Common use of Indemnification; Contribution Clause in Contracts

Indemnification; Contribution. (a) The Company shall, to the fullest extent permitted by law, indemnify and hold harmless each Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which such Covered Person may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to or any document incorporated by reference in the same, (ii) any omission or alleged omission of a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, an indemnified party in respect of any loss, claim, action, damage, liability or expense referred to in this Section 11, then the applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission or violation. The parties agree that it would not be just and equitable if contribution pursuant to this Agreement were determined by pro rata allocation or by any other method or allocation that does not take into account the equitable considerations referred to in this Section 11(d). In no event shall the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party guilty or liable of fraudulent misrepresentation within the meaning of Section 11(f) of the Securities Act shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 4 contracts

Sources: Registration Rights Agreement (Resolute Holdings Management, Inc.), Registration Rights Agreement (Savers Value Village, Inc.), Registration Rights Agreement (Savers Value Village, Inc.)

Indemnification; Contribution. (a) The Company shall, to the fullest extent permitted by lawand it hereby agrees to, indemnify and hold harmless each Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of Stockholders and its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other PersonPersons, if any, who acts on behalf of and each underwriter and its Controlling Persons, if any, in any offering or controls any such Holder or Controlling Person (each sale of the foregoingRegistrable Securities, a “Covered Person”) including pursuant to Section 5.1, Section 5.2 or Section 5.4, against any losses, claims, actionsdamages or liabilities, damagesactions or proceedings (whether commenced or threatened) in respect thereof and expenses (including actual out-of-pocket fees of counsel reasonably incurred) (collectively, liabilities and expenses, joint or several, “Claims”) to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such lossesClaims (including any amounts paid in settlement effected with the consent of the Company as provided herein), claimsor actions or proceedings in respect thereof, actions, damages, liabilities or expenses arise out of of, relate to, are in connection with, or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statementregistration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement to thereto, or any document incorporated by reference therein, or arise out of, relate to, are in the sameconnection with, (ii) or are based upon any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein, in light of the same circumstances in which they were made, not misleading or (iii) any violation or alleged violation by misleading, and the Company of the Securities Act shall, and it hereby agrees to, reimburse periodically any such Stockholder or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person underwriter for any actual out-of-pocket legal or other actual out-of-pocket expenses reasonably incurred by such Covered Person it in connection with investigating, investigating or defending or settling any such lossClaims; provided, claimhowever, action, damage or liability. Notwithstanding the previous sentence, that the Company shall not be so liable to any such Person in any such case to the extent that any losssuch Claims arise out of, claimrelate to, actionare in connection with, damage, liability or expense arises out of or is are based upon any such an untrue statement or alleged untrue statement, statement or omission or alleged omissionomission made in such registration statement, made or incorporated by reference in any such Registration Statementpreliminary or final prospectus, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same thereto, in reliance upon, and in conformity with, written upon information prepared and furnished to the Company by any Stockholder, any underwriter or any Representative of such Covered Person Stockholder, expressly for use in therein, or by such Registration StatementStockholder’s failure to furnish the Company, Prospectusupon request, preliminary Prospectus with the information with respect to such Stockholder, or free writing prospectus. This indemnity shall be in addition to any liability underwriter or Representative of such Stockholder, or such Stockholder’s intended method of distribution, that is the Company may otherwise havesubject of the untrue statement or omission. (b) In connection with any registration in which a Holder Each of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder Stockholders shall, to the fullest extent permitted by lawand hereby agrees to, (i) indemnify and hold harmless the Company, its directors and directors, officers, employeesemployees and Controlling Persons, agents if any, and each underwriter, its partners, officers, directors, employees and Controlling Persons, if any, in any Person who is offering or might be deemed to be a Controlling Person sale of Registrable Securities by it against any losses, claims, actions, damages, liabilities and expenses, joint or several, Claims to which they or any of them each such indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such lossesClaims (including any amounts paid in settlement as provided herein), claimsor actions or proceedings in respect thereof, actions, damages, liabilities or expenses arise out of of, relate to, are in connection with, or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in the Registration Statementany registration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment of or supplement to the same thereto, or (ii) any document incorporated by reference therein, or arise out of, relate to, are in connection with, or are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, but, in the each case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by such Holder Stockholder expressly for use in such Registration Statementtherein, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall and (ii) reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person Company for any actual out-of-pocket legal or other out-of-pocket expenses reasonably incurred by them the Company in connection with investigating, investigating or defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveClaim. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to Each of the indemnifying party of Stockholders and the Company agree that if, for any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partyreason, the indemnifying party shall be entitled to participate in and shall have the right, exercisable indemnification provisions contemplated by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim Section 5.9(a) or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (ASection 5.9(b) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant unavailable to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented are insufficient to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the such indemnifying party or by the such indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission. If, omission however, the allocation in the first sentence of this Section 5.9(c) is not permitted by applicable Law, then each indemnifying party shall contribute to the amount paid or violationpayable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Agreement Section 5.9(c) were to be determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the preceding sentences of this Section 11(d5.9(c). In no event The amount paid or payable by an indemnified party as a result of the Claims referred to above shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal include (subject to the net proceeds (after deducting Selling Expenseslimitations set forth in Section 5.10) actually received any actual out-of-pocket legal or other out-of-pocket fees or expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise to connection with investigating or defending any such obligation to contributeaction, proceeding or claim. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 4 contracts

Sources: Stockholders’ Agreement (T-Mobile US, Inc.), Stockholders’ Agreement (T-Mobile US, Inc.), Business Combination Agreement (T-Mobile US, Inc.)

Indemnification; Contribution. (a) The In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the Company shall, to the fullest extent permitted by lawand it hereby agrees to, indemnify and hold harmless each Holder of Registrable Securitiesharmless, any Person who is or might be deemed cause to be a “controlling person” of the Company or any of indemnified and held harmless, each Amneal Group Member and its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board membersofficers, directors, officers, trustees, managers, members, employees, agents, Affiliates employees and shareholders, and each other Personcontrolling Persons, if any, who acts on behalf of in any offering or controls any such Holder or Controlling Person (each sale of the foregoingRegistrable Shares, a “Covered Person”) against any losses, claims, actionsdamages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, damages, liabilities and expenses, joint or several“Claims”), to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such lossesClaims (including any amounts paid in settlement effected with the consent of the Company as provided herein), claimsor actions or proceedings in respect thereof, actions, damages, liabilities or expenses arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statementregistration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement to thereto, or any document incorporated by reference in the sametherein, (ii) or arise out of or are based upon any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein, in light of the same circumstances in which they were made, not misleading or (iii) any violation or alleged violation by misleading, and the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under shall, and it hereby agrees to, reimburse, upon request, each such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by such Covered Person them in connection with investigating, investigating or defending or settling any such lossClaims; provided, claimhowever, action, damage or liability. Notwithstanding the previous sentence, that the Company shall not be so liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission. (ib) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Registration Statementany registration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or supplement to the same or (ii) are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, butand each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in the each case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, upon and in conformity with, written information prepared and with the Required Amneal Group Member Information furnished to the Company in writing by such Holder the Amneal Group Member or its Representative expressly for use in such Registration Statementtherein that is the subject of the untrue statement or omission; provided, Prospectushowever, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse that the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) liability of each Amneal Group Member hereunder shall be individual and several, not joint and several, for each participating Holder and shall be proportional limited to and shall not exceed an amount equal to the dollar amount of the net proceeds (after deducting Selling Expenses) actually received by such Holder in Amneal Group Member from the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing Shares sold by such Holders, the only information furnished Amneal Group Member pursuant to such registration statement or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveprospectus. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to Amneal Group and the indemnifying party of Company agree that if, for any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partyreason, the indemnifying party shall be entitled to participate in and shall have the right, exercisable indemnification provisions contemplated by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim Section 5.8(a) or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (ASection 5.8(b) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant unavailable to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented are insufficient to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the such indemnifying party or by the such indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission. If, omission however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or violationpayable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Agreement Section 5.8(c) were to be determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the preceding sentences of this Section 11(d5.8(c). In no event The amount paid or payable by an indemnified party as a result of the Claims referred to above shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal include (subject to the net proceeds (after deducting Selling Expenseslimitations set forth in Section 5.9) actually received any legal or other fees or expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise to connection with investigating or defending any such obligation to contributeaction, proceeding or claim. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct). (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 4 contracts

Sources: Stockholders Agreement (Amneal Pharmaceuticals, Inc.), Business Combination Agreement (Impax Laboratories Inc), Business Combination Agreement (Impax Laboratories Inc)

Indemnification; Contribution. (a) The Company shall, to the fullest extent permitted by lawand it hereby agrees to, (i) indemnify and hold harmless the Shareholder (but not, for the avoidance of doubt, any Shareholder Designee), the Shareholder Parent and each Holder underwriter in any offering or sale of Registrable SecuritiesShares, any Person who is or might be deemed to be a “controlling person” of the Company or any of and its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), and their respective direct Representatives and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Personcontrolling Persons, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) from and against any and all losses, claims, actionsdamages or liabilities, damagesactions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable fees of counsel) (collectively, liabilities and expenses, joint or several, “Claims”) to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such lossesClaims (including any amounts paid in settlement reached in accordance with the requirements for consent as provided herein), claimsor actions or proceedings in respect thereof, actions, damages, liabilities or expenses arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement to thereto, or any document incorporated by reference in the sametherein, (ii) or arise out of or are based upon any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein (in the same not misleading case of any preliminary or final Prospectus (iii) including any violation or alleged violation by the Company Free Writing Prospectus incorporated into such Registration Statement, in light of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under circumstances in which they were made), not misleading; and (ii) reimburse periodically upon demand such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person indemnified party for any legal or other out-of-pocket expenses reasonably incurred by such Covered Person indemnified party in connection with investigating, investigating or defending or settling any such lossClaims; provided, claimhowever, action, damage or liability. Notwithstanding the previous sentence, that the Company shall not be so liable to any such indemnified party in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such Registration Statement, or preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), or amendment or supplement thereto, in reliance upon and in conformity with information furnished in writing to the Company by the Shareholder or any Representative of the Shareholder expressly for use therein, or if the Shareholder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable Prospectus (excluding any documents incorporated by reference therein) or of the applicable Prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Company had previously furnished copies thereof to the Shareholder and such Prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such Registration Statement. (b) The Shareholder shall, and hereby agrees to, (i) indemnify and hold harmless the Company and each underwriter in any offering or sale of Registrable Shares, and its and their respective Representatives and controlling Persons, if any, from and against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement reached in accordance with the requirements for consent as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or supplement to the same or (ii) are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same not misleading, but, therein (in the case of each any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), in light of clauses (i) the circumstances in which they were made), not misleading; and (ii)) reimburse periodically upon demand such indemnified party for any legal or other out-of-pocket expenses reasonably incurred by such indemnified party in connection with investigating or defending any such Claims, in each case only to the extent that such untrue statement or alleged untrue statement, statement or omission or alleged omissionomission was made in reliance upon and in conformity with information furnished in writing to the Company by the Shareholder or any Representative of the Shareholder, is expressly for use therein, or if the Shareholder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable Prospectus (excluding any documents incorporated by reference therein) or of the applicable Prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Company had previously furnished copies thereof to the Shareholder and such Prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such Registration Statement; provided, Prospectushowever, preliminary Prospectus, free writing prospectus or any amendment or supplement to that the same in reliance upon, and in conformity with, written information prepared and furnished to liability of the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) Shareholder hereunder shall be individual and several, not joint and several, for each participating Holder and shall be proportional limited to and shall not exceed an amount equal to the dollar amount of the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities Shareholder from Shareholder Shares sold by the Shareholder pursuant to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveProspectus. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to The Shareholder and the indemnifying party of Company agree that if, for any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partyreason, the indemnifying party shall be entitled to participate in and shall have the right, exercisable indemnification provisions contemplated by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim Section 6.6(a) or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (ASection 6.6(b) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant unavailable to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented are insufficient to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, with respect to statements or omissions that that resulted in such Claims. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the such indemnifying party or by the such indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission. If, omission however, the allocation in the first sentence of this Section 6.6(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or violationpayable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Agreement Section 6.6(c) were to be determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the preceding sentences of this Section 11(d6.6(c). In no event The amount paid or payable by an indemnified party as a result of the Claims referred to above shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal include (subject to the net proceeds (after deducting Selling Expenseslimitations set forth in Section 6.7) actually received any legal or other fees or expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise to connection with investigating or defending any such obligation to contributeaction, proceeding or claim. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. Notwithstanding the foregoing, the Shareholder shall not be liable to contribute any amount in excess of the dollar amount of the net proceeds received by the Shareholder from Shareholder Shares sold by the Shareholder pursuant to such Registration Statement or Prospectus. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 4 contracts

Sources: Shareholder Agreement, Shareholder Agreement (Elan Corp PLC), Shareholder Agreement (Alkermes Plc.)

