Common use of Right to Contest Claims of Third Persons Clause in Contracts

Right to Contest Claims of Third Persons. If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) ("Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, or settle the claim alleged by such Third Person (a "Third-Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons to be indemnified hereunder with respect to such Third-Person Claim; the Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim within twenty (20) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity and assume the defense of any such Third-Person Claim, (a) the Indemnified Party may defend against such claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Person Claim and shall cooperate in the defense thereof.

Appears in 7 contracts

Samples: Stock Purchase Agreement (Atec Group Inc), Stock Purchase Agreement (Applied Digital Solutions Inc), Stock Purchase Agreement (Applied Digital Solutions Inc)

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Right to Contest Claims of Third Persons. If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) ("Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, or settle the claim alleged by such Third Person (a "Third-Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons to be indemnified hereunder with respect to such Third-Person Claim; the Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim within twenty (20) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity and assume the defense of any such Third-Person Claim, (a) the Indemnified Party may defend against such claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Person Claim and shall cooperate in the defense thereof.

Appears in 2 contracts

Samples: Stock Purchase Agreement (Applied Digital Solutions Inc), Stock Purchase Agreement (Applied Digital Solutions Inc)

Right to Contest Claims of Third Persons. If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) ("Third PersonTHIRD PERSON"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, or settle the claim alleged by such Third Person (a "Third-Person ClaimTHIRD PERSON CLAIM"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons to be indemnified hereunder with respect to such Third-Third Person Claim; the Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until If the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, be entitled to assume and control defense of the matter and to look to be reimbursed by the Indemnifying Party for the full amount any reasonable costs of the costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of defense the Indemnified Party with respect to such Third-Person Claim within twenty (20) days after receipt thereof shall be deemed an election not to defend the samehad theretofore incurred. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity and assume the defense of any such Third-Third Person Claim, (a) the Indemnified Party may shall defend against such claim, in provided that any settlement of such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice claim shall require the prior written consent of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriateconsent not to be unreasonably withheld or delayed, and (b) the Indemnifying Party may participate in (but not control) the defense of such actionclaim, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Person Claim constituted gross negligence or willful misconduct. The Parties parties hereto shall make available to each other all relevant information in their possession relating to any such Third-Third Person Claim and shall cooperate in the defense defense, negotiation or settlement thereof.

Appears in 2 contracts

Samples: Purchase Agreement (Kasper a S L LTD), Purchase Agreement (Kasper a S L LTD)

Right to Contest Claims of Third Persons. If an Indemnified Injured Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) Person hereunder ("Third Person"), the Indemnified Injured Party shall give a Notice of Claim to the Indemnifying Party reasonably prompt notice thereof promptly after such assertion is actually known to the Indemnified Injured Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice Notice of Claim unless, and then only to the extent that, an Indemnifying Party is prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Injured Party, and using counsel reasonably satisfactory to the Indemnified Injured Party, to investigate, secure, contest, or settle the claim alleged by such Third Person (a "Third-“Third Person Claim"), ; provided that the Indemnifying Party has unconditionally acknowledged to notified the Indemnified Injured Party in writing his or of its obligation election to indemnify the persons to be indemnified hereunder Injured Party with respect to such Third-Third Person Claim; and provided further that the Indemnified Indemnifying Party will not consent to the entry of any judgment with respect to the matter or enter into any settlement with respect to the matter without the written consent of the Injured Party (not to be withheld or delayed unreasonably) except that the Indemnifying Party shall be entitled to consent to any judgment and/or enter into any settlement without the consent of the Injured Party if such judgment or settlement requires only the payment of money. For the avoidance of doubt, a claim or challenge asserted by the Internal Revenue Service against an Injured Party shall be considered a Third Person Claim hereunder. The Injured Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until If the Indemnifying Party so acknowledges his or its obligation elects not to indemnifydefend the Injured Party with respect to such Third Person Claim, the Indemnified Injured Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the costs of defensematter. The failure of the Indemnifying Party to respond in writing to the aforesaid notice Notice of the Indemnified Party with respect to such Third-Person Claim within twenty thirty (2030) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity indemnify and assume the defense of any such Third-Third Person Claim, (a) the Indemnified Injured Party may defend against such claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving written notice of the same to the Indemnifying Party, on such terms as the Indemnified Injured Party may deem appropriate; provided that in all cases the Injured Party will not consent to the entry of a judgment or enter into any settlement with respect to the matter without the written consent of the Indemnifying Party (not to be withheld or delayed unreasonably), except that the Injured Party shall be entitled to consent to any judgment and/or enter into any settlement without the consent of the Indemnifying Party if such judgment or settlement does not require the payment of money and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Person Claim constituted gross negligence or willful misconduct. The Parties parties shall make available to each other all relevant information in their possession relating to any such Third-Third Person Claim and shall cooperate in the defense thereof.

Appears in 2 contracts

Samples: Asset Purchase Agreement (Neoprobe Corp), Asset Purchase Agreement (Neoprobe Corp)

Right to Contest Claims of Third Persons. (a) If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) ("Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is irrevocably and materially prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, or settle the claim alleged by such Third Person (a "Third-Person Claim"), provided that (i) the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons to be indemnified hereunder with respect to such Third-Person Claim; Claim (the Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party), (ii) the Indemnifying Party has demonstrated to the reasonable satisfaction of the Indemnified Party the Indemnifying Party's financial wherewithal to accomplish its indemnification obligations with respect to such Third-Person Claim, (iii) the Indemnifying Party agrees that without the Indemnified Party's prior written consent it shall not (A) settle, compromise or consent to the entry of any judgment in any pending or threatened claim, action, suit or proceeding related to the Third-Person Claim unless the settlement, compromise or consent also includes an express unconditional release of the Indemnified Party from all liability and obligations arising therefrom or (B) admit or otherwise concede that the Indemnified Party has committed, or caused to be committed by any person, any fraud or other crime, negligence, breach of statute or other act or omission affecting the reputation, and (iv) the Indemnifying Party shall keep the Indemnified Party informed of the status of the investigation, contest, conduct and settlement of such Third-Person Claim and shall consult in good faith with the Indemnified Party regarding the conduct of such Third-Person Claim and shall provide to the Indemnified Party for comment within a reasonable period prior to submission, all written submissions to any court or other tribunal with respect to the issues for which Indemnified Party is liable for an indemnity hereunder. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the reasonable costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim within twenty (20) days after receipt thereof shall be deemed an election not to defend the same. Any election to defend made by the Indemnifying Party twenty (20) days or more after receipt of the aforesaid notice shall not be valid unless and until the Indemnifying Party also pays all attorneys' fees and other expenses incurred by the Indemnified Party in defense of the Third-Person Claim prior to such date. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity indemnify and assume the defense of any such Third-Person Claim, (a) the Indemnified Party may defend against such claimclaim using counsel of its choice, in such manner as it may reasonably deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may reasonably deem appropriate, and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Person Claim and shall cooperate in the defense thereof.

Appears in 2 contracts

Samples: Stock and Note Purchase Agreement, Stock and Note Purchase Agreement (Harrahs Entertainment Inc)

Right to Contest Claims of Third Persons. If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) ("Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is actually irrevocably and materially prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, securecontest, contestassume the defense of, or settle the claim alleged by such Third Person (a "Third-“Third Person Claim"), provided that that, except with the written consent of the Indemnified Party, which consent shall not be unreasonably withheld, the Indemnifying Party has unconditionally acknowledged shall not consent to entry of any judgment or enter into any settlement (a) that would lead to liability or create any other obligation (whether monetary or otherwise) on the part of the Indemnified Party, (b) that requires an admission of wrongdoing on the part of the Indemnified Party, or (c) that does not include as an unconditional term thereof the giving by each Third Person claimant to the Indemnified Party in writing his or its obligation to indemnify the persons to be indemnified hereunder of a release from all liability with respect to such Third-Third Person Claim; the Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim within twenty (20) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation declines in writing to indemnity and the Indemnified Party to investigate, contest, assume the defense of any such Third-of, or settle the Third Person Claim, (ai) the Indemnified Party may defend against such claimclaim using counsel of its choice, in such manner as it may reasonably deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may reasonably deem appropriate, and (bii) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Third Person Claim and shall cooperate in the defense thereof. If the Indemnifying Party assumes the defense of any Third Person Claim, the Indemnified Party shall cooperate with the Indemnifying Party in such defense and make available to the Indemnifying Party 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. If the Indemnifying Party assumes the defense of any Third Person Claim, the Indemnified Party shall agree to any settlement, compromise or discharge of such Third Person Claim that the Indemnifying Party may recommend and that by its terms obligates the Indemnifying Party to pay the full amount of the liability in connection with such Third Person Claim, and which releases the Indemnified Party completely in connection with such Third Person Claim. Whether or not the Indemnifying Party assumes the defense of a Third Person Claim, the Indemnified Party shall not admit any liability with respect to, or settle, compromise or discharge, or offer to settle, compromise, or discharge, such Third Person Claim without the Indemnifying Party’s prior written consent.

Appears in 2 contracts

Samples: Sale and Purchase Agreement (Sequential Brands Group, Inc.), Sale and Purchase Agreement (Sequential Brands Group, Inc.)

