Default indemnity. The Borrower shall promptly (but in any event within three (3) Business Days) after receiving a written demand from the Facility Agent indemnify each Finance Party against any cost, loss or liability incurred by such Finance Party as a result of: (a) the occurrence of any Default and/or the exercise and enforcement of any of its rights under the Finance Documents; (b) a failure by the Borrower to pay any amount due and payable under a Finance Document on its due date, or to comply with any obligation under the Finance Documents; (c) funding, or making arrangements to fund, its participation in a Utilisation requested by the Borrower in a Utilisation Request but not made by reason of the operation of any one or more of the provisions of this Agreement (other than if such Utilisation is not made solely as a result of such Finance Party’s gross negligence or wilful misconduct); (d) any failure by the Borrower to make prepayment in accordance with a prepayment notice or to make cancellation in accordance with a cancellation notice; or (e) any Environmental Claim, breach of any Environmental Law or any Environmental Incident.
Appears in 2 contracts
Sources: Facility Agreement, Facility Agreement (McDermott International Inc)