Indemnification; Contribution. (a) The In the event of any registration of any securities of the Company shallunder the Securities Act, to the fullest extent permitted by lawCompany will, and hereby does, indemnify and hold harmless each Holder in the case of any registration statement filed pursuant to Section 2 or 3, the holder of any Registrable SecuritiesSecurities covered by such registration statement, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct directors and indirect general and limited partners, advisory board members, directors, officers, trusteeseach officer and director of each underwriter, managers, members, employees, agents, Affiliates and shareholders, each other person who participates as an underwriter in the offering or sale of such securities and each other Personperson, if any, who acts on behalf of controls such holder or controls any such Holder or Controlling Person (each underwriter within the meaning of the foregoing, a “Covered Person”) Securities Act against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which such Covered Person holder or any such director or officer or participating or controlling person may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses (or actions or proceedings or investigations in respect thereof) arise out of or are based upon (ix) any untrue statement or alleged untrue statement of a any material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 registration statement under which such securities were registered under the Securities Act Act, any preliminary prospectus (unless, with respect to the indemnification of the officers and directors of each underwriter and each other person participating as an underwriter, any such statement is corrected in a subsequent prospectus and the underwriters are given the opportunity to circulate the corrected prospectus to all persons receiving the preliminary prospectus), final prospectus or any successor rule to Rule 405) summary prospectus included therein, or any amendment or supplement to thereto, or any document incorporated by reference in the sametherein, or (iiy) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading misleading, or (iiiz) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to laws, and the Company will reimburse such holder and relating to any action or inaction required of the Company in connection with any registration of securities. In additioneach such director, the Company shall reimburse each Covered Person officer, participating person and controlling person for any legal or any other expenses reasonably incurred by such Covered Person them in connection with investigating, investigating or defending or settling any such loss, claim, actionliability, damage action or liability. Notwithstanding the previous sentenceproceeding; PROVIDED, HOWEVER, that the Company shall not be so liable to any seller, director, officer, participating person or controlling person in any such case to the extent that any such loss, claim, action, damage, liability (or action or proceeding in respect thereof) or expense arises out of or is based upon any such an untrue statement or alleged untrue statement, statement or omission or alleged omissionomission made in such registration statement, any such preliminary prospectus, final prospectus, summary prospectus, amendment or supplement in reliance upon and in conformity with written information furnished to the Company in an instrument executed by or under the direction of such seller, director, officer, participating person or controlling person for use in the preparation thereof, which information was specifically stated to be for use in the registration statement, prospectus, offering circular or other document. Such indemnity shall remain in full force and effect regardless of any investigation made by or incorporated on behalf of such seller or any such director, officer, participating person or controlling person and shall survive the transfer of such securities by reference such seller. The Company shall agree to provide for contribution relating to such indemnity as shall be reasonably requested by any seller of Registrable Securities or the underwriters. (b) The Company may require, as a condition to including any Registrable Securities in any registration statement filed pursuant to Section 2(a), that the Company shall have received an undertaking satisfactory to it from the prospective sellers of such Registration Statementsecurities and their underwriters, Prospectusto indemnify and hold harmless (in the same manner and to the same extent as set forth in subdivision (a) of this Section 6) the Company, each director of the Company, each officer of the Company who shall sign such registration statement and each other person, if any, who controls the Company within the meaning of the Securities Act, with respect to any statement in or omission from such registration statement, any preliminary Prospectusprospectus, free writing final prospectus or summary prospectus included therein, or any amendment or supplement to thereto, but only if such statement or any document incorporated by reference in the same omission was made in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company through an instrument duly executed by such Covered Person expressly sellers or their underwriters specifically stating that it is for use in the preparation of such Registration Statement, Prospectusregistration statement, preliminary Prospectus prospectus, final prospectus, summary prospectus, amendment or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participatingsupplement, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon PROVIDED THAT (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify provide indemnification pursuant to this Section 11(b6(b) shall be individual and several, and not joint and several, for among such sellers and (ii) the liability of each participating Holder and seller hereunder shall be proportional to and shall not exceed an amount equal limited to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement proportion of any such loss, claim, damage, liabilityliability or expense which is equal to the proportion that the public offering price of the shares sold by such seller under such registration statement bears to the total public offering price of all securities sold thereunder, action but not in any event to exceed the net proceeds received by such seller from the sale of Registrable Securities covered by such registration statement. Such indemnity shall remain in full force and effect regardless of any investigation made by or proceeding if on behalf of the Company or any such settlement is effected without director, officer or controlling person and shall survive the consent transfer of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing securities by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise havesellers. (c) Any Person entitled Promptly after receipt by an indemnified party of notice of the commencement of any action or proceeding involving a claim referred to indemnification pursuant in the preceding subdivisions of this Section 6, such indemnified party will, if a claim in respect thereof is to this Agreement shall be made against an indemnifying party, give prompt written notice to the indemnifying party latter of the commencement of such action; PROVIDED, HOWEVER, that the failure of any claim with respect indemnified party to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party give notice as provided herein shall not relieve the indemnifying party of its obligations under the preceding subdivisions of this Agreement, Section 6 except to the extent that the indemnifying party is actually party's liabilities and materially prejudiced by reason obligations under this Section 6 are increased as a result of such failure or delayto give notice. In case a claim or an any such action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have to assume the rightdefense thereof, exercisable by giving written notice jointly with any other indemnifying party similarly notified, to the extent that it may wish, with counsel reasonably satisfactory to such indemnified party as promptly as practicable after receipt of written party. After notice from the indemnifying party to such indemnified party of such claim or action, its election so to assume, at the indemnifying party’s expense, assume the defense of any such claim or actionthereof, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated liable to reimburse the such indemnified party for any fees, costs and legal or other expenses subsequently incurred by the indemnified party in connection with such the defense thereof unless (Ai) the indemnifying party has agreed in writing shall have failed to pay such fees, costs and expensesretain counsel for the indemnified party as aforesaid, (Bii) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to and the indemnified party or shall have mutually agreed to pursue the defense retention of such claim counsel or action in a reasonably vigorous manner, (Diii) representation of such indemnified party by the use of counsel chosen retained by the indemnifying party would be inappropriate due to represent actual or potential differing interests between such indemnified party and any other person represented by such counsel in such proceeding or the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has shall have reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The which case the indemnifying party shall not have the right to settle a claim or direct the defense of such action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent on behalf of the indemnified party, The ). No indemnifying party shall not will consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement which does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes include as an unconditional term of such judgment or settlement thereof the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, party of a full and final release from all liability in respect of to such claim or actionlitigation. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with settlement of any judgment entered or settlement proceeding effected with without the written consent of an indemnified party unless the such indemnifying party has also consented to such judgment or settlement (party, such consent not to be unreasonably withheld, conditioned withheld or delayed), but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify each indemnified party from and against any loss or liability by reason of such settlement or judgment. (d) If the indemnification provided for Indemnification similar to that specified in this Section 11 is held 6 (with appropriate modifications) shall be given by a court the Company and each seller of competent jurisdiction Registrable Securities with respect to be unavailable to, any required registration or unenforceable by, an indemnified party in respect of any loss, claim, action, damage, liability or expense referred to in this Section 11, then the applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result other qualification of such loss, claim, action, damage, liability or expense in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as Registrable Securities under any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule regulation or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission or violation. The parties agree that it would not be just and equitable if contribution pursuant to this Agreement were determined by pro rata allocation or by any governmental authority other method or allocation that does not take into account the equitable considerations referred to in this Section 11(d). In no event shall the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party guilty or liable of fraudulent misrepresentation within the meaning of Section 11(f) of than the Securities Act shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentationAct. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 4 contracts

Sources: Note Purchase Agreement (GenuTec Business Solutions, Inc.), Note Purchase Agreement (Technology Investment Capital Corp), Preferred Stock Purchase Agreement (SeaView Mezzanine Fund L P)

Indemnification; Contribution. (a) The Company shall, agrees to the fullest extent permitted by law, indemnify and hold harmless each Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board membersAffiliates, directors, officers, trustees, managersemployees, members, employees, agents, Affiliates managers and shareholders, agents of each such Holder and each other Person, if any, Person who acts on behalf of or controls any such Holder within the meaning of either the Securities Act or Controlling Person (each of the foregoingExchange Act, a “Covered Person”) to the fullest extent permitted by applicable law, from and against any and all losses, claims, actions, damages, liabilities liabilities, expenses and expenses, joint or several, actions to which such Covered Person they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities and expenses (or expenses actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement as originally filed or incorporated by reference in any amendment thereof, or the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined or in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment thereof or supplement to thereto, or any document incorporated by reference in arise out of or are based upon the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein (in the same not misleading or (iii) any violation or alleged violation by the Company case of the Securities Act Disclosure Package, or any other similar federal preliminary, final or state securities laws summary Prospectus or Free Writing Prospectus included in any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required Registration Statement (in light of the Company in connection with any registration of securities. In additioncircumstances under which they were made) not misleading, the Company shall and agrees to reimburse each Covered Person such indemnified party, as incurred, for any legal or other expenses reasonably incurred by such Covered Person them in connection with investigating, investigating or defending or settling any such loss, claim, actiondamage, damage liability, expense or liability. Notwithstanding action (whether or not the previous sentenceindemnified party is a party to any proceeding); provided, however, that the Company shall will not be so liable in any such case to the extent that any such loss, claim, action, damage, liability or expense arises (i) out of or is based upon any such untrue statement or alleged untrue statement, statement or omission or alleged omission, omission made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same therein in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by or on behalf of any such Covered Person expressly Holder specifically for use in such Registration Statementinclusion therein including, Prospectuswithout limitation, preliminary Prospectus any notice and questionnaire, or free writing prospectus(ii) out of sales of Registrable Securities made during a Suspension Period after notice is given pursuant to Section 1(f)(ii) hereof. This indemnity shall clause will be in addition to any liability which the Company may otherwise have. (b) In connection with any registration in which a Each Holder of Registrable Securities is participating, each such Holder shall furnish severally (and not jointly) agrees to indemnify and hold harmless the Company in writing such information as and each of its Affiliates, directors, employees, members, managers and agents and each Person who controls the Company reasonably requests for use in connection with any such Registration Statement within the meaning of either the Securities Act or Prospectus. Each Holder shallthe Exchange Act, to the fullest extent permitted by applicable law, indemnify from and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any and all losses, claims, actions, damages, damages or liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, damages or liabilities or expenses arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement as originally filed or in any amendment thereof, or in the Disclosure Package or any Holder Free Writing Prospectus, preliminary, final or summary Prospectus included in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined or in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment thereof or supplement thereto, or arise out of or supplement to are based upon the same or (ii) any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same not misleading, but, therein (in the case of each the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration Statement, in light of clauses (ithe circumstances under which they were made) and (ii)not misleading, to the extent, but only to the extent extent, that any such untrue statement or alleged untrue statement, statement or omission or alleged omission, omission is made contained in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and relating to such Holder furnished to the Company by or on behalf of such Holder expressly specifically for use in such Registration Statementinclusion therein, Prospectusincluding, preliminary Prospectus or free writing prospectus. In additionwithout limitation, any notice and questionnaire; provided, however, that the total amount to be indemnified by such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b5(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal limited to the net proceeds (after deducting Selling Expensesunderwriters’ discounts and commissions) actually received by such Holder in the sale of Registrable Securities offering to which such Registration Statement Statement, Disclosure Package, Prospectus or Holder Free Writing Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall clause will be in addition to any liability which any such Holder may otherwise have. (c) Any Person entitled Promptly after receipt by an indemnified party under this Section 5 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to indemnification pursuant to this Agreement shall give prompt written notice to be made against the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentenceunder this Section 5, any failure or delay to so notify the indemnifying party shall in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or (b) above except to the extent such action and such failure materially prejudices the indemnifying party; and (ii) will not, in any event, relieve the indemnifying party of its from any obligations under this Agreement, except to any indemnified party other than the extent that the indemnifying party is actually and materially prejudiced by reason of such failure indemnification obligation provided in paragraph (a) or delay(b) above. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the The indemnifying party shall be entitled to participate in and shall have the righttherein and, exercisable by giving written notice to the extent that it shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and, except as promptly as practicable provided in the next sentence, after receipt of written notice from the indemnifying party to such indemnified party of such claim or action, its election to assume, at the indemnifying party’s expense, so assume the defense of any such claim or actionthereof, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated liable to reimburse the such indemnified party for any legal expenses of other counsel or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. Notwithstanding the indemnifying party’s rights in the prior sentence, the indemnified party shall have the right to employ its own counsel (and one local counsel), but the indemnified party shall bear the reasonable fees, costs and expenses subsequently incurred by the indemnified party in connection with of such defense separate counsel unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (Di) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with be inappropriate due to a conflict of interest in the reasonable judgment of the indemnified party; (ii) the actual or (E) potential defendants in, or targets of, any such action include both the indemnified party has and the indemnifying party and the indemnified party shall have reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party parties which are different from or additional to those available to the indemnifying party. Subject ; (iii) the indemnifying party shall not have employed counsel satisfactory to the foregoing sentence, no indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party shall authorize the indemnified party in writing to employ separate counsel at the expense of the indemnifying party. No indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have parties unless the right use of only one firm of attorneys would be inappropriate due to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without conflict of interest in the consent reasonable judgment of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The An indemnifying party shall not be liable under this Agreement for Section 5 to any amount paid indemnified party regarding any settlement or payable compromise or incurred pursuant consent to or in connection with the entry of any judgment entered with respect to any pending or settlement effected threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent is consented to in writing by such indemnifying party, which consent shall not be unreasonably withheld or delayed. No indemnifying party, in the defense of any such claim or litigation, shall, except with the consent of an each indemnified party, consent to entry of any judgment or enter into any settlement or compromise if any pending or threatened proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement or compromise (i) includes an unconditional release of such indemnified party from all liability on claims that are the indemnifying subject matter of such proceeding, (ii) does not involve the imposition of equitable remedies or the imposition of any obligations on such indemnified party, and does not otherwise adversely affect such indemnified party, other than as a result of the imposition of financial obligations for which such indemnified party has also consented will be indemnified hereunder and (iii) does not include any statement as to such judgment or settlement (such consent not any admission of fault, culpability or a failure to be unreasonably withheld, conditioned act by or delayed)on behalf of any indemnified party. (d) If In the indemnification event that the indemnity provided for in this Section 11 5(a) or Section 5(b) above is held by a court of competent jurisdiction to be unavailable to, to or unenforceable by, insufficient to hold harmless an indemnified party in with respect of to any loss, claim, action, damage, liability liability, expense or expense action referred to in this Section 11herein, then the each applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall agrees to contribute to the amount paid aggregate losses, claims, damages and liabilities (including, without limitation, legal or payable by other expenses reasonably incurred in connection with investigating or defending same) (collectively, “Losses”) to which such indemnified indemnifying party as a result of such loss, claim, action, damage, liability or expense may be subject in such proportion as is appropriate to reflect the relative benefits received by from the indemnified party offering of the Securities, as applicable, and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnifying party on the one hand and the indemnified party and on the indemnifying partyother in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefit received by the Company shall be deemed to be equal to the total value received or proposed to be received (after deducting expenses) by the Company pursuant to the sale of Securities in an offering, if any. The relative benefit received by the Holders shall be deemed to be equal to the total value received or proposed to be received (after deducting expenses) by the Holders of Securities in an offering, if any. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by on the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party one hand or the indemnified party. The relative fault shall also be determined by reference to party on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties agree that it would not be just and equitable if contribution pursuant to this Agreement Section 5(d) were determined by pro rata allocation (even if the Holders of Registrable Securities or any agents or underwriters or all of them were treated as one entity for such purpose) or by any other method or of allocation that which does not take into account of the equitable considerations referred to above in this Section 11(d5(d). In no event shall The amount paid or payable by an indemnified party as a result of the amount which a Holder of Registrable Securities may be obligated losses, claims, damages or liabilities (or actions in respect thereof) referred to contribute pursuant to above in this Section 11(d5(d) exceed an amount equal shall be deemed to the net proceeds (after deducting Selling Expenses) actually received include any legal or other expenses reasonably incurred by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 5(d), no Person guilty of fraud or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraud or fraudulent misrepresentation. For purposes of this Section 5, each Person who controls any Holder of Registrable Securities, agent or underwriter within the meaning of either the Securities Act or the Exchange Act and each director, officer, employee and agent of any such Holder, agent or underwriter shall have the same rights to contribution as such Holder, agent or underwriter, and each Person who controls the Company within the meaning of either the Securities Act or the Exchange Act and each officer and director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this Section 5(d). (e) The provisions of this Section 11 shall 5 will remain in full force and effect effect, regardless of any investigation made by or on behalf of any indemnified party Holder of Registrable Securities or the Company or any officerof the officers, director directors or controlling person of such indemnified party Persons referred to in this Section 5, and shall will survive the Transfer transfer of any Registrable Securities by any HolderSecurities.

