay the Indemnitee such amount in cash or other immediately available funds unless the Indemnifying Party objects to the claim for indemnification or the amount by written notice setting forth in a Related Agreementthe grounds therefor within such 60 calendar day period. If the Indemnifying Party does not give the Indemnified Party written notice objecting to such indemnity claim and setting forth the grounds therefor within 60 calendar days after receipt of such notice, if an the Indemnifying Party will be deemed to have acknowledged its liability for such claim and the Indemnitee shall receive may exercise any and all of its rights under applicable law to collect such amount.
(b) If any Indemnitee receives notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") Claim with respect to which an Indemnifying Party may be is obligated under this Agreement to provide indemnification pursuant to this Agreementindemnification, such Indemnitee shall will give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Third- Party Claim; provided provided, however, that the failure of any Indemnitee to give such notice as required by this Section 5.04 shall will not relieve the any Indemnifying Party of its obligations under this Article VIV, except to the extent that such Indemnifying Party is actually prejudiced by such failure to give notice. Such notice shall will describe the such Third-Party Claim in reasonable detaildetail and, and shall if practicable, will indicate the estimated amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(bc) An Indemnifying Party may elect to defend or to seek to settle or compromiseParty, at such Indemnifying Party's own expense and through counsel chosen by such Indemnifying Party's own counselParty (which counsel shall be reasonably satisfactory to the Indemnitee), may elect to defend any Third-Party Claim, provided that the . If an Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled elects to indemnification hereunder in respect of such defend a Third-Party Claim. Within 30 , then, within fifteen calendar days after receiving notice of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) such Third- Party Claim (or sooner, if the nature of such Third-Party Claim so requires), the such Indemnifying Party shall will notify the Indemnitee of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)do so, and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. Such Indemnifying Party will pay such Indemnitee's reasonable out-of-pocket expenses incurred in connection with such cooperation. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for the defense of a Third-Party Claim, such Indemnifying Party shall will not be liable to such Indemnitee under this Article V IV for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided provided, however, that if such Indemnitee will have the defendants in any right to employ one law firm as counsel to represent such claim include both Indemnitee (which firm shall be reasonably acceptable to the Indemnifying Party and one or more Indemnitees and Party) if, in such Indemnitees' Indemnitee's reasonable judgment judgment, either a conflict of interest between such Indemnitees Indemnitee and such Indemnifying Party exists in respect of such claimclaim or there may be defenses available to such Indemnitee which are different from or in addition to those available to such Indemnifying Party, such Indemnitees shall have the right to employ separate counsel and in that event (i) the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnitee and (ii) each of such Indemnifying PartyParty and such Indemnitee shall have the right to run its own defense in respect of such claim. If an Indemnifying Party elects not to assume responsibility for defend against a Third-Party Claim (which Claim, or fails to notify an Indemnitee of its election may be made only as provided in this Section 4.02 within the event period of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02fifteen calendar days described above, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to defend, compromise or and settle such Third-Party Claim; provided, however, that no such Indemnitee may compromise or settle any such Third-Party Claim without the prior written consent of the Indemnifying Party, which consent shall not be withheld unreasonably. Notwithstanding the foregoing, an Indemnitee may not the Indemnifying Party shall not, without the prior written consent of the Indemnitee, (i) settle or compromise any claim without prior written notice Third- Party Claim or consent to the Indemnifying Party, entry of any judgment which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall does not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates include as an unconditional term thereof the giving delivery by such the claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third- Party Claim or (ii) settle or compromise any Third-Party Claim in any manner that in the reasonable judgment of the Indemnifying Party, is likely to adversely affect the Indemnitee.
(and provided further that such settlement may not provide d) If for any non-monetary relief reason the indemnification provided by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify this Agreement is unenforceable, the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior will contribute to the date such Indemnifying Party notifies such amount payable by the Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing the related losses an amount appropriate to pursue such Third-Party Claimreflect equitable considerations.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Procedure for Indemnification. 3.1 If the Company has become obligated to indemnify pursuant to clause 2.3 or if any suit, action, investigation, claim or proceeding is begun, made or instituted as a result of which the Company may become obligated to a Covenantee (afor the purposes of this clause 3, the “Indemnified Party”) Except as hereunder, the Indemnified Party shall give written notice to the Company within a sufficiently prompt time to avoid prejudice to the Company, specifying in reasonable detail the facts upon which the claimed right to indemnification is or may be set forth in a Related Agreementbased; provided, if an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (includinghowever, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee the Indemnified Party to give notice as required by provided in this Section 5.04 clause 3 shall not relieve the Indemnifying Party Company of its obligations under this Article Vhereunder, except to the extent that such Indemnifying Party the Company is actually prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party 3.2 The Company may elect to defend or to seek to settle or compromisedefend, compromise and settle, at such Indemnifying Party's the Company’s own expense and by such Indemnifying the Company’s own counsel reasonably satisfactory to the Indemnified Party's own counsel, any Third-Party Claimthird party claim. If the Company elects to defend a third party claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within shall, within 30 days of the its receipt of notice from an Indemnitee in accordance with Section 5.04(a) of such third party claim (or sooner, if the nature of such Third-Party Claim third party claim so requires), the Indemnifying Party shall notify the Indemnitee Indemnified Party of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not do so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee Indemnified Party shall cooperate in the defense or settlement or compromise defence of such Third-Party Claimthird party claim to the extent reasonably requested in writing by the Company. After Even after notice from an Indemnifying Party to an Indemnitee the Company of its election to assume responsibility for the defence of a Third-Party Claimthird party claim, such Indemnifying Party the Company shall not be liable to such Indemnitee Indemnified Party under this Article V clause 3 for any all legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee Indemnified Party in connection with the defense defence thereof; provided that if . If the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment Company elects not to defend against a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such third party claim, such Indemnitees shall have the right to employ separate counsel Indemnified Party may defend, compromise and in that event the reasonable fees and expenses of settle such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a third party claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claimconditions set forth below. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove neither the settlement and assume all past and future responsibility for Company nor an Indemnified Party, as the party controlling the defence of a third party claim, including reimbursing may compromise or settle any claim or consent to the Indemnitee entry of any judgment for other than monetary damages without the prior expenditures in connection with written consent of the claimCompany or the Indemnified Party, as applicable; provided, that (upon reasonable notice thereof) consent to such compromise or settlement or such entry of a judgment shall not be unreasonably withheld or delayed, and (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party Company shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 not consent to the contrary, an Indemnifying Party shall entry of any judgment or enter into any compromise or settlement which does not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates include as an unconditional term thereof the giving by such the claimant or plaintiff to the Indemnitee such Indemnified Party and all other Indemnified Parties, subject to such third party claim, of a written full and final release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement claim or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claimlitigation.
(e) 3.3 Any claim on account of an Indemnifiable Loss indemnifiable loss hereunder which does not result from a Third-Party Claim third party claim shall be asserted by written notice given by the Indemnitee Indemnified Party to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this AgreementCompany.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Samples: Deed of Covenant and Indemnity (Syncora Holdings LTD)
Procedure for Indemnification. (a) Except as may be set forth in 7.3.4.1 A Parent Indemnified Party shall give a Related Agreement, if an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements Claim Notice of any claim or of the commencement by any such Person of any Action for indemnification under this Article VII (a "Third-Claim") to the Representative, on behalf of the indemnifying parties, reasonably promptly after the assertion against a Parent Indemnified Party of any claim by a third party (a "Third Party Claim") with or, if such Claim is not in respect of a Third Party Claim, reasonably promptly after the discovery of facts on which the Parent Indemnified Party intends to which an Indemnifying Party may be obligated to provide base a Claim for indemnification pursuant to this AgreementArticle VII; provided, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided however, that the failure of any Indemnitee or delay to give notice as required by this Section 5.04 so notify the Representative shall not relieve the Indemnifying indemnifying party of any obligation or liability that the indemnifying party may have to the Parent Indemnified Party of its obligations under this Article V, except to the extent that the Representative demonstrates that the indemnifying parties' ability to defend or resolve such Indemnifying Party Claim is prejudiced by adversely affected thereby. Any such failure to give notice. Such notice Claim Notice shall describe the Third-Party facts and circumstances on which the asserted Claim in reasonable detail, for indemnification is based and shall indicate specify how such Parent Indemnified Party intends to recover such funds pursuant to this Agreement and the basis for the determination of the amount (estimated if necessary) of which the Indemnifiable Loss that has been or may be sustained by such IndemniteeParent Indemnified Party intends to recover.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise7.3.4.2 If, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within within 30 days of the receipt by the Representative of notice from an Indemnitee a Claim Notice, the Representative contests in accordance writing to the Parent Indemnified Party that Losses identified in such Claim Notice constitute indemnifiable Claims (the "Representative Notice"), then the Parent Indemnified Party and the Representative, acting in good faith, shall attempt to reach agreement with Section 5.04(a) (or sooner, if respect to the nature contested portions of such ThirdClaims. Unless a Claim is contested within such 30-Party Claim so requires)day period, the Indemnifying Parent Indemnified Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemniteeshall, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek other terms of this Article VII, be paid the amount of the Losses related to compromise such Claim or settle such Third-Party Claimthe uncontested portion thereof. Notwithstanding the foregoing, an Indemnitee may The Representative shall not settle or compromise object to any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice Claim unless (i) it believes in good faith that the Parent Indemnified Party is not entitled to disapprove be indemnified with respect to the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claimLosses specified therein, or (ii) it lacks sufficient information to disapprove assess the settlement validity or amount of the Claim. If the Representative objects to a Claim on the basis that it lacks sufficient information, it shall promptly request from the Parent Indemnified Party any additional information reasonably necessary for it to assess such Claim and continue the Parent Indemnified Party shall, to refrain the extent the Parent Indemnified Party reasonably can, provide additional information reasonably requested. Upon receipt of such additional information, the Representative shall review it as soon as reasonably practicable and notify the Parent Indemnified Party of any withdrawal or modification of the objection. If the Parent Indemnified Party and the Representative are unable to reach agreement with respect to any contested Claims within 45 days of the delivery of the Representative Notice, the matter shall be settled by binding arbitration in Salt Lake City, Utah as set forth below. All claims shall be settled in accordance with the Commercial Arbitration Rules then in effect of the American Arbitration Association (the "AAA Rules"). The Representative and the Parent Indemnified Party shall each designate one arbitrator within 15 days after the termination of such 45-day period. The Representative and the Parent Indemnified Party shall cause such designated arbitrators mutually to agree upon and designate a third arbitrator; provided, however, that (i) failing such agreement within 70 days of delivery of the Representative Notice, the third arbitrator shall be appointed in accordance with the AAA Rules and (ii) if either the Representative or the Parent Indemnified Party fails to timely designate an arbitrator, the dispute shall be resolved by the one arbitrator timely designated. The fees and expenses of the arbitrators shall be paid one-half by the Parent and one-half by the shareholders of Caroderm (from participation the Holdback amounts or otherwise). The Representative and the Parent Indemnified Party shall cause the arbitrators to decide the matter to be arbitrated pursuant hereto within 30 days after the appointment of the last arbitrator. The final decision of the majority of the arbitrators shall be furnished to the Representative and the Parent Indemnified Party in writing and shall constitute the conclusive determination of the issue in question binding upon the Representative, the shareholders of Caroderm, and the Parent Indemnified Party, and shall not be contested by any of them. Such decision may be used in a court of law only for the purpose of seeking enforcement of the arbitrators' decision.
7.3.4.3 The indemnifying party will have the right to defend the Parent Indemnified Party against the Third Party Claim at the indemnifying party's sole expense with counsel of its choice reasonably satisfactory to the Parent Indemnified Party so long as the indemnifying party conducts the defense of the Third Party Claim actively and diligently; provided, however, that, notwithstanding the foregoing, Parent may elect to assume the defense and handle any such Third Party Claim if it determines in good faith that the resolution of such Third Party Claim could result in a material adverse impact on the business, operations, assets, liabilities (absolute, accrued, contingent or otherwise), condition (financial or otherwise) or prospects of Parent; and provided further that the indemnifying person is also a person against whom the Third Party Claim is made and the Parent Indemnified Party determines in good faith that joint representation would be inappropriate). The Parent Indemnified Party may retain separate co-counsel and participate in the defense of the claim, in Third Party Claim which event shall be at the Indemnifying Party shall have no further right to contest Parent Indemnified Party's sole cost and expense so long as the amount or reasonableness indemnifying party conducts the defense of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve Third Party Claim actively and agree to pay the settlementdiligently. In the event the Indemnifying The Parent Indemnified Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 will not consent to the contrary, an Indemnifying Party shall not settle entry of any judgment or compromise enter into any Third-settlement with respect to the Third Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the prior written consent of Indemnitee). In the event indemnifying party, and the Indemnitee shall notify indemnifying party will not consent to the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free entry of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee judgment or enter into any settlement with respect to such Third-the Third Party Claim shall be equal to (i) without the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee written consent of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise Parent Indemnified Party which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claimconsent shall not be unreasonably withheld.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Samples: Merger Agreement
Procedure for Indemnification. The procedure for indemnification shall be as follows:
(a) Except as may be set forth in a Related Agreement, if an Indemnitee The Party seeking indemnification under this Article 9 (the “Claimant”) shall receive give notice or otherwise learn of to the assertion by a Person Party from whom indemnification is sought (including, without limitation, any governmental entitythe “Indemnitor”) who is not a party to this Agreement or to any of the Related Agreements of any claim or liability that might result in an indemnified Loss (an “Indemnified Claim”), specifying in reasonable detail (i) the factual basis for and circumstances surrounding the Indemnified Claim, together with supporting documentation; and (ii) the amount of the commencement potential Loss pursuant to the Indemnified Claim if then known. If the Indemnified Claim relates to a Proceeding filed by any such Person a third party against Claimant, notice shall be given by Claimant as soon as practical, but in all events within twenty (20) business days of any Action the later of (a "Thirdi) the Claimant learning of the Proceeding, or (ii) the Claimant receiving written notice of the Proceeding. In all other circumstances, notice shall be given by Claimant as soon as practical, but in all events within twenty-Party Claim"five (25) with respect business days after Claimant becomes aware of the facts giving rise to which an Indemnifying Party may the potential Loss; provided, however, that should the Claimant fail to notify the Indemnitor in the time required above, the Indemnitor shall only be obligated to provide indemnification relieved of its obligations pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article V, except 9 to the extent that such Indemnifying Party the Indemnitor is materially prejudiced by such delay or failure to timely give notice. Such notice shall describe the Third-Party of an Indemnified Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemniteepotential Loss.
(b) An Indemnifying Party The Claimant shall make available to Indemnitor and/or its authorized representatives the information relied upon by the Claimant to substantiate the Indemnified Claim or Loss and shall make available any information or documentation in Claimant’s possession, custody or control that is or may elect be helpful in defending or responding to defend the Indemnified Claim or Loss.
(c) The Indemnitor shall have thirty (30) days after receipt of the indemnification notice referred to seek in sub-section (a) to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that notify the Indemnifying Party must confirm Claimant in writing that it agrees that elects to conduct and control the Indemnitee defense of any such Indemnified Claim; provided, however, such thirty (30) day period shall be reduced to such shorter period of time set forth in the applicable indemnification notice if the Indemnified Claim or Loss is entitled based upon a third-party claim requiring a response in fewer than thirty (30) days.
(d) If the Indemnitor does not advise the Claimant of its intent to indemnification hereunder in respect of such Third-Party Claim. Within 30 days conduct and control the defense of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (Indemnified Claim or sooner, if Proceeding within the nature of such Third-Party Claim so requires)time period specified above, the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees Claimant shall have the right to employ separate defend, contest, settle, or compromise such Indemnified Claim or Proceeding. If the Indemnitor properly advises the Claimant that it will conduct and control the Indemnification Claim or Proceeding, the Indemnitor shall have the right to undertake, conduct, defend, and control, through counsel of its own choosing and at its sole expense, the conduct, defense, and settlement of the Indemnified Claim or Proceeding, and the Claimant shall cooperate with the Indemnitor in that event connection therewith. Notwithstanding the reasonable foregoing or anything else herein to the contrary, (i) the Indemnitor shall not consent to the imposition of any injunction against the Claimant without the prior written consent of the Claimant, which consent shall not be unreasonably withheld; (ii) the Indemnitor shall permit the Claimant to participate in such conduct or settlement through counsel chosen by the Claimant, but the fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid borne by the Claimant; (iii) upon a final determination of Proceeding, the Indemnitor shall promptly reimburse the Claimant for the full amount of any indemnified Loss or indemnified portion of any Loss resulting from the Indemnified Claim or Proceeding and all reasonable expenses related to such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility indemnified Loss incurred by the Claimant, except (A) fees and expenses of counsel for a Third-Party Claim (which election may be made only the Claimant in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 Indemnitor has conducted or 5.02, as controlled the case may beProceeding and (B) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may any Loss not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement indemnifiable by Indemnitor; and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay no Indemnitor may, without the settlement. In prior written consent of the event the Indemnifying Party makes no response to such written notice from the IndemniteeClaimant, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend settle or to seek to compromise any Third-Party Claimcompromise, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 consent to the contraryentry of any judgment in connection with, an Indemnifying Party shall not settle or compromise any Third-Party Claim Proceeding with respect to the claim described in the indemnification notice unless (A) such settlement or compromise contemplates as an unconditional term thereof involves only the giving by such claimant or plaintiff to the Indemnitee payment of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and money; (B) there is no finding or admission of liability, any violation of any Law or any violation of the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result rights of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given any Person by the Indemnitee to Claimant; and (C) the applicable Indemnifying Party. Such Indemnifying Party shall have a period Indemnitor obtains an unconditional release of 15 days after each Claimant from all Indemnified Claims or potential Loss arising out of the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand described in the place of such Indemnitee as to indemnification notice and any events Indemnified Claim or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claimProceeding related thereto.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Samples: Asset Purchase Agreement (Nexstar Broadcasting Group Inc)
Procedure for Indemnification. Any party seeking indemnification under this Article VIII (aan "Indemnified Party") Except as may be set forth in a Related Agreementwill give each party from whom indemnification is being sought (each, an "Indemnifying Party") notice of any matter for which such Indemnified Party is seeking indemnification, stating the amount of the Damages, if an Indemnitee shall receive notice or otherwise learn known, and method of computation thereof, and containing a reference to the assertion by a Person (including, without limitation, any governmental entity) who is not a party to provisions of this Agreement in respect of which such right of indemnification is claimed or arises. The obligations of an Indemnifying Party under this Article VIII with respect to Damages arising from any of the Related Agreements claims of any claim or of third party which are subject to the commencement by any such Person of any Action indemnification provided for in this Article VIII (a collectively, "Third-Party ClaimClaims") with respect to which will be governed by and contingent upon the following additional terms and conditions: if an Indemnified Party receives, after the Closing Date, initial notice of any Third-Party Claim, the Indemnified Party will give the Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party ClaimClaim within such time frame as necessary to allow for a timely response and in any event within 30 calendar days of the receipt by the Indemnified Party of such notice; provided provided, however, that the failure of any Indemnitee to give provide such timely notice as required by this Section 5.04 shall will not relieve release the Indemnifying Party from any of its obligations under this Article V, VIII except to the extent that such the Indemnifying Party is prejudiced by such failure to give noticefailure. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An The Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is will be entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of assume and control the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature defense of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee at its expense and through counsel of its election whether to assume responsibility for such Third-Party Claim (provided that choice if the Indemnifying Party does not so notify the Indemnitee it gives notice of its election intention to do so to the Indemnified Party within 30 45 calendar days after of the receipt of such notice from the IndemniteeIndemnified Party; provided, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)however, and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment there exists a conflict of interest between such Indemnitees and such Indemnifying that would make it inappropriate in the reasonable judgment of the Indemnified Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel (upon and in that event conformity with advice of counsel) for the reasonable fees same counsel to represent both the Indemnified Party and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall , then the Indemnified Party will be paid by such Indemnifying Party. If an Indemnifying Party elects not entitled to assume responsibility for a Third-Party Claim retain one counsel (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02plus one local counsel, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoingif necessary), an Indemnitee may not settle or compromise any claim without prior written notice reasonably acceptable to the Indemnifying Party, which shall have at the option within ten days following the receipt expense of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to , provided that the Indemnified Party and such counsel will contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlementsuch Third-Party Claims in good faith. In the event the Indemnifying Party makes no response exercises the right to undertake any such written notice from defense against any such Third-Party Claim as provided above, the Indemnitee, Indemnified Party will cooperate with the Indemnifying Party shall be deemed in such defense and make available to have elected option (ii).
(c) If an the Indemnifying Party, at the Indemnifying Party's expense, all witnesses, pertinent records, materials and information in the Indemnified Party's possession or under the Indemnified Party's control relating thereto as is reasonably required by the Indemnifying Party. Similarly, in the event the Indemnified Party chooses to defend is, directly or to seek to compromise indirectly, conducting the defense against any such Third-Party Claim, the Indemnitee shall Indemnifying Party will cooperate with the Indemnified Party in such defense and make available to the Indemnified Party, at the Indemnifying Party's expense, all such witnesses, records, materials and information in the Indemnifying Party's possession or under the Indemnifying Party's control relating thereto as is reasonably required by the Indemnified Party. The Indemnifying Party any personnel and any bookswill not, records without the written consent of the Indemnified Party (which will not be unreasonably withheld or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrarydelayed), an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates consent to the entry of any judgment which does not include as an unconditional term thereof the giving delivery by such the claimant or plaintiff to the Indemnitee Indemnified Party of a written release from all liability in respect of such Third-Party Claim. No Third-Party Claim (and which is being defended in good faith by the Indemnifying Party or which is being defended by the Indemnified Party as provided further that such settlement may not provide for any non-monetary relief above in this Section 8.5 will be settled by Indemnitee the Indemnified Party without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Samples: Membership Interest Purchase Agreement (Capital Lease Funding Inc)
Procedure for Indemnification. The procedure for indemnification shall be as follows:
(ai) Except as may be set forth in a Related AgreementThe Person claiming indemnification ("Claimant") shall, if an Indemnitee shall receive notice or otherwise learn of the assertion by a Person within thirty (including, without limitation, any governmental entity30) who is not a party to this Agreement or to any of the Related Agreements days after its discovery of any claim or of for which indemnification will be sought as provided in this Agreement (the commencement by any such Person of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement), such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required by to the Person from whom indemnification is sought ("Indemnitor") of this Section 5.04 shall not relieve Claim, specifying in reasonable detail the Indemnifying Party of its obligations under this Article Vfactual basis for the Claim and, except to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detailknown, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may the failure by Claimant to provide notice of any Claim within the period specified, or any delay in providing such notice, shall not settle affect or compromise impair the obligations of Indemnitor hereunder, except and only to the extent that Indemnitor has been adversely affected by such failure or delay.
(ii) With respect to Claims between the Agency and Mutual, following receipt of notice from Claimant of a Claim, Indemnitor shall have thirty (30) days to make any investigation of the Claim that Indemnitor deems necessary or desirable. For purposes of this investigation, Claimant shall make available to Indemnitor and its authorized representatives the information relied upon by Claimant to substantiate the Claim. If Claimant and Indemnitor cannot agree as to the validity and amount of the Claim within the thirty (30)-day period (or any mutually agreed upon extension thereof), Claimant shall submit the claim without prior to arbitration as provided in Section 411(f).
(iii) With respect to any Claim by a third party as to which Claimant is entitled to indemnification hereunder, Indemnitor shall have the right, exercisable by written notice to the Indemnifying Party, which shall have the option Claimant within ten thirty (30) days following the after receipt of written notice from Claimant of the commencement or assertion of any such notice (i) Claim, at its own expense to disapprove the settlement and participate in or assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in control of the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee and Claimant shall make available cooperate fully with Indemnitor, subject to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate reimbursement for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date expenses incurred by Claimant as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which a request by Indemnitor. If Indemnitor does not result from a Thirdelect to assume control or otherwise participate in the defense of any third-Party party Claim within thirty (30) days of its receipt of notice of the Claim (or any extended period mutually agreed upon by the parties), Claimant shall be asserted by (upon further written notice given by to Indemnitor) have the Indemnitee right to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling undertake the defense, compromise or settlement of such Pending Action the Claim for the account of Indemnitor subject to the right of Indemnitor, at its expense, to assume the defense of the Claim at any time prior to the Distribution to continue to handle such defensefinal settlement, compromise or settlement following the Distribution (subject determination thereof. In no event shall Indemnitor be liable or otherwise have any obligation with respect to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defenseany settlement, compromise or settlementdetermination of any Claim agreed to by Claimant without the prior written consent of Indemnitor (which consent shall not be unreasonably withheld). Notwithstanding the foregoing, Indemnitor shall not settle or compromise any Claim without the prior written consent of Claimant (which consent shall not be unreasonably withheld).