Right to Contest Claims of Third Persons. If an Indemnified Party is entitled to indemnification hereunder (notwithstanding the limitations contained in Section 9.6 hereof) because of a claim asserted by any claimant (other than an indemnified person hereunder) ("Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is actually irrevocably and materially prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to control any such matter including the right to investigate, secure, contest, contest or settle the claim alleged by such Third Person (a "Third-“Third Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or of its obligation obligation, subject to any and all limitations contained in this Article 9, to indemnify the persons to be indemnified hereunder Indemnified Person or Indemnified Persons with respect to such Third-Third Person Claim; the Claim and to discharge (and does in fact so discharge) any cost or expense arising out of such investigation, contest or settlement. The Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the reasonable costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Third Person Claim within twenty (20) 20 days after receipt thereof shall be deemed an irrevocable election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity indemnify and assume the defense of any such Third-Third Person Claim, (a) the Indemnified Party may defend against such claimclaim using counsel of its choice, in such manner as it may reasonably deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may reasonably deem appropriate, and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Third Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that the conduct of the Indemnified Party in the defense and/or settlement of such Third-Third Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Third Person Claim and shall cooperate in the defense thereof.

Appears in 2 contracts

Samples: Agreement and Plan of Merger (Bankatlantic Bancorp Inc), Agreement and Plan of Merger (Stifel Financial Corp)

Right to Contest Claims of Third Persons. If an Indemnified Party is entitled to indemnification hereunder (notwithstanding the limitations contained in Section 9.6 hereof) because of a claim asserted by any claimant (other than an indemnified person hereunder) ("Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is actually irrevocably and materially prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to control any such matter including the right to investigate, secure, contest, contest or settle the claim alleged by such Third Person (a "Third-Third Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or of its obligation obligation, subject to any and all limitations contained in this Article 9, to indemnify the persons to be indemnified hereunder Indemnified Person or Indemnified Persons with respect to such Third-Third Person Claim; the Claim and to discharge (and does in fact so discharge) any cost or expense arising out of such investigation, contest or settlement. The Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the reasonable costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim within twenty (20) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity and assume the defense of any such Third-Person Claim, (a) the Indemnified Party may defend against such claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Third Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that the conduct of the Indemnified Party in the defense and/or settlement of such Third-Third Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Third Person Claim and shall cooperate in the defense thereof.

Appears in 1 contract

Samples: Stock Purchase Agreement (Stifel Financial Corp)

Right to Contest Claims of Third Persons. If an Indemnified Party believes that it is entitled to indemnification hereunder because of a claim (a "Third Person Claim") asserted by any claimant (other than an indemnified person hereunder) Indemnified Party (a "Third Person"), the such Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the such Indemnified Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person Claims for which such notice is required shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an the Indemnifying Party is prejudiced thereby. The If a Parent Indemnified Party seeks indemnification under this Section 8.6 and the Third Person Claim seeks recovery of Indemnified Losses in an amount which is less than the remaining amount of Escrow Funds which do not represent Claimed Amounts (as defined in the Escrow Agreement) or Disputed Amounts, or if a Stockholder Indemnified Party seeks indemnification under this Section 8.6, then the Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to assume the Indemnified Partydefense, to investigateprosecution, secure, contest, settlement or settle the claim alleged by compromise of such Third Person (a "Third-Person Claim"), ; provided that the Indemnifying Party, or if a Stockholder Indemnified Party seeks indemnification under this Section 8.6, has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons Persons to be indemnified hereunder with respect to such Third-Third Person Claim; . Thereafter, the Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense; provided, unless however, that if separate representation of the Indemnified Party in connection with any such Third Person Claim is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until ; provided further, that if injunctive relief is being sought by the Indemnifying Party so acknowledges his or its obligation to indemnify, Third Person against the Indemnified Party shall have in connection with such Third Person Claim, then that portion of the rightThird Person Claim for which injunctive relief is being sought shall, at its option, to assume and control defense the option of the matter and Indemnified Party, be controlled by the Indemnified Party at the expense of the Indemnifying Party. To the extent the proposed settlement of any Third Person Claim involves amounts in excess of the Escrow Funds which do not represent Claimed Amounts or Disputed Amounts or otherwise does not provide the Parent Indemnified Party with a complete release with respect to look such matter, such settlement shall be subject to the Indemnifying Party for the full amount written consent of the costs of defenseParent. The failure of the Indemnifying Party Party, to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-any Third Person Claim within twenty (20) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its the obligation of the Indemnifying Party to indemnity indemnify and assume the defense of any such Third-Third Person ClaimClaim in the manner set forth above, and with respect to all Third Person Claims, (a) the Indemnified Party may defend against assume and control the defense of such claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, claim on such terms as the Indemnified Party may deem appropriate, after, first giving notice of the proposed terms of any such settlement to the Indemnified Party and providing the Indemnified Party with an opportunity to assume at that time the defense of the same by providing the unconditional acknowledgment and reimbursement described above, and, subject to the procedures set forth in Section 8.5 above, the applicable Indemnifying Party shall be responsible for paying the full amount of the costs of defense for any Third Party Claim, and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Third Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Third Person Claim constituted gross negligence or willful misconduct. The Parties parties to this Agreement and to the Indemnification Agreement shall reasonably promptly following request therefor make available to each other all relevant information in their possession relating to any such Third-Third Person Claim Claim, subject to reasonable protection of attorney client and attorney work product privileges, and shall cooperate in the defense thereof.

Appears in 1 contract

Samples: Agreement and Plan of Merger (Tekelec)

Right to Contest Claims of Third Persons. If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) ("Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, contest or settle the claim alleged by such Third Person (a "Third-Third Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons to be indemnified hereunder with respect to such Third-Third Person Claim; the Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Third Person Claim within twenty (20) 20 calendar days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity indemnify and assume the defense of any such Third-Third Person ClaimClaim within the 20 calendar days, (a) the Indemnified Party may defend against such claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Third Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Third Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Third Person Claim and shall cooperate in the defense thereof.

Appears in 1 contract

Samples: Asset Purchase Agreement (North Shore Agency Inc)

Right to Contest Claims of Third Persons. If an Indemnified Party is entitled to indemnification damages hereunder because of a claim asserted by any claimant (other than an indemnified person Indemnified Party hereunder) ("Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, or settle the claim alleged by such Third Person (a "Third-Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons to be indemnified hereunder with respect to such Third-Person Claim; the Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim within twenty (20) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity and assume the defense of any such Third-Person Claim, (a) the Indemnified Party may defend against such claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Person Claim and shall cooperate in the defense thereof.:

Appears in 1 contract

Samples: Agreement for Purchase And (Applied Cellular Technology Inc)

Right to Contest Claims of Third Persons. If an Indemnified Party believes that it is entitled to indemnification hereunder because of a claim (a “Third Person Claim”) asserted by any claimant (other than an indemnified person hereunder) Indemnified Party ("a “Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person to be indemnified hereunder in respect of claims made by a Third Person Claims shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is prejudiced thereby. The In the event that the Third Person Claim seeks recovery of damages in an amount which either (i) is less than one hundred fifty percent (150%) of the maximum remaining amount of Indemnified Losses for which Sellers may be liable to indemnify the Buyer Indemnified Persons hereunder or (ii) could result in Indemnified Losses of at least $150,000 for which Sellers may be liable to indemnify the Buyer Indemnified Persons hereunder (in either case, a “Special Third Person Claim”), then the Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to assume the Indemnified Party, to investigate, secure, contest, or settle the claim alleged by defense of such Special Third Person (a "Third-Person Claim"), Claim provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons to be indemnified hereunder with respect to such Third-Special Third Person Claim; , subject to the applicable limitations on indemnification contained herein. Thereafter, the Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Special Third Person Claim with its own counsel at its own expense; provided, unless however, that if separate representation of the Indemnified Party in connection with such Special Third Person Claim is necessary to avoid a conflict of interest, and the Indemnified Party is so advised, in which case writing, by counsel, such representation shall be at the expense of the Indemnifying Party; provided further, that if injunctive relief is being sought by the Third Person against the Indemnified Party in connection with such Special Third Person Claim, then that portion of the Special Third Person Claim for which injunctive relief is being sought shall, at the option of the Indemnified Party, be controlled by the Indemnified Party at the expense of the Indemnifying Party. Unless and until If the Indemnifying Party so acknowledges his or its obligation is obligated hereunder to indemnify, pay the fees and expenses of counsel for the Indemnified Party shall have the rightParty, at its option, to assume and control defense of the matter and to look to in no event will the Indemnifying Party be liable for the full amount fees and expenses of more than one counsel (and local counsel) for all Indemnified Parties. To the extent the proposed settlement of any Special Third Person Claim involves amounts in excess of the costs Sellers’ indemnification obligation hereunder, such settlement shall be subject to the written consent of defenseBuyer, unless such consent is unreasonably withheld or delayed. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-any Special Third Person Claim within twenty (20) business days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity indemnify and assume the defense of any such Third-Special Third Person Claim, and with respect to all Third Person Claims which are not Special Third Person Claims, (a) the Indemnified Party may defend against assume and control the defense of such claim, in such manner as it may deem appropriateclaim by appropriate means, including, but not limited to, settling such claim, after giving notice claim (subject to the written consent of the same to the Indemnifying Party, unless such consent is unreasonably withheld or delayed), on such terms as the Indemnified Party may reasonably deem appropriate, and (b) the Indemnifying Party may participate in (but not control) the defense of such actionprovided and, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks subject to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Person Claim and shall cooperate in the defense thereof.the

Appears in 1 contract

Samples: Securities Purchase Agreement (Brown Shoe Co Inc)