Appears in 4 contracts

Sources: Registration Rights Agreement (KCG Holdings, Inc.), Merger Agreement (Knight Capital Group, Inc.), Merger Agreement (GETCO Holding Company, LLC)

Indemnification; Contribution. (a) The Company Corporation shall, to the fullest extent permitted by lawand it hereby agrees to, indemnify and hold harmless each Holder of Registrable SecuritiesGotham and its Controlled Affiliates, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), Loan Bank and their respective direct directors, officers, employees and indirect general Controlling Persons, if any, and limited each underwriter, its partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates employees and shareholders, and each other Personcontrolling Persons, if any, who acts on behalf of in any offering or controls any such Holder or Controlling Person (each sale of the foregoingRegistrable Shares, a “Covered Person”) against any losses, claims, actionsdamages or liabilities, damagesactions or proceedings (whether commenced or threatened) in respect thereof and expenses (including attorneys' fees) (collectively, liabilities and expenses, joint or several, "CLAIMS") to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such lossesClaims (including any amounts paid in settlement effected with the consent of the Corporation as provided herein), claimsor actions or proceedings in respect thereof, actions, damages, liabilities or expenses arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statementregistration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement to thereto, or any document incorporated by reference in the sametherein, (ii) or arise out of or are based upon any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein, in the same not misleading or (iii) any violation or alleged violation by the Company light of the Securities Act circumstances in which they were made, not misleading, and the Corporation shall, and it hereby agrees to, reimburse periodically Gotham and its Controlled Affiliates, the Loan Bank or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person underwriter for any legal or other out-of-pocket expenses reasonably incurred by such Covered Person them in connection with investigating, investigating or defending or settling any such lossClaims; PROVIDED, claimHOWEVER, action, damage or liability. Notwithstanding that the previous sentence, the Company Corporation shall not be so liable to any such Person in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with information furnished to the Corporation by such Person or any underwriter or representative of such Person expressly for use therein, or by such Person's failure to furnish the Corporation, promptly upon request, with the information with respect to such Person, or any underwriter or representative of such Person, or such Person's intended method of distribution, that is the subject of the untrue statement or omission or if the Corporation shall sustain the burden of proving that such Person or such underwriter sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable prospectus (excluding any documents incorporated by reference therein) or of the applicable prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Corporation had previously furnished copies thereof to Gotham, the Loan Bank or such underwriter, and such prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement. (b) Each of Gotham, the applicable Founders and the Loan Bank shall separately (i.e., not on a joint or severable basis) (i) indemnify and hold harmless the Corporation, its directors, officers, employees, Affiliates and Controlling Persons, if any, and each underwriter, its partners, officers, directors, employees and Controlling Persons, if any, in any offering or sale of Registrable Shares, against any Claims to which each such indemnified party may become subject, and only to the extent that such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Registration Statementsuch registration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or supplement to the same or (ii) are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, but, in the each case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company Corporation by such Holder Gotham, the applicable Founders or the Loan Bank, as the case may be, expressly for use in such Registration Statementtherein, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall and (ii) reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person Corporation for any legal or other out-of-pocket expenses reasonably incurred by them the Corporation in connection with investigating, investigating or defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveClaim. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt Promptly after receipt by an indemnified party under Section 5.6(a) or Section 5.6(b) of written notice to of the commencement of any action or proceeding for which indemnification under Section 5.6(a) or Section 5.6(b) may be requested, such indemnified party shall notify such indemnifying party in writing of any claim with respect the commencement of such action or proceeding; but the omission so to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party in respect of such action or proceeding hereunder unless the indemnifying party was materially prejudiced by such failure of its obligations under this Agreementthe indemnified party to give such notice, except to the extent that and in no event shall such omission relieve the indemnifying party is actually and materially prejudiced by reason of from any other liability it may have to such failure or delayindemnified party. In case a claim any such action or an action that is subject or potentially subject to indemnification pursuant to this Agreement is proceeding shall be brought against any indemnified party and it shall notify an indemnified partyindemnifying party of the commencement thereof, the such indemnifying party shall be entitled to participate in and shall have the righttherein and, exercisable by giving written notice to the extent that it shall determine, jointly with any other indemnifying party similarly notified, to as sume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party as promptly as practicable of its election so to assume the defense thereof, such indemnifying party shall not be liable to such indemnified party for any legal or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation; PROVIDED, HOWEVER, that (i) if the indemnifying party fails to take reasonable steps necessary to defend diligently the action or proceeding within 20 days after receipt of written receiving notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to that the indemnified party. Notwithstanding the previous sentence, any party believes it has failed to do so; (ii) if such indemnified party shall continue to be entitled to participate who is a defendant in the defense of such claim any action or action, with counsel of its own choice, but proceeding which is also brought against the indemnifying party reasonably shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably have concluded that there may be one or more legal or equitable defenses available to it and/or other any other such indemnified party which are different from or additional to those not available to the indemnifying party. Subject ; or (iii) if representation of both parties by the same counsel is otherwise inappropriate under applicable standards of professional conduct, then, in any such case, the indemnified party shall have the right to assume or continue its own defense as set forth above (but with no more than one firm of counsel for all indemnified parties in each jurisdiction) and the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, shall be liable for any expenses therefor (including any such reasonable counsel's fees). If the feesindemnifying party is not entitled to, costs or elects not to, assume the defense of a claim, it will not be obligated to pay the fees and expenses of more than one firm of attorneys (in addition counsel for each indemnified party with respect to any local counsel) for all indemnified partiessuch claim. The indemnifying party will not be subject to any liability for any settlement made without its consent, which consent shall not have the right to settle a claim be unreasonably withheld or action for which any indemnified delayed. No indemnifying party is entitled to indemnification pursuant to this Agreement shall, without the prior written consent of the indemnified party, The indemnifying party shall not compromise or consent to the entry of any judgment or enter into or agree any settlement agreement with respect to any settlement relating to such claim action or action proceeding in respect of which indemnification is sought under Section 5.6(a) or Section 5.6(b) (whether or not the indemnified party is an actual or potential party thereto), unless such judgment compromise, consent or settlement does not impose any admission includes an unconditional release of wrongdoing or ongoing obligations on any the indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall litigation, does not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with subject the consent of an indemnified party unless to any material injunctive relief or other material equitable remedy and does not include a statement or admission of fault, culpability or a failure to act, by or on behalf of the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed)indemnified party. (d) If Gotham, the applicable Founders, the Loan Bank and the Corporation agree that if, for any reason, the indemnification provided for in this Section 11 is held provisions contemplated by a court of competent jurisdiction Sections 5.6(a) or 5.6(b) hereof are unavailable to be unavailable to, or unenforceable by, are insufficient to hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable lawfault of, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, with respect to such offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the such indemnifying party or by the such indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission. If, omission however, the allocation in the second preceding sentence is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or violationpayable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Agreement Section 5.6(d) were to be determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the preceding sentences of this Section 11(d5.6(d). In no event The amount paid or payable by an indemnified party as a result of the Claims referred to above shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal include (subject to the net proceeds (after deducting Selling Expenseslimitations set forth in Section 5.6(c) actually received hereof) any legal or other fees or expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise to connection with investigating or defending any such obligation to contributeaction, proceeding or claim. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 3 contracts

Sources: Equityholders Agreement (Gotham Golf Corp), Equityholders Agreement (Gotham Golf Corp), Equityholders Agreement (Gotham Golf Corp)

Indemnification; Contribution. (a) The Company shall, to To the fullest extent permitted by applicable law, the Company shall, and it hereby agrees to, indemnify and hold harmless Sponsor Stockholder, each Holder underwriter and the equityholders, controlling persons, directors, officers and employees of each of the foregoing in any offering or sale of the Registrable Securities, any Person who is or might be deemed including pursuant to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act 6.01, Section 6.02 or Section 20 of the Exchange Act (each such Person6.05, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any losses, claims, actionsdamages or liabilities, damagesactions or proceedings (whether commenced or threatened) in respect thereof and expenses (including actual and documented out-of-pocket fees of legal counsel reasonably incurred) (collectively, liabilities and expenses, joint or several, “Claims”) to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such lossesClaims (including any amounts paid in settlement effected with the consent of the Company as provided herein), claimsor actions or proceedings in respect thereof, actions, damages, liabilities or expenses arise out of of, relate to, are in connection with, or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final Prospectus contained therein, or any amendment or supplement to thereto, or any document incorporated by reference therein, or arise out of, relate to, are in the sameconnection with, (ii) or are based upon any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein, in light of the same circumstances in which they were made, not misleading or (iii) any violation or alleged violation by misleading, and the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under shall, and it hereby agrees to, reimburse periodically each such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered indemnified Person for any actual and documented out-of-pocket legal or other actual and documented out-of-pocket expenses reasonably incurred by such Covered Person it in connection with investigating, investigating or defending or settling any such lossClaims; provided, claimhowever, action, damage or liability. Notwithstanding the previous sentence, that the Company shall not be so liable to any such Person in any such case to the extent that any losssuch Claims arise out of, claimrelate to, actionare in connection with, damage, liability or expense arises out of or is are based upon any such an untrue statement or alleged untrue statement, statement or omission or alleged omission, omission made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, or preliminary or final Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be amendment or supplement thereto, in addition reliance upon written information furnished to any liability the Company may otherwise have(x) by Sponsor Stockholder or any Representative of Sponsor Stockholder, expressly for use therein, it being understood and agreed that the only such information furnished by Sponsor Stockholder or any Representative of Sponsor Stockholder consists of the information described as such in Section 6.13(b) or (y) by or on behalf of any underwriter expressly for use therein. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to To the fullest extent permitted by applicable law, Sponsor Stockholder shall, and hereby agrees to, (i) indemnify and hold harmless the Company, its directors and directors, officers, employeesemployees and its other equityholders and each underwriter, agents its partners, officers, directors, employees and controlling Persons, if any, in any Person who is offering or might be deemed to be a Controlling Person sale of Registrable Securities by it against any losses, claims, actions, damages, liabilities and expenses, joint or several, Claims to which they or any of them each such indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such lossesClaims (including any amounts paid in settlement as provided herein), claimsor actions or proceedings in respect thereof, actions, damages, liabilities or expenses arise out of of, relate to, are in connection with, or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in the any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final Prospectus contained therein, or any amendment of or supplement to the same thereto, or (ii) any document incorporated by reference therein, or arise out of, relate to, are in connection with, or are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, but, in the each case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, upon and in conformity with, with written information prepared and regarding Sponsor Stockholder furnished to the Company by such Holder Sponsor Stockholder or any Representative of Sponsor Stockholder expressly for use in therein, it being understood and agreed that the only such Registration Statementinformation furnished by Sponsor Stockholder or any Representative of Sponsor Stockholder consists of the number of shares of Common Stock owned by Sponsor Stockholder, Prospectusthe number of Registrable Securities proposed to be sold by Sponsor Stockholder, preliminary Prospectus or free writing prospectus. In additionthe name and address of Sponsor Stockholder and the method of distribution proposed by Sponsor Stockholder, such Holder shall and (ii) reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person Company for any actual and documented out-of-pocket legal or other out-of-pocket expenses reasonably incurred by them the Company in connection with investigating, investigating or defending or settling any such lossClaim; provided, claimhowever, action, damage that in no event shall any indemnity or liability. The obligation to indemnify pursuant to reimbursement by Sponsor Stockholder under this Section 11(b6.13(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder Sponsor Stockholder in respect of the sale of Registrable Securities giving rise to which such Registration Statement indemnification or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise havereimbursement obligation. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to Sponsor Stockholder and the indemnifying party of Company agree that if, for any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partyreason, the indemnifying party shall be entitled to participate in and shall have the right, exercisable indemnification provisions contemplated by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim Section 6.13(a) or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (ASection 6.13(b) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant unavailable to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented are insufficient to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein, then the applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, each Indemnifying Party (as defined below) shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying partyIndemnifying Party, on the one hand, and of the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such Indemnifying Party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party such Indemnifying Party or by the such indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission. If, omission however, the allocation in the first sentence of this Section 6.13(c) is not permitted by applicable law, then each Indemnifying Party shall contribute to the amount paid or violationpayable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the Indemnifying Party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Agreement Section 6.13(c) were to be determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the preceding sentences of this Section 11(d6.13(c). In no event The amount paid or payable by an indemnified party as a result of the Claims referred to above shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal include (subject to the net proceeds (after deducting Selling Expenseslimitations set forth in Section 6.14) actually received any actual and documented out-of- pocket legal or other out-of-pocket fees or expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise to connection with investigating or defending any such obligation to contributeaction, proceeding or claim. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 3 contracts

Sources: Stockholders Agreement (Amazon Holdco Inc.), Stockholders Agreement (Amazon Holdco Inc.), Stockholders Agreement (Amazon Holdco Inc.)