Appears in 1 contract
Procedure for Indemnification. (a) Except as may Promptly, or in any event within ten (10) calendar days (in the case of service of legal process) or within thirty (30) calendar days (in the case of any other claim), following receipt by any party to be set forth in indemnified under the provisions of this ARTICLE 13 (the-"Indemnitee") of notice of any action, suit, proceeding, claim, demand or assessment (each, an "Action") against the Indemnitee that might give rise to a Related Agreementclaim pursuant to Sections 13.1, if an 13.2 or 13.3, the Indemnitee shall receive give written notice or otherwise learn of thereof to the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide such indemnification pursuant to under the provisions of this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware ARTICLE 13 (the "Indemnitor") indicating the nature of such Third-Party Claim; claim, the basis therefore and the estimated amount thereof. Failure to give any notice provided that the failure hereunder shall in no way be deemed a forfeiture of any Indemnitee Indemnitee's rights to give notice as required be indemnified hereunder; provided, however, if the Indemnitor shall have been prejudiced in any material respect by this Section 5.04 such failure so to notify the Indemnitor, the Indemnitor shall not relieve have the Indemnifying Party of its obligations right to set-off against any amounts payable or that become payable by the Indemnitor under this Article VAgreement the amount by which the Indemnitor has been damaged as a result of such failure to notify the Indemnitor. A claim for indemnity may, except at the option of the Indemnitee, be asserted as soon as any claim has been asserted by a third party in writing, regardless of whether actual harm has been suffered or out-of-pocket expenses incurred.
(b) At any time after the Indemnitee gives notice to the Indemnitor of a claim being made against the Indemnitee for which a claim for indemnity is being asserted, to the extent that such Indemnifying Party claim is prejudiced not being defended by such failure to give notice. Such notice any third party under the terms of any applicable insurance policy or policies, the Indemnitee shall describe permit the Third-Party Claim in reasonable detailIndemnitor, at the option and shall indicate the amount (estimated if necessary) expense of the Indemnifiable Loss that has been or may be sustained by Indemnitor, to assume the complete defense of such Indemnitee.
(b) An Indemnifying Party may elect Action with full authority to defend or to seek conduct such defense and to settle or compromiseotherwise dispose of the same (except as hereinafter provided), at and the Indemnitee will reasonably cooperate in such Indemnifying Party's own expense and by defense. In order to assume such Indemnifying Party's own counseldefense, any Third-Party Claim, provided that the Indemnifying Party Indemnitor must confirm notify Indemnitee in writing that it agrees that the Indemnitee is entitled of its election to indemnification hereunder in respect of such Third-Party Claim. Within 30 do so within ten (10) calendar days of the following receipt of notice of the claim from an Indemnitee Indemnitee; in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided event that if the Indemnifying Party Indemnitor does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemniteeten (10) calendar day period, the Indemnifying Party Indemnitor shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claimdefense. After notice from an Indemnifying Party to an the Indemnitee of its the Indemnitor's election to assume responsibility for a Third-Party Claimthe defense of such Action as provided above, such Indemnifying Party the Indemnitor shall not be liable to the Indemnitee for such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance subsequently incurred at the request of the Indemnitor by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If The Indemnitor will not, in defense of any such Action, except with the consent of the Indemnitee, which consent will not be unreasonably withheld, consent to the entry of any judgment or enter into any settlement that does not include, as an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claimunconditional term thereof, the release by claimant or plaintiff of Indemnitee shall make available from all claims and/or liability in respect thereof.
(d) As to those Actions with respect to which the Indemnitor does not elect to assume control of the defense, (i) the Indemnitee will afford the Indemnitor an opportunity to participate in such Indemnifying Party defense, at the Indemnitor's own cost and expense; (ii)-the Indemnitee will not settle or otherwise dispose of any personnel of the same without the consent of the Indemnitor, which consent will not be unreasonably withheld; and any books, records or other documents within its control or which it otherwise has (iii) the ability Indemnitor agrees to make available that are necessary or appropriate for reasonably cooperate in such defense.
(de) Notwithstanding anything else in this Section 5.04 The Indemnitor shall make payments to the contraryIndemnitee, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff pursuant to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromiseprovisions hereof, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal Actions of third parties as follows: with respect to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated expenses of the Indemnitee, on demand as incurred, and, with respect to pay subsequent amounts and fees owed to third parties, to the extent not paid directly to such date as a result third parties by the Indemnitor, on demand at the time of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given payment by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreementthird party.
(f) In addition to any adjustments required pursuant to Section 5.03, if The liability of the amount of any Indemnifiable Loss shall, at any time subsequent Indemnitor hereunder shall be subject to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee following limitations:
(i) subject to the Indemnifying Party.
(gprovisions of Section 13.4(e) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, Agreement with respect to any Action pending at out-of-pocket expenses of Indemnitee, the time of Indemnitor shall pay claims hereunder when a claim against the Distribution (Indemnitee or its Insiders has been established by a "Pending Action") final judgment in litigation with respect to a third party in which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling Indemnitor has assumed the defense, compromise or by a settlement of such Pending Action prior with a third party consented to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed in writing by the Indemnitee, ; payment of other claims as to which the Indemnitee may contest its liability, or claims not involving third parties, shall keep be made when the Indemnifying Party reasonably informed of dispute is settled either by litigation or consent; and
(ii) payments for amounts due the progress of, and the Indemnifying Party Indemnitee or its Insiders hereunder shall cooperate in, such defense, compromise be paid by either cash or settlementcashier's check.
Appears in 1 contract
Samples: Purchase and Assumption Agreement (Colonial Trust Co /Az)
Procedure for Indemnification. (ai) Except as may be set forth in If a Related Agreement, if an Indemnitee party to this Agreement entitled to assert a Claim under this Agreement shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) person who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person person of any Action action or proceeding (a "Third-“Third Party Claim"”) with respect to which an Indemnifying Party may be the Seller or the Buyer is obligated to provide indemnification pursuant to this Agreementindemnification, such Indemnitee the indemnified party (the “Indemnitee”) shall give such Indemnifying Party the indemnifying party (the “Indemnitor”) prompt written notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is prejudiced by such failure to give noticethereof. Such notice shall describe the Third-Third Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(bii) An Indemnifying Party The Indemnitor may elect to defend compromise or to seek to settle or compromisedefend, at such Indemnifying Party's Indemnitor’s own expense and by such Indemnifying Party's Indemnitor’s own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Third Party Claim. Within 30 If an Indemnitor elects to defend a Third Party Claim it shall, within thirty (30) days of the receipt of the notice from an Indemnitee referred to in accordance with Section 5.04(a10.C(i) above (or sooner, if the nature of such Third-Third Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify do so, and the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall reasonably cooperate in the compromise of, or defense or settlement or compromise of against, such Third-Third Party Claim. Such Indemnitor shall pay such Indemnitee’s actual and reasonable out-of-pocket expenses incurred in connection with such cooperation. After written notice from an Indemnifying Party Indemnitor to an Indemnitee of its election to assume responsibility for the defense of a Third-Third Party Claim, such Indemnifying Party Indemnitor shall not be liable to such Indemnitee under this Article V Section 10.A or Section 10.B, as the case may be, for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees Indemnitee shall have the right to employ separate one counsel for each Third Party Claim to represent the Indemnitee if, in the Indemnitee’s good faith judgment, (a) a conflict of interest between the Indemnitee and the Indemnitor exists in that event respect of such Third Party Claim, or (b) where the reasonable Indemnitor is also a party to such Third Party Claim, different or conflicting claims or defenses may exist, in which events the fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying PartyIndemnitor. If an Indemnifying Party Indemnitor elects not to assume responsibility for defend against a Third-Third Party Claim (which Claim, or fails to notify an Indemnitee of its election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02as provided herein, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior advance written notice to the Indemnifying PartyIndemnitor, which shall have the option within ten days following the receipt pay, compromise or defend such Third Party Claim reasonably and in good faith on behalf of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing account and risk of the Indemnitor to the extent that the Indemnitee for prior expenditures in connection is entitled to receive indemnification from the Indemnitor hereunder. Neither Indemnitor nor Indemnitee shall consent to entry of any judgment or entry into any settlement against or with respect to any Indemnitee without the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense written consent of the claimother, in which event the Indemnifying Party shall have no further right to contest the amount unless such judgment or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right with respect to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(ca) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records provides solely for money damages or other documents within its control or payments for which it otherwise has the ability such Indemnitee is entitled to make available that are necessary or appropriate for such defense.
indemnification hereunder and (db) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates includes as an unconditional term thereof the giving by such the claimant or plaintiff to the such Indemnitee of a written release from for all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Third Party Claim.
(eiii) Any claim on account of an Indemnifiable With respect to any Claim or Loss which does not result from other than a Third-Third Party Claim Claim, the Indemnitee shall be asserted by give the Indemnitor prompt written notice given by of the Indemnitee Claim or Loss. Such notice shall describe the Claim or Loss in reasonable detail and include any and all written or electronic documentation pertaining to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period Claim or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this AgreementLoss.
(fiv) In addition to any adjustments required pursuant to Section 5.03, if If the amount of any Indemnifiable Claim or Loss shall, at any time subsequent to the payment required by pursuant to this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying PartyIndemnitor.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Samples: Loan Purchase and Sale Agreement (TFC Enterprises Inc)
Procedure for Indemnification. (a) Except as may be set forth in a Related AgreementAn Indemnified Party shall give written notice (the "Claim Notice") of any Claim for indemnification under this Article VIII to the Stockholder Representative, if an Indemnitee shall receive notice or otherwise learn on behalf of the assertion by a Person (includingStockholders, without limitation, any governmental entity) who is not a party to this Agreement or to any of Amazxx.xxx, xx the Related Agreements case may be, reasonably promptly after the assertion against the Indemnified Party of any claim or of the commencement by any such Person of any Action a third party (a "Third-Third Party Claim") with or, if such Claim is not in respect of a Third Party Claim, reasonably promptly after the discovery of facts upon which the Indemnified Party intends to which an Indemnifying Party may be obligated to provide base a Claim for indemnification pursuant to this AgreementArticle VIII; provided, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided however, that the failure of any Indemnitee or delay to give notice as required by this Section 5.04 so notify the Stockholder Representative or Amazxx.xxx, xx the case may be, shall not relieve the Indemnifying indemnifying party of any -68- 76 obligation or liability that the indemnifying party may have to the Indemnified Party of its obligations under this Article V, except to the extent that the indemnifying party demonstrates that his, her or its ability to defend or resolve such Indemnifying Party Claim is prejudiced by adversely affected thereby. Any such failure to give notice. Such notice Claim Notice shall describe the Third-facts and circumstances on which the asserted Claim for indemnification is based and shall include the amount of the indemnifiable Losses (or, if such amount is not then determined, a good faith estimate thereof) and the basis for the determination of the amount of such Losses.
(A) Subject to the rights of or duties to any insurer or other third party having potential liability therefor, the Stockholder Representative, on behalf of the Stockholders, shall have the right, upon written notice given by the Stockholder Representative to the Amazxx.xxx Xxxemnified Party within 30 days after receipt by the Stockholder Representative of the notice from the Amazxx.xxx Xxxemnified Party of any Third Party Claim, to assume the defense or handling of such Third Party Claim, at the Stockholders' sole expense, in which case the provisions of Section 8.5(b)(ii) hereof shall govern; provided, however, that, notwithstanding the foregoing, Amazxx.xxx xxx elect to assume the defense and handle any such Third Party Claim if it determines in reasonable detailgood faith that the resolution of such Third Party Claim could result in an adverse impact on the business, operations, assets, liabilities (absolute, accrued, contingent or otherwise), condition (financial or otherwise) or prospects of Amazxx.xxx, xx which case the provisions of Section 8.5(c)(ii) hereof shall govern.
(B) Subject to the rights of or duties to any insurer or other third party having potential liability therefor, Amazxx.xxx xxxll have the right, upon written notice given by Amazxx.xxx xx the Stockholder Representative within 30 days after receipt by Amazxx.xxx xx the notice from a Stockholder of any Third Party Claim, to assume the defense or handling of such Third Party Claim, at Amazxx.xxx'x xole expense, in which case the provisions of Section 8.5(b)(ii) hereof shall govern
(ii) The Stockholder Representative, on behalf of the Stockholders, or Amazxx.xxx, xx the case may be, shall select counsel reasonably acceptable to the Indemnified Party in connection with conducting the defense or handling of such Third Party Claim, and the Stockholder Representative or Amazxx.xxx, xx the case may be, shall defend or handle the same in consultation with the Indemnified Party and shall keep the Indemnified Party timely apprised of the status of such Third Party Claim. Neither the Stockholder Representative nor Amazxx.xxx, xx the case may be, shall, without the prior written consent of the Indemnified Party, agree to a settlement of any Third Party Claim, unless (A) the settlement provides an unconditional release and discharge of the Indemnified Party and the Indemnified Party is reasonably satisfied with such discharge and release and (B) with respect to any Claim by an Amazxx.xxx Xxxemnified Party, Amazxx.xxx xxxll not have reasonably objected to any such settlement on the ground that the circumstances surrounding the settlement could result in an adverse impact on the business, operations, assets, liabilities (absolute, accrued, contingent or otherwise), condition (financial or otherwise) or prospects of Amazxx.xxx. Xxe Indemnified Party shall cooperate with the Stockholder Representative or Amazxx.xxx, xx the case may be, and shall indicate be entitled to participate in the amount (estimated if necessary) defense or handling of the Indemnifiable Loss that has been or may be sustained by such IndemniteeThird Party Claim with its own counsel and at its own expense.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(ac) (or sooner, if i) (A) If (x) the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party Stockholder Representative does not so notify give written notice to the Indemnitee of its election Amazxx.xxx Xxxemnified Party pursuant to Section 8.5(b)(i)(A) within 30 days after receipt of such the notice from the Indemnitee, Amazxx.xxx Xxxemnified Party of any Third Party Claim of the Indemnifying Party shall be deemed to have elected not Stockholder Representative's election to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise handling of such Third-Third Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election Claim or (y) Amazxx.xxx xxxcts to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if and the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect handling of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory Third Party Claim pursuant to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only proviso in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee8.5(b)(i)(A), the Indemnifying Party provisions of Section 8.5(c)(ii) hereof shall be deemed to have elected option (ii)govern.
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Samples: Merger Agreement (Amazon Com Inc)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if If an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) person who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person person of any Action (a "Third-Third Party Claim") with respect to which an Indemnifying Party is or may be obligated to provide indemnification pursuant to this Agreementmake an Indemnity Payment, such Indemnitee shall give such Indemnifying Party written prompt notice thereof promptly after becoming aware of such Third-Third Party ClaimClaim and the amount or estimated amount thereof to the extent then feasible (which estimate shall not be conclusive of the final amount of such claim); provided PROVIDED, HOWEVER, that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 4 shall not relieve the related Indemnifying Party of its obligations under this Article VAgreement, except to the extent that such Indemnifying Party is actually prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromisedefend, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Third Party Claim. If an Indemnifying Party elects to defend a Third Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect shall, within 10 days of notice of such Third-Third Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) Claim (or sooner, if the nature of such Third-Third Party Claim so requires), the Indemnifying Party shall notify the related Indemnitee of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)do so, and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Third Party Claim. Such Indemnifying Party shall pay such Indemnitee's actual out-of-pocket expenses (other than officers' or employees' salaries) reasonably incurred in connection with such cooperation as such expenses are incurred. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for the defense of a Third-Third Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V Agreement for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided PROVIDED, HOWEVER, that if such Indemnitee shall have the defendants in any right to employ separate counsel to represent such claim include both the Indemnifying Party and one or more Indemnitees and Indemnitee if, in such Indemnitees' Indemnitee's reasonable judgment judgment, a conflict of interest between such Indemnitees Indemnitee and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying PartyParty as such fees and expenses are incurred. Except as so provided, if an Indemnitee desires to participate in the defense of a Third Party Claim, it may do so but it shall not control the defense and such participation shall be at its sole cost and expense. If an Indemnifying Party elects not to assume responsibility for defend against a Third-Third Party Claim (which Claim, or fails to notify an Indemnitee of its election may be made only as provided in the event of a good faith dispute that a claim was inappropriately tendered under this Section 5.01 or 5.024, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to defend, compromise and settle such Third Party Claim; PROVIDED, HOWEVER, that no such Indemnitee may compromise or settle any such Third-Third Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim Claim without prior written notice to the such Indemnifying Party, which shall have the option within ten days following the receipt Party and except by payment of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, monetary damages or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the other money payments. No Indemnifying Party shall have no further right consent to contest entry of any judgment or enter into any compromise or settlement which does not include as an unconditional term thereof the amount giving by the claimant or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response plaintiff to such written notice Indemnitee of a release from the Indemnitee, the Indemnifying all liability in respect to such Third Party shall be deemed to have elected option (ii)Claim.
(c) If an any Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claimclaim, the Indemnitee shall make available to such Indemnifying Party any personnel and or any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defensedefense (the cost of copying thereof to be paid by the Indemnifying Party).
(d) Notwithstanding anything else in Upon any final determination of a Third Party Claim pursuant to this Section 5.04 to 4, the contrary, an Indemnifying Party shall not settle pay promptly on behalf of the Indemnitee, or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee in reimbursement of a written release from all liability any amount theretofore required to be paid by it, the amount so determined. Upon the payment in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief full by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept of any such settlement or compromise, such Indemnitee may continue amount the Indemnifying Party shall be subrogated to contest such Third-Party Claim, free the rights of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In , to the extent not waived in settlement, against the person who made such event, the obligation of such Indemnifying Third Party to such Indemnitee Claim with respect to such Third-Party Claim shall be equal to (i) the costs and expenses subject matter of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claimclaim.
(e) Except to the extent expressly provided otherwise herein, the indemnification provided for by this Agreement shall not inure to the benefit of any third party or parties and shall not relieve any insurer who would otherwise be obligated to pay any claim or the responsibility with respect thereto or, solely by virtue of the indemnification provisions hereof, provide any subrogation rights respect thereto.
(f) Any claim on account of an Indemnifiable Loss which does not result from a Third-Third Party Claim shall be asserted by written notice given by the related Indemnitee to the applicable related Indemnifying Party. Such Indemnifying Party shall have a period of 15 30 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within with such 1530-day period, such Indemnifying Party shall be deemed to have refused to accept accepted responsibility to make paymentpayment and shall have not further right to contest the validity of such claim. If such Indemnifying Party does not respond within such 1530-day period or and rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be all available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Partylegal actions.
(g) In If the event indemnification provided for in this Agreement is unavailable or insufficient to hold harmless an Indemnitee in respect of payment any Indemnifiable Loss, then the "Indemnifying Party shall contribute to the amount paid or payable by such Indemnitee as a result of such Indemnifiable Loss, in such proportion as is appropriate to reflect the relative fault of WCGI and its Affiliates on the one hand and WC and its Affiliates on the other hand in connection with the circumstances which resulted in such Indemnifiable Loss. The amount paid or payable by an Indemnifying Party Indemnitee as a result of the Indemnifiable Loss referred to above in this subsection (g) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnitee in connection with investigating or defending any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right action or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Samples: Environmental Indemnification Agreement (Morrison Knudsen Corp//)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an If any Indemnitee shall receive receives notice or otherwise learn of the ---------------------------------- assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Third Party Claim") Claim with respect to which an Indemnifying Party may be is obligated to provide indemnification pursuant to this AgreementAgreement to provide indemnification, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Third Party Claim; provided provided, however, that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 5.2 shall not relieve the any Indemnifying Party of its obligations under pursuant to this Article V, except to the extent that such Indemnifying Party is actually prejudiced by such failure to give notice. Such notice shall describe the Third-such Third Party Claim in reasonable detaildetail and, and if practicable, shall indicate the estimated amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromiseParty, at such Indemnifying Party's own expense and through counsel chosen by such Indemnifying Party's own counselParty (which counsel shall be reasonably satisfactory to the Indemnitee), may elect to defend any Third-Third Party Claim. If an Indemnifying Party elects to defend a Third Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect then, within 15 Business Days after receiving notice of such Third-Third Party Claim. Within 30 days of the receipt of notice from an Indemnitee Claim or sooner (but in accordance with Section 5.04(ano event less than 5 Business Days) (or sooner, if the nature of such Third-Third Party Claim so requires), the such Indemnifying Party shall notify the Indemnitee of its election whether intent to assume responsibility for do so. Such Indemnitee shall thereupon use reasonable efforts to make available to such Third-Party Claim (provided that if Indemnifying Party, at such Indemnifying Party's expense, such assistance in support of the prosecution or defense of such litigation as the Indemnifying Party does not so notify may reasonably request, including without limitation, the right to assert in the name of the Indemnitee such rights, claims, counterclaims or defenses that such Indemnitee would be or would have been permitted to assert in such litigation or in the prosecution of its election within 30 days after receipt of a claim or counterclaim against a Third Party or in defense against such notice from Third Party Claim had the Indemnitee, the Distribution not occurred. Such Indemnifying Party shall be deemed to have elected not to assume responsibility for pay such ThirdIndemnitee's reasonable out-Party Claim)of-pocket expenses incurred in connection with such cooperation. Except as specified in this Agreement, and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After after notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for the defense of a Third-Third Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under pursuant to this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for defend against a Third-Third Party Claim Claim, or fails to notify an Indemnitee of its election as provided in this Section 5.2 within the period of 15 (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.025, as the case may beif applicable) Business Days described above, such Indemnitee may defend or (subject to the following sentence) seek to defend, compromise and settle such Third Party Claim; provided, however, that no such Indemnitee may compromise or settle any such Third-Third Party Claim. Notwithstanding Claim without the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to consent of the Indemnifying Party, which consent shall have not be unreasonably withheld or delayed.
(c) Notwithstanding the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemniteeforegoing, the Indemnifying Party shall be deemed not, without the prior written consent of the Indemnitee, settle or compromise any Third Party Claim or consent to have elected option (ii)the entry of any judgment which does not include as an unconditional term thereof the delivery by the claimant or plaintiff to the Indemnitee of a written release from all Liability in respect of such Third Party Claim.
(cd) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Third Party Claim, the related Indemnitee shall make available to such Indemnifying Party any personnel and or any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss arising out of or due to the failure to pay, perform or discharge in due course its respective Liabilities by any party who has an obligation with respect thereto but which does not result from a Third-Third Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 30 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 1530-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 1530-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreementparty.
(f) In addition to any adjustments required pursuant to Section 5.03, if If the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Third Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Third Party Claim against any claimant or plaintiff asserting such Third-Third Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreementincluding without limitation, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep permitting the Indemnifying Party reasonably informed to bring suit against such Third Party in the name of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlementIndemnitee.