Right to Contest Claims of Third Persons. (a) If an Indemnified Party is entitled to indemnification hereunder because of a claim (a “Third Person Claim”) asserted by any claimant (other than an indemnified person hereunder) Indemnified Party hereunder ("a “Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Partyin accordance with Section 7.1; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is actually damaged or prejudiced thereby. The Except as otherwise provided in this Section 6.5, in the event that the Third Person Claim seeks recovery of damages in an amount which is less than one hundred fifty percent (150%) of the maximum remaining amount of Indemnified Losses for which the Indemnifying Party may be liable to indemnify the Indemnified Party hereunder (a “Special Third Person Claim”), the Indemnifying Party shall then have the right, upon written notice to the Indemnified PartyParty (a “Defense Notice”) within fifteen (15) days after receipt from the Indemnified Party of notice of such claim, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, or settle the claim alleged by such Special Third Person (a "Third-Person Claim"), ; provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons Persons to be indemnified hereunder with respect to such Third-Third Person Claim; Claim subject to the applicable limitations set forth in this Article 6. The Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Special Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid in the reasonable opinion of counsel, there exists a conflict of interestinterest between the Indemnified Party and the Indemnifying Party that cannot be waived, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until In the event that the Indemnifying Party so acknowledges his or its obligation delivers a Defense Notice with respect to indemnifysuch Special Third Party Claim and thereby elects to conduct the defense of the subject claim, (i) the Indemnifying Party shall be entitled to have control over said defense and, subject to the provisions set forth below, settlement of the subject claim, (ii) the Indemnified Party will cooperate with and make available to the Indemnifying Party such assistance and materials as it may reasonably request and (iii) the Indemnified Party shall have the right, rights at its optionexpense to participate in the defense assisted by counsel of its own choosing. Notwithstanding the foregoing, if at any time a Third Person Claim no longer qualifies as a Special Third Person Claim, then the Indemnified Party shall have the right to assume and take control of the defense of the matter such Third Person Claim and to look investigate, contest, and settle such Third Person Claim, subject to the Indemnifying Party for the full amount of the costs of defense. The failure consent of the Indemnifying Party to respond as set forth in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim within twenty (20Section 6.5(c) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity and assume the defense of any such Third-Person Claim, (a) the Indemnified Party may defend against such claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Person Claim and shall cooperate in the defense thereofhereof.

Appears in 1 contract

Samples: Stock Purchase Agreement (Brown Shoe Co Inc)

Right to Contest Claims of Third Persons. If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person Indemnified Person hereunder) ("Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is actually irrevocably and materially prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, or settle the claim alleged by such Third Person (a "Third-“Third Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons to be indemnified hereunder with respect to such Third-Third Person Claim; the Claim and to discharge (and does in fact so discharge) any cost or expense arising out of such investigation, contest or settlement. The Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interestinterest (based upon a written opinion of counsel provided to the Indemnifying Party), in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the reasonable costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Third Person Claim within twenty (20) days after receipt thereof shall be deemed an irrevocable election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity indemnify and assume the defense of any such Third-Third Person Claim, (a) the Indemnified Party may defend against such claimclaim using counsel of its choice, in such manner as it may reasonably deem appropriate, including, but not limited to, settling such claim, after giving written notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may reasonably deem appropriate, and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Third Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Third Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Third Person Claim and shall cooperate in the defense thereof.

Appears in 1 contract

Samples: Acquisition Agreement (Talx Corp)

Right to Contest Claims of Third Persons. If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) ("Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, contest or settle the claim alleged by such Third Person (a "Thirda"Third-Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons to be indemnified hereunder with respect to such Third-Person Claim; the Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim within twenty (20) 20 calendar days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity indemnify and assume the defense of any such Third-Person Claim, (a) the Indemnified Party may defend against such claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Person Claim and shall cooperate in the defense thereof.

Appears in 1 contract

Samples: Asset Purchase Agreement (Gulf State Credit LLP)

Right to Contest Claims of Third Persons. If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) ("Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, or settle the claim alleged by such Third Person (a "Third-Third Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons to be indemnified hereunder with respect to such Third-Third Person Claim; the Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until If the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, be entitled to assume and control defense of the matter and to look to be reimbursed by the Indemnifying Party for the full amount any reasonable costs of the costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of defense the Indemnified Party with respect to such Third-Person Claim within twenty (20) days after receipt thereof shall be deemed an election not to defend the samehad theretofore incurred. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity and assume the defense of any such Third-Third Person Claim, (a) the Indemnified Party may shall defend against such claim, in provided that any settlement of such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice claim shall require the prior written consent of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriateconsent not to be unreasonably withheld or delayed, and (b) the Indemnifying Party may participate in (but not control) the defense of such actionclaim, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Person Claim constituted gross negligence or willful misconduct. The Parties parties hereto shall make available to each other all relevant information in their possession relating to any such Third-Third Person Claim and shall cooperate in the defense defense, negotiation or settlement thereof.

Appears in 1 contract

Samples: Purchase Agreement (Jones Apparel Group Inc)

Right to Contest Claims of Third Persons. If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) (a "Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, or settle the claim alleged by such Third Person (a "Third-Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons to be indemnified hereunder with respect to such Third-Person Claim; the Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim within twenty (20) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity and assume the defense of any such Third-Person Claim, (a) the Indemnified Party may defend against such claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Person Claim and shall cooperate in the defense thereof.:

Appears in 1 contract

Samples: Agreement for Purchase and Sale (Applied Cellular Technology Inc)

Right to Contest Claims of Third Persons. If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted against it by any claimant (other than an indemnified person Person hereunder) ("Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, or settle the claim alleged by such Third Person (a "Third-Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons Persons to be indemnified hereunder with respect to such Third-Person Claim; the . The Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party shall be responsible for paying the full amount of the costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim within twenty (20) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity indemnify and assume the defense 50 of any such Third-Person Claim, (a) the Indemnified Party may defend against such claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Person Claim Claim, subject to protection of attorney client and attorney work product privileges, and shall cooperate in the defense thereof.

Appears in 1 contract

Samples: Agreement and Plan of Merger (Talx Corp)

Right to Contest Claims of Third Persons. (a) If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) Indemnified Party ("a “Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, securedefend, contest, contest or settle the claim alleged by such Third Person (a "Third-“Third Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons Persons to be indemnified hereunder with respect to such Third-Third Person Claim; Claim and, subject to Section 9.6, to discharge any cost or expense arising out of such investigation, contest or settlement and provided that any settlement shall include an unconditional release of such claim against the Indemnified Party. Notwithstanding the foregoing, no Indemnifying Party may thereafter participate in (but not control) shall consent to the defense entry of any such Thirdjudgment or enter into any settlement that includes any non-Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its monetary obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim within twenty (20) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity and assume the defense of any such Third-Person Claim, (a) without the Indemnified Party may defend against such claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Person Claim and shall cooperate in the defense thereof’s prior written consent.

Appears in 1 contract

Samples: Stock Purchase Agreement (Monsanto Co /New/)

Right to Contest Claims of Third Persons. (a) If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) Indemnified Person hereunder ("a “Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified PartyParty and in any event no later than five business days thereafter; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is actually prejudiced thereby. The Except as otherwise provided in this Section 7.5, the Indemnifying Party shall then have the right, upon written notice to the Indemnified PartyParty (a “Defense Notice”) within thirty (30) days after receipt from the Indemnified Party of notice of such claim, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, or settle the claim alleged by such Third Person (a "Third-“Third Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons Persons to be indemnified hereunder with respect to such Third-Third Person Claim; the Claim and to discharge any cost or expense arising out of such investigation, contest or settlement. The Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the reasonable costs of defense. The failure of In the event that the Indemnifying Party shall fail to respond in writing to give the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim Defense Notice within twenty said thirty (2030) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity and assume the defense of any such Third-Person Claimday period, (ai) the Indemnified Party may defend against such shall be entitled to have the control over said defense and settlement of the subject claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (bii) the Indemnifying Party may participate in (but not control) the defense of such action, will cooperate with its own counsel at its own expense. If the Indemnifying Party thereafter seeks and make available to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlementassistance and materials as it may reasonably request, and (iii) the Indemnifying Party shall have the burden right at its expense to prove by clear and convincing evidence that conduct of the Indemnified Party participate in the defense and/or assisted by counsel of its own choosing, and the Indemnifying Party, if it is required to provide indemnification under this Agreement, will be liable for all costs and settlement of such Third-Person Claim constituted gross negligence amounts paid or willful misconduct. The Parties shall make available to each other all relevant information incurred in their possession relating to any such Third-Person Claim and shall cooperate in the defense thereofconnection therewith.

Appears in 1 contract

Samples: Side Agreement (Tekelec)

Right to Contest Claims of Third Persons. (a) If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) Indemnified Party hereunder ("a “Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt written notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such written notice unless, and then only to the extent that, an Indemnifying Party is actually and materially prejudiced thereby. The Except as otherwise provided in this Section 7.5, the Indemnifying Party shall then have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to Party (a “Defense Notice”) within fifteen (15) days after receipt from the Indemnified PartyParty of written notice of such claim, to investigate, secure, contest, or settle the claim alleged by such Third Person (a "Third-“Third Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons Persons to be indemnified hereunder with respect to such Third-Third Person Claim; the Claim and to discharge any cost or expense arising out of such investigation, contest or settlement. The Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the reasonable costs of defense. The failure of In the event that the Indemnifying Party shall fail to respond in writing to give the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim Defense Notice within twenty said fifteen (20) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity and assume the defense of any such Third-Person Claim15)-day period, (ai) the Indemnified Party may defend against such shall be entitled to have the control over said defense and settlement of the subject claim, in (ii) the Indemnifying Party will cooperate with and make available to the Indemnified Party such manner assistance and materials as it may deem appropriatereasonably request, includingand (iii) the Indemnifying Party shall have the right at its expense to participate in the defense assisted by counsel of its own choosing, but not limited to, settling such claim, after giving notice of the same to and the Indemnifying Party, on such terms as the Indemnified Party may deem appropriateif it is required to provide indemnification under this Agreement, will be liable for all costs and (b) the Indemnifying Party may participate settlement amounts paid or incurred in (but not control) the defense of such action, with its own counsel at its own expenseconnection therewith. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Third Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Third Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Third Person Claim and shall cooperate in the defense thereof, including cooperation with any insurer to the extent applicable.