Indemnification; Contribution. (a) The Company shallshall indemnify and hold harmless, to the fullest extent permitted by law, indemnify and hold harmless each Holder in any offering or sale of Registrable Securities, each Person, if any, who participates as an underwriter in any Person offering and sale of Registrable Securities, and each Person, if any, who is controls such Holder or might be deemed to be a “controlling person” of the Company or any of its subsidiaries such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), and their respective direct and indirect general and limited partnersdirectors, advisory board members, directorstrustees, officers, trustees, managers, members, employeespartners, agents, Affiliates employees and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) affiliates against any all losses, claims, actions, damages, liabilities and expenses (including reasonable attorneys' fees, disbursements and expenses, joint as incurred, and any amounts paid in any settlement effected with the Company's consent, which consent shall not be unreasonably withheld or severaldelayed) (collectively, "Losses") incurred by such party pursuant to which such Covered Person may become subject under the Securities Actany actual or threatened action, the Exchange Actsuit, any state blue sky securities laws, any equivalent non-U.S. securities laws proceeding or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise investigation arising out of or are based upon upon: (i) any untrue or alleged untrue statement of a material fact contained in in, or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to or any document incorporated by reference in the same, (ii) any omission or alleged omission of a material fact required to be stated in any such in, the Registration Statement, Prospectus, Prospectus or preliminary Prospectus or free writing prospectus any amendment or supplement to any of the foregoing or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (A) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the same not misleading Company by such Holder or its counsel expressly for use therein, (B) the use of any Prospectus after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iiiC) the use of any Prospectus after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus as so amended or supplemented; or (ii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws regulations applicable to the Company and relating to any action required of or inaction required of by the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liabilityregistration. Notwithstanding the previous sentenceforegoing provisions of this Section 12(a), the Company shall not be so liable in to any such case Holder or underwriter or to any other indemnified party under the extent indemnity agreement in this Section 12(a) for any Losses that any loss, claim, action, damage, liability or expense arises arise out of or is are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any Prospectus if either (i) (A) such Holder or underwriter failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder or underwriter to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement, statement or such omission or alleged omission, made or incorporated by reference (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any an amendment or supplement to the Prospectus and (y) having previously been furnished by or any document incorporated by reference in on behalf of the same in reliance uponCompany with copies of the Prospectus as so amended or supplemented as required hereunder, and in conformity withsuch Holder or underwriter thereafter fails to deliver such Prospectus, written information prepared and furnished as so amended or supplemented, with or prior to the Company delivery of written confirmation of the sale of Registrable Securities by such Covered Holder or underwriter to the Person expressly for use in asserting the claim from which such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectusLosses arise. This Such rights to indemnity and reimbursement of expenses shall be in addition to any liability survive the Company may otherwise havetransfer of the Registrable Securities by such indemnified party. (b) In connection with any registration in which a Registration Statement filed pursuant hereto, each Holder of Registrable Securities is participatingto be covered thereby shall, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection severally and not jointly with any such Registration Statement or Prospectus. Each Holder shallother Holders, indemnify and hold harmless, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors each Person, if any, who participates as an underwriter in any offering and officerssale of Registrable Securities and each Person, employeesif any, agents and any Person who is controls the Company or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any such underwriter within the meaning of them may become subject under Section 15 of the Securities Act, Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and affiliates, against all Losses incurred by such party pursuant to any state blue sky securities lawsactual action, any equivalent non-U.S. securities laws suit, proceeding or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise investigation arising out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statementin, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such in, the Registration Statement, Prospectus, Prospectus or preliminary Prospectus or free writing prospectus any amendment or supplement to any of the foregoing or necessary to make the statements made therein (in case of a Prospectus or preliminary Prospectus, in the same light of the circumstances then existing) not misleading, but, in the case of each of clauses (i) and (ii), but only to the extent that any such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, on and in conformity with, written with information prepared and with respect to such Holder furnished in writing to the Company by such Holder expressly or its counsel specifically for use in such Registration Statementtherein; provided, Prospectushowever, preliminary Prospectus or free writing prospectus. In addition, such that no Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation required to indemnify pursuant to the Company or any other indemnified party under this Section 11(b12(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional with respect to and shall not exceed an any amount equal to in excess of the amount of the total net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders from sales of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about under such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveRegistration Statement. (c) Any Person entitled to indemnification pursuant hereunder agrees to this Agreement shall give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim with respect indemnification or contribution pursuant to which this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so shall notify the indemnifying party shall not relieve of the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partycommencement thereof, the indemnifying party shall be entitled to participate in and shall have the righttherein and, exercisable by giving written notice to the extent that it shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party as promptly as practicable party, and after receipt of written notice from the indemnifying party to such indemnified party of such claim or action, its election so to assume, at the indemnifying party’s expense, assume the defense of any such claim or actionthereof, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated liable to reimburse the such indemnified party for any feeslegal expenses of other counsel or any other expenses, costs and expenses in each case subsequently incurred by the such indemnified party party, in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense thereof other than reasonable costs of such claim or action within a investigation, unless in the reasonable time after receipt judgment of notice any indemnified party, based on the opinion of such claim or actioncounsel, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (Eiii) more than one counsel for the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentenceCompany, no indemnifying party shall, in each case in connection with any one claim or action or separate but substantially similar or related actions in actions. An indemnifying party who is not entitled to, or elects not to, assume the same jurisdiction arising out defense of a claim shall not be obligated to pay the same general circumstances or allegations, be liable for the fees, costs fees and expenses of more than one firm of attorneys (in addition to any local counsel) counsel for all parties indemnified parties. The by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not have be liable for the right fees and expenses of (i) more than one counsel for all Holders of Registrable Securities who are indemnified parties, selected by the Holders of a Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to settle a claim the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action for which or separate but similar or related actions. No indemnifying party, in defense of any indemnified party is entitled to indemnification pursuant to this Agreement without such action, suit, proceeding or investigation, shall, except with the consent of the each indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter entry into or agree to any settlement relating to such claim or action unless such judgment or settlement which does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes include as an unconditional term of such judgment or settlement thereof the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, party of a full and final release from all liability in respect of to such claim action, suit, proceeding or actioninvestigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. The indemnifying No indemnified party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant consent to or in connection with entry of any judgment entered or entry into any settlement effected with without the consent of an indemnified party unless the each indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed)party. (d) If the indemnification from the indemnifying party provided for in this Section 11 12 is held by a court of competent jurisdiction unavailable to be unavailable to, or unenforceable by, an indemnified party hereunder in respect of to any loss, claim, action, damage, liability or expense referred to in this Section 11Losses, then the applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreementparty, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Losses in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, fault of the indemnifying party shall contribute to such amount and indemnified party in connection with the actions which resulted in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying partyLosses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the total net proceeds received by such Holder from sales of the Registrable Securities of the Holder under the applicable Registration Statement. The relative fault of the such indemnifying party, on the one hand, party and of the indemnified party, on the other hand, party shall be determined by reference to, among other things, whether the any action in question, including any untrue statement or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact fact, has been made by, or relates to information supplied by the by, such indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statementaction. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, omission subject to the limitations set forth in Section 12(c), any legal or violationother fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Agreement Section 12(d) were determined by pro rata allocation or by any other method or of allocation that does not take into account the equitable considerations consideration referred to in this Section 11(d12(d). In no event shall the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to If indemnification is available under this Section 11(d) exceed an amount equal 12, the indemnifying parties shall indemnify each indemnified party to the net proceeds (after deducting Selling Expensesfull extent provided in Section 12(a) actually received by or 12(b), as the case may be, without regard to the relative fault of such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnifying parties or indemnified party guilty or liable of fraudulent misrepresentation within the meaning of any other equitable consideration provided for in this Section 11(f) of the Securities Act shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation12(d). (e) The provisions of this Section 11 12 shall remain be in full force and effect regardless of addition to any investigation made by or on behalf of liability which any indemnified indemnifying party or may have to any officer, director or controlling person of such indemnified party and shall survive the Transfer termination of this Agreement. (f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any Registrable Securities by any Holderaction, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.

Appears in 3 contracts

Sources: Registration Rights Agreement (Itc Deltacom Inc), Registration Rights Agreement (Itc Deltacom Inc), Registration Rights Agreement (Itc Deltacom Inc)

Indemnification; Contribution. (a) The Company shall, agrees to the fullest extent permitted by law, indemnify and hold harmless (i) the Holder, (ii) each Holder of Registrable Securities, any other Person who is participates as an underwriter in the offering or might be deemed to be a “controlling sale of such securities, (iii) each person” of the Company or any of its subsidiaries , if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act Act) the Holder or underwriter (each such Person, any of the persons referred to in this clause (iii) being hereinafter referred to as a “Controlling Person”), their "controlling person") and (iv) the respective direct and indirect general and limited partners, advisory board membersofficers, directors, officers, trustees, managers, memberspartners, employees, agents, Affiliates representatives and shareholders, and each other Person, if any, who acts on behalf agents of or controls any such the Holder or Controlling Person underwriter or any controlling person (each of any person referred to in clause (i), (ii), (iii) or (iv) may hereinafter be referred to as an "indemnified Person"), to the foregoingfullest extent lawful, a “Covered Person”) from and against any and all losses, claims, actions, damages, liabilities and liabilities, judgments or expenses, joint or severalseveral (or actions or proceedings, whether commenced or threatened, in respect thereof) (collectively, "Claims"), to which such Covered indemnified Person may become subject under either Section 15 of the Securities Act, Act or Section 20 of the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon (i) upon, or are caused by any untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus Statement or Prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to thereto), or any document incorporated by reference in the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading misleading, or (iii) any violation or alleged a violation by the Company of the Securities Act or any other similar federal or state securities laws law, or any rule or regulation promulgated under such federal the Securities Act or any state securities laws law, or any other law applicable to the Company and relating to any action such registration or inaction required of the Company in connection with any registration of securities. In additionqualification, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, except insofar as such losses, claims, actions, damages, liabilities liabilities, judgments or expenses arise out of any such indemnified Person; (x) are caused by any such untrue statement or are based upon (i) any untrue omission or alleged untrue statement or omission that is based upon information relating to such indemnified Person furnished in writing to the Company by or on behalf of a material fact contained in any of such indemnified Person expressly for use therein; (y) with respect to the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under result from the fact that the Holder sold Securities Act to a person to whom there was not sent or any successor rule to Rule 405) given, at or any amendment of or supplement prior to the same or (ii) any omission or alleged omission written confirmation of such sale, a material fact required to be stated in such Registration Statement, copy of the Prospectus, preliminary Prospectus as amended or free writing prospectus or necessary to make supplemented, if the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only Company shall have previously furnished copies thereof to the extent that Holder in accordance with this Agreement and said Prospectus, as amended or supplemented, would have corrected such untrue statement or alleged untrue statementomission; or (z) as a result of the use by an indemnified Person of any Prospectus when, upon receipt of a Blackout Notice or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to a notice from the Company of the existence of any fact of the kind described in Section 2.4(b)(iv), the indemnified Person or the Holder was not permitted to do so. Such indemnity shall remain in full force and effect regardless of any investigation made by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and on behalf of any indemnified Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to survive the net proceeds (after deducting Selling Expenses) actually received transfer of such securities by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders In case any action shall be brought or asserted against any of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim indemnified Persons with respect to which it seeks indemnification. Notwithstanding indemnity may be sought against the previous sentenceCompany, any failure or delay to so such indemnified Person shall promptly notify the indemnifying party Company and the Company shall not relieve assume the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delaydefense thereof. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an Such indemnified party, the indemnifying party shall be entitled to participate in and Person shall have the right, exercisable by giving written notice right to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of employ separate counsel in any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled action and to participate in the defense of such claim or action, with counsel of its own choicethereof, but the indemnifying party fees and expenses of such counsel shall not be obligated to reimburse at the expense of the indemnified party for any fees, costs and expenses subsequently incurred Person unless (i) the employment of such counsel shall have been specifically authorized in writing by the indemnified party in connection with such defense unless Company, (Aii) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has Company shall have failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to and employ counsel reasonably acceptable or (iii) the named parties to any such action (including any implied parties) include both the indemnified party or to pursue Person and the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent Company and the indemnified party would present such Person shall have been advised in writing by its counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject Company (in which case the Company shall not have the right to assume the foregoing sentencedefense of such action on behalf of the indemnified Person), no indemnifying party shallit being understood, however, that the Company shall not, in connection with any one claim or such action or separate but substantially similar or related actions in the same jurisdiction or proceedings arising out of the same general circumstances allegations or allegationscircumstances, be liable for the fees, costs reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for all the indemnified partiesPersons, which firm shall be (x) designated by such indemnified Persons and (y) reasonably satisfactory to the Company. The indemnifying party Company shall not have be liable for any settlement of any such action or proceeding effected without the right Company's prior written consent, which consent shall not be withheld unreasonably, and the Company agrees to settle a claim or action for which indemnify and hold harmless any indemnified party is entitled to indemnification pursuant to this Agreement without Person from and against any loss, claim, damage, liability, judgment or expense by reason of any settlement of any action effected with the written consent of the Company. The Company shall not, without the prior written consent of each indemnified partyPerson, The indemnifying party shall not settle or compromise or consent to the entry of judgment on or otherwise seek to terminate any judgment pending or enter into threatened action, claim, litigation or agree to proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not any settlement relating to such claim or action indemnified Person is a party thereto), unless such judgment settlement, compromise, consent or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and termination includes as an unconditional term release of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such each indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release Person from all liability arising out of such action, claim litigation or proceeding. (b) The Holder agrees to indemnify and hold harmless the Company and its directors, officers and any person controlling (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Company, and the respective officers, directors, partners, employees, representatives and agents of each person, to the same extent as the foregoing indemnity from the Company to each of the indemnified Persons, but only (i) with respect to actions based on information relating to the Holder furnished in writing by or on behalf of such Holder expressly for use in any Registration Statement or Prospectus, and (ii) to the extent of the gross proceeds, if any, received by such Holder from the sale or other disposition of its Restricted Securities covered by such Registration Statement. In case any action or proceeding shall be brought against the Company or its directors or officers or any such controlling person in respect of which indemnity may be sought against the Holder, such claim or action. The indemnifying party Holder shall have the rights and duties given the Company in Section 2.8(a) (except that the Holder may but shall not be liable under this Agreement for any amount paid required to assume the defense thereof), and the Company or payable its directors or incurred pursuant officers or such controlling person shall have the rights and duties given to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayedHolder by Section 2.8(a). (dc) If the indemnification provided for in this Section 11 2.8 is held by a court of competent jurisdiction unavailable to be unavailable to, or unenforceable by, an indemnified party under Section 2.7(a) or (b) (other than by reason of exceptions provided in those Sections) in respect of any losslosses, claimclaims, actiondamages, damageliabilities, liability judgments or expense expenses referred to in this Section 11therein, then the each applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreementparty, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims damages, actionliabilities, damage, liability judgments or expense expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company on the one hand and the indemnifying party. If Holder on the other hand from sale of Restricted Securities or (ii) if such allocation provided by the preceding sentence clause (i) above is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence clause (i) above but also the relative fault of the indemnified party Company and the indemnifying partyHolder in connection with the statements or omissions which resulted in such losses, claims, damages, liabilities, judgments or expenses, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, Company on the one hand, hand and of the indemnified party, Holder on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party Company or by the indemnified party, whether Holder and the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ parties relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties amount paid to a party as a result of the losses, claims, damages, liabilities judgments and expenses referred to above shall be deemed to include, subject to the limitations set forth in the second paragraph of Section 2.8(a), any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any action or claim. The Company and the Holder agree that it would not be just and equitable if contribution pursuant to this Agreement Section 2.8(c) were determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 11(d). In no event 2.8(c) the Holder (and its related indemnified Persons) shall not be required to contribute, in the aggregate, any amount in excess of the amount by which a Holder the dollar amount of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in upon the sale of Registrable the Restricted Securities that gives rise exceeds the amount of any damages which such Holder has otherwise been required to pay by reason of such obligation to contributeuntrue statement or omission or alleged omission. No indemnified party person guilty or liable of fraudulent misrepresentation misrepresentations (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. (e) . The indemnity, and contribution provisions of contained in this Section 11 shall remain 2.8 are in full force and effect regardless of addition to any investigation made by or on behalf of any liability which the indemnifying person may otherwise have to the indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holderpersons referred to above.