Appears in 1 contract
Samples: Subsidiary Spinoff Distribution Agreement (Texas Border Gas Co)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if If an Indemnitee shall receive notice or otherwise learn of the assertion by a Person person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Ancillary Agreements of any claim or of the commencement by any such Person person of any Action (a "Third-Third Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Third Party Claim; provided provided, that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 (the "Notice") shall not relieve the related Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is prejudiced by such failure to give noticeNotice. Such notice Notice shall describe the Third-Third Party Claim in reasonable detail, and shall indicate the amount (estimated if necessaryto the extent practicable) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Third Party ClaimClaim by delivering to the Indemnitee, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within within 30 days of receipt of Notice (or sooner (but in no event less than 10 days after the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or soonerNotice), if the nature of such Third-Third Party Claim so requires), the Indemnifying written acknowledgment (the "Acknowledgment") of its indemnification obligation under this Agreement with respect to the Third Party shall notify Claim. The Acknowledgment may specify reservations and exceptions to the extent reasonably acceptable to the Indemnitee or consistent with the terms of its election whether to assume responsibility for such Third-Party Claim (provided that if this Agreement and the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)Ancillary Agreements, and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Third Party Claim. If the Indemnifying Party elects to assume responsibility for defending such Third Party Claim, the Indemnifying Party shall also notify the claimant or plaintiff asserting such Third Party Claim of such election and request that all communications in relation to the Third Party Claim be made, delivered or addressed to the Indemnifying Party, instead of the Indemnitee. If it is later determined that the defendants to the Third Party Claim include both the Indemnifying Party and the Indemnitee, the Indemnitee shall thereupon notify the claimant or plaintiff asserting such Third Party Claim that all communications in relation to the Third Party Claim should also be made, delivered or addressed to the Indemnitee. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for the defense of a Third-Third Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that provided, that, if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claimclaim or if the Indemnifying Party shall assume responsibility for such claim with such reservations or exceptions to the extent reasonably acceptable to the Indemnitee or consistent with the terms of this Agreement and the Ancillary Agreements, such Indemnitees shall have the right to employ separate counsel to represent such Indemnitees and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for defending a Third-Third Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Third Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Third Party Claim, the related Indemnitee shall make available to such Indemnifying Party any personnel and or any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Third Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such the claimant or plaintiff asserting such Third Party Claim to the Indemnitee of a written release from all liability in respect of such Third-Third Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee)Claim. In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Third Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Third Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Third Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Third Party Claim shall be asserted by written notice given by the Indemnitee to the applicable related Indemnifying Party. Such Indemnifying Party shall have a period of 15 30 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 1530-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 1530-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party party, under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Third Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Third Party Claim against any claimant or plaintiff asserting such Third-Third Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else In the event Safety shall determine in this Section 5.04 to the contrary, its reasonable judgment that it is likely that it will be named as a potentially responsible party in any Superfund or other environmental litigation or investigation with respect to any Action pending at a New Xxxxxx Liability, if requested to do so by Safety, New Xxxxxx shall notify the time potential claimant(s) in such potential litigation of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide its indemnification pursuant to obligation in favor of Safety under this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Samples: Distribution Agreement (New Morton International Inc)
Procedure for Indemnification. (a) Except As soon as may be set forth in a Related Agreement, if an is reasonably practicable after any MCCAC Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements PICR/ATN Indemnitee becomes aware of any claim claim, event or of the commencement by any such Person of any Action circumstance (a "Third-Party Claim") with respect that has or might give rise to which an Indemnifying Party may be obligated to provide indemnification pursuant to obligation under Section 8.2 or Section 8.3 of this Agreement, such MCCAC Indemnitee or PICR/ATN Indemnitee, as the case may be (an "Indemnified Person"), shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article V, except (a "Claim Notice") to the extent that such party or parties from which indemnification is sought (the "Indemnifying Party is prejudiced by such failure to give noticePersons"). Such notice The Claim Notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessarynecessary and to the extent feasible) of the Indemnifiable Loss Damages that has have been or may be sustained suffered by the Indemnified Person. The failure of any Indemnified Person to promptly give the Indemnifying Persons a Claim Notice shall not preclude such IndemniteeIndemnified Person from obtaining indemnification under this Article VIII, except to the extent, and only to the extent, that such Indemnified Person's failure has actually prejudiced the rights or increased the liabilities and obligations of any of the Indemnifying Persons hereunder.
(b) An Indemnifying Party may elect With respect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires)Notice, the Indemnifying Party Persons shall notify have the Indemnitee of its election whether right by written notice to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does Indemnified Person not so notify the Indemnitee of its election within later than 30 days after receipt of such notice from the IndemniteeClaim Notice, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise control of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior Claim, provided that (i) such assumption shall, by its terms, be without cost to the Distribution Indemnified Person, (ii) each of the Indemnifying Persons agree in writing that they are responsible to continue to handle indemnify (fully and completely) the Indemnified Person for such Claim, and (iii) any settlement of such Claim shall involve only the payment of money damages by the Indemnifying Persons.
(c) Upon the assumption of control by the Indemnifying Persons as provided in Section 8.4(b), the Indemnifying Persons shall diligently proceed with the defense, compromise or settlement following of the Distribution (subject Claim at the Indemnifying Persons' sole expense, including employment of counsel reasonably satisfactory to the last two sentences Indemnified Person and, in connection therewith, the Indemnified Person shall cooperate fully, but at the expense of subsection the Indemnifying Persons, to make available to the Indemnifying Persons all pertinent information and witnesses under the Indemnified Person's control, and to take such other steps as in the opinion of counsel for the Indemnifying Persons are necessary to enable the Indemnifying Persons to conduct such defense.
(bd) above). If The final, non-appealable determination of any Claim, including all related costs and expenses, shall be binding and conclusive upon the Indemnifying Persons and the Indemnified Person as to the amount of the indemnification; provided, however, that in the Indemnifying Persons' defense of such employees are employed Claim, except with the written consent of the Indemnified Person, the Indemnifying Persons shall not consent to entry of any judgment or enter into any settlement, which does not include as an unconditional term thereof the provision by the Indemniteeclaimant to the Indemnified Person of a release of the Indemnified Person from all liability in respect of such Claim.
(e) Should the Indemnifying Persons fail to give notice to the Indemnified Person as provided in Section 8.4(b), the Indemnitee Indemnified Person shall keep be entitled to defend, settle or compromise the Legal Claim as in its sole discretion may appear advisable, and such final determination, settlement or compromise of the Legal Claim shall be binding upon the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlementPersons.
Appears in 1 contract
Samples: Stock Purchase Agreement (Murdock Communications Corp)
Procedure for Indemnification. (a) Except After the Closing, as may be set forth in a Related Agreement, if an soon as is reasonably practicable after any Buyer Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements Seller Indemnitee becomes aware of any Loss that has or is believed by the Indemnified Person to be reasonably likely to give rise to a claim or of the commencement by any such Person of any Action for indemnification (a "Third-Party “Claim"”) with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to under Section 8.2 or Section 8.3 of this Agreement, such Buyer Indemnitee or Seller Indemnitee, as the case may be (an “Indemnified Person”), shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article V, except (a “Claim Notice”) to the extent that such party or parties from which indemnification is sought (the “Indemnifying Party is prejudiced by such failure to give noticePersons”). Such notice The Claim Notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessarynecessary and to the extent feasible) of the Indemnifiable Loss Losses that has have been or may be sustained suffered by the Indemnified Person. The failure of any Indemnified Person to promptly give the Indemnifying Persons a Claim Notice shall not preclude such IndemniteeIndemnified Person from obtaining indemnification under this Article VIII, except to the extent that such Indemnified Person’s failure has actually prejudiced the rights or increased the Liabilities and obligations of any of the Indemnifying Persons hereunder.
(b) An Promptly after receipt by an Indemnified Person of notice of the commencement of any Action by a third party (a “Third Party Claim”) against it, such Indemnified Person shall, if a claim is to be made against an Indemnifying Party may elect under this Article VIII, give notice to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that Person of the Indemnitee is entitled to indemnification hereunder in respect commencement of such Third-Third Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-With respect to any Third Party Claim so requires(other than a Third Party Claim that involves Taxes), with respect to any Claim Notice, the Indemnifying Party Persons shall notify have the Indemnitee of its election whether right, by written notice to assume responsibility for such Third-Party Claim the Indemnified Person not later than thirty (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 30) calendar days after receipt of such notice from Claim Notice (or within the Indemniteeshorter period, if any, during which a defense must be commenced for the Indemnifying Party shall be deemed to have elected not preservation of rights), to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise control of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior Third Party Claim unless the Indemnifying Person is also a party to such Third Party Claim and the Distribution to continue to handle Indemnified Person determines in good faith that joint representation would be inappropriate (in which case the Indemnifying Person shall pay the costs of counsel for the Indemnified Person), provided that any settlement of such Third Party Claim shall involve only the payment of money damages by the Indemnifying Persons.
(c) Upon the assumption of control by the Indemnifying Person as provided in Section 8.4(b), the Indemnifying Person shall diligently proceed with the defense, compromise or settlement following of the Distribution (subject Third Party Claim at the Indemnifying Person’s sole expense, including employment of counsel reasonably satisfactory to the last two sentences Indemnified Person and, in connection therewith, the Indemnified Person shall cooperate fully, but at the expense of subsection the Indemnifying Persons, to make available to the Indemnifying Persons all pertinent information and witnesses under the Indemnified Person’s control (bprovided that the Indemnifying Person shall cooperate with the Indemnified Person to obtain protective Orders with respect to information that is the subject of a confidentiality agreement or other such limitation on disclosure), and to take such other steps as in the opinion of counsel for the Indemnifying Persons that are necessary to enable the Indemnifying Persons to conduct such defense.
(d) above). If The final, non-appealable determination of any Third Party Claim, including all related costs and expenses, shall be binding and conclusive upon the Indemnifying Persons and the Indemnified Person as to the amount of the indemnification; provided, however, that in the Indemnifying Person’s defense of such employees are employed Claim, except with the written consent of the Indemnified Person, the Indemnifying Persons shall not consent to entry of any judgment or enter into any settlement, which does not include as an unconditional term thereof the provision by the Indemniteeclaimant to the Indemnified Person of a release of the Indemnified Person from all liability in respect of such Third Party Claim or which imposes any Liabilities or obligations on the Indemnified Person.
(e) Should the Indemnifying Persons fail to give notice to the Indemnified Person as provided in Section 8.4(b), the Indemnitee Indemnified Person shall keep be entitled to defend, settle or compromise the Third Party Claim as may appear advisable provided that any settlement of such Third Party Claim shall involve only the payment of money damages by the Indemnifying Party reasonably informed Persons, and such final determination, settlement or compromise of the progress of, and Third Party Claim shall be binding upon the Indemnifying Party shall cooperate in, such defense, compromise or settlementPersons.
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Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if If an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) person who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person person of any Action (a "Third-Third Party Claim") with respect to which an Indemnifying Party is or may be obligated to provide indemnification pursuant to this Agreementmake an Indemnity Payment, such Indemnitee shall give such Indemnifying Party written prompt notice thereof promptly after becoming aware of such Third-Third Party Claim, specifying in reasonable detail the nature of such Third Party Claim and the amount or estimated amount thereof to the extent then feasible (which estimate shall not be conclusive of the final amount of such claim); provided provided, however, that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 5.4 shall not relieve the related Indemnifying Party of its obligations under this Article V5, except to the extent that such Indemnifying Party is actually prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromisedefend, at such Indemnifying Party's own expense and by such Indemnifying Party's own counselcounsel (which counsel shall be reasonably satisfactory to the Indemnitee), any Third-Third Party Claim. If an Indemnifying Party elects to defend a Third Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect shall, within 10 days of notice of such Third-Third Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) Claim (or sooner, if the nature of such Third-Third Party Claim so requires), the Indemnifying Party shall notify the related Indemnitee of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)do so, and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Third Party Claim. such Indemnifying Party shall pay such Indemnitee's actual out-of-pocket expenses (other than officers' or employees' salaries) reasonably incurred in connection with such cooperation. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for the defense of a Third-Third Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V 5 for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided provided, however, that if such Indemnitee shall have the defendants in any right to employ separate counsel to represent such claim include both the Indemnifying Party and one or more Indemnitees and Indemnitee if, in such Indemnitees' Indemnitee's reasonable judgment judgment, a conflict of interest between such Indemnitees Indemnitee and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. Except as so provided, if an Indemnitee desires to participate in the defense of a Third Party Claim, it may do so but it shall not control the defense and such participation shall be at its sole cost and expense. If an Indemnifying Party elects not to assume responsibility for defend against a Third-Third Party Claim (which Claim, or fails to notify an Indemnitee of its election may be made only as provided in the event of a good faith dispute that a claim was inappropriately tendered under this Section 5.01 or 5.025.4, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to defend, compromise and settle such Third Party Claim; provided, however, that no such Indemnitee may compromise or settle any such Third-Third Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim Claim without prior written notice to the such Indemnifying Party, which shall have the option within ten days following the receipt Party and except by payment of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, monetary damages or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the other money payments. No Indemnifying Party shall have no further right consent to contest entry of any judgment or enter into any compromise or settlement which does not include as an unconditional term thereof the amount giving by the claimant or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response plaintiff to such written notice Indemnitee of a release from the Indemnitee, the Indemnifying all Liability in respect to such Third Party shall be deemed to have elected option (ii)claim.
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claimclaim, the Indemnitee shall make available to such Indemnifying Party any personnel and or any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defensedefense (the cost of copying thereof to be paid by the Indemnifying Party).
(d) Notwithstanding anything else in Upon any final determination of a Third Party Claim pursuant to this Section 5.04 to 5.4, except as provided by Section 5.4(d), the contrary, an Indemnifying Party shall not settle pay promptly on behalf of the Indemnitee, or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee in reimbursement of a written release from all liability any amount theretofore required to be paid by it, the amount so determined. Upon the payment in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief full by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept of any such settlement or compromiseamount, such Indemnitee may continue the Indemnifying Party shall be subrogated to contest such Third-Party Claim, free the rights of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In , to the extent not waived in settlement, against the persons who made such event, the obligation of such Indemnifying Third Party to such Indemnitee Claim with respect to such Third-Party Claim shall be equal to (i) the costs and expenses subject matter of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claimclaim.
(e) Notwithstanding the foregoing provisions of this Section 5.4, there may be Third Party Claims which reasonably could result in both SFX and Entertainment being liable to the other under indemnification provisions of this Agreement. In any such events, the parties shall endeavor, acting reasonably and in good faith, to agree upon a manner of conducting the defense of or settlement of the Third Party Claim with a view to minimizing the legal expenses and associated costs that might otherwise be incurred by the parties, including to the use of the same legal counsel for the defense of such claim.
(f) Except to the extent expressly provided otherwise in this Section 5.4, the indemnification provided for by this Section 5.4 shall not inure to the benefit of any third party or parties and shall not relieve any insurer who would otherwise be obligated to pay any claim of the responsibility with respect thereto or, solely by virtue of the indemnification provisions hereof, provided any subrogation rights with respect thereto.
(g) Any claim on account of an Indemnifiable Loss which does not result from a Third-Third Party Claim shall be asserted by written notice given by the related Indemnitee to the applicable related Indemnifying Party. Such Indemnifying Party shall have a period of 15 60 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 1560-day period, such Indemnifying Party shall be deemed to have refused to accept accepted responsibility to make paymentpayment and shall have no further right to contest the validity of such claim. If such Indemnifying Party does not respond within such 1560-day period or and rejects such claim in whole or in partparty, such Indemnitee shall be free to pursue such remedies mediation as may be available to such party under applicable law or under this Agreementprovided in Article 10 hereof.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
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Procedure for Indemnification. (a) Except as may be otherwise set forth in this Section 7.4, the period during which Indemnification Claims may be made pursuant to Section 7.2(a)(i)–(ii) shall be the Survival Period applicable to such Indemnification Claim.
(b) An Indemnified Party shall give written notice (a Related Agreement“Claim Notice”) of any Indemnification Claim by or on behalf of any Indemnified Party to Seller, reasonably promptly, but in any event if an Indemnitee shall receive notice or otherwise learn of such Indemnification Claim relates to the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements against an Indemnified Party of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") Claim (other than with respect to which an Indemnifying a Tax Contest), within 30 Business Days after receipt by such Indemnified Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party of written notice thereof promptly after becoming aware of a Legal Proceeding relating to such Third-Party Claim; provided , except that the failure of any Indemnitee to give notice as required by this Section 5.04 so notify Seller or Seller Parent within such time period shall not relieve Seller and Seller Parent of any obligation or liability to the Indemnifying Party of its obligations under this Article VIndemnified Party, except to the extent that Seller demonstrates that its ability to resolve such Indemnifying Party Indemnification Claim is materially and adversely prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii)failure.
(c) If an Indemnifying Unless Seller contests the Indemnification Claim in writing delivered to the Indemnified Party chooses to defend or to seek to compromise any Third-Party within 15 Business Days after receipt of a Claim Notice and describing in reasonable detail the basis for contesting the Indemnification Claim, the Indemnitee shall make available Indemnified Party shall, subject to the other terms of this Article VII, be paid the amount of Losses related to such Indemnifying Party any personnel and any books, records Indemnification Claim or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee)uncontested portion thereof. In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim Any disputed Indemnification Claims shall be equal to resolved either (i) the costs in a written agreement signed by Xxxxx and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle Seller or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) by the lesser final, non-appealable decision of (A) the amount of any offer of settlement or compromise which a court resolving such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party disputed Indemnification Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Procedure for Indemnification. Whenever any claim shall arise for indemnification hereunder, the party seeking indemnification (athe "Indemnitee") Except as may be set forth in a Related Agreement, if an Indemnitee shall receive notice or otherwise learn promptly notify the other party (the "Indemnitor") of the assertion claim and, when known, the facts constituting the basis for such claim. If any claim for indemnification hereunder results from or is in connection with any claim or Adverse Consequence by a Person (including, without limitation, any governmental entity) person who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Third Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement), such notice shall also specify, if known, the amount or an estimate of the amount of the liability arising therefrom. The Indemnitee shall give such Indemnifying Party written the Indemnitor prompt notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required such claim and the Indemnitor shall undertake the defense thereof by this Section 5.04 shall not relieve the Indemnifying Party representatives of its obligations under this Article Vown choosing, except reasonably satisfactory to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, at the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such expense of the Indemnitor. The Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate participate in any such defense of a Third Party Claim with advisory counsel and in that event of its own choosing, at its own expense. If the Indemnitor, within a reasonable fees and expenses time after notice of any such Third Party Claim, fails to defend, the Indemnitee or any affiliate of the Indemnitee shall have the right to undertake the defense, compromise or settlement of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Third Party Claim (which election may be made only in on behalf of, and for the event account of, the Indemnitor, at the expense and risk of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02the Indemnitor. The Indemnitor shall not, as without the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoingIndemnitee's written consent, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Third Party Claim unless such settlement or compromise contemplates consent to entry of any judgment that does not include, as an unconditional term thereof thereof, the giving by such the claimant or the plaintiff to the Indemnitee of a written and the Indemnitee's directors, officers, employees and agents, an unconditional release from all liability in respect of such Third-Third Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee)Claim. In the event the The Indemnitee shall notify not pay any claim covered by this right to indemnification prior to giving the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, Indemnitor the obligation notice of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, Section 6 and the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue opportunity provided herein to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlementclaim itself.
Appears in 1 contract
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if If an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) person who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person person of any Action (a "Third-Third Party Claim") with respect to which an Indemnifying Party is or may be obligated to provide indemnification pursuant to this Agreementmake an Indemnity Payment, such Indemnitee shall give such Indemnifying Party written prompt notice thereof promptly after becoming aware of such Third-Third Party Claim, specifying in reasonable detail the nature of such Third Party Claim and the amount or estimated amount thereof to the extent then feasible (which estimate shall not be conclusive of the final amount of such claim); provided provided, however, that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 5.4 shall not relieve the related Indemnifying Party of its obligations under this Article V5, except to the extent that such Indemnifying Party is actually prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromisedefend, at such Indemnifying Party's own expense and by such Indemnifying Party's own counselcounsel (which counsel shall be reasonably satisfactory to the Indemnitee), any Third-Third Party Claim. If an Indemnifying Party elects to defend a Third Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect shall, within 10 days of notice of such Third-Third Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) Claim (or sooner, if the nature of such Third-Third Party Claim so requires), the Indemnifying Party shall notify the related Indemnitee of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)do so, and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Third Party Claim. Such Indemnifying Party shall pay such Indemnitee's actual out-of-pocket expenses (other than officers' or employees' salaries) reasonably incurred in connection with such cooperation. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for the defense of a Third-Third Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V 5 for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided provided, however, that if such Indemnitee shall have the defendants in any right to employ separate counsel to represent such claim include both the Indemnifying Party and one or more Indemnitees and Indemnitee if, in such Indemnitees' Indemnitee's reasonable judgment judgment, a conflict of interest between such Indemnitees Indemnitee and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. Except as so provided, if an Indemnitee desires to participate in the defense of a Third Party Claim, it may do so but it shall not control the defense and such participation shall be at its sole cost and expense. If an Indemnifying Party elects not to assume responsibility for defend against a Third-Third Party Claim (which Claim, or fails to notify an Indemnitee of its election may be made only as provided in the event of a good faith dispute that a claim was inappropriately tendered under this Section 5.01 or 5.025.4, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to defend, compromise and settle such Third Party Claim; provided, however, that no such Indemnitee may compromise or settle any such Third-Third Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim Claim without prior written notice to the such Indemnifying Party, which shall have the option within ten days following the receipt Party and except by payment of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, monetary damages or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the other money payments. No Indemnifying Party shall have no further right consent to contest entry of any judgment or enter into any compromise or settlement which does not include as an unconditional term thereof the amount giving by the claimant or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response plaintiff to such written notice Indemnitee of a release from the Indemnitee, the Indemnifying all Liability in respect to such Third Party shall be deemed to have elected option (ii)claim.
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claimclaim, the Indemnitee shall make available to such Indemnifying Party any personnel and or any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defensedefense (the cost of copying thereof to be paid by the Indemnifying Party).
(d) Notwithstanding anything else in the foregoing provisions of this Section 5.04 5.4, there may be Third Party Claims which reasonably could result in both SFX and Entertainment being liable to the contraryother under indemnification provisions of this Agreement. In any such events, an Indemnifying Party the parties shall not settle endeavor, acting reasonably and in good faith, to agree upon a manner of conducting the defense of or compromise any Third-settlement of the Third Party Claim unless such settlement or compromise contemplates as an unconditional term thereof with a view to minimizing the giving legal expenses and associated costs that might otherwise be incurred by such claimant or plaintiff the parties, including to the Indemnitee use of a written release from all liability in respect the same legal counsel for the defense of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claimclaim.
(e) Except to the extent expressly provided otherwise in this Section 5.4, the indemnification provided for by this Section 5.4 shall not inure to the benefit of any third party or parties and shall not relieve any insurer who would otherwise be obligated to pay any claim of the responsibility with respect thereto or, solely by virtue of the indemnification provisions hereof, provided any subrogation rights with respect thereto.
(f) Any claim on account of an Indemnifiable Loss which does not result from a Third-Third Party Claim shall be asserted by written notice given by the related Indemnitee to the applicable related Indemnifying Party. Such Indemnifying Party shall have a period of 15 60 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 1560-day period, such Indemnifying Party shall be deemed to have refused to accept accepted responsibility to make paymentpayment and shall have no further right to contest the validity of such claim. If such Indemnifying Party does not respond within such 1560-day period or and rejects such claim in whole or in part, such Indemnitee shall be free to pursue such the remedies as may be available to such party under applicable law or under this Agreementprovided in Article 11 hereof.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if If an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Third Party Claim") Claim with respect to which an Indemnifying Party may be obligated under this Agreement to provide indemnification pursuant to this Agreementindemnification, such Indemnitee shall give such Indemnifying Party written prompt notice thereof promptly after becoming aware of such Third-Third Party Claim; provided provided, however, that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 2.3 shall not relieve the any Indemnifying Party party of its obligations under this Article VII, except to the extent that such Indemnifying Party is materially prejudiced by such failure to give noticethereby. Such notice shall describe the Third-Third Party Claim in reasonable detail, and and, if practicable, shall indicate the estimated amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An The Indemnifying Party may elect to defend or to seek to settle or compromiseParty, at such Indemnifying Party's own expense and through counsel chosen by such Indemnifying Party's own counselParty (which counsel shall be reasonably satisfactory to the Indemnitee), may elect to defend any Third-Third Party Claim. If the Indemnifying Party elects to defend a Third Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect shall, within 30 Business Days after receiving notice of such Third-Third Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) Claim (or sooner, if the nature of such Third-Third Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)do so, and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Third Party Claim. Such Indemnifying Party shall pay such Indemnitee's reasonable out-of-pocket expenses incurred in connection with such cooperation. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for the defense of a Third-Third Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V II for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for defend against a Third-Third Party Claim (which Claim, or fails to notify an Indemnitee of its election may be made only as provided in the event of a good faith dispute that a claim was inappropriately tendered under this Section 5.01 or 5.022.3, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to defend, compromise and settle such Third Party Claim; provided, however, that no such Indemnitee may compromise or settle any such Third-Third Party ClaimClaim without the prior written consent of the Indemnifying Party, which consent shall not be unreasonably withheld. Notwithstanding the foregoing, an Indemnitee may the Indemnifying Party shall not, without the written consent of the Indemnitee, which consent shall not be unreasonably withheld, settle or compromise any claim without prior written notice Third Party Claim or consent to the Indemnifying Party, entry of any judgment which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall does not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates include as an unconditional term thereof the giving delivery by such the claimant or plaintiff to the Indemnitee of a written release from all liability Liabilities in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Third Party Claim.
(ec) Any In the event an Indemnitee should have a claim on account (including any potential claim) against any Indemnifying Party under this Article II that does not involve a Third Party Claim, the Indemnitee shall give such Indemnifying Party prompt notice of an such claim; provided, however, that the failure of any Indemnitee to give notice as provided in this Section 2.3 shall not relieve any Indemnifying Party of its obligations under this Article II, except to the extent that such Indemnifying Party is materially prejudiced thereby. Such notice shall describe the claim (or potential claim) in reasonable detail, and, if practicable, shall indicate the estimated amount of the Indemnifiable Loss which that has been or may be sustained by such Indemnitee. If the Indemnifying Party does not result from a Third-Party Claim shall be asserted by written notice given by notify the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the within 30 Business Days following its receipt of such notice within which to respond thereto. If such that the Indemnifying Party does not respond within such 15-day perioddisputes its liability to the Indemnitee under this Article II, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid specified by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party notice shall be subrogated to and shall stand in the place conclusively deemed a liability of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate inpay the amount of such liability to the Indemnitee within five days after expiration of such 30 Business Day period. If the Indemnifying Party timely disputes its liability with respect to such claim, the Indemnifying Party and the Indemnitee shall proceed in good faith to negotiate a resolution of such defense, compromise or settlementdispute.