Appears in 1 contract

Samples: Membership Interest Purchase Agreement (Manitex International, Inc.)

Right to Contest Claims of Third Persons. (a) If an Indemnified Party is entitled to seek indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) Person hereunder ("a “Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is actually and materially prejudiced thereby. The Except as otherwise provided in this Section 8.5, the Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, or settle the claim alleged by such Third Person (a "Third-“Third Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons Persons to be indemnified hereunder with respect to the full amount of such Third-Third Person Claim; the Claim and to discharge any cost or expense arising out of such investigation, contest or settlement. The Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the reasonable costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Third Person Claim within twenty (20) 10 days after receipt thereof shall be deemed an irrevocable election not to defend the same. Notwithstanding anything to the contrary contained in this Section 8.5, in connection with any Third Person Claim in which the Indemnified Party shall reasonably conclude that (x) there is a threat of any relief other than solely monetary damages being granted, (y) there is a conflict of interest between the Indemnifying Party and the Indemnified Party in the conduct of the defense of such Third Person Claim or (y) there are specific defenses available to the Indemnified Party which are different from or additional to those available to the Indemnifying Party and which could be materially adverse to the Indemnifying Party, then the Indemnified Party shall have the right to assume and direct the defense of such Third Person Claim. In such an event, the Indemnifying Party need only pay the reasonable fees and disbursements of counsel of the Indemnifying Party and one counsel to all the Indemnified Parties. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity indemnify and assume the defense of any such Third-Third Person Claim or the Indemnified Party otherwise exercises its rights contained herein to assume and direct the defense of such Third Person Claim, (a) the Indemnified Party may defend against such claimclaim using counsel of its choice, in such manner as it may reasonably deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may reasonably deem appropriate, and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Third Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Third Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Third Person Claim and shall cooperate in the defense thereof.

Appears in 1 contract

Samples: Membership Unit Purchase Agreement (Cvent Inc)

Right to Contest Claims of Third Persons. If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) ("Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, contest or settle the claim alleged by such Third Person (a "Third-Third Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons to be indemnified hereunder with respect to such Third-Third Person Claim; the Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Third Person Claim within twenty (20) 20 calendar days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity indemnify and assume the defense of any such Third-Third Person Claim, (a) the Indemnified Party may defend against such claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Third Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Third Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Third Person Claim and shall cooperate in the defense thereof.

Appears in 1 contract

Samples: Asset Purchase Agreement (Genad Connector Corp)

Right to Contest Claims of Third Persons. (a) If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) Indemnified Person hereunder ("a “Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is actually and materially prejudiced thereby. The Except as otherwise provided in this Section 11.05, the Indemnifying Party shall then have the right, upon written notice to the Indemnified PartyParty (a “Defense Notice”) within fifteen (15) days after receipt from the Indemnified Party of notice of such claim, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, or settle the claim alleged by such Third Person (a "Third-“Third Person Claim"), provided that the Indemnifying Party has unconditionally irrevocably acknowledged to the Indemnified Party in writing his or its obligation to indemnify indemnify, in accordance with this Article 11 and subject to Section 11.04 and 11.06 hereof, the persons Persons to be indemnified hereunder with respect to such Third-Third Person Claim; the Claim and to discharge any cost or expense arising out of such investigation, contest, or settlement. The Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the reasonable costs of defense. The failure of In the event that the Indemnifying Party shall fail to respond in writing to give the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim Defense Notice within twenty said fifteen (2015) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity and assume the defense of any such Third-Person Claimday period, (ai) the Indemnified Party may defend against such shall be entitled to have the control over said defense and settlement of the subject claim, in (ii) the Indemnifying Party will cooperate with and make available to the Indemnified Party such manner assistance and materials as it may deem appropriatereasonably request, includingand (iii) the Indemnifying Party shall have the right at its expense to participate in the defense assisted by counsel of its own choosing, but not limited to, settling such claim, after giving notice of the same to and the Indemnifying Party, on such terms as the Indemnified Party may deem appropriateif it is required to provide indemnification under this Agreement, will be liable for all costs and (b) the Indemnifying Party may participate settlement amounts paid or incurred in (but not control) the defense of such action, with its own counsel at its own expenseconnection therewith. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Third Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Third Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Third Person Claim and shall cooperate in the defense thereof, including cooperation with any insurer to the extent applicable.

Appears in 1 contract

Samples: Equity and Asset Purchase Agreement (Caleres Inc)

Right to Contest Claims of Third Persons. If an Indemnified Party is entitled to indemnification hereunder (notwithstanding the limitations contained in Section 9.6 hereof) because of a claim asserted by any claimant (other than an indemnified person hereunder) ("Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is actually irrevocably and materially prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to control any such matter including the right to investigate, secure, contest, contest or settle the claim alleged by such Third Person (a "Third-“Third Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or of its obligation obligation, subject to any and all limitations contained in this Article 9, to indemnify the persons to be indemnified hereunder Indemnified Person or Indemnified Persons with respect to such Third-Third Person Claim; the Claim and to discharge (and does in fact so discharge) any cost or expense arising out of such investigation, contest or settlement. The Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the reasonable costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim within twenty (20) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity and assume the defense of any such Third-Person Claim, (a) the Indemnified Party may defend against such claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Third Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that the conduct of the Indemnified Party in the defense and/or settlement of such Third-Third Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Third Person Claim and shall cooperate in the defense thereof.

Appears in 1 contract

Samples: Stock Purchase Agreement (United Community Financial Corp)

Right to Contest Claims of Third Persons. If an ---------------------------------------- Indemnified Party is entitled to asserts a claim for indemnification hereunder because of a claim asserted made by any claimant (other than an indemnified person hereunder) ("Third Person")not a party, the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof thereof, but in no event more than ten (10) business days after such said assertion is actually known to the Indemnified Party; provided, however, that the right of a person to be indemnified hereunder in respect of claims made by a Third Person third party shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, contest or settle the claim alleged by such Third Person third person (hereinafter called a "Third-Person Claim"), provided that the Indemnified Party may participate voluntarily, at its own expense, in any such Third-Person Claim through representatives and counsel of its own choice, and, provided further, that the Indemnifying Party has unconditionally acknowledged acknowledges to the Indemnified Party in writing his or its obligation to indemnify the persons to be indemnified hereunder with respect to all elements of such Third-Person Claim; the Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation elects to indemnifydefend the Third-Person Claim, the Indemnified Party shall have the full right, at its option, to assume and control defense of the matter do so and to look to the Indemnifying Party under the provisions of this Agreement for the full amount of the costs costs, if any, of defense. The failure of the Indemnifying Party to respond in writing to 56 62 the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim within twenty (20) days after receipt thereof shall be deemed an election not to defend the same. Notwithstanding the foregoing, an Indemnifying Party shall only be responsible for the fees and expenses of one counsel for all Indemnified Parties with respect to any Third-Person Claim. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity and assume the defense of any such Third-Person Claim, including any litigation resulting therefrom, (a) the Indemnified Party may defend against such claimclaim or litigation, in such manner as it may deem appropriate, including, but not limited to, settling such claimclaim or litigation, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (b) the Indemnifying Party may shall be entitled to participate in (but not to control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of did not defend or settle such Third-Person Claim constituted gross negligence or willful misconductin a reasonably prudent manner. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Person Claim and shall cooperate in the defense thereof. Notwithstanding the provisions of this Section, CAM shall control the defense and settlement or resolution of the Pending Litigation, provided that the consent of the Representative, which may not be unreasonably withheld, must be obtained prior to the settlement of such litigation in excess of applicable insurance proceeds.

Appears in 1 contract

Samples: Contribution Agreement (Conning Corp)

Right to Contest Claims of Third Persons. (a) If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) Indemnified Person hereunder ("a “Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is actually prejudiced thereby. The Except as otherwise provided in this Section 8.5, the Indemnifying Party shall then have the right, upon written notice to the Indemnified PartyParty (a “Defense Notice”) within 30 days after receipt from the Indemnified Party of notice of such claim, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, or settle the claim alleged by such Third Person (a "Third-“Third Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons Persons to be indemnified hereunder with respect to such Third-Third Person Claim; the Claim and to discharge any cost or expense arising out of such investigation, contest or settlement. The Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look demand and receive from the Indemnifying Party, subject to the Indemnifying Party for Party’s right to dispute its obligation to indemnify the Indemnified Party, the full amount of the reasonable costs of defense. The failure of In the event that the Indemnifying Party shall fail to respond in writing to give the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim Defense Notice within twenty (20) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity and assume the defense of any such Third-Person Claimsaid 30 day period, (ai) the Indemnified Party may defend against such shall be entitled to have the control over said defense and settlement of the subject claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (bii) the Indemnifying Party may participate in (but not control) the defense of such action, will cooperate with its own counsel at its own expense. If the Indemnifying Party thereafter seeks and make available to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlementassistance and materials as it may reasonably request, (iii) the Indemnifying Party shall have the burden right at its expense to prove by clear and convincing evidence that conduct of the Indemnified Party participate in the defense and/or assisted by counsel of its own choosing, and (iv) the Indemnifying Party, if it is required to provide indemnification under this Agreement, will be liable for all costs and settlement of such Third-Person Claim constituted gross negligence amounts paid or willful misconduct. The Parties shall make available to each other all relevant information incurred in their possession relating to any such Third-Person Claim and shall cooperate in the defense thereofconnection therewith.