Appears in 3 contracts

Sources: Registration Rights Agreement (Compost America Holding Co Inc), Registration Rights Agreement (Compost America Holding Co Inc), Registration Rights Agreement (Compost America Holding Co Inc)

Indemnification; Contribution. (a) The In connection with any registration of Registrable Securities or Takedown Offering pursuant to Section 2.01 or Section 2.02, the Company shallwill indemnify, to the fullest extent permitted by law, indemnify defend and hold harmless Holder, its Affiliates, directors, officers and shareholders and each person who controls Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Personcollectively, a the Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered PersonIndemnified Persons”) from and against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which such Covered Person may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) all Losses caused by any untrue or alleged untrue statement of a material fact contained in or incorporated by reference in any part of any Registration Statement, Statement or any Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or including any amendment or supplement to thereto, used in connection with the Registrable Securities or any document incorporated by reference in the sameIssuer FWP, (ii) or any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein (in the same case of a Prospectus, in the light of the circumstances under which they were made) not misleading or (iii) any violation or alleged violation by misleading; provided, however, that the Company of the Securities Act or will not be required to indemnify any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Indemnified Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon Losses resulting from any such untrue statement or alleged omission if such untrue statement, statement or omission or alleged omission, was made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, on and in conformity with, written with information prepared and with respect to any Indemnified Person furnished to the Company by such Covered in writing by, or at the direction of, Holder or any Indemnified Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise haveIssuer FWP. (b) In connection with any registration in which a Holder of Registrable Securities is participatingRegistration Statement, Prospectus or Issuer FWP, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shallHolder, to the fullest extent permitted by lawon a several but not joint and several basis, indemnify will indemnify, defend and hold harmless the Company, its directors directors, its officers and officerseach person, employeesif any, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any controls the Company (within the meaning of them may become subject under either Section 15 of the Securities Act, Act or Section 20 of the Exchange Act, ) from and against any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) and all Losses caused by any untrue or alleged untrue statement of a material fact contained in the any part of any Registration Statement, Statement or any Prospectus, preliminary Prospectusincluding any amendment or supplement thereto, free writing prospectus (as defined used in Rule 405 under connection with the Registrable Securities Act or any successor rule to Rule 405) Issuer FWP, or any amendment of or supplement to the same or (ii) any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same not misleading, but, therein (in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, a Prospectus, preliminary Prospectusin the light of the circumstances under which they were made) not misleading, free writing prospectus or any amendment or supplement but only with respect to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by in writing by, or at direction of, such Holder or any Indemnified Persons related to such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveIssuer FWP. (c) Any Person In case any claim, action or proceeding (including any governmental investigation) is instituted involving any person in respect of which indemnity may be sought pursuant to Section 2.08(a) or Section 2.08(b), such person (the “Indemnified Party”) will promptly notify the person against whom such indemnity may be sought (the “Indemnifying Party”) in writing and the Indemnifying Party shall be entitled to indemnification participate therein and, to the extent it shall wish, to assume the defense thereof with counsel reasonably satisfactory to the Indemnified Party and will pay the fees and disbursements of such counsel related to such claim, action or proceeding; provided, however, that the failure or delay to give such notice shall not relieve the Indemnifying Party of its obligations pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is such Indemnifying Party has been actually and materially prejudiced by reason of such failure or delay. In case a claim any such claim, action or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partyproceeding, the indemnifying party shall be entitled to participate in and Indemnified Party shall have the right, exercisable by giving written notice to but not the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or actionobligation, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the any such defense of such claim or action, with counsel of and to retain its own choicecounsel, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs fees and expenses subsequently incurred by of such counsel will be at the indemnified party in connection with expense of such defense Indemnified Party unless (Ai) the indemnifying party has Indemnifying Party and the Indemnified Party have mutually agreed in writing to pay the retention of such fees, costs and expensescounsel, (Bii) the indemnifying party has failed Indemnifying Party fails to assume the defense of such claim the claim, action or action proceeding within a reasonable time after 15 Business Days following receipt of notice of such claim from the Indemnified Party, or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (Diii) the use Indemnified Party and the Indemnifying Party are both actual or potential defendants in, or targets of, any such action and the Indemnified Party has been advised by counsel that representation of counsel chosen both parties by the indemnifying party same counsel would be inappropriate due to represent actual or potential conflicting interests between them. It is understood that the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shallIndemnifying Party will not, in connection with any one claim or claim, action or separate but substantially similar proceeding or related claims, actions or proceedings in the same jurisdiction arising out of the same general circumstances or allegationsjurisdiction, be liable for the fees, costs reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for all indemnified partiessuch Indemnified Parties and that all such reasonable fees and expenses will be reimbursed as they are incurred. In the case of the retention of any such separate firm for the Indemnified Parties, such firm will be designated in writing by the Indemnified Parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall Indemnifying Party will not be liable under this Agreement for any amount paid settlement of any claim, action or payable or incurred pursuant to or in connection with any judgment entered or settlement proceeding effected with the without its written consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such which consent shall not to be unreasonably withheld, conditioned or delayed), but if such claim, action or proceeding is settled with such consent or if there has been a final judgment for the plaintiff, the Indemnifying Party agrees to indemnify the Indemnified Party from and against any Loss by reason of such settlement or judgment. No Indemnifying Party will, without the prior written consent of the Indemnified Party, settle, compromise or offer to settle or compromise any pending or threatened proceeding in respect of which any Indemnified Party is seeking indemnity hereunder, unless (i) such settlement includes an unconditional release of such Indemnified Party from all liability in connection with such proceeding, (ii) such settlement includes no finding or admission of any violation of Law or any violation of the rights of any person by the Indemnified Party or any of its Affiliates as the result of such action, and (iii) the sole relief (if any) provided in such settlement is monetary damages that are reimbursed in full by the Indemnifying Party. No Indemnified Party will, without the prior written consent of the Indemnifying Party, settle, compromise or offer to settle or compromise any pending or threatened proceeding in respect of which any Indemnified Party is seeking indemnity hereunder. (d) If the indemnification provided for in this Section 11 2.08 from the Indemnifying Party is held by a court of competent jurisdiction unavailable to be unavailable to, an Indemnified Party hereunder or unenforceable by, an indemnified party is insufficient in respect of any loss, claim, action, damage, liability or expense Losses referred to in this Section 112.08, then the applicable indemnifying partyIndemnifying Party, in lieu of indemnifying such indemnified party under this AgreementIndemnified Party, shall will contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such loss, claim, action, damage, liability or expense Losses (i) in such proportion as is appropriate to reflect the relative benefits received by fault of the indemnified party Indemnifying Party and Indemnified Party in connection with the indemnifying party. If actions that resulted in such Losses, as well as any other relevant equitable considerations, or (ii) if the allocation provided by the preceding sentence clause (i) is not permitted by applicable lawLaw, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits fault referred to in the preceding sentence clause (i) but also the relative fault benefit of the indemnified party Company, on the one hand, and Holder, on the indemnifying partyother, in connection with the statements or omissions that resulted in such Losses, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, such Indemnifying Party and of the indemnified party, on the other hand, shall Indemnified Party will be determined by reference to, among other things, whether the any action in question, including any untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact fact, has been taken by, or relates to information supplied by the indemnifying party by, such Indemnifying Party or by the indemnified partyIndemnified Party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementaction. The amount paid or payable by a party as a result of the Losses referred to above will be deemed to include, omission subject to the limitations set forth in Section 2.08(c), any reasonable legal or violation. other out of pocket fees or expenses reasonably incurred by such party in connection with any investigation, claim, action or proceeding. (e) The parties agree that it would not be just and equitable if contribution pursuant to this Agreement Section 2.08(d) were determined by pro rata allocation or by any other method or of allocation that does not take into account the equitable considerations referred to in this Section 11(d2.08(d). In no event shall the amount which a Holder No person guilty of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds “fraudulent misrepresentation” (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party guilty or liable of fraudulent misrepresentation within the meaning of Section 11(f) of the Securities Act shall Act) will be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. (e) The . Notwithstanding the provisions of this Section 11 2.08(e), Holder shall remain not be required to contribute, in full force and effect regardless the aggregate, any amount in excess of the amount by which the net proceeds received by Holder from the sale of the Registrable Securities exceeds the amount of any investigation made damages which Holder has otherwise been required to pay by reason of such untrue or on behalf alleged untrue statement or omission or alleged omission. (f) If indemnification is available under this Section 2.08, the Indemnifying Party will indemnify each Indemnified Party pursuant to Section 2.08(a) and 2.08(b) to the fullest extent permissible under applicable Law, without regard to the relative fault of any indemnified party said Indemnifying Party or Indemnified Party or any officer, director other equitable consideration provided for in Section 2.08(d) or controlling person Section 2.08(e). The obligations of such indemnified party and the Company under this Section 2.08 shall survive be in addition to any liability that the Transfer of Company may otherwise have to any Registrable Securities by any HolderIndemnified Person.

Appears in 3 contracts

Sources: Stockholders Agreement (Asac Ii Lp), Stockholders Agreement (Activision Blizzard, Inc.), Stock Purchase Agreement (Activision Blizzard, Inc.)

Indemnification; Contribution. (a) The Company shall, agrees to the fullest extent permitted by law, indemnify and hold harmless each Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board membersAffiliates, directors, officers, trustees, managersemployees, members, employees, agents, Affiliates managers and shareholders, agents of each such Holder and each other Person, if any, Person who acts on behalf of or controls any such Holder within the meaning of either the Securities Act or Controlling Person (each of the foregoingExchange Act, a “Covered Person”) to the fullest extent permitted by applicable law, from and against any and all losses, claims, actions, damages, liabilities and expenses, joint or several, expenses to which such Covered Person they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities and expenses (or expenses actions in respect thereof) arise out of or are based upon (i) any violation of the Securities Act, Exchange Act or state securities laws, or upon any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement as originally filed or incorporated by reference in any amendment thereof, or the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined or in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment thereof or supplement to thereto, or any document incorporated by reference in arise out of or are based upon the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading or (iii) any violation or alleged violation by the Company light of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated circumstances under such federal or state securities laws applicable which they were made) not misleading, and agrees to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person such indemnified party, as incurred, for any legal or other expenses reasonably incurred by such Covered Person them in connection with investigating, investigating or defending or settling any such loss, claim, actiondamage, damage liability or liability. Notwithstanding action (whether or not the previous sentenceindemnified party is a party to any proceeding); provided, however, that the Company shall will not be so liable in any such case to the extent that any such loss, claim, action, damage, liability or expense arises (i) out of or is based upon any such untrue statement or alleged untrue statement, statement or omission or alleged omission, omission made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same therein in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by or on behalf of any such Covered Person expressly Holder specifically for use in such Registration Statementinclusion therein including, Prospectuswithout limitation, preliminary Prospectus any notice and questionnaire, or free writing prospectus(ii) out of sales of Registrable Securities made during a Suspension Period after notice is given pursuant to Section 2(e)(ii) hereof. This indemnity shall agreement will be in addition to any liability which the Company may otherwise have. (b) In connection with any registration in which a Each Holder of Registrable Securities is participating, each such Holder shall furnish severally (and not jointly) agrees to indemnify and hold harmless the Company in writing such information as and each of its Affiliates, directors, employees, members, managers and agents and each Person who controls the Company reasonably requests for use in connection with any such Registration Statement within the meaning of either the Securities Act or Prospectus. Each Holder shallthe Exchange Act, to the fullest extent permitted by applicable law, indemnify from and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any and all losses, claims, actions, damages, damages or liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, damages or liabilities or expenses arise out of or are based upon (i) any violation of the Securities Act, Exchange Act or state securities laws, upon any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement as originally filed or in any amendment thereof, or in the Disclosure Package or any Holder Free Writing Prospectus, preliminary, final or summary Prospectus included in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined or in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment thereof or supplement thereto, or arise out of or supplement to are based upon the same or (ii) any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same not misleading, but, therein (in the case of each the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration Statement, in light of clauses (ithe circumstances under which they were made) and (ii)not misleading, to the extent, but only to the extent extent, that any such untrue statement or alleged untrue statement, statement or omission or alleged omission, omission is made contained in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and relating to such Holder furnished to the Company by or on behalf of such Holder expressly specifically for use in such Registration Statementinclusion therein; provided, Prospectushowever, preliminary Prospectus or free writing prospectus. In addition, that the total amount to be indemnified by such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b8(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal limited to the net proceeds (after deducting Selling Expensesunderwriters’ discounts and commissions) actually received by such Holder in the sale of Registrable Securities offering to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled Promptly after receipt by an indemnified party under this Section 8 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to indemnification pursuant be made against the indemnifying party under this Section 8, notify the indemnifying party in writing of the commencement thereof; but the failure so to this Agreement shall give prompt written notice notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent such action and such failure results in material prejudice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify and forfeiture by the indemnifying party shall not of substantial rights and defenses; and (ii) will not, in any event, relieve the indemnifying party of its from any obligations under this Agreement, except to any indemnified party other than the extent that the indemnifying party is actually and materially prejudiced by reason of such failure indemnification obligation provided in paragraph (a) or delay(b) above. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the The indemnifying party shall be entitled to participate in and shall have the righttherein and, exercisable by giving written notice to the extent that it shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and, except as promptly as practicable provided in the next sentence, after receipt of written notice from the indemnifying party to such indemnified party of such claim or action, its election to assume, at the indemnifying party’s expense, so assume the defense of any such claim or actionthereof, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated liable to reimburse the such indemnified party for any legal expenses of other counsel or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. Notwithstanding the indemnifying party’s rights in the prior sentence, the indemnified party shall have the right to employ its own counsel (and one local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, separate counsel if (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (Di) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest interest; (ii) the actual or (E) potential defendants in, or targets of, any such action include both the indemnified party has and the indemnifying party and the indemnified party shall have reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party parties which are different from or additional to those available to the indemnifying party. Subject ; (iii) the indemnifying party shall not have employed counsel satisfactory to the foregoing sentence, no indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of the indemnifying party. No indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The An indemnifying party shall not be liable under this Agreement for Section 8 to any amount paid indemnified party regarding any settlement or payable compromise or incurred pursuant consent to or in connection with the entry of any judgment entered with respect to any pending or settlement effected threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent is consented to by such indemnifying party. No indemnifying party, in the defense of any such claim or litigation, shall, except with the consent of each indemnified party, consent to entry of any judgment or enter into any settlement or compromise unless such settlement or compromise (i) includes an unconditional release of such indemnified party unless from all liability on claims that are the indemnifying party has also consented subject matter of such proceeding and (ii) does not include any statement as to such judgment or settlement (such consent not any admission of fault, culpability or a failure to be unreasonably withheld, conditioned act by or delayed)on behalf of any indemnified party. (d) If In the indemnification event that the indemnity provided for in this Section 11 8(a) or Section 8(b) above is held by a court of competent jurisdiction unavailable to be unavailable to, or unenforceable by, insufficient to hold harmless an indemnified party in respect of for any loss, claim, action, damage, liability or expense referred to in this Section 11reason, then the each applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall agrees to contribute to the amount paid aggregate losses, claims, damages and liabilities (including, without limitation, legal or payable by other expenses reasonably incurred in connection with investigating or defending same) (collectively, “Losses”) to which such indemnified indemnifying party as a result of such loss, claim, action, damage, liability or expense may be subject in such proportion as is appropriate to reflect the relative benefits received by fault of the indemnifying party on the one hand and the indemnified party and on the indemnifying party. If other in connection with the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount statements or omissions which resulted in such proportion as is appropriate to reflect not only the relative benefits referred to losses, claims, damages or liabilities (or actions in the preceding sentence but also the relative fault of the indemnified party and the indemnifying partyrespect thereof), as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by on the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party one hand or the indemnified party. The relative fault shall also be determined by reference to party on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties agree that it would not be just and equitable if contribution pursuant to this Agreement Section 8(d) were determined by pro rata allocation (even if the Holders of Registrable Securities or any agents or underwriters or all of them were treated as one entity for such purpose) or by any other method or of allocation that which does not take into account of the equitable considerations referred to above in this Section 11(d8(d). In no event shall The amount paid or payable by an indemnified party as a result of the amount which a Holder of Registrable Securities may be obligated losses, claims, damages or liabilities (or actions in respect thereof) referred to contribute pursuant to above in this Section 11(d8(d) exceed an amount equal shall be deemed to the net proceeds (after deducting Selling Expenses) actually received include any legal or other expenses reasonably incurred by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 8(d), no Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 8, each Person who controls any Holder of Registrable Securities, agent or underwriter within the meaning of either the Securities Act or the Exchange Act and each director, officer, employee and agent of any such Holder, agent or underwriter shall have the same rights to contribution as such Holder, agent or underwriter, and each Person who controls the Company within the meaning of either the Securities Act or the Exchange Act and each officer and director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this Section 8(d). Notwithstanding the foregoing, the total amount to be contributed by any Holder pursuant to this Section 8(d) shall be limited to the net proceeds (after deducting underwriters’ discounts and commissions) received by such Holder in the offering to which such Registration Statement or Prospectus relates. (e) The provisions of this Section 11 shall 8 will remain in full force and effect effect, regardless of any investigation made by or on behalf of any indemnified party Holder of Registrable Securities or the Company or any officerof the officers, director directors or controlling person Persons referred to in this Section 8 hereof, and will survive the transfer of Registrable Securities. (f) To the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 8 to the fullest extent permitted by law; provided, however, that: (i) no Person involved in the sale of Registrable Securities which Person is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the ▇▇▇▇ ▇▇▇) in connection with such sale shall be entitled to contribution from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the net amount of proceeds received by such seller from the sale of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holderpursuant to such Shelf Registration.