Appears in 1 contract
Procedure for Indemnification. (1) The following provisions and the provisions of Section 11.9 will apply to any claim by Buyer for indemnification by Sellers pursuant to Article 11 hereof (an "Indemnity Claim"):
(a) Except as may be set forth in a Related Agreement, if an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly Promptly after becoming aware of such Third-Party any matter that may reasonably give rise to an Indemnity Claim; provided that , Buyer will provide to Sellers written notice of the failure of any Indemnitee to give notice as required by this Section 5.04 shall not relieve Indemnity Claim specifying the Indemnifying Party of its obligations under this Article V, except to basis for the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Indemnity Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.Indemnity Claim or, if an amount is not then determinable, an estimate of the amount of the Indemnity Claim, if an estimate is feasible in the circumstances;
(b) An Indemnifying Buyer will not negotiate, settle, compromise or pay (except in the case of payment of a judgment) any Indemnity Claim relating to an alleged Liability to any other Person (a "Third Party may elect Liability") as to defend or which it proposes to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party assert an Indemnity Claim, provided that except with the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect prior written consent of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) Sellers (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party which consent shall not be liable unreasonably withheld or delayed);
(c) With respect to any Third Party Liability, provided Sellers first admit Buyer's right to indemnification for the amount of such Indemnitee under this Article V for Third Party Liability which may at any legal time be determined or settled, then, in any legal, administrative or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee proceedings in connection with the defense thereof; provided that if matters forming the defendants in basis of the Third Party Liability, the following procedures will apply:
(i) Except as contemplated by subparagraph (ii) of this paragraph, Sellers will have the right to assume carriage of the compromise or settlement of the Third Party Liability and the conduct of any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claimrelated Proceedings, such Indemnitees but Buyer shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not given the opportunity at its expense to assume responsibility for a Third-Party Claim (which election may be made only participate in the event defence of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02the Third Party Liability, as to consult with Sellers in the case may besettlement of the Third Party Liability and the conduct of related Proceedings (including consultation with counsel);
(ii) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice subparagraphs (i) to disapprove of this paragraph, Sellers shall not settle the settlement and assume all past and future responsibility for Third Party Liability or conduct any legal, administrative or other proceedings in any manner which would, in the claimreasonable opinion of the Purchaser, including reimbursing have a Material Adverse Effect on the Indemnitee for prior expenditures in connection condition of the Business or Buyer, except with the claim, prior written consent of Buyer (not to be unreasonably withheld or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (iidelayed).
(ciii) If an Indemnifying Sellers shall keep Buyer advised of the status of any Third Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel Liability and any books, records or other documents within its control or which will provide Buyer copies of all relevant documentation as it otherwise has the ability to make available that are necessary or appropriate for such defensebecomes available.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contraryIf, with respect to any Action pending at the time Third Party Liability, Sellers do not admit Buyer's right to indemnification or declines to assume carriage of the Distribution settlement or of any Proceedings relating to the Third Party Liability, then the following provisions will apply:
(a "Pending Action"i) with respect Buyer, at its discretion, may assume carriage of the settlement or of Proceedings relating to which an Indemnifying the Third Party Liability and may defend or settle the Third Party Liability on such terms as Buyer, acting in good faith, considers advisable; and
(ii) Any cost, loss, damage or expense incurred or suffered by Buyer in the settlement or defence of such Third Party Liability or the conduct of any Proceedings shall be obligated added to provide the amount of the Indemnity Claim.
(2) The provisions of Sections 11.8 and 11.9 shall apply mutatis mutandis to any Claim by Sellers for indemnification by Buyer pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlementArticle 11 hereof.
Appears in 1 contract
Procedure for Indemnification. (a) Except as may If a party entitled to be set forth in a Related Agreement, if indemnified under this Agreement (an Indemnitee shall receive "Indemnitee") receives notice or otherwise learn of the assertion assertion, by an unaffiliated third party (a Person (including, without limitation, any governmental entity"Third Party") who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person person of any Action action or proceeding (a "Third-Third Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to is provided under this Agreement, such the Indemnitee shall give such Indemnifying Party written the Company prompt notice thereof promptly (together with a copy of any writing evidencing such claim) after becoming aware of such Third-Third Party Claim; provided that . The right of the failure Indemnitee to be indemnified or compensated hereunder in respect of any Indemnitee Third Party Claim will be affected by its failure to give prompt notice as required by this Section 5.04 shall not relieve of such Third Party Claim to the Indemnifying Party of its obligations under this Article VCompany if, except and to the extent that such Indemnifying Party is prejudiced by that, such failure to give noticeprejudices the Company in the defense of such Third Party Claim. Such notice The Company may, with the consent of Parent (which shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessarynot be unreasonably withheld) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend compromise or to seek to settle or compromisedefend, at such Indemnifying Partythe Company's own expense and by such Indemnifying Partythe Company's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Third Party Claim. Within 30 days of If the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or soonerCompany does so elect, if the nature of such Third-Party Claim so requires)it shall, the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt receiving notice of the Third Party claim, notify the Indemnitee and Parent of its intent to do so and Parent shall have 10 days thereafter to give its consent to such notice from election. If Parent consents to the IndemniteeCompany's election, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)Indemnitee and Parent will cooperate, and such Indemnitee shall cooperate at the expense of the Company, in the compromise or defense or settlement or compromise of against such Third-Third Party Claim. After notice from an Indemnifying If the Company elects not to compromise or defend the Third Party Claim or fails to an notify the Indemnitee and Parent of its election to assume responsibility for a Third-Party Claimas herein provided, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel Parent reasonably satisfactory denies its consent to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not Company's election to assume responsibility for a Third-Party Claim do so, the Parent may pay (which election may be made only in without prejudice of any of its rights against the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02Company), as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle defend such Third-Third Party Claim. Notwithstanding the foregoing, an Indemnitee the Company and the Parent may not settle or compromise any claim without prior written notice (unless the sole relief claimed by the Third Party is monetary damages that are paid in full by the party settling or compromising such claim) over the objection of the other parties; PROVIDED, HOWEVER, that consent to settlement or compromise shall not be unreasonably withheld. In any event, Parent or the Indemnifying PartyCompany may participate, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claimat their own expense, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of any Third Party claim being conducted by the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii)other.
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(eb) Any claim on account of an Indemnifiable any Loss which does not result from a Third-Third Party Claim claim shall be asserted by written notice given by the Indemnitee or Parent to the applicable Indemnifying PartyCompany. Such Indemnifying Party The Company shall have a period of 15 30 days after the following receipt of such notice within which to respond theretoto the claim contained therein. After notice from the Company to the Indemnitee and Parent of their intention to pay such Loss, the Company shall promptly remit payment therefor to the Indemnitee and shall not be liable to the Indemnitee or Parent for any legal expenses or other expenses incurred by the Indemnitee or Parent in connection therewith. If such Indemnifying Party the Company does not respond within such 1530-day period, such Indemnifying Party it shall be deemed to have refused to accept rejected responsibility to make paymentfor such Loss. If such Indemnifying Party the Company does not respond within such 15the 30-day period or rejects such if the respond by rejecting the claim in whole or in part, such the Indemnitee and Parent shall be free to pursue such remedies as may be available to such party parties under applicable law or under this Agreementlaw.
(fc) In addition to any adjustments required pursuant to Section 5.03, if If the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by pursuant to this Agreement, be reduced by recovery, settlement any actual receipt of insurance proceeds or otherwiseother property received by the Indemnitee or Parent in respect of such Loss, the amount of such reduction, reduction less any expenses incurred in connection therewith, with obtaining such reduction shall promptly be repaid by the Indemnitee to the Indemnifying PartyCompany.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Samples: Merger Agreement (SLM Holding Corp)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if If an Indemnitee shall receive notice or otherwise learn of the assertion by a Person person (including, without limitation, any governmental entityGovernmental Authority) who is not a party to this Agreement or to any of the Related Agreements Merger Agreement of any claim or of the commencement by any such Person person of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice (the "Indemnitee Notice") thereof promptly after becoming aware of such Third-Party Claim; provided PROVIDED, HOWEVER, that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 5.3 shall not relieve the applicable Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice Indemnitee Notice shall describe the Third-Party Claim in reasonable detail, detail and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect The Indemnitee shall provide to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that on request all information and documentation reasonably necessary to support and verify any Losses which the Indemnitee is entitled believes give rise to a claim for indemnification hereunder and shall give the Indemnifying Party reasonable access to all books, records and personnel in respect of such Third-Party Claim. Within 30 days the possession or under the control of the Indemnitee which would have bearing on such claim.
(c) Upon receipt of notice from an the Indemnitee in accordance with Notice required by Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires5.3(a), the Indemnifying Party shall notify be entitled, if it so elects, to take control of the defense and investigation with respect to such claim and to employ and engage attorneys of its own choice (subject to approval by the Indemnitee, which approval shall not be unreasonably withheld) to handle and defend the same, at the Indemnifying Party's cost, risk and expense, upon written notice to the Indemnitee of its such election whether to assume responsibility for such Thirdwithin twenty (20) days of receipt of Indemnitee's notice. The Indemnifying Party shall not settle any third-Party Claim (provided party claim that if is the subject of indemnification without the written consent of the Indemnitee, which consent shall not be unreasonably withheld; provided, however, that the Indemnifying Party may settle a claim without the Indemnitee's consent if such settlement (i) includes a complete release of the Indemnitee and (ii) does not so notify require the Indemnitee of its election within 30 days after receipt of such notice from to make any payment or take any action or otherwise materially adversely affect the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for the defense of a Third-Party Claim, such Indemnifying Party shall will not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that provided, that, if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall will have the right to employ separate counsel reasonably satisfactory to the Indemnifying Party to represent such Indemnitees, and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Partycounsel) shall will be paid by such Indemnifying Party. .
(d) If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the appropriate Indemnitee shall make available to such (x) cooperate in all reasonable respects with the Indemnifying Party in connection with such defense and (y) not admit any personnel and any booksliability with respect to, records or other documents within its control settle, compromise or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrarydischarge, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the Indemnifying Party's prior written consent of Indemnitee). In the event the Indemnitee shall notify consent.
(e) If the Indemnifying Party in writing that such Indemnitee declines shall decline to accept assume the defense of any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free or shall fail to notify the Indemnitee that it will defend such claim within twenty (20) days after receipt of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such eventthe Indemnitee Notice, the obligation Indemnitee shall have the right to defend against such claim. The reasonable expenses of all proceedings, contests or lawsuits in respect of such claims shall be borne by the Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) but only if the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such is responsible pursuant to this Article V to indemnify the Indemnitee in respect of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in with respect of to which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(hg) Notwithstanding anything else in this Section 5.04 to the contrary, with With respect to any Action pending at Third-Party Claim for which the time Indemnifying Party assumes responsibility for defense, the Indemnifying Party shall inform the Indemnitee, upon the reasonable written request of the Distribution (a "Pending Action") with Indemnitee, of the status of efforts to resolve such Third-Party Claim. With respect to any Third-Party Claim for which an the Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of does not assume such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemniteeresponsibility, the Indemnitee shall keep inform the Indemnifying Party reasonably informed Party, upon the reasonable written request of the progress ofIndemnifying Party, and of the Indemnifying status of efforts to resolve such Third-Party shall cooperate in, such defense, compromise or settlementClaim.
Appears in 1 contract
Samples: Redemption and Distribution Agreement (Grove Property Trust)
Procedure for Indemnification. (ai) Except as may be set forth in If a Related Agreement, if an Indemnitee party to this Agreement entitled to assert a Claim under this Agreement shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) person who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person person of any Action action or proceeding (a "Third-Third Party Claim") with respect to which an Indemnifying Party may be the Seller or the Buyer is obligated to provide indemnification pursuant to this Agreementindemnification, such Indemnitee the indemnified party (the "Indemnitee") shall give such Indemnifying Party the indemnifying party (the "Indemnitor") prompt written notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is prejudiced by such failure to give noticethereof. Such notice shall describe the Third-Third Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(bii) An Indemnifying Party The Indemnitor may elect to defend compromise or to seek to settle or compromisedefend, at such Indemnifying PartyIndemnitor's own expense and by such Indemnifying PartyIndemnitor's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Third Party Claim. Within 30 If an Indemnitor elects to defend a Third Party Claim it shall, within thirty (30) days of the receipt of the notice from an Indemnitee referred to in accordance with Section 5.04(aParagraph 13.c.(i) above (or sooner, if the nature of such Third-Third Party Claim so requires), the Indemnifying Party shall notify the related Indemnitee of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)do so, and such Indemnitee shall reasonably cooperate in the compromise of, or defense or settlement or compromise of against, such Third-Third Party Claim. Such Indemnitor shall pay such Indemnitee's actual and reasonable out-of-pocket expenses incurred in connection with such cooperation. After written notice from an Indemnifying Party Indemnitor to an Indemnitee of its election to assume responsibility for the defense of a Third-Third Party Claim, such Indemnifying Party Indemnitor shall not be liable to such Indemnitee under this Article V Paragraph 13.a or Paragraph 13.b, as the case may be, for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if such Indemnitee shall have the defendants in any right to employ one counsel for each Third Party Claim to represent such claim include both the Indemnifying Party and one or more Indemnitees and Indemnitee if, in such Indemnitees' reasonable judgment Indemnitee's good faith judgment, (a) a conflict of interest between such Indemnitees Indemnitee and such Indemnifying Party Indemnitor exists in respect of such claimThird Party Claim, or (b) where the Indemnitor is also a party to such Indemnitees shall have Third Party Claim, different or conflicting claims or defenses may exist, in which events the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying PartyIndemnitor. If an Indemnifying Party Indemnitor elects not to assume responsibility for defend against a Third-Third Party Claim (which Claim, or fails to notify an Indemnitee of its election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02as provided herein, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior advance written notice to the Indemnifying PartyIndemnitor, which shall have the option within ten days following the receipt pay, compromise or defend such Third Party Claim reasonably and in good faith on behalf of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing account and risk of the Indemnitor to the extent that the Indemnitee for prior expenditures in connection is entitled to receive indemnification from the Indemnitor hereunder. Neither Indemnitor nor Indemnitee shall consent to entry of any judgment or entry into any settlement against or with respect to any Indemnitee without the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense written consent of the claimother, in which event the Indemnifying Party shall have no further right to contest the amount unless such judgment or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right with respect to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(ca) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records provides solely for money damages or other documents within its control or payments for which it otherwise has the ability such Indemnitee is entitled to make available that are necessary or appropriate for such defense.
indemnification hereunder and (db) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates includes as an unconditional term thereof the giving by such the claimant or plaintiff to the such Indemnitee of a written release from for all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Third Party Claim.
(eiii) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Claim or Loss shall, at any time subsequent to the payment required by pursuant to this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Partyrelated Indemnitor.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Samples: Continuous Asset Purchase and Sale Agreement (Arcadia Financial LTD)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided PROVIDED that the failure of any Indemnitee to give notice as required by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided PROVIDED that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus PLUS (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC PEI or Healthcare SpinCo shall, at the request of any the other party, cause the employee(sRetained Employee(s) or SpinCo Employee(s), as the case may be, who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Procedure for Indemnification. Any party seeking indemnification under this ARTICLE IX (aan "Indemnified Party") Except as may be set forth in a Related Agreementwill give each party from whom indemnification is being sought (each, an "Indemnifying Party") notice of any matter for which such Indemnified Party is seeking indemnification, stating the amount of the Damages, if an Indemnitee shall receive notice or otherwise learn known, and method of computation thereof, and containing a reference to the assertion by a Person (including, without limitation, any governmental entity) who is not a party to provisions of this Agreement in respect of which such right of indemnification is claimed or arises. The obligations of an Indemnifying Party under this ARTICLE IX with respect to Damages arising from any of the Related Agreements claims of any claim or of third party which are subject to the commencement by any such Person of any Action indemnification provided for in this ARTICLE IX (a collectively, "Third-Party ClaimClaims") with respect to which will be governed by and contingent upon the following additional terms and conditions: if an Indemnified Party receives, after the Closing Date, initial notice of any Third-Party Claim, the Indemnified Party will give the Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party ClaimClaim within such time frame as necessary to allow for a timely response and in any event within 30 calendar days of the receipt by the Indemnified Party of such notice; provided PROVIDED, HOWEVER, that the failure of any Indemnitee to give provide such timely notice as required by this Section 5.04 shall will not relieve release the Indemnifying Party from any of its obligations under this Article V, ARTICLE IX except to the extent that such the Indemnifying Party is prejudiced by such failure to give noticefailure. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An The Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is will be entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of assume and control the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature defense of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee at its expense and through counsel of its election whether to assume responsibility for such Third-Party Claim (provided that choice if the Indemnifying Party does not so notify the Indemnitee it gives notice of its election intention to do so to the Indemnified Party within 30 45 calendar days after of the receipt of such notice from the IndemniteeIndemnified Party; PROVIDED, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)HOWEVER, and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment there exists a conflict of interest between such Indemnitees and such Indemnifying that would make it inappropriate in the reasonable judgment of the Indemnified Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel (upon and in that event conformity with advice of counsel) for the reasonable fees same counsel to represent both the Indemnified Party and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall , then the Indemnified Party will be paid by such Indemnifying Party. If an Indemnifying Party elects not entitled to assume responsibility for a Third-Party Claim retain one counsel (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02plus one local counsel, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoingif necessary), an Indemnitee may not settle or compromise any claim without prior written notice reasonably acceptable to the Indemnifying Party, which shall have at the option within ten days following the receipt expense of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to , provided that the Indemnified Party and such counsel will contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlementsuch Third-Party Claims in good faith. In the event the Indemnifying Party makes no response exercises the right to undertake any such written notice from defense against any such Third-Party Claim as provided above, the Indemnitee, Indemnified Party will cooperate with the Indemnifying Party shall be deemed in such defense and make available to have elected option (ii).
(c) If an the Indemnifying Party, at the Indemnifying Party's expense, all witnesses, pertinent records, materials and information in the Indemnified Party's possession or under the Indemnified Party's control relating thereto as is reasonably required by the Indemnifying Party. Similarly, in the event the Indemnified Party chooses to defend is, directly or to seek to compromise indirectly, conducting the defense against any such Third-Party Claim, the Indemnitee shall Indemnifying Party will cooperate with the Indemnified Party in such defense and make available to the Indemnified Party, at the Indemnifying Party's expense, all such witnesses, records, materials and information in the Indemnifying Party's possession or under the Indemnifying Party's control relating thereto as is reasonably required by the Indemnified Party. The Indemnifying Party any personnel and any bookswill not, records without the written consent of the Indemnified Party (which will not be unreasonably withheld or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrarydelayed), an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates consent to the entry of any judgment which does not include as an unconditional term thereof the giving delivery by such the claimant or plaintiff to the Indemnitee Indemnified Party of a written release from all liability in respect of such Third-Party Claim. No Third-Party Claim (and which is being defended in good faith by the Indemnifying Party or which is being defended by the Indemnified Party as provided further that such settlement may not provide for any non-monetary relief above in this SECTION 9.5 will be settled by Indemnitee the Indemnified Party without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement (which will not be unreasonably withheld or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claimdelayed).
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Samples: Stock and Asset Purchase Agreement (Newell Rubbermaid Inc)
Procedure for Indemnification. The party seeking indemnification under this Section (a"Indemnitee") Except as may be set forth in a Related Agreementshall give the party from whom it seeks indemnification ("Indemnitor") prompt notice, if an Indemnitee shall receive notice or otherwise learn pursuant to Section 10.7, of the assertion of any such claim, provided that the failure to give notice of a claim within a reasonable time shall only relieve the Indemnitor of liability to the extent it is materially prejudiced thereby. Promptly after receipt of written notice, as provided herein, of a claim by a Person (including, without limitation, any governmental entity) who is person or entity not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee the Indemnitor shall give such Indemnifying Party written notice thereof promptly after becoming aware assume the defense of such Third-Party Claimclaim; provided that (i) if the failure Indemnitor fails, within a reasonable time after receipt of any written notice of such claim, to assume the defense, compromise, and settlement of such claim, Indemnitee shall have the right to give notice as required by this Section 5.04 shall not relieve assume the Indemnifying Party defense of, and to compromise or settle the claim on behalf of its obligations under this Article V, except and for the account and risk of the Indemnitor subject to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) right of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
Indemnitor (b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify upon notifying the Indemnitee of its election whether to do so) to assume responsibility for the defense of such Third-Party Claim claim at any time prior to the settlement, compromise, judgment, or other final determination thereof, (provided that ii) if the Indemnifying Party does not Indemnitee in its sole discretion so notify elects, it shall (upon notifying the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee Indemnitor of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not do so) be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right entitled to employ separate counsel and to participate in that event the reasonable defense of such claim, but the fees and expenses of such separate counsel so employed shall (but not more than one separate counsel reasonably satisfactory to except as contemplated by clause (i) above) be borne solely by the Indemnifying PartyIndemnitee, and (iii) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee Indemnitor may not settle or compromise any claim without prior written notice the consent of the Indemnitee; provided that, if the Indemnitee does not consent to a bona fide offer of settlement made by a third party and the settlement involves only the payment of money, then the Indemnitor may, in lieu of payment of that amount to such third party, pay that amount to Indemnitee. After such payment to the Indemnifying PartyIndemnitee, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party Indemnitor shall have no further right liability with respect to contest the amount that claim or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve proceeding and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate assume full responsibility for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise payment or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise claim or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlementproceeding.
Appears in 1 contract
Samples: Time Brokerage Agreement (Acme Intermediate Holdings LLC)
Procedure for Indemnification. (a) Except as may be set forth A party claiming indemnification under Section 14.1 (in a Related Agreement, if this Article an Indemnitee “Indemnitee”) shall receive give notice to the party or otherwise learn of the assertion by a Person parties against which or against whom indemnification is claimed (including, without limitation, any governmental entity) who is not a party to in this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim"Article an “Indemnitor”) with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after reasonable promptness upon becoming aware of the claim or other facts upon which a claim for indemnification will be based. The written notice shall set forth such Third-Party Claim; provided that the failure of any Indemnitee to give notice information and be accompanied by such documentation with respect thereto as required by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article V, except is then reasonably available to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect The Indemnitor shall have the right, exercisable by notice to defend or to seek to settle or compromisethe Indemnitee, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 given within ten (10) days following receipt of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such aforesaid notice from the Indemnitee, to undertake and assume control of the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise defence of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both asserted by a third party (in this Article, a “Third Party Claim”), including the Indemnifying Party right of compromise or settlement thereof, and one or more Indemnitees and the Indemnitee shall co operate in such Indemnitees' defence and make available all information and documentation requested by the Indemnitor with respect thereto; provided, however, that:
(i) the Indemnitor shall first deliver to the Indemnitee written acceptance of liability for indemnification with respect to any such Third Party Claim and written consent to be joined as a party to any Legal Proceeding relating thereto;
(ii) the undertaking and assumption of control of the defence, compromise or settlement of any such Third Party Claim shall, by its terms, be without expense, cost or other liability to the Indemnitee; and
(iii) the Indemnitor shall at the Indemnitee's request furnish it with reasonable judgment a conflict security against any expenses, costs or other liabilities to which it may be or may become exposed by reason of interest between the defence, compromise or settlement of any such Indemnitees and such Indemnifying Third Party exists in respect Claim.
(c) Upon the assumption of control by the Indemnitor as aforesaid, the Indemnitor shall diligently proceed with the defence, compromise or settlement of such claimThird Party Claim at the Indemnitor's sole expense, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses including employment of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) Indemnitor; and in connection therewith, the Indemnitee shall co operate fully with, but at the expense of, the Indemnitor, to make available to the Indemnitor all pertinent information, documentation and witnesses under the Indemnitee's control and to make such assignments and take such other steps as in the opinion of counsel for the Indemnitor are necessary or desirable to enable the Indemnitor to conduct such defence, provided that the Indemnitee shall be paid by such Indemnifying Party. If an Indemnifying Party elects not entitled to assume responsibility reasonable security from the Indemnitor for a Third-Party Claim (any expenses, costs or other liabilities to which election it may be made only in or may become exposed by reason of such co operation.