Appears in 1 contract

Samples: Agreement and Plan of Merger (Ixia)

Right to Contest Claims of Third Persons. If Except as set forth in Section 9.6 and Section 9.8, if an Indemnified Injured Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) Person hereunder ("Third Person"), the Indemnified Injured Party shall give a Notice of Claim to the Indemnifying Party reasonably prompt notice thereof promptly after such assertion is actually known to the Indemnified Injured Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice Notice of Claim unless, and then only to the extent that, an Indemnifying Party is prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Injured Party, and using counsel reasonably satisfactory to the Indemnified Injured Party, to investigate, secure, contest, or settle the claim alleged by such Third Person (a "Third-“Third Person Claim"), ”) provided that the Indemnifying Party has unconditionally acknowledged to notified the Indemnified Injured Party in writing his or of its obligation election to indemnify the persons to be indemnified hereunder Injured Party with respect to such Third-Third Person Claim; and provided further that the Indemnified Indemnifying Party will not consent to the entry of any judgment with respect to the matter or enter into any settlement with respect to the matter without the written consent of the Injured Party (not to be withheld or delayed unreasonably) except that the Indemnifying Party shall be entitled to consent to any judgment and/or enter into any settlement without the consent of the Injured Party if such judgment or settlement requires only the payment of money. For the avoidance of doubt, a claim or challenge asserted by the Internal Revenue Service against an Injured Party shall be considered a Third Person Claim hereunder. The Injured Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until If the Indemnifying Party so acknowledges his or its obligation elects not to indemnifydefend the Injured Party with respect to such Third Person Claim, the Indemnified Injured Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the costs of defensematter. The failure of the Indemnifying Party to respond in writing to the aforesaid notice Notice of the Indemnified Party with respect to such Third-Person Claim within twenty thirty (2030) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity indemnify and assume the defense of any such Third-Third Person Claim, (a) the Indemnified Injured Party may defend against such claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving written notice of the same to the Indemnifying Party, on such terms as the Indemnified Injured Party may deem appropriate; provided that in all cases the Injured Party will not consent to the entry of a judgment or enter into any settlement with respect to the matter without the written consent of the Indemnifying Party (not to be withheld or delayed unreasonably), except that the Injured Party shall be entitled to consent to any judgment and/or enter into any settlement without the consent of the Indemnifying Party if such judgment or settlement does not require the payment of money and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Person Claim constituted gross negligence or willful misconduct. The Parties parties shall make available to each other all relevant information in their possession relating to any such Third-Third Person Claim and shall cooperate in the defense thereof.

Appears in 1 contract

Samples: Asset Purchase Agreement (Ns Group Inc)

Right to Contest Claims of Third Persons. If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereundera Constellation Indemnified Person or HOF Entity Indemnified Person) ("a “Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person or entity to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is actually irrevocably and materially prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, contest or settle the claim alleged by such Third Person (a "Third-“Third Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons and entities to be indemnified hereunder with respect to such Third-Third Person Claim; the Claim and to discharge (and does in fact so discharge) any cost or expense arising out of such investigation, contest or settlement. The Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the reasonable costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Third Person Claim within twenty thirty (2030) days after receipt thereof shall be deemed an irrevocable election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity indemnify and assume the defense of any such Third-Third Person Claim, (ai) the Indemnified Party may defend against such claimclaim using counsel of its choice, in such manner as it may reasonably deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may reasonably deem appropriate, and (bii) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Third Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Third Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Third Person Claim and shall cooperate in the defense thereof.

Appears in 1 contract

Samples: Sponsorship and Services Agreement (GPAQ Acquisition Holdings, Inc.)

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Right to Contest Claims of Third Persons. If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person Person hereunder) ("Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is actually materially prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, or settle the claim alleged by such Third Person (a "Third-Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons to be indemnified hereunder with respect to such Third-Third Person Claim; Claim and to discharge (and does in fact so discharge) any cost or expense arising out of such investigation, contest or settlement and such Indemnifying Party has presented evidence reasonably satisfactory to the Indemnified Party of its ability to discharge the obligations, including without limitation by establishment of an escrow account. The Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the reasonable costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Third Person Claim within twenty (20) 20 days after receipt thereof shall be deemed an irrevocable election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity indemnify and assume the defense of any such Third-Third Person Claim, (a) the Indemnified Party may defend against such claimclaim using counsel of its choice, in such manner as it may reasonably deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may reasonably deem appropriate, and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Third Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Third Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their its possession relating to any such Third-Third Person Claim and shall cooperate in the defense thereof.

Appears in 1 contract

Samples: Stock Purchase Agreement (CSK Auto Corp)

Right to Contest Claims of Third Persons. If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) ("Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, contest or settle the claim alleged by such Third Person (a "Third-Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons to be indemnified hereunder with respect to such Third-Person Claim; the Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim within twenty (20) 20 calendar days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity indemnify and assume the defense of any such Third-Person Claim, (a) the Indemnified Party may defend against such claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Person Claim and shall cooperate in the defense thereof.

Appears in 1 contract

Samples: Asset Purchase Agreement (Gulf State Credit LLP)

Right to Contest Claims of Third Persons. If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person Person hereunder) ("Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, contest or settle the claim alleged by such Third Person (a "Third-Third Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons to be indemnified hereunder with respect to such Third-Third Person Claim; the Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Third Person Claim within twenty (20) 20 calendar days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity indemnify and assume the defense of any such Third-Third Person ClaimClaim within the 20 calendar days, (a) the Indemnified Party may defend against such claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Third Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Third Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Third Person Claim and shall cooperate in the defense thereof.

Appears in 1 contract

Samples: Asset Purchase Agreement (North Shore Agency Inc)

Right to Contest Claims of Third Persons. If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) hereunder (a "Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt written notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is prejudiced therebythereof. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, contest or settle the claim alleged by such Third Person (a "Third-Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons to be indemnified hereunder with respect to such Third-Person Claim; the Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim within twenty (20) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation shall fail to indemnity and assume the defense of any such Third-Person Claim, (a) the Indemnified Party Party, in good faith, may defend against such claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving at least 30 days advance written notice of the same any proposed settlement to the Indemnifying Party and receiving the Indemnifying Party's prior written consent, which may not be unreasonably withheld, on such terms as the Indemnified Party Party, in good faith, may deem appropriate, and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Person Claim and shall cooperate in the defense thereof. 8.6.

Appears in 1 contract

Samples: Stock Purchase Agreement (Esco Electronics Corp)

Right to Contest Claims of Third Persons. (a) If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) Indemnified Person hereunder ("a “Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is actually and materially prejudiced thereby. The Except as otherwise provided in this Section 8.5, the Indemnifying Party shall then have the right, upon written notice to the Indemnified PartyParty (a “Defense Notice”) within 30 days after receipt from the Indemnified Party of notice of such claim, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, or settle the claim alleged by such Third Person (a "Third-“Third Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons Persons to be indemnified hereunder with respect to such Third-Third Person Claim; the Claim and to discharge any cost or expense arising out of such investigation, contest or settlement. The Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look demand and receive from the Indemnifying Party, subject to the Indemnifying Party for Party’s right to dispute its obligation to indemnify the Indemnified Party, the full amount of the reasonable costs of defense. The failure of In the event that the Indemnifying Party shall fail to respond in writing to give the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim Defense Notice within twenty (20) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity and assume the defense of any such Third-Person Claimsaid 30 day period, (ai) the Indemnified Party may defend against such shall be entitled to have the control over said defense and settlement of the subject claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (bii) the Indemnifying Party may participate in (but not control) the defense of such action, will cooperate with its own counsel at its own expense. If the Indemnifying Party thereafter seeks and make available to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlementassistance and materials as it may reasonably request, (iii) the Indemnifying Party shall have the burden right at its expense to prove by clear and convincing evidence that conduct of the Indemnified Party participate in the defense and/or assisted by counsel of its own choosing, and (iv) the Indemnifying Party, if it is required to provide indemnification under this Agreement, will be liable for all costs and settlement of such Third-Person Claim constituted gross negligence amounts paid or willful misconduct. The Parties shall make available to each other all relevant information incurred in their possession relating to any such Third-Person Claim and shall cooperate in the defense thereofconnection therewith.

Appears in 1 contract

Samples: Agreement and Plan of Merger (Ixia)

Right to Contest Claims of Third Persons. If (a) Except with respect to an Identified Claim, if an Indemnified Party is entitled to indemnification hereunder because of a claim (a “Third Person Claim”) asserted by any claimant (other than an indemnified person hereunder) Indemnified Party hereunder ("a “Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Partyin accordance with Section 6.1 (a “Third Person Claim Notice”); provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is actually damaged or prejudiced thereby. The Except as otherwise provided in this Section 5.6 in the event that the Third Person Claim seeks recovery of damages in an amount which is less than one hundred percent (100%) of the maximum remaining amount of Indemnified Losses for which the Indemnifying Party may be liable to indemnify the Indemnified Party hereunder (a “Special Third Person Claim”), the Indemnifying Party shall then have the right, upon written notice to the Indemnified PartyParty (a “Defense Notice”) within fifteen (15) days (the “Defense Notice Period”) after receipt from the Indemnified Party of the Third Person Claim Notice, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, or settle the claim alleged by such Special Third Person (a "Third-Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons Persons to be indemnified hereunder with respect to such Third-Third Person Claim; Claim subject to the applicable limitations set forth in this Article 5. The Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Special Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid in the reasonable opinion of counsel, there exists a conflict of interestinterest between the Indemnified Party and the Indemnifying Party that cannot be waived, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until In the event that the Indemnifying Party so acknowledges his or its obligation delivers a Defense Notice within the Defense Notice Period with respect to indemnifysuch Special Third Person Claim and thereby elects to conduct the defense of the subject claim, (i) the Indemnifying Party shall be entitled to have control over said defense and, subject to the provisions set forth below, settlement of the subject claim, (ii) the Indemnified Party will, at the Indemnifying Party’s expense, cooperate with and make available to the Indemnifying Party such assistance and materials as it may reasonably request and (iii) the Indemnified Party shall have the right, right at its optionexpense to participate in the defense assisted by counsel of its own choosing. Notwithstanding the foregoing, if at any time a Third Person Claim no longer qualifies as a Special Third Person Claim, then the Indemnified Party shall have the right to assume and take control of the defense of the matter such Third Person Claim and to look investigate, contest, and settle such Third Person Claim, subject to the Indemnifying Party for the full amount of the costs of defense. The failure consent of the Indemnifying Party to respond as set forth in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim within twenty (20Section 5.6(c) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity and assume the defense of any such Third-Person Claim, (a) the Indemnified Party may defend against such claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Person Claim and shall cooperate in the defense thereofhereof.