Appears in 3 contracts

Sources: Registration Rights Agreement (Visteon Corp), Registration Rights Agreement (Goldman Sachs Group Inc), Registration Rights Agreement (Ubs Ag)

Indemnification; Contribution. (a) The Company shallITC Investments agrees to indemnify and hold harmless each Shareholder holding Registrable Securities, the Affiliates, directors, officers, employees, shareholders, managers and agents of each such Shareholder and each Person who controls any such Shareholder within the meaning of either the Securities Act or the Exchange Act, to the fullest extent permitted by applicable law, indemnify from and hold harmless each Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any and all losses, claims, actions, damages, liabilities and expenses, joint or several, expenses to which such Covered Person they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities and expenses (or expenses actions in respect thereof) arise out of or are based upon (i) any violation of the Securities Act, Exchange Act or state securities laws, or upon any untrue statement or alleged untrue statement of a material fact contained in a registration statement as originally filed or incorporated by reference in any Registration Statementamendment thereof, Prospectusor the Disclosure Package, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary, final or summary prospectus or Free Writing Prospectus included in any such registration statement, or in any amendment thereof or supplement to thereto, or any document incorporated by reference in arise out of or are based upon the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein (in the same not misleading or (iii) any violation or alleged violation by the Company case of the Securities Act Disclosure Package, or any other similar federal preliminary, final or state securities laws summary prospectus or Free Writing Prospectus included in any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required registration statement, in light of the Company in connection with any registration of securities. In additioncircumstances under which they were made) not misleading, the Company shall and agrees to reimburse each Covered Person such indemnified party, as incurred, for any legal or other expenses reasonably incurred by such Covered Person them in connection with investigating, investigating or defending or settling any such loss, claim, actiondamage, damage liability or liability. Notwithstanding action (whether or not the previous sentenceindemnified party is a party to any proceeding); provided, the Company shall that ITC Investments will not be so liable in any such case to the extent that any such loss, claim, action, damage, liability or expense arises (i) out of or is based upon any such untrue statement or alleged untrue statement, statement or omission or alleged omission, omission made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same therein in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company ITC Investments by or on behalf of any such Covered Person expressly Shareholder specifically for use in such Registration Statementinclusion therein including any notice and questionnaire, Prospectus, preliminary Prospectus or free writing prospectus(ii) out of sales of Registrable Securities made during a Suspension Period after notice is given pursuant to Section 3.3(c). This indemnity shall agreement will be in addition to any liability the Company which ITC Investments may otherwise have. (b) In connection with any registration in which a Holder Each Shareholder severally (and not jointly) agrees to indemnify and hold harmless ITC Investments and each of Registrable its Affiliates, directors, employees, shareholders, managers and agents and each Person who controls ITC Investments within the meaning of either the Securities is participating, each such Holder shall furnish to Act or the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shallExchange Act, to the fullest extent permitted by applicable law, indemnify from and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any and all losses, claims, actions, damages, damages or liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, damages or liabilities or expenses arise out of or are based upon (i) any violation of the Securities Act, Exchange Act or state securities laws, upon any untrue statement or alleged untrue statement of a material fact contained in a registration statement as originally filed or in any amendment thereof, or in the Registration Statement, Disclosure Package or any Shareholder Free Writing Prospectus, preliminary Prospectuspreliminary, free writing final or summary prospectus (as defined included in Rule 405 under the Securities Act any such registration statement, or any successor rule to Rule 405) or in any amendment thereof or supplement thereto, or arise out of or supplement to are based upon the same or (ii) any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same not misleading, but, therein (in the case of each the Disclosure Package, or any preliminary, final or summary prospectus or Free Writing Prospectus included in any such registration statement, in light of clauses (ithe circumstances under which they were made) and (ii)not misleading, to the extent, but only to the extent extent, that any such untrue statement or alleged untrue statement, statement or omission or alleged omission, omission is made contained in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and relating to such Shareholder furnished to ITC Investments by or on behalf of such Shareholder specifically for inclusion therein; provided, that the Company total amount to be indemnified by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify Shareholder pursuant to this Section 11(b3.8(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal limited to the net proceeds (after deducting Selling Expensesunderwriters’ discounts and commissions and other reimbursable expenses) actually received by such Holder Shareholder in the sale of Registrable Securities offering to which such Registration Statement registration statement or Prospectus prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled Promptly after receipt by an indemnified party under this Section 3.8 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to indemnification pursuant be made against the indemnifying party under this Section 3.8, notify the indemnifying party in writing of the commencement thereof; but the failure so to this Agreement shall give prompt written notice notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent such action and such failure results in material prejudice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify and forfeiture by the indemnifying party shall not of substantial rights and defenses; and (ii) will not, in any event, relieve the indemnifying party of its from any obligations under this Agreement, except to any indemnified party other than the extent that the indemnifying party is actually and materially prejudiced by reason of such failure indemnification obligation provided in paragraph (a) or delay(b) above. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the The indemnifying party shall be entitled to participate in and shall have the righttherein and, exercisable by giving written notice to the extent that it shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and, except as promptly as practicable provided in the next sentence, after receipt of written notice from the indemnifying party to such indemnified party of such claim or action, its election to assume, at the indemnifying party’s expense, so assume the defense of any such claim or actionthereof, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated liable to reimburse the such indemnified party for any legal expenses of other counsel or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. Notwithstanding the indemnifying party’s rights in the prior sentence, the indemnified party shall have the right to employ its own counsel (and one local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, separate counsel if (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (Di) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest interest; (ii) the actual or (E) potential defendants in, or targets of, any such action include both the indemnified party has and the indemnifying party and the indemnified party shall have reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party parties which are different from or additional to those available to the indemnifying party. Subject ; (iii) the indemnifying party shall not have employed counsel satisfactory to the foregoing sentence, no indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of the indemnifying party. No indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The An indemnifying party shall not be liable under this Agreement for Section 3.8 to any amount paid indemnified party regarding any settlement or payable compromise or incurred pursuant consent to or in connection with the entry of any judgment entered with respect to any pending or settlement effected threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent is consented to by such indemnifying party. No indemnifying party, in the defense of any such claim or litigation, shall, except with the consent of each indemnified party, consent to entry of any judgment or enter into any settlement or compromise unless such settlement or compromise (i) includes an unconditional release of such indemnified party unless from all liability on claims that are the indemnifying party has also consented subject matter of such proceeding and (ii) does not include any statement as to such judgment or settlement (such consent not any admission of fault, culpability or a failure to be unreasonably withheld, conditioned act by or delayed)on behalf of any indemnified party. (d) If In the indemnification event that the indemnity provided for in this Section 11 3.8(a) or Section 3.8(b) above is held by a court of competent jurisdiction unavailable to be unavailable to, or unenforceable by, insufficient to hold harmless an indemnified party in respect of for any loss, claim, action, damage, liability or expense referred to in this Section 11reason, then the each applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall agrees to contribute to the amount paid aggregate losses, claims, damages and liabilities (including legal or payable by other expenses reasonably incurred in connection with investigating or defending same) to which such indemnified indemnifying party as a result of such loss, claim, action, damage, liability or expense may be subject in such proportion as is appropriate to reflect the relative benefits received by fault of the indemnifying party on the one hand and the indemnified party and on the indemnifying party. If other hand in connection with the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount statements or omissions which resulted in such proportion as is appropriate to reflect not only the relative benefits referred to losses, claims, damages or liabilities (or actions in the preceding sentence but also the relative fault of the indemnified party and the indemnifying partyrespect thereof), as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by on the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party one hand or the indemnified party. The relative fault shall also be determined by reference to party on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties agree that it would not be just and equitable if contribution pursuant to this Agreement Section 3.8(d) were determined by pro rata allocation (even if the Shareholders holding Registrable Securities or any agents or underwriters or all of them were treated as one entity for such purpose) or by any other method or of allocation that which does not take into account of the equitable considerations referred to above in this Section 11(d3.8(d). In no event shall The amount paid to or payable by an indemnified party as a result of the amount which a Holder of Registrable Securities may be obligated losses, claims, damages or liabilities (or actions in respect thereof) referred to contribute pursuant to above in this Section 11(d3.8(d) exceed an amount equal shall be deemed to the net proceeds (after deducting Selling Expenses) actually received include any legal or other expenses reasonably incurred by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 3.8(d), no Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 3.8, each Person who controls any Shareholder holding Registrable Securities, agent or underwriter within the meaning of either the Securities Act or the Exchange Act and each director, officer, employee and agent of any such Shareholder, agent or underwriter shall have the same rights to contribution as such Shareholder, agent or underwriter, and each Person who controls ITC Investments within the meaning of either the Securities Act or the Exchange Act and each officer and director of ITC Investments shall have the same rights to contribution as ITC Investments, subject in each case to the applicable terms and conditions of this Section 3.8(d). Notwithstanding the foregoing, the total amount to be contributed by any Shareholder pursuant to this Section 3.8(d) shall be limited to the net proceeds (after deducting underwriters’ discounts and commissions and other reimbursable expenses) received by such Shareholder in the offering to which such registration statement or prospectus relates. (e) The provisions of this Section 11 shall 3.8 will remain in full force and effect effect, regardless of any investigation made by or on behalf of any indemnified party Shareholder holding Registrable Securities or ITC Investments or any officerof the officers, director directors or controlling person Persons referred to in this Section 3.8, and will survive the transfer of Registrable Securities. (f) To the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under this Section 3.8 to the fullest extent permitted by Applicable Law; provided, that: (i) no Person involved in the sale of Registrable Securities which Person is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) in connection with such sale shall be entitled to contribution from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the net amount (after deducting underwriters’ discounts and commissions and other reimbursable expenses) of proceeds received by such seller from the sale of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holderpursuant to such Shelf Registration.

Appears in 3 contracts

Sources: Shareholders Agreement (Fortis Inc.), Shareholders’ Agreement (Fortis Inc.), Subscription Agreement

Indemnification; Contribution. (a) The Company shall, to the fullest extent permitted by lawand it hereby agrees to, (i) indemnify and hold harmless each Holder Stockholder in any offering or sale of Registrable SecuritiesShares, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each and such Person, a “Controlling Person”), their respective direct and indirect general and limited Stockholder’s partners, advisory board members, directors, officers, trustees, managers, members, employeesmanagers and Affiliates (but not, agentsfor the avoidance of doubt, Affiliates and shareholders, any Stockholder Designee in such person’s capacity as a Director of the Company) and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) foregoing Persons within the meaning of the Securities Act or the Exchange Act from and against any and all losses, claims, actions, damages, liabilities or liabilities, or any actions or proceedings (whether commenced or threatened) in respect thereof and expensescosts and expenses (including reasonable fees of counsel) (collectively, joint or several, “Claims”) to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such lossesClaims (including any amounts paid in settlement reached in accordance with the requirements for consent as provided herein), claimsor actions or proceedings in respect thereof, actions, damages, liabilities or expenses arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement to thereto, or any document incorporated by reference in the sametherein, (ii) or arise out of or are based upon any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein (in the same not misleading case of any preliminary or final Prospectus (iii) including any violation or alleged violation by Free Writing Prospectus incorporated into such Registration Statement, in the Company light of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company circumstances in which they were made), not misleading; and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall (ii) reimburse periodically upon demand each Covered Person indemnified party for any legal or other out-of-pocket expenses reasonably incurred by such Covered Person indemnified party in connection with investigating, investigating or defending (or settling preparing to defend) any such lossClaims; provided, claimhowever, action, damage or liability. Notwithstanding the previous sentence, that the Company shall not be so liable to an indemnified party in any such case to the extent extent, and only to the extent, that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such Registration Statement, or preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), or amendment or supplement thereto, in reliance upon and in conformity with information furnished in writing to the Company about a Stockholder by such indemnified party expressly for use therein, or if the Stockholder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable Prospectus (excluding any documents incorporated by reference therein) or of the applicable Prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Company had previously furnished copies thereof to such Stockholder a reasonable period of time prior to such sale and such Prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such Registration Statement. (b) Each Stockholder shall, and hereby agrees to, severally and not jointly (i) indemnify and hold harmless the Company in any offering or sale of Registrable Shares, each director of the Company, each officer of the Company who shall sign the applicable Registration Statement and each Person, if any, who controls any of the foregoing Persons within the meaning of the Securities Act or the Exchange Act from and against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement reached in accordance with the requirements for consent as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or supplement to the same or (ii) are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same not misleading, but, therein (in the case of each any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), in the light of clauses (i) the circumstances in which they were made), not misleading; and (ii)) reimburse periodically upon demand each indemnified party for any legal or other out-of-pocket expenses reasonably incurred by such indemnified party in connection with investigating or defending (or preparing to defend) any such Claims, in each case to the extent, and only to the extent extent, that such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with information about such Stockholder furnished in writing to the Company by such Stockholder expressly for use therein, or if such Stockholder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable Prospectus (excluding any documents incorporated by reference therein) or of the applicable Prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Company had previously furnished copies thereof to the Stockholders a reasonable period of time prior to such sale and such Prospectus corrected such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission made in such Registration Statement; provided, Prospectushowever, preliminary Prospectus, free writing prospectus or any amendment or supplement to that the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be aggregate liability of a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to Stockholder under this Section 11(b) 6.6 shall be individual and several, not joint and several, for each participating Holder and shall be proportional limited to and shall not exceed an amount equal to the dollar amount of the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities Stockholder from Stockholder Shares sold by such Stockholder pursuant to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply the transaction giving rise to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveClaim. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to Each Stockholder, on the indemnifying party of one hand, and the Company, on the other hand, agrees that if, for any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partyreason, the indemnifying party shall be entitled to participate in and shall have the right, exercisable indemnification provisions contemplated by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim Section 6.6(a) or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (ASection 6.6(b) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant unavailable to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented are insufficient to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, with respect to statements or omissions that that resulted in such Claims. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the such indemnifying party or by the such indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission. If, omission however, the allocation in the first sentence of this Section 6.6(c) is not permitted by applicable Law, then each indemnifying party shall contribute to the amount paid or violationpayable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and a Stockholder on the other hand shall be deemed to be in the same proportion as the total net proceeds from the offering of securities (net of discounts and commissions but before deducting expenses) giving rise to the applicable Claim bears to the net proceeds received by such Stockholder with respect to its sale of Registrable Shares giving rise to such Claim. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Agreement Section 6.6(c) were to be determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the preceding sentences of this Section 11(d6.6(c). In no event The amount paid or payable by an indemnified party as a result of the Claims referred to above shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal include (subject to the net proceeds (after deducting Selling Expenseslimitations set forth in Section 6.7) actually received any legal or other fees or expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise connection with investigating or defending (or preparing to defend) any such obligation to contributeaction, proceeding or claim. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) . Notwithstanding the foregoing, no Stockholder shall be liable to contribute any amount in excess of the dollar amount of the net proceeds received by such Stockholder from Stockholder Shares sold by such Stockholder pursuant to such Registration Statement or Prospectus in the transaction giving rise to such Claim less any amounts previously paid by such Stockholder pursuant to Section 6.6(b). The provisions of Stockholders obligations to contribute as provided in this Section 11 shall remain in full force 6.6(c) are several and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holdernot joint.