(d) The final determination of any such Third Party Claim, including all related expenses, costs and other liabilities, shall be binding and conclusive upon the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 parties hereto as to the validity or 5.02invalidity, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Third Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claimIndemnitor hereunder.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if If an Indemnitee indemnified person shall receive written notice or otherwise learn of the assertion by a Person person (including, without limitation, including any governmental entityGovernmental Entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person person of any Action (a "Third-Party Claim") action, claim, suit, arbitration, inquiry, proceeding or investigation by or before any Governmental Entity or any arbitration tribunal with respect to which an Indemnifying Party indemnifying party may be obligated to provide indemnification pursuant to this AgreementAgreement (a "Third-Party Claim"), such Indemnitee indemnified person shall give such Indemnifying Party the indemnifying party written notice thereof promptly after becoming aware of such Third-Party Claim; provided provided, however, that the failure of any Indemnitee indemnified person -------- ------- to give notice as required by this Section 5.04 9.5(a) shall not relieve the Indemnifying Party indemnifying party of its obligations under this Article V9, except to the extent that such Indemnifying Party indemnifying party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, detail and shall indicate the reasonably foreseeable maximum amount (estimated if necessary) of the Indemnifiable Loss Damages that has been claimed against or may be sustained by such Indemniteeindemnified person.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of a notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such a Third-Party Claim so requires)Claim, the Indemnifying Party indemnifying party shall notify the Indemnitee indemnified person of its election whether to assume responsibility for control of such Third-Party Claim (provided that if the Indemnifying Party indemnifying party does not so notify the Indemnitee indemnified person of its election within 30 days after receipt of such notice from the Indemniteeindemnified person, the Indemnifying Party indemnifying party shall be deemed to have elected not to assume responsibility for control of such Third-Party Claim). An indemnifying party may elect to defend or to seek to settle or compromise any Third-Party Claim, at such indemnifying party's own expense and by counsel satisfactory to the indemnified person, acting reasonably, provided that (i) the indemnifying party must confirm in writing that it agrees that the indemnified person is entitled to indemnification hereunder in respect of such Indemnitee Third-Party Claim and (ii) no compromise or settlement shall be made without the prior written consent of the indemnified person, which consent shall not be unreasonably withheld.
(c) If the indemnifying party elects to assume control of the Third-Party Claim, pursuant to Section 9.5(b), (i) the indemnified person shall cooperate in the defense or settlement or compromise of such Third-Party Claim, including making available to the indemnifying party any personnel and any books, records or other documents within the indemnified person's control or which it otherwise has the ability to make available that are necessary or appropriate for the defense of the Third-Party Claim, (ii) the indemnifying party shall keep the indemnified person reasonably informed regarding the strategy, status and progress of the defense of the Third-Party Claim, and (iii) the indemnifying party shall consider, in good faith, the opinions and suggestions of the indemnified person with respect the Third-Party Claim. After notice from an Indemnifying Party indemnifying party to an Indemnitee indemnified person of its election to assume responsibility for control of a Third-Party Claim, such Indemnifying Party indemnifying party shall not be liable to such Indemnitee indemnified person under this Article V 9 for any legal or other costs or expenses (except costs or expenses approved in advance by the Indemnifying Partyindemnifying party) subsequently incurred by such Indemnitee indemnified person in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel .
(but not more than one separate counsel reasonably satisfactory to the Indemnifying Partyd) shall be paid by such Indemnifying Party. If an Indemnifying Party indemnifying party elects not to assume responsibility for control of a Third-Party Claim (which election may be made only in Claim, the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee indemnified person may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee indemnified person may not settle or compromise any claim without prior written notice to the Indemnifying Partyindemnifying party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and to then assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party indemnified person may, in its sole discretion, proceed with the settlement and the indemnifying party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewithsettlement, or (iii) to approve and pay the amount of the settlement, reserving the Indemnifying Partyindemnifying party's right to contest the Indemniteeindemnified person's right to indemnity, or (iv) to approve and agree to pay the settlement. In If the event the Indemnifying Party indemnifying party makes no response to such written notice from the Indemniteenotice, the Indemnifying Party indemnifying party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses . When the indemnifying party chooses, or is deemed to defend or to seek to compromise any Third-Party Claimhave chosen, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus option (ii) or (iii), the lesser issue of (A) whether the amount of any offer of settlement or compromise which such Indemnitee declined indemnified person has a right to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date indemnity under this Article 9 shall be resolved by arbitration as a result of such Indemnitee's continuing to pursue such Third-Party ClaimContested Claim hereunder.
(e) Any claim on account of an Indemnifiable Loss for Damages which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee indemnified person to the applicable Indemnifying Partyindemnifying party (the "Notice of Claim"). Such Indemnifying Party indemnifying party shall have a period of 15 30 days after the receipt of such notice the Notice of Claim within which to respond thereto. If such Indemnifying Party indemnifying party does not respond in writing within such 1530-day period, such Indemnifying Party indemnifying party shall be conclusively deemed to have refused consented to accept responsibility to make paymentthe recovery by the indemnified person of the full amount of Damages specified in the Notice of Claim. If such Indemnifying Party does not respond within such 15-day period or indemnifying party rejects such claim in whole or in partpart (a "Contested Claim"), such Indemnitee indemnified person shall be free resolve such claim for Damages by (i) a written settlement agreement or (ii) in the absence of a written settlement agreement, by binding arbitration pursuant to pursue such remedies as may be available to such party under applicable law or under this Agreementthe terms of Section 9.6.
(f) In addition to any adjustments required pursuant to this Section 5.039.4, if the amount of any Indemnifiable Loss Damages shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee indemnified person to the Indemnifying Partyindemnifying party.
(g) In the event of payment by an Indemnifying Party indemnifying party to any Indemnitee indemnified person in connection with any Third-Party Claim, such Indemnifying Party indemnifying party shall be subrogated to and shall stand in the place of such Indemnitee indemnified person as to any events or circumstances in respect of which such Indemnitee indemnified person may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party ClaimClaim or against any other party that may be liable. Such Indemnitee indemnified person shall cooperate with such Indemnifying Party indemnifying party in a reasonable manner, and at the cost and expense of such Indemnifying Partyindemnifying party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Samples: Merger Agreement (At Home Corp)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required by this Section 5.04 5.05 shall not relieve the Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a5.05(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 5.01, 5.02 or 5.025.03, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 5.05 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-15- day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.035.04, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 5.05 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC Excel, EDV or Healthcare Legacy shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Procedure for Indemnification. (a) Except as may be set forth in If a Related Agreement, if an Indemnitee party to this Agreement entitled to assert a claim under this Agreement (a "Claim") shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement (or an Affiliate of a Party to any of the Related Agreements this Agreement) of any claim or of the commencement by any such Person of any Action action or proceeding (a "Third-Third Party Claim") with respect to which an Indemnifying Party may be GTI or Promptus is obligated to provide indemnification pursuant to this Agreementindemnification, such Indemnitee the indemnified party (the "Indemnitee") shall give such Indemnifying Party written the indemnifying party (the "Indemnitor") prompt notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is prejudiced by such failure to give noticethereof. Such notice shall describe the Third-Third Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party The Indemnitor may elect to defend compromise or to seek to settle or compromisedefend, at such Indemnifying PartyIndemnitor's own expense and by such Indemnifying PartyIndemnitor's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Third Party Claim. Within If an Indemnitor elects to defend a Third Party Claim it shall, within 30 days of the receipt of the notice from an Indemnitee referred to in accordance with Section 5.04(a7.03(a) above (or sooner, if the nature of such Third-Third Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)do so, and such Indemnitee shall reasonably cooperate in the compromise of, or defense or settlement or compromise of against, such Third-Third Party Claim. Such Indemnitor shall pay such Indemnitee actual out-of-pocket expenses incurred in connection with such cooperation. After notice from an Indemnifying Party Indemnitor to an Indemnitee of its election to assume responsibility for the defense of a Third-Third Party Claim, such Indemnifying Party Indemnitor shall not be liable to such Indemnitee under this Article V VIII for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that such Indemnitee shall have the right to employ one counsel for each Third Party Claim to represent such Indemnitee if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment Indemnitee is advised by its counsel that (i) a conflict of interest between such Indemnitees Indemnitee and such Indemnifying Party Indemnitor exists in respect of such claimThird Party Claim or (ii) where the Indemnitor is also a party to such Third Party Claim, different or conflicting claims or defenses may reasonably exist, in which events such Indemnitees shall have portion of the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel that are reasonably satisfactory related to matters covered by the Indemnifying Party) indemnity provided in this Article VIII shall be paid by such Indemnifying PartyIndemnitor. If an Indemnifying Party Indemnitor elects not to assume responsibility for defend against a Third-Third Party Claim (which Claim, or fails to notify an Indemnitee of its election may be made only as provided in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.027.03(a) above, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior advance written notice to the Indemnifying PartyIndemnitor, which pay, compromise or defend such Third Party Claim reasonably and in good faith on behalf of and for the account and risk of the Indemnitor to the extent that the Indemnitee is entitled to receive indemnification from the Indemnitor hereunder. No Indemnitor shall have consent to entry of any judgment or entry into any settlement against or with respect to any Indemnitee without the option within ten days following the receipt written consent of such notice Indemnitee (inot to be unreasonably withheld), unless such judgment or settlement (A) to disapprove the settlement and assume all past and future responsibility provides solely for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records money damages or other documents within its control or payments for which it otherwise has the ability such Indemnitee is entitled to make available that are necessary or appropriate for such defense.
indemnification hereunder and (dB) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates includes as an unconditional term thereof the giving by such the claimant or plaintiff to the such Indemnitee of a written release from for all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Third Party Claim.
(ec) Any claim on account of an Indemnifiable Loss With respect to any Claim hereunder which does not result from a Third-Third Party Claim shall be asserted by written notice given by (a "Direct Claim"), the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party Indemnitor shall have a period of 15 30 days after the from receipt of such notice from the Indemnitee within which to respond thereto. If such Indemnifying Party Indemnitor does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 1530-day period or rejects such claim Direct Claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party Indemnitee under applicable law or under this Agreementlaw.
(fd) In addition to any adjustments required pursuant to Section 5.03, if This Article VIII shall not impair the amount ability of any Indemnifiable Loss shall, at party to exercise any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Partyits other rights and remedies under applicable law.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Samples: Stock Purchase Agreement (Gti Corp)
Procedure for Indemnification. (a) Except The Indemnified Party shall give written notice (the "Claim ----- Notice") of any Claim to the indemnifying party as may be set forth promptly as practicable, but ------ in a Related Agreement, any event: (i) if an Indemnitee shall receive notice or otherwise learn of such Claim relates to the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements against an Indemnified Party of any claim or of the commencement by any such Person of any Action a third party (a "Third-Party Claim"), within 30 days ----------------- after the assertion of such Third-Party Claim or (ii) with if such Claim is not in respect to of a Third-Party Claim, within 30 days after the discovery of facts upon which an Indemnifying Party may be obligated to provide the Claim for indemnification is or could have been based pursuant to this AgreementArticle VI; provided, however, that the failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of any obligation or liability that the indemnifying party may have to the Indemnified Party, except to the extent that the indemnifying party demonstrates that the indemnifying party's ability to defend or resolve such Indemnitee Claim is adversely affected thereby. Any such Claim Notice shall give such Indemnifying Party describe the facts and circumstances on which the asserted Claim for indemnification is based, the amount thereof if then ascertainable and, if not then ascertainable, the estimated maximum amount thereof, and the provisions of this Agreement on which the Claim is based.
(i) Subject to the rights of or duties to any insurer or other third party having potential liability therefor, the indemnifying party shall have the right, upon written notice thereof promptly given to the Indemnified Party within 30 days after becoming aware receipt of the notice from the Indemnified Party of any Third-Party Claim, to assume the defense or handling of such Third-Party Claim; provided that , at the failure indemnifying party's sole expense, in which case the provisions of any Indemnitee to give notice as required by this Section 5.04 6.4(b)(ii) shall not relieve the Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemniteegovern.
(bii) An Indemnifying The indemnifying party shall select counsel reasonably acceptable to the Indemnified Party may elect to defend in connection with conducting the defense or to seek to settle or compromise, at handling of such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that and the Indemnifying indemnifying party shall defend or handle the same in consultation with the Indemnified Party must confirm in writing that it agrees that and shall keep the Indemnitee is entitled to indemnification hereunder in respect Indemnified Party timely apprised of the status of such Third-Party Claim. Within 30 days The indemnifying party shall not, without the prior written consent of the receipt Indemnified Party, agree to a settlement of notice from any Third-Party Claim, unless (A) the settlement provides an Indemnitee unconditional release and discharge of the Indemnified Party and the Indemnified Party is reasonably satisfied with such discharge and release and (B) the Indemnified Party shall not have reasonably objected to any such settlement on the ground that the circumstances surrounding the settlement could result in accordance an adverse impact on the business, operations, assets, liabilities (absolute, accrued, contingent or otherwise), condition (financial or otherwise) or prospects of the Indemnified Party. The Indemnified Party shall cooperate with Section 5.04(a) (the indemnifying party and shall be entitled to participate in the defense or sooner, if the nature handling of such Third-Party Claim so requires), with its own counsel and at its own expense.
(i) If the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party indemnifying party does not so notify give written notice to the Indemnitee of its election Indemnified Party within 30 days after receipt of such the notice from the Indemnitee, the Indemnifying Indemnified Party shall be deemed to have elected not to assume responsibility for such of any Third-Party Claim), and such Indemnitee shall cooperate in Claim of the indemnifying party's election to assume the defense or settlement or compromise handling of such Third-Party Claim. After notice , the provisions of Section 6.4(c)(ii) shall govern.
(ii) The Indemnified Party may, at the indemnifying party's expense (which shall be paid from an Indemnifying Party time to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance time by the Indemnifying Party) subsequently indemnifying party as such expenses are incurred by such Indemnitee the Indemnified Party), select counsel in connection with conducting the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect handling of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may and defend or (subject to handle such Third-Party Claim in such manner as it may deem appropriate; provided, however, that the following sentence) seek to compromise or Indemnified Party shall keep the indemnifying party timely apprised of the status of such Third-Party Claim and shall not settle such Third-Party Claim. Notwithstanding Claim without the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to consent of the Indemnifying Partyindemnifying party, which consent shall have not be unreasonably withheld. If the option within ten days following the receipt of Indemnified Party defends or handles such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee indemnifying party shall make available cooperate with the Indemnified Party and shall be entitled to such Indemnifying Party any personnel and any books, records participate in the defense or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect handling of such Third-Party Claim (with its own counsel and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole its own expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(ed) Any claim on account Upon final determination of an Indemnifiable Loss which does not result from liability in respect of a Third-Party Claim Claim, the indemnifying party or parties shall be asserted by written notice given by the Indemnitee pay to the applicable Indemnifying Indemnified Party. Such Indemnifying Party shall have a period of 15 , in accordance with the Percentage Basis and within 10 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwisedetermination, the amount of such reduction, less Claim as finally determined. Upon the payment in full of any expenses incurred in connection therewith, shall promptly be repaid by Claim the Indemnitee to the Indemnifying Party.
(g) In the event of entity making payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place rights of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-the Indemnified Party Claim against any claimant person, firm or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, corporation with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement subject matter of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlementClaim.
Appears in 1 contract
Procedure for Indemnification. When Acquisition shall be entitled to assert a claim for indemnification pursuant to Section 12.2, the provisions of this Section 12.4 shall govern the procedure for indemnification.
(a) Except as may be set forth in Acquisition, when entitled to assert a Related claim for indemnification under this Agreement, if an Indemnitee shall receive give prompt written notice to the Majority Shareholders of any claim or otherwise learn event known to it which does or may give rise to a claim for indemnification hereunder by Acquisition against the Majority Shareholders; provided that the failure of Acquisition to give notice as provided in this Section 12.4 shall not relieve Acquisition of the assertion Majority Shareholders' obligations under this Article XII. In the case of any claim for indemnification hereunder arising out of a claim, action, suit or proceeding brought by a Person (including, without limitation, any governmental entity) person who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") ), Acquisition shall also give the Majority Shareholders copies of any written claims, process or legal pleadings with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required Claim promptly after such documents are received by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such IndemniteeAcquisition.
(b) An Indemnifying Party The Majority Shareholders may elect to defend compromise or to seek to settle or compromisedefend, at such Indemnifying Party's the Majority Shareholders' own expense and by such Indemnifying Party's the Majority Shareholders' own counsel, any Third-Party Claim, provided that . If the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled Majority Shareholders elect to indemnification hereunder in respect of such compromise or defend a Third-Party Claim. Within 30 , they shall, within thirty (30) days of the its receipt of the notice from an Indemnitee in accordance with Section 5.04(aprovided pursuant to subsection 12.4(a) hereof (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee Acquisition of its election whether their intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)do so, and such Indemnitee Acquisition shall reasonably cooperate in the compromise of, or defense or settlement or compromise of against, such Third-Party Claim. The Majority Shareholders shall pay Acquisition's actual out-of-pocket expenses incurred in connection with such cooperation. After notice from an Indemnifying Party the Majority Shareholders to an Indemnitee Acquisition of its their election to assume responsibility for the defense of a Third-Party Claim, such Indemnifying Party the Majority Shareholders shall not be liable to such Indemnitee Acquisition under this Article V XII for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee Acquisition in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees Acquisition shall have the right to employ separate counsel of its choice to represent Acquisition if, in Acquisition's reasonable judgment, a conflict of interest between Acquisition and the Majority Shareholders exists in respect of such Third-Party Claim, and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Partythe Majority Shareholders. If an Indemnifying Party elects the Majority Shareholders elect not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any against a Third-Party Claim, the Indemnitee shall make available or fail to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else notify Acquisition of their election as provided in this Section 5.04 to the contrary12.4, an Indemnifying Party shall not settle Acquisition may pay, compromise or compromise any defend such Third-Party Claim on behalf of and for the account and risk of the Majority Shareholders. The Majority Shareholders shall not consent to entry of any judgment or enter into any settlement without the written consent of Acquisition (which consent shall not be unreasonably withheld), unless such judgment or settlement provides solely for money damages or compromise contemplates other money payments for which Acquisition is entitled to indemnification hereunder and includes as an unconditional term thereof the giving by such the claimant or plaintiff to the Indemnitee Acquisition of a written release from all liability in respect of such Third-Party Claim Claim.
(and provided further c) If there is a reasonable likelihood that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such a Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date may have a material adverse effect on Acquisition, other than as a result of such Indemnitee's continuing money damages or other money payments for which Acquisition is entitled to pursue indemnification hereunder, Acquisition will have the right, after consultation with the Majority Shareholders and at the cost and expense of the Majority Shareholders, to defend such Third-Party Claim.
(ed) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss Damages shall, at any time subsequent to the payment required by pursuant to this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee Acquisition to the Indemnifying PartyMajority Shareholders.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Samples: Purchase and Sale Agreement (Exigent International Inc)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided PROVIDED that the failure of any Indemnitee to give notice as required by this Section 5.04 5.05 shall not relieve the Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a5.05(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided PROVIDED that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 5.01, 5.02 or 5.025.03, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 5.05 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus PLUS (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.applicable
Appears in 1 contract
Procedure for Indemnification. (a) Except as may be set forth in If a Related Agreementcomplaint, if an Indemnitee shall receive notice claim or otherwise learn of the assertion legal action is brought or made by a Person third party (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Third Party Claim") with respect as to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been Company or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee Investor is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires"Indemnified Party"), the Indemnified Party shall give written notice of such Third Party Claim to the indemnifying party ("Indemnifying Party") promptly after the Indemnified Party receives notice thereof, which notice shall include a copy of any letter, complaint or similar writing received by the Indemnified Party; provided, however, that any failure to provide, or delay in providing such notification shall not constitute a bar or defense to indemnification except to the extent the Indemnifying Party has suffered actual material loss thereby. The Indemnifying Party shall notify have the Indemnitee of its election whether right to assume responsibility for the defense of such Third-Third Party Claim (provided that if with counsel reasonably satisfactory to the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party ClaimIndemnified Party. After notice from an the Indemnifying Party to an Indemnitee the Indemnified Party of its the Indemnifying Party's election so to assume responsibility for a Third-the defense of such Third Party Claim, such the Indemnifying Party shall not be liable to such Indemnitee under this Article V the Indemnified Party for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee the Indemnified Party in connection with the defense thereof; provided that if the defendants in any of such claim include both Third Party Claim except as hereinafter provided. If the Indemnifying Party elects to assume such defense and one or more Indemnitees and selects such counsel, the Indemnified Party may participate in such Indemnitees' reasonable judgment defense through its own separate counsel, but the fees and expenses of such counsel shall be borne by the Indemnified Party unless (i) otherwise specifically agreed in writing by the Indemnifying Party, or (ii) counsel selected by the Indemnifying Party determines that because of a conflict of interest between such Indemnitees and such the Indemnifying Party exists and the Indemnified Party such counsel for the Indemnifying Party cannot adequately represent both parties in respect conducting the defense of such claim, such Indemnitees action (in which case the Indemnifying Party shall not have the right to employ separate counsel and in that event direct the reasonable fees and expenses defense of such separate counsel (but not more than one separate counsel reasonably satisfactory to Third Party Claim on behalf of the Indemnified Party). In such event, however, the Indemnifying Party) Party shall not be paid by held liable for any settlement effected without the written consent of such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event The failure of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness notify an Indemnified Party of the settlement if the Indemnitee elects its election to proceed therewith, or defend such Third Party Claim within twenty-one (iii21) days after notice thereof was given to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an a waiver by the Indemnifying Party chooses of its rights to defend or to seek to compromise any Third-such Third Party Claim. If the Indemnifying Party assumes the defense of such Third Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has obligations of the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall include taking all steps reasonably necessary in the defense of such Third Party Claim and holding the Indemnified Party harmless from and against any and all damages caused by or arising out of any settlement or any judgment in connection with such claim or litigation, subject to the limitations on liability set forth herein. The Indemnifying Party may not settle or compromise any Third-such Third Party Claim without the consent of the Indemnified Party unless such settlement or compromise contemplates as an unconditional term thereof involves solely the payment of money and the giving by such claimant or plaintiff to of customary releases. If the Indemnitee of a written release from all liability in respect Indemnifying Party does not assume the defense of such Third-Third Party Claim (and provided further in accordance with this Section, the Indemnified Party may defend against such claim or litigation in such manner as it deems appropriate; provided, however, that such settlement the Indemnified Party may not provide for any non-monetary relief by Indemnitee settle such Third Party Claim without the prior written consent of Indemnitee). In the event the Indemnitee shall notify Indemnifying Party; provided, further, that the Indemnifying Party may not withhold such consent unless it has provided security of a type and in writing that such Indemnitee declines an amount reasonably acceptable to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-the Indemnified Party Claim, free for the payment of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee its indemnification obligations with respect to such Third-Third Party Claim Claim. The Indemnifying Party shall be equal to (i) promptly reimburse the costs and expenses Indemnified Party for the amount of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle settlement, or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) for the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent judgment rendered with respect to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Third Party Claim, such Indemnifying and for all costs and expenses incurred by the Indemnified Party shall be subrogated to and shall stand in the place defense of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable mannerclaim, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlementlimitations on liability set forth herein.
Appears in 1 contract
Procedure for Indemnification. The procedure for indemnification shall be as follows:
(a1) Except as may be set forth in a Related Agreement, if an Indemnitee The party claiming indemnification (the "Claimant") shall receive give written notice or otherwise learn of to the assertion by a Person party from which indemnification is sought (including, without limitation, any governmental entitythe "Indemnitor") who is not a party to this Agreement or to any of promptly after the Related Agreements Claimant learns of any claim or of proceeding covered by the commencement by any such Person of any Action (a "Third-Party Claim") with respect foregoing agreements to which an Indemnifying Party may be obligated indemnify and hold harmless and failure to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written prompt notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required by this Section 5.04 shall not relieve the Indemnifying Party of its obligations under this Article Vbe deemed to jeopardize Claimant's right to demand indemnification, except to the extent that such Indemnifying Party provided, that, Indemnitor is not prejudiced by such failure to give the delay in receiving notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b2) An Indemnifying Party may elect With respect to defend or to seek to settle or compromiseclaims between the parties, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the following receipt of notice from an Indemnitee in accordance with Section 5.04(a) the Claimant of a claim, the Indemnitor shall have 30 days to make any investigation of the claim that the Indemnitor deems necessary or desirable, or such lesser time if a 30-day period would jeopardize any rights of Claimant to oppose or protest the claim. For the purpose of this investigation, the Claimant agrees to make available to the Indemnitor and its authorized representatives the information relied upon by the Claimant to substantiate the claim. If the Claimant and the Indemnitor cannot agree as to the validity and amount of the claim within the 30-day period, or lesser period if required by this section (or sooner, if any mutually agreed upon extension hereof) the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim Claimant may seek appropriate legal remedies.
(provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party3) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees The Indemnitor shall have the right to employ separate undertake, by counsel and in that event or other representatives of its own choosing, the reasonable fees and expenses defense of such separate counsel (but not more than one separate counsel reasonably satisfactory claim, provided, that, Indemnitor acknowledges in writing to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to Claimant that Indemnitor would assume responsibility for a Third-Party Claim (which election may be made only in and demonstrates its financial ability to satisfy the claim should the party asserting the claim prevail. In the event that the Indemnitor shall not satisfy the requirements of the preceding sentence or shall elect not to undertake such defense, or within 30 days after notice of any such claim from the Claimant, or such lesser period as required by Section 13.1(c)(2), shall fail to defend, the Claimant shall have the right to undertake the defense, compromise or settlement of such claim, by counsel or other representatives of its own choosing, on behalf of and for the account and risk of the Indemnitor. Anything in this Section 13.1(c)(3) to the contrary notwithstanding, (i) if there is a good faith dispute reasonable probability that a claim was inappropriately tendered under Section 5.01 may materially and adversely affect the Claimant other than as a result of money damages or 5.02other money payments, as the case may be) such Indemnitee may defend or (subject Claimant shall have the right, at its own cost and expense, to participate in the following sentence) seek to defense, compromise or settle such Third-Party Claim. Notwithstanding settlement of the foregoingclaim, an Indemnitee may not (ii) the Indemnitor shall not, without the Claimant's written consent, settle or compromise any claim without prior written notice or consent to the Indemnifying Party, entry of any judgment which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall does not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates include as an unconditional term thereof the giving by such claimant or the plaintiff to the Indemnitee Claimant of a written release from all liability in respect of such Third-Party Claim claim, and (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In iii) in the event that the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free Indemnitor undertakes defense of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such eventclaim consistent with this Section, the obligation Claimant, by counsel or other representative of its own choosing and at its sole cost and expense, shall have the right to consult with the Indemnitor and its counsel or other representatives concerning such Indemnifying Party to such Indemnitee claim and the Indemnitor and the Claimant and their respective counsel or other representatives shall cooperate with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an Indemnitee An Indemnified Party shall receive give written notice or otherwise learn (the "Claim Notice") of any Claim for indemnification under this Article VIII to the Indemnifying Party reasonably promptly after the assertion against an Indemnified Party of any Claim by a Person (including, without limitation, any governmental entity) who is not a third party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Third Party Claim") with or, if such Claim is not in respect of a Third Party Claim, reasonably promptly after the discovery of facts upon which the Indemnified Party intends to which an Indemnifying Party may be obligated to provide base a Claim for indemnification pursuant to this AgreementArticle VIII; PROVIDED, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided HOWEVER, that the failure of any Indemnitee or delay to give notice as required by this Section 5.04 so notify the Indemnifying Party shall not relieve the Indemnifying Party of its obligations under this Article V, any obligation or liability that the Indemnifying Party may have to the Indemnified Party except to the extent that the indemnifying party demonstrates that his, her or its ability to defend or resolve such Indemnifying Party Claim is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemniteeadversely affected thereby.
(bi) An Indemnifying Party may elect Subject to defend the rights of or duties to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal insurer or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrarythird party having potential liability therefor, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof have the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromiseright, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by upon written notice given by the Indemnitee Indemnifying Party to the applicable Indemnified Party within thirty (30) days after receipt by the Indemnifying Party. Such Party of the notice from the Indemnified Party of any Third Party Claim, to assume the defense or handling of such Third Party Claim at the indemnifying party's sole expense, in which case the provisions of Section 8.4(c)(ii) hereof shall govern; PROVIDED, HOWEVER, that, notwithstanding the foregoing, an Essex Indemnified Party may elect to assume the defense and handle any such Third Party Claim if it determines in good faith that the resolution of such Third Party Claim could result in an adverse impact on its business, operations, assets, liabilities (absolute, accrued, contingent or otherwise), condition (financial or otherwise) or prospects, in which case the provisions of Section 8.6(c)(ii) hereof shall govern.
(ii) The Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent select counsel reasonably acceptable to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Indemnified Party to any Indemnitee in connection with any Third-conducting the defense or handling of such Third Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall defend or handle the same in consultation with the Indemnified Party and shall keep the Indemnified Party timely apprised of the status of such Third Party Claim. The Indemnifying Party shall not, without the prior written consent of the Indemnified Party, agree to a settlement of any Third Party Claim, unless (A) the settlement provides an unconditional release and discharge of the Indemnified Party and the Indemnified Party is reasonably satisfied with such discharge and release and (B) the Indemnified Party shall not have reasonably objected to any such settlement on the ground that the circumstances surrounding the settlement could result in an adverse impact on the business, operations, assets, liabilities (absolute, accrued, contingent or otherwise), condition (financial or otherwise) or prospects of the Indemnified Party. The Indemnified Party shall cooperate inwith the Indemnifying Party and shall be entitled to participate in the defense or handling of such Third Party Claim with its own counsel and at its own expense.
(i) If (A) the Indemnifying Party does not give written notice to the Indemnified Party pursuant to Section 8.6(b)(i) within thirty (30) days after receipt of the notice from the Indemnified Party of any Third Party Claim of the Indemnifying Party's election to assume the defense or handling of such Third Party Claim or (B) an Essex Indemnified Party elects to assume the defense and the handling of such Third Party Claim pursuant to Section 8.6(b)(i), the provisions of Section 8.6(c)(ii) hereof shall govern.
(ii) The Indemnified Party may, at the Indemnifying Party's expense (which shall be paid from time to time by the Indemnifying Party as such defenseexpenses are incurred by the Indemnified Party), compromise select counsel, after consultation with the Indemnifying Party, in connection with conducting the defense or settlementhandling of such Third Party Claim and defend or handle such Third Party Claim in such manner as the Indemnified Party may deem appropriate; PROVIDED, HOWEVER, that the Indemnified Party shall keep the Indemnifying Party timely apprised of the status of such Third Party Claim and shall not settle such Third Party Claim without the prior written consent of the Indemnifying Party, which consent shall not be unreasonably withheld. If the Indemnified Party defends or handles such Third Party Claim, the Indemnifying Party shall cooperate with the Indemnified Party and shall be entitled to participate in the defense or handling of such Third Party Claim with its own counsel and at its own expense.
Appears in 1 contract
Samples: Merger Agreement (Essex Corporation)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an If any Indemnitee shall receive receives notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") Claim with respect to which an Indemnifying Party may be is obligated under this Agreement to provide indemnification pursuant to this Agreementindemnification, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided provided, however, that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 4.2 shall not relieve the any Indemnifying Party of its obligations under this Article V4, except to the extent that such Indemnifying Party is actually prejudiced by such failure to give notice. Such notice shall describe the such Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromiseParty, at such Indemnifying Party's own expense and through counsel chosen by such Indemnifying Party's own counselParty (which counsel shall be reasonably satisfactory to the Indemnitee), may elect to defend any Third-Party Claim, provided that the . If an Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled elects to indemnification hereunder in respect defend a Third-Party Claim, then, within ten (10) Business Days after receiving notice of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) Claim (or sooner, if the nature of such Third-Party Claim so requires), the such Indemnifying Party shall notify the Indemnitee of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)do so, and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for the defense of a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V 4 for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided provided, however, that if such Indemnitee shall have the defendants in any right to employ one law firm as counsel to represent such claim include both Indemnitee (which firm shall be reasonably acceptable to the Indemnifying Party and one or more Indemnitees and Party) if, in such Indemnitees' Indemnitee's reasonable judgment judgment, either a conflict of interest between such Indemnitees Indemnitee and such Indemnifying Party exists in respect of such claimclaim or there may be defenses available to such Indemnitee which are different from or in addition to those available to such Indemnifying Party, such Indemnitees shall have the right to employ separate counsel and in that event (i) the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying PartyParty (it being understood, however, that the Indemnifying Party shall not be liable for the expenses of more than one separate counsel (in addition to local counsel) with respect to any Third-Party Claim (even if against multiple Indemnitees)) and (ii) each of such Indemnifying Party and such Indemnitee shall have the right to conduct its own defense in respect of such claim. If an Indemnifying Party elects not to assume responsibility for defend against a Third-Party Claim Claim, or fails to notify an Indemnitee of its election as provided in this Section 4.2 within the period of ten (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.0210) Business Days described above, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to defend, compromise or and settle such Third-Party Claim; provided, however, that no such Indemnitee may compromise or settle any such Third-Party Claim without the prior written consent of the Indemnifying Party, which consent shall not be withheld unreasonably. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewithnot, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.the
Appears in 1 contract
Samples: Investment and Distribution Agreement (Zap Com Corp)
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not After a party to this Agreement becomes aware that any claim is threatened or to any of asserted against it or the Related Agreements existence of any claim or of other circumstances that would occasion the commencement by any such Person of any Action indemnification described in this Section 14 (a "Third-Party Covered Claim"), such party shall provide the party from whom it is seeking indemnification with a notice (a "Claim Notice") with respect to which an Indemnifying Party may be obligated to provide indemnification of such Covered Claim pursuant to this Agreement, such Indemnitee shall the provisions of Section 20 hereof. Failure to give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required by this Section 5.04 shall not relieve the Indemnifying Assuming Party (defined below) of its indemnification obligations under this Article V, hereunder except to the extent that such Indemnifying Party it actually is prejudiced by such failure to give noticefailure. Such notice Each Claim Notice shall describe the Third-Party Claim in reasonable detailCovered Claim, the party threatening or asserting it (if applicable), the relief sought, and shall indicate the amount (estimated if necessary) basis for indemnification hereunder with respect thereto. In the case of a third-party claim, the Indemnifiable Loss that has been or may be sustained by party receiving such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromisenotice may, at such Indemnifying Party's own expense and by such Indemnifying Party's own counselits option, any Third-Party Claim, provided that assume the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect defense of such Third-Party Claim. Within 30 Covered Claim (the "Assuming Party"); provided, that, within forty (40) days of after the receipt of notice from an Indemnitee in accordance with Section 5.04(a) Claim Notice is given (or sooner, if the nature of such Third-Party the Covered Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of party receiving such notice from shall have given notice to the Indemnitee, other party (the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim"Notifying Party"), and such Indemnitee shall cooperate in pursuant to the defense or settlement or compromise provisions of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee Section 20 hereof, of its election to assume responsibility for a Third-such defense. If the defense is so assumed by the Assuming Party Claimwith counsel reasonably acceptable to the Notifying Party, the Notifying Party shall be entitled to participate in the defense of the Covered Claim with its own counsel at its own expense, and the Notifying Party shall provide such Indemnifying cooperation at the expense of the Assuming Party (including providing available information and personnel to the Assuming Party) as the Assuming Party shall reasonably request to facilitate such defense. The Assuming Party shall have the right to defend and/or settle any such Covered Claim on such terms and conditions and in such amounts as it deems appropriate, and the Notifying Party shall promptly execute all documents reasonably requested of it with respect to any such defense and/or settlement; provided, however, any such settlement shall include an unconditional release by the claimant of all indemnified persons with respect to such Covered Claim and the indemnified persons shall not be liable required to take any action other than the delivery of such Indemnitee release. If the party receiving the notice does not assume the defense of a given Covered Claim pursuant hereto or fails to notify the Notifying Party of its election hereunder or contests its obligation to indemnify under this Article V Agreement, or if the third party seeks remedies in addition to the monetary damages, the party giving the notice shall defend against such Covered Claim in such manner, and/or settle such Covered Claim on such terms, as it shall, in its sole reasonable judgment, determine to be appropriate under the circumstances and such action shall be binding on the parties for the purposes of this Section 14. Notwithstanding the preceding sentence, no party may settle or compromise any legal Covered Claim over the objection of the other. Notwithstanding the foregoing, in any action or other expenses (except expenses approved proceeding in advance which the counsel chosen by the Indemnifying Party) subsequently incurred Notifying Party determines that counsel chosen by such Indemnitee the Assuming Party cannot represent both the Notifying Party and the Assuming Party in connection with the defense thereof; provided that if of any Covered Claim consistent with the defendants in any such claim include both applicable rules of professional conduct, the Indemnifying Notifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event at the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Notifying Party's right expense and to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within control its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred own defense in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Samples: Asset Purchase Agreement (Airgas Northern California & Nevada Inc)
Procedure for Indemnification. (a) Except as provided in ----------------------------- clause (d) of this Section 9.03, in the event that any party hereto or other Purchaser Indemnified Party or Seller Indemnified Party reasonably believes that such party has a claim for Damages in respect of which indemnity may be set forth in a Related Agreementsought by such party pursuant this Agreement (each, an "Indemnification Matter"), the party indemnified hereunder (the "Indemnitee") shall notify the party(s) providing indemnification (collectively, the "Indemnitor") by sending written notice to the Indemnitor (an "Indemnity Notice"). In the case of third party claims, which, if successful, could result in an indemnity payment hereunder, an Indemnity Notice shall be given within 30 days after the discovery by the Indemnitee shall receive notice or otherwise learn of the filing or assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim against the Indemnitee stating the nature and basis of such claim; provided, however, that any delay or of the commencement by failure to notify any such Person Indemnitor of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required by this Section 5.04 claim shall not relieve the Indemnifying Party of its obligations under this Article V, it from any liability except to the extent that the Indemnitor demonstrates that the defense of such Indemnifying Party action is prejudiced by such delay or failure to give noticenotify. Such notice Any Indemnity Notice (i) shall describe state (with reasonable specificity) the Third-Party Claim in reasonable detailbasis on which indemnification is being asserted, and (ii) shall indicate set forth the amount of Damages for which indemnification is being asserted and (estimated if necessaryiii) in the case of third party claims, shall be accompanied by copies of all relevant pleadings, demands and other papers served on the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect The indemnitor shall have the right, exercisable by written notice to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether the commencement or assertion of any third party claim in respect of which indemnity may be sought hereunder (the "Indemnity Notice Claim"), to assume responsibility for and conduct the defenses of such Third-Party Claim (third party claim with counsel selected by the Indemnitor and reasonably acceptable to the Indemnitee; provided that if (i) the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt defense of such notice from third party claim by the Indemnitor will not, in the judgment for the Indemnitee, have a material adverse effect of the Indemnitee; and (ii) the Indemnitor has sufficient financial resources (including amounts held in escrow pursuant to the Escrow Agreement), in the reasonable judgment of the Indemnitee, to satisfy the amount of any adverse monetary judgement that is reasonably likely to result: and (iii) the third parry claim solely seeks (and continues to seek) monetary damages: and (iv) the Indemnitor expressly agrees :n writing that as between the Indemnitor and the Indemnitee, the Indemnifying Party Indemnitor shall be deemed solely obligated to have elected not satisfy and discharge the third parry claim (the conditions set forth in clauses i through iv) collectively referred to as the "Litigation Conditions"). If the Indemnitor does nor assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claimthird parry claim in accordance with this Section 9.03, the Indemnitee may continue to defend the third party claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for If the Indemnitor has assumed the defense of' a Third-Party Claim, such Indemnifying Party shall third party claim as provided in this Section 9.03. the Indemnitor will not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such the Indemnitee in connection with the defense thereof; provided thereof provided, however, that if if(i) the defendants in any Litigation Conditions cease to be met, or (ii) the Indemnitor fails to take reasonable steps necessary to defend diligently such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such third party claim, such Indemnitees shall have the right to employ separate counsel Indemnitee may assume its own defense, and the Indemnitor will be liable for all reasonable costs or expenses paid or incurred in that event connection therewith. The Indemnitor or the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02Indemnitee, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following right to participate in (but to control) at its Own expense, the receipt defense of any third party claim which the other is defending as provided in this Agreement. The Indemnitor, if it shall have assumed the defense of any third party claim as provided in this Agreement, shall not, without the prior written consent of the Indemnitee, consent to a settlement of, or the entry of any judgment arising from, any such notice third party claim (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall does not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates include as an a unconditional term thereof the giving by such the claimant or the plaintiff to the Indemnitee of a written complete release from all liability in respect of such Third-Party Claim third party claim, or (and provided further that such settlement ii) which grants any injunctive or equitable relief, or (iii) which may reasonably be expected to have a material adverse effect on the affected business of the Indemnitee. The Indemnitee shall have the right to settle any third party claim, the defense of which has not provide for any non-monetary relief been assumed by Indemnitee without the Indemnitor, with the written consent of the Indemnitor, which consent shall not be unreasonably withheld or delayed. Within 30 days after the Determination Date with respect to a third parry claim, the Indemnitor shall pay the Indemnitee the amount of Damages sustained or incurred by the Indemnitee), Interest will accrue on unpaid Damages at the prime rate plus two percent (2%) per annum.
(c) In the event that liability hereunder does not involve a third party claim, the Indemnitor shall within 30 days after the date of receipt of an Indemnity Notice respond in writing to the Indemnitee (the "Indemnity Response") and set forth with reasonable specificity those items in the Indemnity Notice to which the Indemnitor does not agree as well as the summary basis upon which such disagreement is founded. Within 30 days following the receipt of the Indemnity Response by the Indemnitee, representatives of the Indemnitor and the Indemnitee shall meet to attempt to resolve through good faith negotiations the applicable Indemnification Matters. The parties shall negotiate in good faith for up to 60 days in an attempt to reach a settlement of any disputed matter. In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement good faith negotiations are unsuccessful or compromise, such Indemnitee may continue to contest such Third-Party Claim, free in the event of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such eventother dispute under this Section IX, the obligation parties shall proceed in accordance with Section 11.07 of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(fi) In addition If a claim shall be made by any taxing authority, which, if successful, might result in an indemnity payment to any adjustments required pursuant to Section 5.03Purchaser Indemnified Party, if the amount Purchaser shall promptly notify the Parent in writing (a "Tax Notice") of any Indemnifiable Loss shall, at any time subsequent such claim a "Tax Claim"). If a Tax Notice is not given to the payment required by this AgreementParent within a reasonable period of time, or unreasonable detail to apprise the Parent of the nature of the Tax Claim, in each case taking into account the facts and circumstances with respect to such Tax Claim, neither the Parent nor the Seller shall be reduced by recovery, settlement or otherwise, the amount of such reduction, less liable to any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee Purchaser Indemnified Party to the Indemnifying Partyextent that the Parent's or the Seller's position is prejudiced as a result thereof.
(gii) With respect to any Tax Claim, the Parent and the Seller shall have the right to control and conduct all proceedings and negotiations in connection with such Tax Claim (including, without limitation, selection of counsel) and, without limiting the foregoing, may in the Parent's sole discretion pursue or forego any and all administrative appeals, proceedings, hearings and conferences with any taxing authority with respect thereto, and may, in the Parent's sole discretion, either pay the Tax claimed and xxx for a refund where applicable law permits such refund suits or contest the Tax Claim ~n any permissible manner. The Parent shall, within 30 days of receipt or' a Tax Notice with respect to a Tax Claim (the "Tax Notice Period"), notify the Purchaser in writing of its intention to control and conduct the proceedings and negotiations in connection with such Tax Claim. In the event that the Parent does notify the Purchaser of payment by an Indemnifying Party its intention to any Indemnitee control and conduct the proceedings and negotiations in connection with any Third-Party Tax Claim as provided above, the Purchaser shall have the right to participate fully in such proceedings and negotiations (including, without limitation, with counsel of its choice), at its sole expense, and the Parent and the Seller shall cooperate fully with the Purchaser in connection with such participation. If the Parent does not deliver to the Purchaser within the Tax Notice Period written notice that it will control and conduct the proceedings and negotiations in connection with a Tax Claim, the Purchaser may control, or cause the applicable Group Member to control, and conduct such Indemnifying Party proceedings and negotiations in such manner as it may deem appropriate. In the event that the Parent or the Seller do not exercise their right to control and conduct the proceedings and negotiations in connection with any Tax Claim as provided above, the Parent and the Seller shall be subrogated have the right to participate fully in such proceedings and negotiations (including, without limitation, with counsel of their choice), at their sole expense, and the Purchaser shall, and shall stand cause each Group Member to, cooperate fully with Parent and the Seller and their accountants and other representatives in connection with such participation, and in all cases the place of such Indemnitee Purchaser shall keep the Parent fully informed as to all matters concerning such Tax Claim and shall promptly notify the Parent in writing of any events and all significant developments relating thereto. Without limiting Sections 8.04 and 8.06, the Purchaser and each of its Affiliates shall (and the Purchaser shall cause the Group Members to) cooperate fully with the Parent and the Seller in contesting any Tax Claim, which cooperation shall include, without limitation, the retention and (upon the Parent's request) the provision to the Parent of records and information which are relevant to such Tax Claim, and making officers and employees available on a timely and mutually convenient basis to provide additional information or circumstances in respect explanation of which such Indemnitee may have any right material provided hereunder or claim to testify at proceedings relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Tax Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(hiii) Notwithstanding anything else in this Section 5.04 to the contrarycontrary contained herein, with respect to in no event shall the Purchaser or any Action pending at Group Member settle or otherwise compromise any Tax Claim without the time of the Distribution (a "Pending Action") with respect to Parent's prior written consent which an Indemnifying Party may not be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of withheld for any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlementreason.
Appears in 1 contract
Procedure for Indemnification. (a) Except as may be set forth An Indemnified Party shall give written notice (the “Claim Notice”) of any Indemnification Claim (i) in a Related Agreementthe case of an Indemnification Claim against Buyer, if to Buyer and (ii) in the case of an Indemnitee shall receive notice Indemnification Claim against Sellers, to Sellers, reasonably promptly, but in any event (in each case of an Indemnification Claim against Buyer or otherwise learn Sellers) (A) prior to expiration of the Applicable Survival Period for such Indemnification Claim and (B) if such Indemnification Claim relates to the assertion against an Indemnified Party of any Claim by a Person (including, without limitation, any governmental entity) who is not a third party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-“Third Party Claim"”), within forty-five (45) with respect days after receipt by the Indemnified Party of written notice of a legal process relating to which an Indemnifying such Third Party may be obligated Claim; provided, however, that the failure or delay to so notify the party that is required to provide indemnification pursuant to this Agreement, such Indemnitee shall give such (the “Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required by this Section 5.04 Party”) under subsection 7.5(a)(ii)(B) shall not relieve the Indemnifying Party of its obligations under this Article Vany obligation or liability that the Indemnifying Party may have to the Indemnified Party, except unless, and then only to the extent that, the Indemnifying Party demonstrates that such the Indemnifying Party is prejudiced by thereby. Any such failure to give notice. Such notice Claim Notice shall describe the Third-Party Claim in reasonable detail, detail the asserted Indemnification Claim and shall indicate specify the amount (estimated of such Indemnification Claim if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemniteethen ascertainable.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-In the case of a Third Party Claim, provided that unless the Indemnifying Party must confirm contests in writing and provides notice to the Indemnified Party within forty-five (45) days of receipt by the Indemnifying Party of a Claim Notice that it agrees that objects to such Claim Notice, including but not limited to the Indemnitee is entitled Losses identified in such Claim Notice, the Indemnified Party shall, subject to indemnification hereunder in respect the other terms of such Third-Party Claim. Within 30 days this Article VII, be paid the amount of the receipt of notice from an Indemnitee Losses identified in accordance with Section 5.04(asuch Claim Notice or the uncontested portion thereof.
(c) (or soonerExcept as otherwise provided herein and, if the nature of for as long as it diligently conducts such Third-Party Claim so requires)defense, the Indemnifying Party shall notify have the Indemnitee right to defend and to direct the defense against any such Third Party Claim, in its name or in the name of the Indemnified Party, as the case may be, at the expense of the Indemnifying Party, and with counsel selected by the Indemnifying Party (which is reasonably acceptable to the Indemnified Party) if the Indemnifying Party provides the Indemnified Party with written notice of its election whether to do so within forty-five (45) days of receiving notice of a Third Party Claim; provided, however, the Indemnifying Party shall not be entitled to assume responsibility for such Third-the defense or control of a Third Party Claim and shall pay the fees and expenses of counsel retained by the Indemnified Party if (i) the Indemnifying Party does not acknowledge to the Indemnified Party in writing (in form and substance reasonably satisfactory to the Indemnified Party) its obligations to indemnify the Indemnified Party with respect to all elements of such claim in full without any reservation of rights (i.e., pursuant to which the Indemnifying Party agrees to be fully responsible for all Losses relating to such claims and agrees to provide full indemnification to the Indemnified Party for all Losses relating to such claim, subject to the limitations set forth in this Article VII), (ii) such Third Party Claim seeks an order, injunction or other equitable relief against the Indemnified Party, the Companies or any Company Subsidiaries, (iii) such Third Party Claim involves any criminal proceeding, action, indictment, allegation or investigation, or (iv) counsel to the Indemnified Party shall have reasonably concluded in writing that (a) there is a conflict of interest between the Indemnified Party and the Indemnifying Party in the conduct of the defense of such Third Party Claim or (b) the Indemnified Party has one or more defenses not available to the Indemnifying Party; provided, further, in the event any Third Party Claim is brought or asserted which, if adversely determined, would not entitle the Indemnified Party to full indemnity pursuant to this Article VII by reason of any of the limitations set forth in this section or otherwise, the Indemnified Party may elect to participate in a joint defense of such Third Party Claim for which the expenses of such joint defense will be shared equally by such parties subject to the limitations set forth in this Article VII and the retention of counsel shall be reasonably satisfactory to both parties. Notwithstanding anything in this Agreement to the contrary, the Indemnified Party shall, in connection with any such joint defense, cooperate with the Indemnifying Party, and keep the Indemnifying Party fully informed, in the joint defense of a Third Party Claim. The Indemnified Party shall have the right to participate in the defense of any Third Party Claim with counsel employed at its own expense; provided, however, that, in the case of any Third Party Claim described in clause (i), (ii), (iii) or (iv) above or as to which the Indemnifying Party shall not in fact have employed counsel to assume the defense of such Third Party Claim, the reasonable fees and disbursements of such counsel shall be at the expense of the Indemnifying Party subject to the limitations set forth in this Article VII. No compromise or settlement of any Third Party Claim may be effected by the Indemnifying Party without the Indemnified Party’s consent, which shall not be unreasonably withheld, conditioned or delayed, unless (x) the sole relief provided in the compromise or settlement is monetary damages, there is no finding or admission of any violation of Law in connection therewith and there is no effect on any other claims that may be made against such Indemnified Party or its Affiliates, (y) each Indemnified Party that is Party to such Third Party Claim is fully and unconditionally released from liability with respect to such claim and (z) such settlement or compromise will not, in the good faith judgment of the Indemnified Party, be reasonably likely to establish a precedent, custom or practice materially adverse to the continuing business interests of the Indemnified Party. The Indemnified Party shall not agree to a settlement of, or consent to the entry of any judgment to, any Third Party Claim without the prior written consent of the Indemnifying Party, which consent shall not be unreasonably withheld, conditioned or delayed.