Appears in 1 contract

Samples: Stock Purchase Agreement (Brown Shoe Co Inc)

Right to Contest Claims of Third Persons. (a) If an a Tekelec Indemnified Party believes that it is entitled to indemnification hereunder because of a claim (a "Tekelec Third Person Claim") asserted by any claimant (other than an indemnified person hereunder) Indemnified Party (a "Third Person"), the Indemnified Party Tekelec shall give the Indemnifying Party reasonably Representatives prompt notice thereof after such assertion is actually known to Tekelec if, and only if, Escrow Funds remain available to satisfy indemnity claims in accordance with the Indemnified Partyterms thereof; provided, however, that the right of a person to be indemnified hereunder in respect of claims made by a Tekelec Third Person Claims for which such notice is required shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an the Stockholder(s) from whom such indemnity is sought (the "Stockholder Indemnifying Party Party") is prejudiced thereby. The Indemnifying Party In the event that the Tekelec Third Person Claim seeks recovery of damages in an amount which is less than one hundred fifty percent (150%) of the maximum remaining amount of Escrow Funds which do not represent Claimed Amounts (as defined in the Escrow Agreement) or Disputed Amounts (as defined in the Escrow Agreement) (hereinafter referred to as a "Tekelec Special Third Person Claim"), then the Representatives shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Tekelec Indemnified Party, to investigateassume the defense, secureprosecution, contest, settlement or settle the claim alleged by compromise of such Tekelec Special Third Person (a "Third-Person Claim"), Claim provided that the Representatives, on behalf of the Stockholder Indemnifying Party Party, has unconditionally acknowledged to the Indemnified Party Tekelec in writing his or its the obligation of the Stockholder Indemnifying Party to indemnify the persons to be indemnified hereunder with respect to such Third-Tekelec Special Third Person Claim; the Indemnified Party . Thereafter, Tekelec may thereafter participate in (but not control) the defense of any such Third-Tekelec Special Third Person Claim with its own counsel at its own expense; provided, unless however, that if separate representation of the Tekelec Indemnified Party in connection with any such Tekelec Special Third Person Claim is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Stockholder Indemnifying Party; provided further, that if injunctive relief is being sought by the Third Person against the Tekelec Indemnified Party in connection with such Tekelec Special Third Person Claim, then that portion of the Tekelec Special Third Person Claim for which injunctive relief is being sought shall, at the option of Tekelec, be controlled by Tekelec at the expense of the Stockholder Indemnifying Party. Unless and until To the Indemnifying Party so acknowledges his extent the proposed settlement of any Tekelec Special Third Person Claim involves amounts in excess of the Escrow Funds which do not represent Claimed Amounts (as defined in the Escrow Agreement) or its obligation to indemnify, Disputed Amounts (as defined in the Escrow Agreement) or otherwise does not provide the Tekelec Indemnified Party with a complete release with respect to such matter, such settlement shall have the right, at its option, to assume and control defense of the matter and to look be subject to the Indemnifying Party for the full amount written consent of the costs of defenseTekelec. The failure of the Representatives, on behalf of the Stockholder Indemnifying Party Party, to respond in writing to the aforesaid notice of the Tekelec Indemnified Party with respect to such Third-any Tekelec Special Third Person Claim within twenty (20) days after receipt thereof shall be deemed an election not to defend the same. If the Representatives, on behalf of the Stockholder Indemnifying Party does Party, do not so acknowledge his or its the obligation of the Stockholder Indemnifying Party to indemnity indemnify and assume the defense of any such Third-Tekelec Special Third Person ClaimClaim in the manner set forth above, and with respect to all Tekelec Third Person Claims which are not Tekelec Special Third Person Claims, (a) Tekelec may assume and control the Indemnified Party may defend against defense of such claim, in such manner as it may deem appropriate, including, but not limited to, settling such claimclaim on such terms as Tekelec may deem appropriate, after after, with respect to Tekelec Special Third Person Claims only, first giving notice of the same proposed terms of any such settlement to the Representatives and providing the Representatives with an opportunity to assume at that time the defense of the same by providing the unconditional acknowledgment and reimbursement described above, and, subject to the procedures set forth in Section 9.4 above, the applicable Stockholder Indemnifying Party, on such terms as Party shall be responsible for paying the Indemnified full amount of the costs of defense for any Tekelec Third Party may deem appropriateClaim or Tekelec Special Third Party Claim, and (b) the Representatives or the Stockholder Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Representatives or Stockholder Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party Tekelec defended such Third-Tekelec Third Person Claim or such Tekelec Special Third Person Claim or the amount or nature of any such settlement, the Representatives and/or the Stockholder Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party Tekelec in the defense and/or settlement of such Third-Tekelec Third Person Claim or such Tekelec Special Third Person Claim constituted gross negligence or willful misconduct. The Parties parties to this Agreement and to the Indemnification Agreement shall reasonably promptly following request therefor make available to each other all relevant information in their possession relating to any such Third-Tekelec Third Person Claim or any Tekelec Special Third Person Claim, subject to reasonable protection of attorney client and attorney work product privileges, and shall cooperate in the defense thereof.

Appears in 1 contract

Samples: Agreement and Plan of Merger (Tekelec)

Right to Contest Claims of Third Persons. (a) If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) Indemnified Party hereunder ("a “Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is actually and materially prejudiced thereby. The Except as otherwise provided in this Section 8.5, the Indemnifying Party shall then have the right, upon written notice to the Indemnified PartyParty (a “Defense Notice”) within fifteen (15) days after receipt from the Indemnified Party of notice of such claim, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, or settle the claim alleged by such Third Person (a "Third-“Third Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons Persons to be indemnified hereunder with respect to such Third-Third Person Claim; Claim and to discharge any cost or expense arising out of such investigation, contest, or settlement (subject to the limitation set forth in this Article 8). The Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the reasonable costs of defense. The failure of In the event that the Indemnifying Party shall fail to respond in writing to give the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim Defense Notice within twenty said fifteen (20) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity and assume the defense of any such Third-Person Claim15)-day period, (ai) the Indemnified Party may defend against such shall be entitled to have the control over said defense and settlement of the subject claim, in (ii) the Indemnifying Party will cooperate with and make available to the Indemnified Party such manner assistance and materials as it may deem appropriatereasonably request, includingand (iii) the Indemnifying Party shall have the right at its expense to participate in the defense assisted by counsel of its own choosing, but not limited to, settling such claim, after giving notice of the same to and the Indemnifying Party, on such terms as the Indemnified Party may deem appropriateif it is required to provide indemnification under this Agreement, will be liable for all costs and (b) the Indemnifying Party may participate settlement amounts paid or incurred in (but not control) the defense of such action, with its own counsel at its own expenseconnection therewith. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Third Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Third Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Third Person Claim and shall cooperate in the defense thereof, including cooperation with any insurer to the extent applicable.

Appears in 1 contract

Samples: Stock Purchase Agreement (Caleres Inc)

Right to Contest Claims of Third Persons. If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) ("Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is irrevocably and materially prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, or settle the claim alleged by such Third Person (a "Third-Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons to be indemnified hereunder with respect to such Third-Person Claim; . If the Indemnifying Party assumes the defense of a Third-Party Claim, the Indemnifying Party shall not be liable to the Indemnified Party for any expense such party incurs in connection with the defense thereof. However, the Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Person Claim with its own counsel at its own expense, unless separate representation is necessary the Indemnified Party has been advised in writing by counsel that there may be one or more legal defenses available to avoid a conflict of interest, the Indemnified Party that are different from or in which case such representation shall be at the expense addition to that of the Indemnifying Party, in which case, the Indemnifying Party shall be liable for the reasonable expenses of the Indemnified Party (including reasonable attorneys' fees). Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter Third-Party Claim and to look to the Indemnifying Party for the full amount of the its reasonable costs of such defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim within twenty (20) days after receipt thereof shall be deemed an election not to defend the same. Any election to defend made by the Indemnifying Party after such twenty (20) day period and shall not be valid unless and until the Indemnifying Party also pays all reasonable attorneys' fees and other reasonable expenses incurred by the Indemnified Party in defense of the Third-Person Claim prior to such date. If the Indemnifying Party assumes the defense of a Third-Party Claim, (i) the Indemnified Party shall not admit any liability with respect to, or settle, compromise or discharge, such Third-Party Claim without the Indemnifying Party's prior written consent, and (ii) the Indemnifying Party shall be entitled to compromise or settle such claim, which compromise or settlement shall not be made without the written consent of the Indemnified Party (such consent not to be unreasonably withheld). If the Indemnifying Party does not so acknowledge his or its obligation to indemnity indemnify and assume the defense of any such Third-Person Claim, (a) the Indemnified Party may defend against such claimclaim using counsel of its choice, in such manner as it may reasonably deem appropriate, including, but not limited to, compromising or settling such claim, after giving notice which compromise or Settlement shall not be made without the written consent of the same Indemnifying Party (such consent not to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriatebe unreasonably withheld), and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Person Claim and shall cooperate in the defense thereof.