Appears in 3 contracts

Sources: Stockholders Agreement (Avista Capital Partners GP, LLC), Stockholders Agreement (Angiodynamics Inc), Stockholders Agreement (Angiodynamics Inc)

Indemnification; Contribution. (a) The Company shall, to the fullest extent permitted by lawand it hereby agrees to, indemnify and hold harmless each Holder of Registrable Securitiesthe Stockholder, any Person who is or might be deemed to be a “the Stockholder’s Subsidiaries and their controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other PersonPersons, if any, who acts on behalf of in any offering or controls any such Holder or Controlling Person (each sale of the foregoingRegistrable Securities, a “Covered Person”) including pursuant to Section 5.1, Section 5.2 or Section 5.4, against any losses, claims, actionsdamages or liabilities, damagesactions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable actual out-of-pocket fees of counsel) (collectively, liabilities and expenses, joint or several, “Claims”) to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such lossesClaims (including any amounts paid in settlement effected with the consent of the Company as provided herein), claimsor actions or proceedings in respect thereof, actions, damages, liabilities or expenses arise out of of, relate to, are in connection with, or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statementregistration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement to thereto, or any document incorporated by reference therein, or arise out of, relate to, are in the sameconnection with, (ii) or are based upon any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein, in light of the same circumstances in which they were made, not misleading or (iii) any violation or alleged violation by misleading, and the Company of shall, and it hereby agrees to, reimburse periodically the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company Stockholder and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person its Subsidiaries for any actual and documented out-of-pocket legal or other actual and documented out-of-pocket expenses reasonably incurred by such Covered Person them in connection with investigating, investigating or defending or settling any such lossClaims; provided, claimhowever, action, damage or liability. Notwithstanding the previous sentence, that the Company shall not be so liable to any such Person in any such case to the extent that any losssuch Claims arise out of, claimrelate to, actionare in connection with, damage, liability or expense arises out of or is are based upon any such an untrue statement or alleged untrue statement, statement or omission or alleged omissionomission made in such registration statement, made or incorporated by reference in any such Registration Statementpreliminary or final prospectus, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same thereto, in reliance upon, and in conformity with, written upon information prepared and furnished to the Company by such Covered Person the Stockholder, any of its Subsidiaries, any underwriter or any Representative of the Stockholder, expressly for use in such Registration Statementtherein, Prospectusor by the Stockholder’s failure to furnish the Company, preliminary Prospectus upon request, with the information with respect to the Stockholder or free writing prospectus. This indemnity shall be in addition to its Subsidiaries, or any liability underwriter or Representative of the Company may otherwise haveStockholder, or the Stockholder’s or its Subsidiary’s intended method of distribution, that is the subject of the untrue statement or omission. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder The Stockholder shall, to the fullest extent permitted by lawand hereby agrees to, (i) indemnify and hold harmless the Company, its directors and directors, officers, employeesemployees and controlling Persons, agents if any, and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any Person who is offering or might be deemed to be a Controlling Person sale of Registrable Securities against any losses, claims, actions, damages, liabilities and expenses, joint or several, Claims to which they or any of them each such indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such lossesClaims (including any amounts paid in settlement as provided herein), claimsor actions or proceedings in respect thereof, actions, damages, liabilities or expenses arise out of of, relate to, are in connection with, or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in the Registration Statementany registration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment of or supplement to the same thereto, or (ii) any document incorporated by reference therein, or arise out of, relate to, are in connection with, or are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, but, in the each case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by such Holder the Stockholder expressly for use in such Registration Statementtherein, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall and (ii) reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person Company for any actual and documented out-of-pocket legal or other out-of-pocket expenses reasonably incurred by them the Company in connection with investigating, investigating or defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveClaim. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to The Stockholder and the indemnifying party of Company agree that if, for any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partyreason, the indemnifying party shall be entitled to participate in and shall have the right, exercisable indemnification provisions contemplated by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim Section 5.9(a) or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (ASection 5.9(b) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant unavailable to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented are insufficient to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the such indemnifying party or by the such indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission. If, omission however, the allocation in the first sentence of this Section 5.9(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or violationpayable by such indemnified party in such proportion as is appropriate to reflect not only such relative fault, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Agreement Section 5.9(c) were to be determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the preceding sentences of this Section 11(d5.9(c). In no event The amount paid or payable by an indemnified party as a result of the Claims referred to above shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal include (subject to the net proceeds (after deducting Selling Expenseslimitations set forth in Section 5.10) actually received any actual and documented out-of-pocket legal or other out-of-pocket fees or expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise to connection with investigating or defending any such obligation to contributeaction, proceeding or claim. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 3 contracts

Sources: Stockholder's Agreement (Horton D R Inc /De/), Stockholder Agreement (Horton D R Inc /De/), Stockholder's Agreement (Forestar Group Inc.)

Indemnification; Contribution. (a) The Company shallIncident to any registration statement referred to in this Agreement, and subject to the fullest extent permitted by applicable law, the Company will indemnify and hold harmless each underwriter, each Holder of Registrable SecuritiesSecurities (including its respective directors, any Person officers, employees and agents) so registered, and each person who is or might be deemed to be a “controlling person” of the Company or controls any of its subsidiaries them within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (each such Person, a “Controlling Person”the "Exchange Act"), their respective direct from and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any and all losses, claims, actions, damages, liabilities expenses and expensesliabilities, joint or severalseveral (including any investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted), to which such Covered Person they, or any of them, may become subject under the Securities Act, the Exchange ActAct or other federal or state statutory law or regulation, any state blue sky securities laws, any equivalent non-U.S. securities laws at common law or otherwise, insofar as such losses, claims, actions, damages, damages or liabilities or expenses arise out of or are based upon on (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement (including any related preliminary or incorporated by reference in any Registration Statementdefinitive prospectus, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to such registration statement or any document incorporated by reference in the sameprospectus), (ii) any omission or alleged omission of to state in such document a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus it or necessary to make the statements made in the same it not misleading misleading, or (iii) any violation or alleged violation by the Company of the Securities Act or Act, any other similar federal or state securities or "blue sky" laws or any rule or regulation promulgated under thereunder in connection with such federal registration, provided, however, that the Company will not be liable to such underwriter, Holder or state securities laws applicable controlling person to the extent that such loss, claim, damage, expense or liability arises from and is based on (A) an untrue statement or omission or alleged untrue statement or omission made in reliance on and in conformity with information furnished in writing to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person underwriter, Holder or controlling person expressly for use in connection with investigatingsuch registration statement or (B) any preliminary prospectus, defending or settling to the extent that any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged results solely from an untrue statement of a material fact contained in in, or the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in from, such Registration Statement, Prospectus, preliminary Prospectus prospectus which untrue statement or free writing prospectus or necessary to make the statements made omission was corrected in the same not misleadingfinal prospectus, but, in if the case Company shall sustain the burden of each of clauses (i) and (ii), only proving that a Holder sold Registrable Securities to the extent that person alleging such loss, claim, damage or liability without sending or giving, at or prior to the written confirmation of such sale, a copy of the final prospectus. With respect to such untrue statement or alleged untrue statement, or omission or alleged omission, is made untrue statement or omission in such Registration Statement, Prospectus, preliminary Prospectus, free the information furnished in writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In additionregistration statement, such Holder shall reimburse will indemnify and hold harmless each underwriter, the CompanyCompany (including its directors, its directors and officers, employeesemployees and agents), agents each other Holder of Registrable Securities (including its respective directors, officers, employees and agents) so registered, and each person who controls any Person who is of them within the meaning of Section 15 of the Securities Act or might be deemed Section 20 of the Exchange Act, from and against any and all losses, claims, damages, expenses and liabilities, joint or several, to be a Controlling Person for which they, or any legal of them, may become subject under the Securities Act, the Exchange Act or other expenses reasonably incurred by them federal or state statutory law or regulation, at common law or otherwise to the same extent provided in connection with investigatingthe immediately preceding sentence. In no event, defending or settling any such losshowever, claim, action, damage or liability. The obligation to indemnify pursuant to shall the liability of a Holder for indemnification under this Section 11(b1.07(a) shall be individual and severalexceed the lesser of (i) that proportion of the total of such losses, not joint and severalclaims, for each participating Holder and shall be proportional to and shall not exceed an amount damages or liabilities indemnified against equal to the net proportion of the total Registrable Securities sold under such registration statement which is being sold by such Holder or (ii) the proceeds (after deducting Selling Expenses) actually received by such Holder in the from its sale of Registrable Securities to which under such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveregistration statement. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (db) If the indemnification provided for in this Section 11 1.07(a) above for any reason is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, to an indemnified party in respect of any losslosses, claimclaims, actiondamages, damage, liability expenses or expense liabilities referred to in therein, then each indemnifying party under this Section 11, then the applicable indemnifying party1.07, in lieu of indemnifying such indemnified party under this Agreementthereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability expenses or expense liabilities in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party Company, the selling Holders and the indemnifying partyunderwriters in connection with the statements or omissions which resulted in such losses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations. The relative fault of the indemnifying partyCompany, on the one hand, selling Holders and of the indemnified party, on the other hand, underwriters shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party selling Holders or the indemnified party. The relative fault shall also be determined by reference to underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties Company, the Holders, and the underwriters agree that it would not be just and equitable if contribution pursuant to this Agreement Section 1.07(b) were determined by pro rata or per capita allocation or by any other method or of allocation that which does not take into account of the equitable considerations referred to in this Section 11(d)the immediately preceding sentences. In no event event, however, shall the amount which a Holder of Registrable Securities may be obligated required to contribute pursuant to any amount under this Section 11(d1.07(b) exceed an amount in excess of the lesser of (i) that proportion of the total of such losses, claims, damages or liabilities indemnified against equal to the net proportion of the total Registrable Securities sold under such registration statement which is being sold by such Holder or (ii) the proceeds (after deducting Selling Expenses) actually received by such Holder in the from its sale of Registrable Securities that gives rise to under such obligation to contributeregistration statement. No indemnified party person found guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. (ec) The provisions of indemnification and contribution provided for in this Section 11 shall 1.07 will remain in full force and effect regardless of any investigation made by or on behalf of any the indemnified party parties or any officer, director director, employee, agent or controlling person of such the indemnified party and shall survive the Transfer of any Registrable Securities by any Holderparties.

Appears in 3 contracts

Sources: Registration Rights Agreement (General Chemical Group Inc), Registration Rights Agreement (Network Fund Iii LTD), Registration Rights Agreement (Equitable Life Assurance Society)

Indemnification; Contribution. (a) The Company shall, to If any Registrable Securities are included in a registration statement under this Agreement: 6.1. To the fullest extent permitted by applicable law, the Company shall indemnify and hold harmless each Holder of Registrable SecuritiesSelling Holder, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Selling Holder or Controlling Person (each within the meaning of the foregoingSecurities Act, a “Covered and each officer, director, partner, and employee of such Selling Holder and such controlling Person”) , against any and all losses, claims, actions, damages, liabilities and expenses, expenses (joint or several), including attorneys’ fees and disbursements and expenses of investigation, incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation, or to which such Covered Person any of the foregoing Persons may become subject under the Securities Act, the Exchange Act, any Act or other federal or state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or and expenses arise out of or are based upon any of the following statements, omissions or violations (collectively a “Violation”): (i) any Any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any preliminary prospectus or incorporated by reference in any Registration Statementfinal prospectus contained therein, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) amendments or any amendment or supplement to or any document incorporated by reference in the same, supplements thereto; or (ii) any The omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statementtherein, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same therein not misleading; provided, buthowever, in that the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company indemnification required by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) 7.1 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action liability or proceeding expense if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such Holder. The Company case for any such loss, claim, damage, liability or expense to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only conformity with written information furnished or to be furnished to the Company by the indemnified party expressly for use in connection with such registration; provided, further, that the indemnity agreement contained in this Section 7 shall not apply to any Registration Statement or Prospectus relating underwriter to the extent that any such loss is based on or arises out of an untrue statement or alleged untrue statement of a material fact, or an omission or alleged omission to state a material fact, contained in or omitted from any preliminary prospectus if the final prospectus shall correct such untrue statement or alleged untrue statement, or such omission or alleged omission, and a copy of the final prospectus has not been sent or given to such person at or prior to the confirmation of sale to such person if such underwriter was under an obligation to deliver such final prospectus and failed to do so. The Company shall also indemnify underwriters, selling brokers, dealer managers and similar securities industry professionals participating in the distribution, their officers, directors, agents and employees and each person who controls such persons (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) to the same extent as provided above with respect to the indemnification of the Selling Holders. 6.2. To the extent permitted by applicable law, each Selling Holder shall indemnify and hold harmless the Company, each of its directors, each of its officers who shall have signed the registration statement, each Person, if any, who controls the Company within the meaning of the Securities Act, any other Selling Holder, any controlling Person of any such other Selling Holder and each officer, director, partner, and employee of such other Selling Holder and such controlling Person, against any and all losses, claims, damages, liabilities and expenses (joint and several), including attorneys’ fees and disbursements and expenses of investigation, incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation, or to which any of the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or other federal or state laws, insofar as such losses, claims, damages, liabilities and expenses arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such Selling Holder expressly for use in connection with such registration; provided, however, that (x) the indemnification required by this Section 7.2 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or expense if settlement is effected without the consent of the relevant Selling Holder of Registrable Securities Securities, which consent shall not be unreasonably withheld, and (y) in no event shall the amount of any indemnity under this Section 7.2 exceed the gross proceeds from the applicable offering received by such Selling Holder. 6.3. Promptly after receipt by an indemnified party under this Section 7 of notice of the commencement of any action, suit, proceeding, investigation or threat thereof made in writing for which such indemnified party may make a claim under this Section 7, such indemnified party shall deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any amendmentother indemnifying party similarly noticed, supplement or preliminary materials associated to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall have the right to retain its own counsel, with the same are statements specifically relating fees and disbursements and expenses to (a) be paid by the beneficial ownership indemnifying party, if representation of shares of Common Stock such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such Holder and its Affiliates, (b) the name and address of counsel in such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation proceeding. The failure to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt deliver written notice to the indemnifying party within a reasonable time following the commencement of any claim with respect such action, if prejudicial to which it seeks indemnification. Notwithstanding the previous sentenceits ability to defend such action, any failure or delay to so notify the shall relieve such indemnifying party of any liability to the indemnified party under this Section 7 but shall not relieve the indemnifying party of its obligations under this Agreement, except any liability that it may have to the extent that the indemnifying any indemnified party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification otherwise than pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in Section 7. Any fees and shall have the right, exercisable expenses incurred by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from (including any fees and expenses incurred in connection with investigating or preparing to defend such indemnified party of such claim action or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable proceeding) shall be paid to the indemnified party, as incurred, within thirty (30) days of written notice thereof to the indemnifying party (regardless of whether it is ultimately determined that an indemnified party is not entitled to indemnification hereunder). Notwithstanding the previous sentence, any Any such indemnified party shall continue have the right to be entitled employ separate counsel in any such action, claim or proceeding and to participate in the defense of such claim or action, with counsel of its own choicethereof, but the indemnifying party fees and expenses of such counsel shall not be obligated to reimburse the expenses of such indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (Ai) the indemnifying party has agreed in writing to pay such fees, costs fees and expenses, expenses or (Bii) the indemnifying party has shall have failed to promptly assume the defense of such action, claim or action within a reasonable time after receipt of notice of proceeding or (iii) the named parties to any such action, claim or action, proceeding (Cincluding any impleaded parties) having assumed the defense of include both such claim or action, indemnified party and the indemnifying party fails to employ counsel reasonably acceptable to the party, and such indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of shall have been advised by counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional in addition to those available to the indemnifying party. Subject to party and that the foregoing sentence, no assertion of such defenses would create a conflict of interest such that counsel employed by the indemnifying party shallcould not faithfully represent the indemnified party (in which case, if such indemnified party notifies the indemnifying party in writing that it elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense of such action, claim or proceeding on behalf of such indemnified party, it being understood, however, that the indemnifying party shall not, in connection with any one such action, claim or action proceeding or separate but substantially similar or related actions actions, claims or proceedings in the same jurisdiction arising out of the same general circumstances allegations or allegationscircumstances, be liable for the fees, costs reasonable fees and expenses of more than one separate firm of attorneys (in addition to any together with appropriate local counsel) at any time for all such indemnified parties. The , unless in the reasonable judgment of such indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such action, claim or proceeding, in which event the indemnifying party shall not have be obligated to pay the right fees and expenses of such additional counsel or counsels). No indemnifying party shall be liable to settle a claim or action for which any an indemnified party is entitled to indemnification pursuant to this Agreement for any settlement of any action, proceeding or claim without the written consent of the indemnified indemnifying party, The indemnifying party shall not which consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under unreasonably withheld. 6.4. If the indemnification required by this Agreement for any amount paid or payable or incurred pursuant Section 7 from the indemnifying party is unavailable to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, an indemnified party hereunder in respect of any losslosses, claimclaims, actiondamages, damage, liability liabilities or expense expenses referred to in this Section 11, then the applicable 7: (i) The indemnifying party, in lieu of indemnifying such indemnified party under this Agreementparty, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability liabilities or expense expenses in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, fault of the indemnifying party shall contribute to such amount and indemnified parties in connection with the actions which resulted in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying partylosses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative fault of the such indemnifying party, on the one hand, party and of the indemnified party, on the other hand, parties shall be determined by reference to, among other things, whether the untrue any Violation has been committed by, or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the by, such indemnifying party or by the indemnified partyparties, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission or violationViolation. The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 7.1 and Section 7.2, any legal or other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding. (ii) The parties hereto agree that it would not be just and equitable if contribution pursuant to this Agreement Section 7.4 were determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in this Section 11(d7.4(i). In no event shall the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of 6.5. If indemnification is available under this Section 11 7, the indemnifying parties shall remain indemnify each indemnified party to the full extent provided in full force and effect regardless this Section 7 without regard to the relative fault of any investigation made by such indemnifying party or on behalf of any indemnified party or any officer, director or controlling person other equitable consideration referred to in Section 7.4. 6.6. The obligations of such indemnified party the Company and the Selling Holders of Registrable Securities under this Section 7 shall survive the Transfer completion of any offering of Registrable Securities by any Holderpursuant to a registration statement under this Agreement, and otherwise.