(d) In the event that an Indemnified Party determines that it has a Claim for Losses against an Indemnifying Party hereunder (other than as a result of a Third Party Claim), the Indemnified Party shall give reasonably prompt written notice thereof to the Indemnifying Party, specifying the amount of such Claim (to the extent then reasonably determinable by the Indemnified Party) and any relevant facts and circumstances relating thereto (a “Direct Claim Notice”) (provided that no delay on the part of the Indemnified Party in notifying any Indemnifying Party shall relieve the Indemnifying Party from any obligation hereunder unless, and then solely to the extent, the Indemnifying Party is prejudiced thereby). The Indemnified Party shall provide the Indemnifying Party with reasonable access to its books, records and personnel for the purpose of allowing the Indemnifying Party a reasonable opportunity to evaluate such Direct Claim Notice. The Indemnifying Party shall notify the Indemnified Party within forty-five (45) days following its receipt of such Direct Claim Notice if the Indemnifying Party disputes its liability to the Indemnified Party under this Article VII with respect to such Direct Claim Notice. If the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt Indemnified Party, the Claim or undisputed portion of such notice from Claim specified by the IndemniteeIndemnified Party in such Direct Claim Notice shall be conclusively deemed to be a liability of the Indemnifying Party under this Article VII, and subject to the limitations of this Article VII, the Indemnifying Party shall be deemed pay the amount of such liability to have elected not to assume responsibility for such Third-the Indemnified Party Claim)on demand or, and such Indemnitee shall cooperate in the defense case of any notice in which the amount of the Claim (or settlement or compromise any portion of the Claim) is estimated, on such later date when the amount of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, Claim (or such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect portion of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying PartyClaim) shall be paid is finally determined by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove mutual agreement between the settlement Buyer and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures Sellers which shall be memorialized in connection with the claim, writing or (ii) to disapprove the settlement and continue to refrain from participation in the defense final decision of the claim, in which event the Indemnifying Party shall have no further right to contest the amount a court or reasonableness other trier of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlementfact. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party All disputed Claims for indemnification under this Article VII shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving resolved by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs mutual agreement between Buyer and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle Sellers, which shall be memorialized in writing or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser final decision of (A) the amount a court or other trier of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claimfact.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim Sellers’ obligation to make any indemnification payment under this Agreement (“Seller Indemnity Payment”) shall be asserted by written notice given by the Indemnitee satisfied, subject to the applicable Indemnifying Party. Such Indemnifying Party shall have a period limitations of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced (i) first by recoverysetting off and deducting an amount equal to the Seller Indemnity Payment from the next quarterly payment of principal due pursuant to the promissory note under the Credit Agreement, settlement or otherwise, (ii) to the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid extent that the Seller Indemnity Payment is not fully satisfied by the Indemnitee set off and deduction described in the immediately preceding subsection (i), from the following quarterly payment of principal due pursuant to the Indemnifying Party.
promissory note under the Credit Agreement, and (giii) In to the event of payment extent that the Seller Indemnity Payment is not fully satisfied by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to the set off and shall stand deduction described in the place immediately preceding subsections (i) and (ii), by Coinstar’s immediate (or in any event within five (5) business days) payment in cash of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 an amount equal to the contrary, with respect to any Action pending at the time unpaid portion of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlementSeller Indemnity Payment.
Appears in 1 contract
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if If an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) person who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person person of any Action (a "Third-Third Party Claim") with respect to which an Indemnifying Party is or may be obligated to provide indemnification pursuant to this Agreementmake an Indemnity Payment, such Indemnitee shall give such Indemnifying Party written prompt notice thereof promptly after becoming aware of such Third-Third Party Claim, specifying in reasonable detail the nature of such Third Party Claim and the amount or estimated amount thereof to the extent then feasible (which estimate shall not be conclusive of the final amount of such claim); provided provided, however, that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 4 shall not relieve the related Indemnifying Party of its obligations under this Article VAgreement, except to the extent that such Indemnifying Party is actually prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromisedefend, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Third Party Claim. If an Indemnifying Party elects to defend a Third Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect shall, within 10 days of notice of such Third-Third Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) Claim (or sooner, if the nature of such Third-Third Party Claim so requires), the Indemnifying Party shall notify the related Indemnitee of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)do so, and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Third Party Claim. Such Indemnifying Party shall pay such Indemnitee's actual out-of-pocket expenses (other than officers' or employees' salaries) reasonably incurred in connection with such cooperation as such expenses are incurred. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for the defense of a Third-Third Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V Agreement for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided provided, however, that if such Indemnitee shall have the defendants in any right to employ separate counsel to represent such claim include both the Indemnifying Party and one or more Indemnitees and Indemnitee if, in such Indemnitees' Indemnitee's reasonable judgment judgment, a conflict of interest between such Indemnitees Indemnitee and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying PartyParty as such fees and expenses are incurred. Except as so provided, if an Indemnitee desires to participate in the defense of a Third Party Claim, it may do so but it shall not control the defense and such participation shall be at its sole cost and expense. If an Indemnifying Party elects not to assume responsibility for defend against a Third-Third Party Claim (which Claim, or fails to notify an Indemnitee of its election may be made only as provided in the event of a good faith dispute that a claim was inappropriately tendered under this Section 5.01 or 5.024, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to defend, compromise and settle such Third Party Claim; provided, however, that no such Indemnitee may compromise or settle any such Third-Third Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim Claim without prior written notice to the such Indemnifying Party, which shall have the option within ten days following the receipt Party and except by payment of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, monetary damages or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the other money payments. No Indemnifying Party shall have no further right consent to contest entry of any judgment or enter into any compromise or settlement which does not include as an unconditional term thereof the amount giving by the claimant or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response plaintiff to such written notice Indemnitee of a release from the Indemnitee, the Indemnifying all liability in respect to such Third Party shall be deemed to have elected option (ii)Claim.
(c) If an any Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claimclaim, the Indemnitee shall make available to such Indemnifying Party any personnel and or any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defensedefense (the cost of copying thereof to be paid by the Indemnifying Party).
(d) Notwithstanding anything else in Upon any final determination of a Third Party Claim pursuant to this Section 5.04 to 4, the contrary, an Indemnifying Party shall not settle pay promptly on behalf of the Indemnitee, or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee in reimbursement of a written release from all liability any amount theretofore required to be paid by it, the amount so determined. Upon the payment in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief full by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept of any such settlement or compromiseamount, such Indemnitee may continue the Indemnifying Party shall be subrogated to contest such Third-Party Claim, free the rights of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In , to the extent not waived in settlement, against the person who made such event, the obligation of such Indemnifying Third Party to such Indemnitee Claim with respect to such Third-Party Claim shall be equal to (i) the costs and expenses subject matter of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claimclaim.
(e) Except to the extent expressly provided otherwise herein, the indemnification provided for by this Agreement shall not inure to the benefit of any third party or parties and shall not relieve any insurer who would otherwise be obligated to pay any claim of the responsibility with respect thereto or, solely by virtue of the indemnification provisions hereof, provide any subrogation rights with respect thereto.
(f) Any claim on account of an Indemnifiable Loss which does not result from a Third-Third Party Claim shall be asserted by written notice given by the related Indemnitee to the applicable related Indemnifying Party. Such Indemnifying Party shall have a period of 15 30 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 1530-day period, such Indemnifying Party shall be deemed to have refused to accept accepted responsibility to make paymentpayment and shall have no further right to contest the validity of such claim. If such Indemnifying Party does not respond within such 1530-day period or and rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be all available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Partylegal actions.
(g) In If the event indemnification provided for in this Agreement is unavailable or insufficient to hold harmless an Indemnitee in respect of payment any Indemnifiable Loss, then the Indemnifying Party shall contribute to the amount paid or payable by such Indemnitee as a result of such Indemnifiable Loss, in such proportion as is appropriate to reflect the relative fault of the Indemnitee on the one hand and the Indemnifying Party on the other hand in connection with the circumstances which resulted in such Indemnifiable Loss. The amount paid or payable by an Indemnifying Party Indemnitee as a result of the Indemnifiable Loss referred to above in this subsection (g) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnitee in connection with investigating or defending any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right action or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Samples: Indemnification & Liability (Provantage Health Services Inc)
Procedure for Indemnification. Subject to the other terms of this Article VII:
(a) Except as may be set forth in a Related Agreement, if an Indemnitee shall receive notice or otherwise learn of If the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or facts that give rise to any of the Related Agreements of indemnification hereunder will involve any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") with respect to which an Indemnifying , the Indemnified Party may be will give the party obligated to provide indemnification pursuant to this Agreement, indemnity hereunder (“Indemnifying Party”) written notice of such Indemnitee shall give such Indemnifying claim (the “Third-Party Notice”) promptly after the Indemnified Party will have received written notice thereof promptly after becoming aware from the third party making such claim. Thereafter, the Indemnified Party will deliver to the Indemnifying Party copies of such all notices and documents (including court papers) received by the Indemnified Party relating to the Third-Party Claim; provided that the . The Indemnified Party’s failure of any Indemnitee to give notice as required by this Section 5.04 shall or delay in providing Third-Party Notice will not relieve the Indemnifying Party of its obligations under this Article V, VII except to the extent that such the Indemnifying Party is materially prejudiced by such failure as a result thereof.
(b) The Indemnifying Party will have twenty (20) days from receipt of the Third-Party Notice to give notice. Such provide the Indemnified Party with notice shall describe that it wishes to assume the defense of the Third-Party Claim and acknowledges liability for such Damages, in reasonable detail, and shall indicate which event Indemnified Party will have the amount (estimated if necessary) of right to participate in the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, defense at such Indemnifying Party's its own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that expense. If the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires)is in the form of a pleading requiring an answer, the other party will give such notice at least five (5) Business Days prior to the due date of the answer or other response to the pleading. If the Indemnifying Party shall notify fails to give the Indemnitee of its election whether to assume responsibility for such Third-Indemnified Party Claim (timely notice as provided that if the Indemnifying herein, Indemnified Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall will have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue against such Third-Party Claim.
(ec) Any claim If the Indemnifying Party chooses to defend a Third-Party Claim, Indemnified Party will cooperate in the defense thereof. Such cooperation will include the retention and the provision to the Indemnifying Party of records and information which are reasonably relevant to such Third-Party Claim, making relevant employees or agents available on account a mutually convenient basis to provide additional information and explanation of an Indemnifiable Loss which does any material provided hereunder. Whether or not result from the Indemnifying Party assumes the defense of a Third-Party Claim, Indemnified Party will not admit any liability with respect to, or settle, compromise or discharge, such Third-Party Claim without the prior written consent of the Indemnifying Party (not to be unreasonably withheld). If the Indemnifying Party assumes the defense of a Third-Party Claim, the Indemnifying Party will not agree to any settlement, compromise or discharge of a Third-Party Claim shall without Indemnified Party’s prior written consent (not to be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreementunreasonably withheld).
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(hd) Notwithstanding anything else in this Section 5.04 herein to the contrary, the Indemnifying Party will not be entitled to assume control of the defense of a Third Party Claim, and will pay the reasonable fees and expenses of legal counsel retained by the Indemnified Party (subject to the limitations set forth in this Article VII as applicable when a Purchaser Indemnified Person is the Indemnified Party): (i) with respect to any Action pending at the time portion of the Distribution claim that involves injunctive or other equitable relief or relates to any criminal or regulatory violation; (ii) if the Indemnified Party reasonably believes that a "Pending Action") with respect to conflict of interest exists or could reasonably arise which, under applicable principles of legal ethics, could prohibit a single legal counsel from representing both the parties in such proceeding, other than a conflict which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior exist due to the Distribution underlying nature of the duty to continue to handle such defense, compromise indemnify; or settlement following the Distribution (subject to the last two sentences iii) if a court of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep competent jurisdiction rules that the Indemnifying Party reasonably informed of has failed or is failing to prosecute or defend such claim. In such event, the progress of, and Indemnified Party will provide notice to the Indemnifying Party at least five (5) Business Days in advance of retaining legal counsel to defend the Third Party Claim. Failure to provide such notice shall cooperate in, such defense, compromise or settlementnot affect the Indemnified Party’s rights under this subsection.
Appears in 1 contract
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an Indemnitee The Indemnified Party shall receive give written notice or otherwise learn of (the assertion by a Person (including, without limitation, any governmental entity"Claim ----- Notice") who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action for indemnification under this Article 6 (a "Third-Claim") to ------ ----- the indemnifying party as promptly as practicable, but in any event: (i) if such Claim relates to the assertion against an Indemnified Party of any claim by a third party (a "Third Party Claim"), within 30 days after the assertion of such ----------------- Third Party Claim, or (ii) with if such Claim is not in respect to of a Third Party Claim, within 30 days after the Purchaser knows about all relevant details and facts upon which an Indemnifying Party may be obligated to provide the Claim for indemnification is or could have been based pursuant to this AgreementArticle 6 hereof; provided, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided however, that the failure of any Indemnitee or delay to give notice as required by this Section 5.04 so notify the indemnifying party shall not relieve the Indemnifying indemnifying party of any obligation or liability that the indemnifying party may have to the Indemnified Party of its obligations under this Article V, except to the extent that the indemnifying party demonstrates that the indemnifying parties' ability to defend or resolve such Indemnifying Party Claim is prejudiced by adversely affected thereby. Any such failure to give notice. Such notice Claim Notice shall describe the Third-Party facts and circumstances on which the asserted Claim in reasonable detailfor indemnification is based, the amount thereof if then ascertainable and, if not then ascertainable, the estimated maximum amount thereof, and shall indicate the amount (estimated if necessary) of provisions in the Indemnifiable Loss that has been or may be sustained by such IndemniteeAgreement on which the Claim is based.
(bi) An Indemnifying Party may elect Subject to defend the rights of or duties to seek to settle any insurer or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires)other third party having potential liability therefor, the Indemnifying indemnifying party shall have the right, upon written notice given to the Indemnified Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such the notice from the IndemniteeIndemnified Party of any Third Party Claim, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise handling of such Third-Third Party Claim, at the indemnifying party's sole expense, in which case the provisions of Section 6.5(b)(ii) hereof shall govern.
(ii) The indemnifying party shall select counsel reasonably acceptable to the Indemnified Party in connection with conducting the defense or handling of such Third Party Claim, and the indemnifying party shall defend or handle the same in consultation with the Indemnified Party and shall keep the Indemnified Party timely apprised of the status of such Third Party Claim. After notice from an Indemnifying Party The indemnifying party shall not, without the prior written consent of the Indemnified Party, agree to an Indemnitee a settlement of its election to assume responsibility for a Third-any Third Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount settlement provides an unconditional release and discharge of any offer of settlement or compromise which the Indemnified Party and the Indemnified Party is reasonably satisfied with such Indemnitee declined to accept discharge and release and (B) the actual out-of-pocket amount Indemnified Party shall not have reasonably objected to any such Indemnitee is obligated settlement on the ground that the circumstances surrounding the settlement could result in an adverse impact on the business, operations, assets, liabilities (absolute, accrued, contingent or otherwise), condition (financial or otherwise) or prospects of the Indemnified Party. The Indemnified Party shall cooperate with the indemnifying party and shall be entitled to pay subsequent to such date as a result participate in the defense or handling of such Indemnitee's continuing to pursue such Third-Third Party ClaimClaim with its own counsel and at its own expense.
(ei) Any claim on account of an Indemnifiable Loss which If the indemnifying party does not result give written notice to the Indemnified Party within 30 days after receipt of the notice from a Third-the Indemnified Party of any Third Party Claim shall be asserted by written notice given by of the Indemnitee indemnifying party's election to assume the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt defense or handling of such notice within which to respond thereto. If such Indemnifying Third Party does not respond within such 15-day periodClaim, such Indemnifying Party the provisions of Section 6.5(c)(ii) hereof shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreementgovern.
(fii) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shallThe Indemnified Party may, at any the indemnifying party's expense (which shall be paid from time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid time by the Indemnitee to indemnifying party as such expenses are incurred by the Indemnifying Indemnified Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee ), select counsel in connection with any Third-conducting the defense or handling of such Third Party Claim and defend or handle such Third Party Claim in such manner as it may deem appropriate; provided, however, that the Indemnified Party shall keep the indemnifying party timely apprised of the status of such Third Party Claim and shall not settle such Third Party Claim without the prior written consent of the indemnifying party, which consent shall not be unreasonably withheld. If the Indemnified Party defends or handles such Third Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee indemnifying party shall cooperate with the Indemnified Party and shall be entitled to participate in the defense or handling of such Indemnifying Third Party in a reasonable manner, Claim with its own counsel and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claimits own expense.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
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Procedure for Indemnification. Promptly after a Party indemnified pursuant to this Section (athe "Indemnitee") Except as may be set forth in a Related Agreement, if an Indemnitee shall receive has received notice of or otherwise learn has knowledge of the assertion any claim by a Person (including, without limitation, any governmental entity) who is person not a party to this Indemnity Agreement (for the purposes of this Section 16, a "third party") or to the commencement of any action or proceeding by a third party, the Indemnitee shall promptly, and in any event within sixty (60) days of the Related Agreements Indemnitee's receipt of notice of the assertion of any claim or of the commencement by any such Person discovery of any Action fact upon which the Indemnitee intends to base a claim for indemnification under this Section 16 (a an "Third-Party Indemnitee Claim") with respect ), as a condition precedent to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreementthe Indemnitee Claim, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware to the party or parties from whom indemnification is sought (the "Indemnitor") of such Third-Party Claimclaim; provided provided, however, that the any delay or failure to notify any Indemnitor of any Indemnitee to give notice as required by this Section 5.04 claim shall not relieve the Indemnifying Party of its obligations under this Article V, it from any liability except to the extent that the Indemnitor demonstrates that the defense of such Indemnifying Party is action has been materially prejudiced by such delay or failure to give noticenotify. Such notice shall describe state the Third-nature and basis of such claim. In the event that any Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, incur any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder damages in respect of which indemnity may be sought by such Third-Party Claimpursuant to this Section 16 or any other provision of this Agreement, the Indemnitee shall notify the Indemnitor promptly in writing. Within 30 In the case of third party claims, the Indemnitor shall, within 10 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires)claim, the Indemnifying Party shall notify the Indemnitee of its election whether intention to assume responsibility for the defense of such Third-Party Claim (provided that claim if the Indemnifying Party does not so notify Indemnitor concurrently assumes the Indemnitee of its election within 30 days after receipt of such notice from obligation to indemnify the Indemnitee. If the Indemnitor assumes the defense of the claim, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees Indemnitor shall have the right and obligation: (a) to conduct any proceedings or negotiations in connection therewith and necessary or appropriate to defend the Indemnitee; (b) to take all other required steps or proceedings to settle or defend any such claims; and (c) to employ separate counsel and to contest any such claim or liability in that event the reasonable fees and expenses name of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying PartyIndemnitee or otherwise. If an Indemnifying Party elects the Indemnitor shall not assume the defense of any such claim or litigation resulting therefrom, the Indemnitee may defend against any such claim or litigation in such manner as it may deem appropriate and the Indemnitee may settle such claim or litigation on such terms as it may deem appropriate, and assert against the Indemnitor any rights or claims to assume responsibility for a Third-Party Claim (which election may be made only in the event Indemnitee is entitled. Payment of a good faith dispute that a claim was inappropriately tendered under Section 5.01 Pavilion or 5.02Pegasus damages, as the case may be, shall be made within 10 days of a final determination of a claim. A final determination of a disputed claim shall be: (v) a judgment of any court determining the validity of the disputed claim, if no appeal is pending from such Indemnitee may defend judgment or if the time to appeal therefrom has elapsed; (subject to w) an award of any arbitration determining the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt validity of such notice (i) to disapprove the settlement and assume all past and future responsibility for the disputed claim, including reimbursing if there is not pending any motion to set aside such award or if the Indemnitee for prior expenditures in connection with the claim, or time limit to move to set such award aside has not elapsed; (iix) to disapprove the settlement and continue to refrain from participation in the defense a written termination of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee dispute with respect to such Third-Party Claim claim signed by all of the parties thereto or their attorneys; (y) a written acknowledgment of the Indemnitor that it no longer disputes the validity of such claim; or (z) such other evidence of final determination of a disputed claim as shall be equal to (i) the costs and expenses of such Indemnitee prior acceptable to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claimparties.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if If an Indemnitee shall receive notice or otherwise learn of the assertion by a Person person (including, without limitation, including any governmental entity) who is not a party to this Agreement or to any of the Related Agreements Transaction Documents of any claim or of the commencement by any such Person of any Action action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided provided, however, that the failure of any Indemnitee to give notice as required by this Section 5.04 6.5 shall not relieve the Indemnifying Party of its obligations under this Article VVI, except to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detail, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counselcounsel reasonably acceptable to the Indemnitee, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a6.5(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V VI for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided provided, however, that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment there exists a conflict of interest between such Indemnitees and such the Indemnifying Party exists in respect of such claimParty, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 6.2 or 5.026.3, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim Third-Party Claim without prior written notice to the Indemnifying Party, which shall have the option within ten fifteen days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 6.5 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless (i) such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim and (and provided further that ii) such settlement may does not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee)unless Indemnitee consents thereto. In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the such offer to settle of settlement or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 30 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 1530-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 1530-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement, the Merger Agreement or the Indemnification Agreement.
(f) In addition to any adjustments required pursuant to Section 5.036.4, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
Appears in 1 contract
Samples: Distribution Agreement (Insignia Financial Group Inc /De/)
Procedure for Indemnification. (a) Except as may be set forth in Any person or entity entitled to assert a Related Agreement, if an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to claim for indemnification under this Agreement or (the “Indemnitee”) shall give prompt written notice to any of the Related Agreements indemnifying party (the “Indemnitor”) of any claim or of event known to it which does or may give rise to a claim for indemnification hereunder by the commencement by any such Person of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claimagainst the Indemnitor; provided that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 S. 5.7 shall not relieve the Indemnifying Party Indemnitor of its obligations under this Article V, except to the extent that such Indemnifying failure has materially and adversely affected the rights of the Indemnitor. In the case of any claim for indemnification hereunder arising out of a claim, action, suit or proceeding brought by any person who is not a party to this Agreement (a “Third Party is prejudiced by Claim”), the Indemnitee shall also give the Indemnitor copies of any written claims, process or legal pleadings with respect to such failure to give notice. Such notice shall describe the Third-Third Party Claim in reasonable detail, and shall indicate promptly after such documents are received by the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party Indemnitor may elect to defend compromise or to seek to settle or compromisedefend, at such Indemnifying Party's Indemnitor’s own expense and by such Indemnifying Party's Indemnitor’s own counsel, any Third-Third Party Claim. If an Indemnitor elects to compromise or defend a Third Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within shall, within 30 days of the date of its receipt of the notice from an Indemnitee in accordance with Section 5.04(aprovided pursuant to S. 5.7(a) hereof (or sooner, if the nature of such Third-Third Party Claim so requires), the Indemnifying Party shall notify the related Indemnitee of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)do so, and such Indemnitee shall reasonably cooperate in the compromise of, or defense or settlement or compromise of against, such Third-Third Party Claim. Such Indemnitor shall pay such Indemnitee’s actual out-of-pocket expenses incurred in connection with such cooperation. After notice from an Indemnifying Party Indemnitor to an Indemnitee of its election to assume responsibility for the defense of a Third-Third Party Claim, such Indemnifying Party Indemnitor shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that such Indemnitee shall have the right to employ one counsel of its choice in each applicable jurisdiction (if the defendants in any more than one jurisdiction is involved) to represent such claim include both the Indemnifying Party and one or more Indemnitees and Indemnitee if, in such Indemnitees' Indemnitee’s reasonable judgment judgment, a conflict of interest between such Indemnitees Indemnitee and such Indemnifying Party Indemnitor exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying PartyIndemnitor. If an Indemnifying Party Indemnitor elects not to assume responsibility for compromise or defend against a Third-Third Party Claim (which Claim, or fails to notify an Indemnitee of its election may be made only as provided in the event of a good faith dispute that a claim was inappropriately tendered under this Section 5.01 or 5.025.7, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to pay, compromise or settle defend such Third-Third Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt Claim on behalf of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement account and continue to refrain from participation in the defense risk of the claimIndemnitor. No Indemnitor shall consent to entry of any judgment or enter into any settlement without the written consent of each related Indemnitee (which consent shall not be unreasonably withheld), in which event the Indemnifying Party shall have no further right to contest the amount unless such judgment or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records provides solely for money damages or other documents within its control or money payments for which it otherwise has the ability such Indemnitee is entitled to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates indemnification hereunder and includes as an unconditional term thereof the giving by such the claimant or plaintiff to the such Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Third Party Claim.