Appears in 1 contract

Samples: Asset Purchase Agreement (Weider Nutrition International Inc)

Right to Contest Claims of Third Persons. (a) If an Indemnified Party claims that it is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) Indemnified Party hereunder ("a “Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is actually and materially prejudiced thereby. The Except as otherwise provided in this Section 8.3, the Indemnifying Party shall then have the right, upon written notice to the Indemnified PartyParty (a “Defense Notice”) at any time following receipt from the Indemnified Party of notice of such claim, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, or settle the claim alleged by such Third Person (a "Third-“Third Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons Persons to be indemnified hereunder with respect to such Third-Third Person Claim; the Claim and to discharge any Indemnified Losses incurred in connection therewith. The Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the reasonable costs of defensedefense to the extent they are Indemnified Losses. The failure of In the event that the Indemnifying Party shall fail to respond in writing to give the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim within twenty (20) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity and assume the defense of any such Third-Person ClaimDefense Notice, (ai) the Indemnified Party may defend against such shall be entitled to have the control over said defense and settlement of the subject claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (bii) the Indemnifying Party may participate in (but not control) the defense of such action, will cooperate with its own counsel at its own expense. If the Indemnifying Party thereafter seeks and make available to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlementassistance and materials as it may reasonably request, and (iii) the Indemnifying Party shall have the burden right at its expense to prove by clear and convincing evidence that conduct of the Indemnified Party participate in the defense and/or settlement assisted by counsel of such Third-Person Claim constituted gross negligence or willful misconduct. The Parties shall make available its own choosing, and the Indemnifying Party, if it is required to each other provide indemnification under this Agreement, will be liable for all relevant information Indemnified Losses incurred in their possession relating to any such Third-Person Claim and shall cooperate in the defense thereofconnection therewith.

Appears in 1 contract

Samples: Asset Purchase Agreement (Tetridyn Solutions Inc)

Right to Contest Claims of Third Persons. If an Indemnified Party is entitled to indemnification hereunder (notwithstanding the limitations contained in Section 9.6 hereof) because of a claim (including notice of any tax audit, examination or other similar inquiry) asserted by any claimant (other than an indemnified person hereunder) ("Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is actually irrevocably and materially prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to control any such matter, including the right to investigate, secure, contest, contest or settle the claim alleged by such Third Person (a "Third-“Third Person Claim"), ; provided that the Indemnifying Party has unconditionally acknowledged in writing to the Indemnified Party its obligation, subject to any and all limitations contained in writing his or its obligation this Article 9, to indemnify the persons to be indemnified hereunder Indemnified Party with respect to such Third-Third Person ClaimClaim and to discharge (and does in fact so discharge) any cost or expense arising out of such investigation, contest or settlement; and provided, further, that no Third Person Claim may be settled by the Indemnifying Party without the prior written consent of the Indemnified Party, which consent will not be unreasonably withheld, conditioned or delayed. The Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, or if, in the reasonable judgment of the Indemnified Party, the Indemnifying Party is not diligently pursuing the defense of the Third Party Claim, then the Indemnified Party shall have the right, at its option, to assume and control the defense of the matter and to look to the Indemnifying Party for the full amount of the reasonable costs of investigation and defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim within twenty (20) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity and assume the defense of any such Third-Person Claim, (a) the Indemnified Party may defend against such claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Third Person Claim or the amount or nature of any settlement of such settlementThird Person Claim, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that the conduct of the Indemnified Party in the defense and/or settlement of such Third-Third Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Third Person Claim and shall cooperate in the defense thereof. Notwithstanding the foregoing, Parent or Xxxxx Brothers shall have the right to represent the interests of the Company in any Third Person Claim for Taxes with respect to a Straddle Period; provided, however, that the Sellers’ Representative shall be entitled to participate in (but not control) the defense of such claim at the Sellers’ expense; and provided, further, that neither Parent nor Xxxxx Brother shall settle or compromise any such Third Person Claim for Taxes without the consent of the Sellers’ Representative (which consent shall not be unreasonably withheld, conditioned or delayed) if such settlement or compromise could reasonably be expected to result in any Indemnified Loss for which the Sellers would have an indemnification obligation under this Agreement.

Appears in 1 contract

Samples: Purchase and Contribution Agreement (COHEN & Co INC.)

Right to Contest Claims of Third Persons. (a) If an Indemnified Party is entitled to seek indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) a Seller Indemnified Person or Buyer Indemnified Person ("a “Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is actually and materially prejudiced thereby. The Except as otherwise provided in this Section 9.06, the Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, contest or settle the claim alleged by such Third Person (a "Third-“Third Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation that the Indemnified Party is entitled to indemnify indemnification hereunder for all Indemnified Losses arising out of such Third Person Claim and that the persons Indemnifying Party shall be liable for the entire amount of any such Indemnified Losses, subject to be indemnified hereunder the limitations set forth in this Agreement and so long as (i) the Indemnifying Party thereafter consults with the Indemnified Party upon the Indemnified Party’s reasonable request for such consultation from time to time with respect to such Third-Third Person Claim; , (ii) the Indemnifying Party conducts the defense of the Third Person Claim actively and diligently, (iii) the Third Person Claim involves only a claim for money damages, in an amount equal to or less than the amount then remaining in the Indemnity Escrow Fund (iv) the Third Party Claim does not involve a claim (A) for a temporary restraining order, (B) for a preliminary or permanent injunction, (C) for specific performance against the Indemnified Party, (D) with criminal allegations against the Indemnified Party, (E) that, if unsuccessful, would set a precedent that would materially interfere with, or have a material adverse effect on, the business or financial condition of the Indemnified Party may thereafter participate in and (but F) that imposes Liability on the Indemnified Party for which the Indemnified Party is not controlentitled to indemnification hereunder and (v) the defense of any such Third-Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his obtains the prior written consent of the Indemnified Party with respect to any settlement (which consent shall not be unreasonably withheld). In the event any of the foregoing conditions are or its obligation to indemnifybecome unsatisfied, the Indemnified Party shall have the right, at its optionbut not the obligation, to assume and control defense of defend against the matter and Third Person Claim. The Indemnified Party may take any actions reasonably necessary to look defend such Third Person Claim prior to the time that it receives a notice from the Indemnifying Party for the full amount of the costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim within twenty (20) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity and assume the defense of any such Third-Person Claim, (a) the Indemnified Party may defend against such claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (b) the Indemnifying Party may participate in (but not control) assuming the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Third Person Claim or the amount or nature of any such settlementas contemplated by this Section 9.06(a), and the Indemnifying Party shall have pay the burden to prove costs and expenses of any such actions taken by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Person Claim and shall cooperate in the defense thereofParty.

Appears in 1 contract

Samples: Stock Purchase Agreement (Green Plains Inc.)

Right to Contest Claims of Third Persons. (a) If an Indemnified Party a claim, other than a Tax Claim, is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) Indemnified Person hereunder ("a “Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is prejudiced thereby. The Such notice by the Indemnified Party shall describe the Third Person Claim in reasonable detail, shall include copies of all material written evidence thereof and shall indicate the estimated amount, if reasonably practicable, of the Indemnified Losses that has been or may be sustained by the Indemnified Party. Except as otherwise provided in this Section 11.5, the Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to Party (a “Defense Notice”) within thirty (30) days after receipt from the Indemnified Party, Party of notice of such claim to investigate, secure, contest, or settle investigate the claim alleged by such Third Person (a "Third-“Third Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons to be indemnified hereunder with respect to such Third-Person Claim; the . The Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless unless, in the reasonable opinion of counsel to the Indemnified Party, separate representation is necessary to avoid a conflict of interest, in which case such representation by one counsel to the Indemnified Party shall be at the expense of the Indemnifying Party. Unless and until In the event that the Indemnifying Party so acknowledges his or its obligation shall fail to indemnifygive the Defense Notice within said thirty (30) day period, (i) the Indemnified Party shall be entitled to have the right, at its option, to assume control over said defense and control defense settlement of the matter and to look to the Indemnifying Party for the full amount of the costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim within twenty (20) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity and assume the defense of any such Third-Person Claimsubject claim, (a) the Indemnified Party may defend against such claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (bii) the Indemnifying Party may participate in (but not control) the defense of such action, will cooperate with its own counsel at its own expense. If the Indemnifying Party thereafter seeks and make available to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlementassistance and materials as it may reasonably request, and (iii) the Indemnifying Party shall have the burden right at its expense to prove by clear and convincing evidence that conduct of the Indemnified Party participate in the defense and/or assisted by counsel of its own choosing, and the Indemnifying Party, if it is required to provide indemnification under this Agreement, will be liable for all costs and settlement of such Third-Person Claim constituted gross negligence amounts paid or willful misconduct. The Parties shall make available to each other all relevant information incurred in their possession relating to any such Third-Person Claim and shall cooperate in the defense thereofconnection therewith.