(ec) Any claim on account of an Indemnifiable Loss which does not result from If there is a Third-reasonable likelihood that a Third Party Claim shall be asserted by written notice given by the may adversely affect an Indemnitee, other than as a result of money damages or other money payments for which such Indemnitee is entitled to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in partindemnification hereunder, such Indemnitee shall be free will have the right, after consultation with the Indemnitor and at the cost and expense of the Indemnitor, to pursue defend such remedies as may be available to such party under applicable law or under this AgreementThird Party Claim.
(fd) In addition to any adjustments required pursuant to Section 5.03, if If the amount of any Indemnifiable Loss Losses shall, at any time subsequent to the payment required by pursuant to this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Partyrelated Indemnitor.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
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Procedure for Indemnification. (a) Except as provided in clause (d) of this Section 9.03, in the event that any party hereto or other Purchaser Indemnified Party or Seller Indemnified Party reasonably believes that such party has a claim for Damages in respect of which indemnity may be set forth in a Related Agreementsought by such party pursuant this Agreement (each, an "Indemnification Matter"), the party indemnified hereunder (the "Indemnitee") shall notify the party(s) providing indemnification (collectively, the "Indemnitor") by sending written notice to the Indemnitor (an "Indemnity Notice"). In the case of third party claims, which, if successful, could result in an indemnity payment hereunder, an Indemnity Notice shall be given within 30 days after the discovery by the Indemnitee shall receive notice or otherwise learn of the filing or assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim against the Indemnitee stating the nature and basis of such claim; provided, however, that any delay or of the commencement by failure to notify any such Person Indemnitor of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided that the failure of any Indemnitee to give notice as required by this Section 5.04 claim shall not relieve the Indemnifying Party of its obligations under this Article V, it from any liability except to the extent that the Indemnitor demonstrates that the defense of such Indemnifying Party action is prejudiced by such delay or failure to give noticenotify. Such notice Any Indemnity Notice (i) shall describe state (with reasonable specificity) the Third-Party Claim in reasonable detailbasis on which indemnification is being asserted, and (ii) shall indicate set forth the amount of Damages for which indemnification is being asserted and (estimated if necessaryiii) in the case of third party claims, shall be accompanied by copies of all relevant pleadings, demands and other papers served on the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect The indemnitor shall have the right, exercisable by written notice to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that the Indemnitee is entitled to indemnification hereunder in respect of such Third-Party Claim. Within within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether the commencement or assertion of any third party claim in respect of which indemnity may be sought hereunder (the "Indemnity Notice Claim"), to assume responsibility for and conduct the defenses of such Third-Party Claim (third party claim with counsel selected by the Indemnitor and reasonably acceptable to the Indemnitee; provided that if (i) the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt defense of such notice from third party claim by the Indemnitor will not, in the judgment for the Indemnitee, have a material adverse effect of the Indemnitee; and (ii) the Indemnitor has sufficient financial resources (including amounts held in escrow pursuant to the Escrow 44 Agreement), in the reasonable judgment of the Indemnitee, to satisfy the amount of any adverse monetary judgment that is reasonably likely to result; and (iii) the third party claim solely seeks (and continues to seek) monetary damages; and (iv) the Indemnitor expressly agrees in writing that as between the Indemnitor and the Indemnitee, the Indemnifying Party Indemnitor shall be deemed solely obligated to have elected satisfy and discharge the third party claim (the conditions set forth in clauses (i) through (iv) collectively referred to as the "Litigation Conditions"). If the Indemnitor does not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claimthird party claim in accordance with this Section 9.03, the Indemnitee may continue to defend the third party claim. After notice from an Indemnifying Party to an Indemnitee If the Indemnitor has assumed the defense of its election to assume responsibility for a Third-Party Claimthird party claim as provided in this Section 9.03, such Indemnifying Party shall the Indemnitor will not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such the Indemnitee in connection with the defense thereof; provided , provided, however, that if (i) the defendants in any Litigation Conditions cease to be met, or (ii) the Indemnitor fails to take reasonable steps necessary to defend diligently such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such third party claim, such Indemnitees shall have the right to employ separate counsel Indemnitee may assume its own defense, and the Indemnitor will be liable for all reasonable costs or expenses paid or incurred in that event connection therewith. The Indemnitor or the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.02Indemnitee, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following right to participate in (but not control), at its own expense, the receipt defense of any third party claim which the other is defending as provided in this Agreement. The Indemnitor, if it shall have assumed the defense of any third party claim as provided in this Agreement, shall not, without the prior written consent of the Idemnitee, consent to a settlement of, or the entry of any judgment arising from, any such notice third party claim (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall does not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates include as an a unconditional term thereof the giving by such the claimant or the plaintiff to the Indemnitee of a written complete release from all liability in respect of such Third-Party Claim third party claim, or (and provided further that such settlement ii) which grants any injunctive or equitable relief, or (iii) which may reasonably be expected to have a material adverse effect on the affected business of the Indemnitee. The Indemnitee shall have the right to settle any third party claim, the defense of which has not provide for any non-monetary relief been assumed by Indemnitee without the Indemnitor, with the written consent of the Indemnitor, which consent shall not be unreasonably withheld or delayed. Within 30 days after the Determination Date with respect to a third party claim, the Indemnitor shall pay the Indemnitee the amount of Damages sustained or incurred by the Indemnitee). Interest will accrue on unpaid Damages at the prime rate plus two percent (2%) per annum.
(c) In the event that liability hereunder does not involve a third party claim, the Indemnitor shall within 30 days after the date of receipt of an Indemnity Notice respond in writing to the Indemnitee (the "Indemnity Response") and set forth with reasonable specificity those items in the Indemnity Notice to which the Indemnitor does not agree as well as the summary basis upon which such disagreement is founded. Within 30 days following the receipt of the Indemnity Response by the Indemnitee, representatives of the Indemnitor and the Indemnitee shall meet to attempt to resolve through good faith negotiations the applicable Indemnification Matters. The parties shall negotiate in good faith for up to 60 days in an attempt to reach a settlement of any disputed matter. In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement good faith negotiations are unsuccessful or compromise, such Indemnitee may continue to contest such Third-Party Claim, free in the event of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such eventother dispute under this Section IX, the obligation parties shall proceed in accordance with Section 11.07 of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(fi) In addition If a claim shall be made by any taxing authority, which, if successful, might result in an indemnity payment to any adjustments required pursuant to Section 5.03Purchaser Indemnified Party, if the amount Purchaser shall promptly notify the Parent in writing (a "Tax Notice") of any Indemnifiable Loss shall, at any time subsequent such claim (a "Tax Claim"). If a Tax Notice is not given to the payment required by this AgreementParent within a reasonable period of time, or in reasonable detail to apprise the Parent of the nature of the Tax Claim, in each case taking into 45 account the facts and circumstances with respect to such Tax Claim, neither the Parent nor the Seller shall be reduced by recovery, settlement or otherwise, the amount of such reduction, less liable to any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee Purchaser Indemnified Party to the Indemnifying Partyextent that the Parent's or the Seller's position is prejudiced as a result thereof.
(gii) With respect to any Tax Claim, the Parent and the Seller shall have the right to control and conduct all proceedings and negotiations in connection with such Tax Claim (including, without limitation, selection of counsel) and, without limiting the foregoing, may in the Parent's sole discretion pursue or forego any and all administrative appeals, proceedings, hearings and conferences with any taxing authority with respect thereto, and may, in the Parent's sole discretion, either pay the Tax claimed and sue xxx a refund where applicable law permits such refund suits or contest the Tax Claim in any permissible manner. The Parent shall, within 30 days of receipt of a Tax Notice with respect to a Tax Claim (the "Tax Notice Period"), notify the Purchaser in writing of its intention to control and conduct the proceedings and negotiations in connection with such Tax Claim. In the event that the Parent does notify the Purchaser of payment by an Indemnifying Party its intention to any Indemnitee control and conduct the proceedings and negotiations in connection with any Third-Party Tax Claim as provided above, the Purchaser shall have the right to participate fully in such proceedings and negotiations (including, without limitation, with counsel of its choice), at its sole expense, and the Parent and the Seller shall cooperate fully with the Purchaser in connection with such participation. If the Parent does not deliver to the Purchaser within the Tax Notice Period written notice that it will control and conduct the proceedings and negotiations in connection with a Tax Claim, the Purchaser may control, or cause the applicable Group Member to control, and conduct such Indemnifying Party proceedings and negotiations in such manner as it may deem appropriate. In the event that the Parent or the Seller do not exercise their right to control and conduct the proceedings and negotiations in connection with any Tax Claim as provided above, the Parent and the Seller shall be subrogated have the right to participate fully in such proceedings and negotiations (including, without limitation, with counsel of their choice), at their sole expense, and the Purchaser shall, and shall stand cause each Group Member to, cooperate fully with Parent and the Seller and their accountants and other representatives in connection with such participation, and in all cases the place of such Indemnitee Purchaser shall keep the Parent fully informed as to all matters concerning such Tax Claim and shall promptly notify the Parent in writing of any events and all significant developments relating thereto. Without limiting Sections 8.04 and 8.06, the Purchaser and each of its Affiliates shall (and the Purchaser shall cause the Group Members to) cooperate fully with the Parent and the Seller in contesting any Tax Claim, which cooperation shall include, without limitation, the retention and (upon the Parent's request) the provision to the Parent of records and information which are relevant to such Tax Claim, and making officers and employees available on a timely and mutually convenient basis to provide additional information or circumstances in respect explanation of which such Indemnitee may have any right material provided hereunder or claim to testify at proceedings relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Tax Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(hiii) Notwithstanding anything else in this Section 5.04 to the contrarycontrary contained herein, with respect to in no event shall the Purchaser or any Action pending at Group Member settle or otherwise compromise any Tax Claim without the time of the Distribution (a "Pending Action") with respect to Parent's prior written consent which an Indemnifying Party may not be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of withheld for any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlementreason.
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Procedure for Indemnification. (a) Except as may be set forth in a Related Agreement, if an If any Indemnitee shall receive receives notice or otherwise learn of the assertion by a Person (including, without limitation, any governmental entity) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") Claim with respect to which an Indemnifying Party may be is obligated under this Agreement to provide indemnification pursuant to this Agreementindemnification, such Indemnitee shall give such Indemnifying Party written notice thereof promptly after becoming aware of such Third-Party Claim; provided provided, however, that the failure of any Indemnitee to give notice as required by provided in this Section 5.04 4.04 shall not relieve the any Indemnifying Party of its obligations under this Article VIV, except to the extent that such Indemnifying Party is actually prejudiced by such failure to give notice. Such notice shall describe the such Third-Party Claim in reasonable detaildetail and, and if practicable, shall indicate the estimated amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromiseParty, at such Indemnifying Party's own expense and through counsel chosen by such Indemnifying Party's own counselParty (which counsel shall be reasonably satisfactory to the Indemnitee), may elect to defend any Third-Party Claim; provided, provided however, that such an election by the Indemnifying Party must confirm in writing that it agrees that shall be deemed an admission of its obligation to Indemnify the Indemnitee is entitled with respect to indemnification hereunder in respect of such Third-Party Claim. Within 30 days If an Indemnifying Party elects to defend a Third-Party Claim, then, within ten (10) Business Days after receiving notice of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) such Third-Party Claim (or sooner, if the nature of such Third-Party Claim so requires), the such Indemnifying Party party shall notify the Indemnitee of its election whether intent to assume responsibility for such Third-Party Claim (provided that if the Indemnifying Party does not so notify the Indemnitee of its election within 30 days after receipt of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim)do so, and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. Such Indemnifying Party shall pay such Indemnitee's reasonable out-of-pocket expenses incurred in connection with such cooperation. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for the defense of a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V IV for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided provided, however, that if such Indemnitee shall have the defendants in any right to employ one law firm as counsel to represent such claim include both Indemnitee (which firm shall be reasonably acceptable to the Indemnifying Party and one or more Indemnitees and Party) if, in such Indemnitees' Indemnitee's reasonable judgment judgment, either a conflict of interest between such Indemnitees Indemnitee and such Indemnifying Party exists in respect of such claimclaim or there may be defenses available to such Indemnitee which are different from or in addition to those available to such Indemnifying Party, such Indemnitees shall have the right to employ separate counsel and in that event (1) the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying PartyParty and (2) each of such Indemnifying Party and such Indemnitee shall have the right to run its own defense in respect of such claim. If an Indemnifying Party elects not to assume responsibility for defend against a Third-Party Claim Claim, or fails to notify an Indemnitee of its election as provided in this Section 4.04 within the period of ten (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 or 5.0210) Business Days described above, as the case may be) such Indemnitee may defend or (subject to the following sentence) seek to defend, compromise and settle such Third- Party Claim; provided, however, that no such Indemnitee may compromise or settle any such Third-Party ClaimClaim without the prior written consent of the Indemnifying Party, which consent shall not be withheld unreasonably. Notwithstanding the foregoing, an Indemnitee may not the Indemnifying Party shall not, without the prior consent of the Indemnitee, (1) settle or compromise any claim without prior written notice Third- Party Claim or consent to the Indemnifying Party, entry of any judgment which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claim, or (ii) to disapprove the settlement and continue to refrain from participation in the defense of the claim, in which event the Indemnifying Party shall have no further right to contest the amount or reasonableness of the settlement if the Indemnitee elects to proceed therewith, or (iii) to approve the amount of the settlement, reserving the Indemnifying Party's right to contest the Indemnitee's right to indemnity, or (iv) to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such written notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected option (ii).
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall does not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates include as an unconditional term thereof the giving delivery by such the claimant or plaintiff to the Indemnitee of a written release from all liability Liability in respect of such Third-Party Claim or (and provided further that such settlement may not provide for 2) settle or compromise any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of in any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as manner that may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by adversely affect the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
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Procedure for Indemnification. The procedure for indemnification shall be as follows:
9.4.1 Any Person claiming indemnification (athe “Claimant”) Except as may be set forth in a Related Agreement, if an Indemnitee shall receive give notice or otherwise learn of to the assertion by a Person Party from whom indemnification is claimed (including, without limitation, any governmental entitythe “Indemnifying Party”) who is not a party to this Agreement or to any of the Related Agreements of any claim or of the commencement by any such Person of any Action (a "Third-Party Claim") with respect to which an Indemnifying Party may be obligated to provide the Claimant is entitled indemnification pursuant to under this Agreement, such Indemnitee shall give such Indemnifying Party written notice thereof Agreement promptly after becoming aware upon learning of such Third-Party Claimclaim; provided provided, however, that the failure of any Indemnitee the Claimant to give timely notice as required by this Section 5.04 hereunder shall not relieve the Indemnifying Party of its obligations under this Article V9 unless, except and only to the extent that such Indemnifying Party is prejudiced by such failure to give notice. Such notice shall describe the Third-Party Claim in reasonable detailthat, and shall indicate the amount (estimated if necessary) of the Indemnifiable Loss that has been or may be sustained by such Indemnitee.
(b) An Indemnifying Party may elect to defend or to seek to settle or compromise, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel, any Third-Party Claim, provided that the Indemnifying Party must confirm in writing that it agrees that has been actually and materially prejudiced thereby.
9.4.2 With respect to any claim by a third party as to which the Indemnitee Claimant is entitled to indemnification hereunder in respect of such Third-under this Agreement (a “Third Party Claim. Within 30 days of the receipt of notice from an Indemnitee in accordance with Section 5.04(a) (or sooner, if the nature of such Third-Party Claim so requires”), the Indemnifying Party shall notify have the Indemnitee of right, at its election whether own expense, to assume responsibility for control of the defense of such Third-claim with one or more counsel reasonably acceptable to the Claimant, and the Claimant shall cooperate with the Indemnifying Party (at the Indemnifying Party’s sole expense) so long as the Indemnifying Party elects in writing to assume such control and fully indemnifying Claimant hereunder with respect to such Third Party Claim within 20 days after receiving notice of such Third Party Claim. If the Indemnifying Party elects to assume control of the defense of any Third Party Claim, the Claimant shall have the right, but not the obligation, to participate in the defense of such claim at its own expense. If (provided that if i) the Indemnifying Party does not so notify elect to assume control of the Indemnitee of its election within 30 days after receipt defense of such notice from the Indemnitee, the Indemnifying Party shall be deemed to have elected not to assume responsibility for such Third-Party Claim), and such Indemnitee shall cooperate in the defense or settlement or compromise of such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume responsibility for a Third-Party Claim, such Indemnifying Party shall not be liable to such Indemnitee under this Article V for any legal or other expenses (except expenses approved in advance by the Indemnifying Party) subsequently incurred by such Indemnitee in connection with the defense thereof; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. If an Indemnifying Party elects not to assume responsibility for a Third-Third Party Claim (which election may be made only in the event of a good faith dispute that a claim was inappropriately tendered under Section 5.01 within such 20 day period, or 5.02, as the case may be) fails to timely and diligently prosecute such Indemnitee may defend or (subject to the following sentence) seek to compromise or settle such Third-Party Claim. Notwithstanding the foregoing, an Indemnitee may not settle or compromise any claim without prior written notice to the Indemnifying Party, which shall have the option within ten days following the receipt of such notice (i) to disapprove the settlement and assume all past and future responsibility for the claim, including reimbursing the Indemnitee for prior expenditures in connection with the claimdefense, or (ii) to disapprove Claimant, based upon the settlement and continue to refrain from participation in the advice of counsel, concludes that defense of the claim, in which event such claim by the Indemnifying Party shall give rise to a conflict of interest (or the Claimant and Indemnifying Party have one or more materially different defenses available to them), then the Claimant may defend through counsel of its own choosing (at the Indemnifying Party expense), subject to the right of the Indemnifying Party to reasonably participate in the defense thereof (at its own expense), provided, that in no further right event shall the Indemnifying Party be responsible for the fees and expenses of more than one counsel for all Claimants in connection with any one matter. No Party shall compromise or settle any Third Party Claim without the prior written consent of the other Party (not to contest be unreasonably withheld, delayed or conditioned); provided, however, that if such compromise or settlement consists solely of monetary damages and provides for the full and unconditional general release of the Claimant from all Liability in connection with such claim, then the Indemnifying Party may settle such claim without the Claimant’s consent as long as the Indemnifying Party pays the entire recoverable amount of such claim and the settlement of such claim does not contain an admission of wrongdoing on the part of the Claimant.
9.4.3 As security for Seller's obligations and other agreements contained in this Agreement and the Ancillary Agreements, including but not limited to Seller’s indemnification obligations under the provisions of Article 9 hereof, and to make certain payments to Buyer under the provisions of Section 2.4.5 hereof, but without limitation of Seller's liability under this Agreement (or Buyer's other rights and remedies), Buyer is retaining the Holdback. From time to time, on not less than ten (10) days notice to Seller, Buyer may apply all or any part of the Holdback to pay or to provide for the payment of any Liability of any Seller under this Agreement or the Ancillary Agreements. On the first anniversary of the Closeout Date, Buyer shall pay to Seller, in cash without interest, the Holdback, less the amount of (i) any deductions therefrom under this Section 9.4.3 and (ii) any amounts then under dispute, which such disputed amounts shall be released upon final settlement of all disputed claims. Nothing in this Section 9.4.3 shall be construed as limiting the liability of Seller under this Agreement or reasonableness the Ancillary Agreements (or otherwise limiting the rights or remedies of the settlement if the Indemnitee elects to proceed therewith, or (iiiBuyer) to approve the amount of the settlement, reserving the Indemnifying Party's right Holdback.
9.4.4 A Claimant wishing to contest the Indemnitee's right assert a claim for indemnification under this Article 9 which is not subject to indemnity, or (iv) Section 9.4.2 shall deliver to approve and agree to pay the settlement. In the event the Indemnifying Party makes no response to such a written notice from the Indemnitee(a “Claim Notice”) which contains (i) a description and, if then known or estimated, the Indemnifying Party amount (the “Claimed Amount”) of any Losses incurred by the Claimant or, if then known, the method of computation of the amount of such claim of any Losses, (ii) a statement that the Claimant is entitled to indemnification under this Article IX and an explanation of the then-known basis therefor, and (iii) a demand for payment in the amount of such Losses (including wire instructions if payment is requested to be made by wire transfer) or, with respect to the Buyer, if applicable, a statement that it intends in lieu thereof, to apply all or any part of the Holdback pursuant to Section 9.4.3 (which such statement shall be deemed to have elected option (ii)satisfy the 10 day notice required under Section 9.4.
(c) If an Indemnifying Party chooses to defend or to seek to compromise any Third-Party Claim, the Indemnitee shall make available to such Indemnifying Party any personnel and any books, records or other documents within its control or which it otherwise has the ability to make available that are necessary or appropriate for such defense.
(d) Notwithstanding anything else in this Section 5.04 to the contrary, an Indemnifying Party shall not settle or compromise any Third-Party Claim unless such settlement or compromise contemplates as an unconditional term thereof the giving by such claimant or plaintiff to the Indemnitee of a written release from all liability in respect of such Third-Party Claim (and provided further that such settlement may not provide for any non-monetary relief by Indemnitee without the written consent of Indemnitee). In the event the Indemnitee shall notify the Indemnifying Party in writing that such Indemnitee declines to accept any such settlement or compromise, such Indemnitee may continue to contest such Third-Party Claim, free of any participation by such Indemnifying Party, at such Indemnitee's sole expense. In such event, the obligation of such Indemnifying Party to such Indemnitee with respect to such Third-Party Claim shall be equal to (i) the costs and expenses of such Indemnitee prior to the date such Indemnifying Party notifies such Indemnitee of the offer to settle or compromise (to the extent such costs and expenses are otherwise indemnifiable hereunder) plus (ii) the lesser of (A) the amount of any offer of settlement or compromise which such Indemnitee declined to accept and (B) the actual out-of-pocket amount such Indemnitee is obligated to pay subsequent to such date as a result of such Indemnitee's continuing to pursue such Third-Party Claim.
(e) Any claim on account of an Indemnifiable Loss which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the applicable Indemnifying Party. Such Indemnifying Party shall have a period of 15 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such 15-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If such Indemnifying Party does not respond within such 15-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party under applicable law or under this Agreement.
(f) In addition to any adjustments required pursuant to Section 5.03, if the amount of any Indemnifiable Loss shall, at any time subsequent to the payment required by this Agreement, be reduced by recovery, settlement or otherwise, the amount of such reduction, less any expenses incurred in connection therewith, shall promptly be repaid by the Indemnitee to the Indemnifying Party.
(g) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.
(h) Notwithstanding anything else in this Section 5.04 to the contrary, with respect to any Action pending at the time of the Distribution (a "Pending Action") with respect to which an Indemnifying Party may be obligated to provide indemnification pursuant to this Agreement, LTC or Healthcare shall, at the request of any other party, cause the employee(s) who were handling the defense, compromise or settlement of such Pending Action prior to the Distribution to continue to handle such defense, compromise or settlement following the Distribution (subject to the last two sentences of subsection (b) above). If such employees are employed by the Indemnitee, the Indemnitee shall keep the Indemnifying Party reasonably informed of the progress of, and the Indemnifying Party shall cooperate in, such defense, compromise or settlement.
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