Appears in 1 contract

Samples: Share and Asset Purchase Agreement (Magal Security Systems LTD)

Right to Contest Claims of Third Persons. (a) If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) Indemnified Person hereunder ("a “Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is materially prejudiced thereby. The Except as otherwise provided in this Section 8.5, the Indemnifying Party shall then have the right, upon written notice to the Indemnified PartyParty (a “Defense Notice”) within fifteen (15) Business Days after receipt from the Indemnified Party of notice of such claim, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, or settle the claim alleged by such Third Person (a "Third-“Third Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons Persons to be indemnified hereunder with respect to such Third-Third Person Claim; the Claim and to discharge any cost or expense arising out of such investigation, contest or settlement. The Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the reasonable costs of defense. The failure of In the event that the Indemnifying Party shall fail to respond in writing to give the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim Defense Notice within twenty said fifteen (2015) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity and assume the defense of any such Third-Person ClaimBusiness Day period, (ai) the Indemnified Party may defend against such shall be entitled to have the control over said defense and settlement of the subject claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (bii) the Indemnifying Party may participate in (but not control) the defense of such action, will cooperate with its own counsel at its own expense. If the Indemnifying Party thereafter seeks and make available to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlementassistance and materials as it may reasonably request, and (iii) the Indemnifying Party shall have the burden right at its expense to prove by clear and convincing evidence that conduct of the Indemnified Party participate in the defense and/or assisted by counsel of its own choosing, and the Indemnifying Party, if it is required to provide indemnification under this Agreement, will be liable for all costs and settlement of such Third-Person Claim constituted gross negligence amounts paid or willful misconductincurred in connection therewith. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Person Claim and shall cooperate in the defense thereof.REDACTED VERSION

Appears in 1 contract

Samples: Agreement and Plan of Merger (Memc Electronic Materials Inc)

Right to Contest Claims of Third Persons. If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) ("Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is actually irrevocably and materially prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, contest or settle the claim alleged by such Third Person (a "Third-“Third Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons Persons to be indemnified hereunder with respect to such Third-Third Person Claim; Claim and to discharge (and does in fact so discharge) any cost or expense arising out of such investigation, contest or settlement and such Indemnifying Party has presented evidence satisfactory to the Indemnified Party of its ability to discharge the obligations, including without limitation by establishment of an escrow account. The Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the reasonable costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Third Person Claim within twenty (20) 20 days after receipt thereof shall be deemed an irrevocable election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity indemnify and assume the defense of any such Third-Third Person Claim, (a) the Indemnified Party may defend against such claimclaim using counsel of its choice, in such manner as it may reasonably deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may reasonably deem appropriate, and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Third Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Third Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Third Person Claim and shall cooperate in the defense thereof.

Appears in 1 contract

Samples: Asset Purchase Agreement (Huttig Building Products Inc)

Right to Contest Claims of Third Persons. (a) If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) Indemnified Person hereunder ("a “Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person an Indemnified Party to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to so give such notice unless, and then only to the extent that, an Indemnifying Party is materially prejudiced thereby. The Except as otherwise provided in this Section 7.5, the Indemnifying Party shall then have the right, upon written notice to the Indemnified PartyParty (a “Defense Notice”) within 30 days after receipt from the Indemnified Party of notice of such claim, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, or settle the claim alleged by such Third Person (a "Third-“Third Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons Persons to be indemnified hereunder with respect to such Third-Third Person Claim; the Claim and to discharge any cost or expense arising out of such investigation, contest or settlement. The Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the reasonable costs of defense. The failure of In the event that the Indemnifying Party shall fail to respond in writing to give the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim Defense Notice within twenty (20) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity and assume the defense of any such Third-Person Claimsaid 30 day period, (ai) the Indemnified Party may defend against such shall be entitled to have the control over said defense and settlement of the subject claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (bii) the Indemnifying Party may participate in (but not control) the defense of such action, will cooperate with its own counsel at its own expense. If the Indemnifying Party thereafter seeks and make available to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlementassistance and materials as it may reasonably request, and (iii) the Indemnifying Party shall have the burden right at its expense to prove by clear and convincing evidence that conduct of the Indemnified Party participate in the defense and/or assisted by counsel of its own choosing, and the Indemnifying Party, if it is required to provide indemnification under this Agreement, will be liable for all costs and settlement of such Third-Person Claim constituted gross negligence amounts paid or willful misconduct. The Parties shall make available to each other all relevant information incurred in their possession relating to any such Third-Person Claim and shall cooperate in the defense thereofconnection therewith.

Appears in 1 contract

Samples: Agreement and Plan of Merger (Memc Electronic Materials Inc)

Right to Contest Claims of Third Persons. If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) ("Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is irrevocably and materially prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, or settle the claim alleged by such Third Person (a "Third-Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons to be indemnified hereunder with respect to such Third-Person Claim; the Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the reasonable costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim within twenty (20) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity indemnify and assume the defense of any such Third-Person Claim, (a) the Indemnified Party may defend against such claim, in such manner as it may reasonably deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may reasonably deem appropriate, and (b) the Indemnifying Party may participate in (but not control) the defense of such action, with its own counsel at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct of the Indemnified Party in the defense and/or settlement of such Third-Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Person Claim and shall cooperate in the defense thereof.

Appears in 1 contract

Samples: Stock Purchase Agreement (Champion Financial Corp /Md/)

Right to Contest Claims of Third Persons. (a) If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) Indemnified Party ("a “Third Person"), the Indemnified Party shall give promptly deliver to the Indemnifying Party reasonably prompt notice thereof a Claim Notice after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to promptly give such notice Claim Notice unless, and then only to the extent that, an Indemnifying Party is materially and adversely prejudiced thereby. The Indemnifying Party shall have the right, upon written notice to the Indemnified Party, and using counsel reasonably satisfactory to the Indemnified Party, Party to investigate, secure, contest, contest or settle the claim alleged by such Third Person (a "Third-“Third Person Claim"), provided that ”) so long as (i) the Indemnifying Party has unconditionally acknowledged gives written notice to the Indemnified Party in writing his or its obligation to indemnify the persons to be indemnified hereunder with respect to such Third-Person Claim; the Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the costs of defense. The failure of the Indemnifying Party to respond in writing to the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim within twenty (20) days after receipt thereof shall be deemed an election not to defend the same. If Indemnified Party has given notice of the Third Party Claim that the Indemnifying Party does not so acknowledge his or its obligation to indemnity will indemnify the Indemnified Party from and assume against the defense entirety of any such Third-Person Claim, (a) and all Indemnity Losses the Indemnified Party may defend against such claimsuffer resulting from, arising out of, relating to, in such manner as it may deem appropriatethe nature of, includingor caused by the Third Party Claim, but (ii) the Third Party Claim involves only money damages and does not limited toseek an injunction or other equitable relief against the Indemnified Party, settling such claim(iii) the Third Party Claim does not relate to or otherwise arise in connection with any criminal or regulatory enforcement action, after giving notice of the same (iv) settlement of, an adverse judgment with respect to or the Indemnifying Party’s conduct of the defense of the Third Party Claim is not, on such terms in the good faith judgment of the Indemnified Party, likely to include any findings of fact or admissions of culpability as to the Indemnified Party may deem appropriate, and (bv) the Indemnifying Party may participate in (but not control) conducts the defense of such actionthe Third Party Claim actively and diligently; provided, with its own counsel at its own expense. If that the Indemnifying Party thereafter seeks has the right to question the manner in which the Indemnified Party defended settle and compromise such Third-Third Person Claim or only with the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by clear and convincing evidence that conduct consent of the Indemnified Party (which consent may not be unreasonably withheld, conditioned or delayed) unless there is no finding or admission of any violation of legal requirements or any violation of the rights of any Person and no affect or any other claims that may be made against the Indemnified Party, and the sole relief provided is monetary damages that are paid in full by the defense and/or Indemnified Party; provided further, that any settlement shall include an unconditional release of such Third-Person Claim constituted gross negligence or willful misconduct. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Person Claim and shall cooperate in claim against the defense thereofIndemnified Party.

Appears in 1 contract

Samples: Membership Interest Purchase Agreement (Carbon Energy Corp)

Right to Contest Claims of Third Persons. (a) If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant (other than an indemnified person hereunder) Indemnified Person hereunder ("a “Third Person"), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the right of a person Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is materially prejudiced thereby. The Except as otherwise provided in this Section 8.5, the Indemnifying Party shall then have the right, upon written notice to the Indemnified PartyParty (a “Defense Notice”) within fifteen (15) Business Days after receipt from the Indemnified Party of notice of such claim, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, secure, contest, or settle the claim alleged by such Third Person (a "Third-“Third Person Claim"), provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing his or its obligation to indemnify the persons Persons to be indemnified hereunder with respect to such Third-Third Person Claim; the Claim and to discharge any cost or expense arising out of such investigation, contest or settlement. The Indemnified Party may thereafter participate in (but not control) the defense of any such Third-Third Person Claim with its own counsel at its own expense, unless separate representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges his or its obligation to indemnify, the Indemnified Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the reasonable costs of defense. The failure of In the event that the Indemnifying Party shall fail to respond in writing to give the aforesaid notice of the Indemnified Party with respect to such Third-Person Claim Defense Notice within twenty said fifteen (2015) days after receipt thereof shall be deemed an election not to defend the same. If the Indemnifying Party does not so acknowledge his or its obligation to indemnity and assume the defense of any such Third-Person ClaimBusiness Day period, (ai) the Indemnified Party may defend against such shall be entitled to have the control over said defense and settlement of the subject claim, in such manner as it may deem appropriate, including, but not limited to, settling such claim, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and (bii) the Indemnifying Party may participate in (but not control) the defense of such action, will cooperate with its own counsel at its own expense. If the Indemnifying Party thereafter seeks and make available to question the manner in which the Indemnified Party defended such Third-Person Claim or the amount or nature of any such settlementassistance and materials as it may reasonably request, and (iii) the Indemnifying Party shall have the burden right at its expense to prove by clear and convincing evidence that conduct of the Indemnified Party participate in the defense and/or assisted by counsel of its own choosing, and the Indemnifying Party, if it is required to provide indemnification under this Agreement, will be liable for all costs and settlement of such Third-Person Claim constituted gross negligence amounts paid or willful misconductincurred in connection therewith. The Parties shall make available to each other all relevant information in their possession relating to any such Third-Person Claim and shall cooperate in the defense thereof.CONFIDENTIAL TREATMENT REQUESTED REDACTED VERSION

Appears in 1 contract

Samples: Agreement and Plan of Merger

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