Appears in 2 contracts

Sources: Registration Rights Agreement (Gleacher & Company, Inc.), Registration Rights Agreement (First Albany Companies Inc)

Indemnification; Contribution. (a) The Company shall, to the fullest extent permitted by law, will indemnify and hold harmless each Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, holder and each other Personaffiliate thereof of Common Stock registered pursuant to this Agreement with the Commission, if any, who acts on behalf of or controls under any such Holder Blue Sky Law or Controlling Person (each of the foregoing, a “Covered Person”) regulation against any losses, claims, actions, damages, liabilities and expensesor liabilities, joint or several, to which such Covered Person holder may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, or liabilities (or expenses actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statementpreliminary prospectus, Prospectusregistration statement, preliminary Prospectusprospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to thereto, or any document incorporated by reference in arise out of or are based upon the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company misleading, and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall will reimburse each Covered Person such holder and affiliate for any legal or other expenses reasonably incurred by such Covered Person holder in connection with investigating, investigating or defending or settling any such lossaction or claim regardless of the negligence of any such holder or affiliate; provided, claimhowever, action, damage or liability. Notwithstanding the previous sentence, that the Company shall not be so liable in any such case to the extent that any such loss, claim, action, damage, or liability or expense arises out of or is based upon any such an untrue statement or alleged untrue statement, statement or omission or alleged omission, omission made or incorporated by reference in any such Registration Statementpreliminary prospectus, Prospectusregistration statement or prospectus, preliminary Prospectus, free writing prospectus or any such amendment or supplement to or any document incorporated by reference in the same thereto, in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by any such Covered Person holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise havetherein. (b) In connection with any registration in which a Holder Each holder of Registrable Securities is participating, each such Holder shall furnish Common Stock registered pursuant to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, this Agreement will indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person Company against any losses, claims, actions, damages, or liabilities and expenses, joint or several, to which they or any of them the Company may become subject subject, under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, or liabilities (or expenses actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in the Registration Statementany preliminary prospectus, Prospectusregistration statement or prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement thereto, or arise out of or supplement to are based upon the same or (ii) any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, butin each case to the extent, in the case of each of clauses (i) and (ii), but only to the extent extent, that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statementany preliminary prospectus, Prospectusregistration statement or prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same thereto, in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by such Holder holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise havetherein. (c) Any Person entitled Promptly after receipt by an indemnified party under Sections 8(a) or (b) above of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to indemnification pursuant to this Agreement shall give prompt written notice to be made against the indemnifying party under either such subsection, notify the indemnifying party in writing of any claim with respect the commencement thereof; but the omission so to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve it from any liability that it may otherwise have to any indemnified party. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, commencement thereof the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, assume the defense of any such claim or action, with counsel reasonably acceptable thereof by notice in writing to the indemnified party. Notwithstanding After notice from the previous sentence, any indemnifying party to such indemnified party shall continue of its election to be entitled to participate in assume the defense of such claim or actionthereof, with counsel of its own choice, but the indemnifying party shall not be obligated liable to reimburse the such indemnified party under either of such subsections for any feeslegal expenses of other counsel or any other expense, costs and expenses in each case subsequently incurred by the such indemnified party party, in connection with such the defense unless (A) thereof other than reasonable costs of investigation incurred prior to the assumption by the indemnifying party has agreed party, unless such expenses have been specifically authorized in writing to pay such feesby the indemnifying party, costs and expenses, (B) the indemnifying party has failed to assume the defense and employ counsel, or the named parties to any such action include both the indemnified party and the indemnifying party, as appropriate, and such indemnified party has been advised by counsel that the representation of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, indemnified party and the indemnifying party fails by the same counsel would be inappropriate due to employ actual or potential differing interests between them, in each of which cases the fees of counsel reasonably acceptable to for the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen will be paid by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 8 is held by a court of competent jurisdiction unavailable or insufficient to be unavailable to, or unenforceable by, hold harmless an indemnified party under Section 8(a) or 8(b) in respect of any losslosses, claimclaims, actiondamages, damage, liability or expense liabilities (or action in respect thereof) referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability or expense liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company and the indemnifying partyholder or holders from this Agreement and from the offering of the shares of Common Stock. If If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, the then each indemnifying party shall contribute to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only the such relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party Company and the indemnifying partyholders in connection with the statement or omissions that resulted in such losses, claims, damages, or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to holder and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties Company and the holders agree that it would not be just and equitable if contribution pursuant to this Agreement Section 8(d) were determined by pro rata allocation (even if the holders were treated as one entity for such purpose) or by any other method or of allocation that does not take into account the equitable considerations referred to above in this subsection (e). Except as provided in Section 8(c), the amount paid or payable by an indemnified party as a result of the losses, claims, damages, or liabilities (or actions in respect thereof) referred to above in this Section 11(d). In no event 8(d) shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received include any legal or other expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise to connection with investigation or defending any such obligation to contributeaction or claim. No indemnified party person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. Notwithstanding any provision in this Section 8(d) to the contrary, no holder shall be liable for any amount, in the aggregate, in excess of the net proceeds to such holder from the sale of such holder's shares (obtained upon exercise of Warrants) giving rise to such losses, claims, damages, or liabilities. (e) The provisions obligations of the Company under this Section 11 8 shall remain be in full force and effect regardless of addition to any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party liability that the Company may otherwise have and shall survive extend, upon the Transfer same terms and conditions, to each person, if any, who controls any holder of Warrants within the meaning of the Act. The obligations of the holders of Common Stock under this Section 8 shall be in addition to any Registrable Securities by any Holderliability that such holders may otherwise have and shall extend, upon the same terms and conditions to each person, if any, who controls the Company within the meaning of the Act.

Appears in 2 contracts

Sources: Warrant Agreement (Lorecom Technologies Inc), Warrant Agreement (Horizon Pharmacies Inc)

Indemnification; Contribution. (a) The Company shall, agrees to the fullest extent permitted by law, indemnify and hold harmless (i) each Holder of Registrable Securitiescovered by any Registration Statement, any (ii) each other Person who is participates as an underwriter in the offering or might be deemed to be a “controlling person” sale of the Company or any of its subsidiaries such securities, (iii) each Person, if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls Act) any such Holder or Controlling underwriter (any of the Persons referred to in this clause (iii) being hereinafter referred to as a "controlling Person"), and (iv) the respective officers, directors, partners, employees, representatives and agents of any such Holder or underwriter or any controlling Person (each of any Person referred to in clause (i), (ii), (iii) or (iv) may hereinafter be referred to as an "indemnified Person"), to the foregoingfullest extent lawful, a “Covered Person”) from and against any and all losses, claims, actions, damages, liabilities and liabilities, judgments or expenses, joint or severalseveral (or actions or proceedings, whether commenced or threatened, in respect thereof) (collectively, "Claims"), to which such Covered indemnified Person may become subject under either Section 15 of the Securities Act, Act or Section 20 of the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon (i) upon, or are caused by any untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus Statement or Prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to thereto), or any document incorporated by reference in the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading misleading, or (iii) any violation or alleged a violation by the Company of the Securities Act or any other similar federal or state securities laws law, or any rule or regulation promulgated under such federal the Securities Act or any state securities laws law, or any other law applicable to the Company and relating to any action such registration or inaction required of the Company in connection with any registration of securities. In additionqualification, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, except insofar as such losses, claims, actions, damages, liabilities liabilities, judgments or expenses arise out of any such indemnified Person; (x) are caused by any such untrue statement or are based upon (i) any untrue omission or alleged untrue statement or omission that is based upon information relating to such indemnified Person furnished in writing to the Company by or on behalf of a material fact contained in any of such indemnified Person expressly for use therein; (y) with respect to the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under result from the fact that such Holder sold Securities Act to a Person to whom there was not sent or any successor rule to Rule 405) given, at or any amendment of or supplement prior to the same or (ii) any omission or alleged omission written confirmation of such sale, a material fact required to be stated in such Registration Statement, copy of the Prospectus, preliminary Prospectus as amended or free writing prospectus supplemented, if the Company shall have previously furnished copies thereof to such Holder in accordance with this Agreement and said Prospectus, as amended or necessary to make the statements made in the same not misleadingsupplemented, but, in the case of each of clauses (i) and (ii), only to the extent that would have corrected such untrue statement or alleged untrue statementomission; or (z) as a result of the use by an indemnified Person of any Prospectus when, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to upon receipt of a notice from the Company of the existence of any fact of the kind described in Section 2.3(b)(iv), the indemnified Person or the related Holder was not permitted to do so. Such indemnity shall remain in full force and effect regardless of any investigation made by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and on behalf of any indemnified Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to survive the net proceeds (after deducting Selling Expenses) actually received transfer of such securities by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders In case any action shall be brought or asserted against any of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim indemnified Persons with respect to which it seeks indemnification. Notwithstanding indemnity may be sought against the previous sentenceCompany, any failure or delay to so such indemnified Person shall promptly notify the indemnifying party Company and the Company shall not relieve assume the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delaydefense thereof. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an Such indemnified party, the indemnifying party shall be entitled to participate in and Person shall have the right, exercisable by giving written notice right to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of employ separate counsel in any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled action and to participate in the defense of such claim or action, with counsel of its own choicethereof, but the indemnifying party fees and expenses of such counsel shall not be obligated to reimburse at the expense of the indemnified party for any fees, costs and expenses subsequently incurred Person unless (i) the employment of such counsel shall have been specifically authorized in writing by the indemnified party in connection with such defense unless Company, (Aii) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has Company shall have failed to assume the defense of and employ counsel, or (iii) the named parties to any such claim or action within a reasonable time after receipt of notice of such claim or action, (Cincluding any implied parties) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to include both the indemnified party or to pursue Person and the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent Company and the indemnified party would present such Person shall have been advised in writing by its counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject Company (in which case the Company shall not have the right to assume the foregoing sentencedefense of such action on behalf of the indemnified Person), no indemnifying party shallit being understood, however, that the Company shall not, in connection with any one claim or such action or separate but substantially similar or related actions in the same jurisdiction or proceedings arising out of the same general circumstances allegations or allegationscircumstances, be liable for the fees, costs reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for all the indemnified partiesPersons, which firm shall be (x) designated by such indemnified Persons; and (y) reasonably satisfactory to the Company. The indemnifying party Company shall not have be liable for any settlement of any such action or proceeding effected without the right Company's prior written consent, which consent shall not be withheld unreasonably, and the Company agrees to settle a claim or action for which indemnify and hold harmless any indemnified party is entitled to indemnification pursuant to this Agreement without Person from and against any loss, claim, damage, liability, judgment or expense by reason of any settlement of any action effected with the written consent of the Company. The Company shall not, without the prior written consent of each indemnified partyPerson, The indemnifying party shall not settle or compromise or consent to the entry of judgment on or otherwise seek to terminate any judgment pending or enter into threatened action, claim, litigation or agree proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not any indemnified Person is a party thereto), unless such settlement, compromise, consent or termination includes an unconditional release of each indemnified Person from all liability arising out of such action, claim litigation or proceeding. (b) Each Holder of Restricted Securities covered by any Registration Statement agrees, severally and not jointly, to indemnify and hold harmless the Company and its directors, officers and any settlement Person controlling (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Company, and the respective officers, directors, partners, employees, representatives and agents of each, to the same extent as the foregoing indemnity from the Company to each of the indemnified Persons, but only (i) with ---- respect to actions based on information relating to such claim Holder furnished in writing by or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term behalf of such judgment Holder expressly for use in any Registration Statement or settlement Prospectus, and (ii) to the giving extent of the gross proceeds, if any, received by such Purchaser from the claimant sale or plaintiff in other disposition of his or its Restricted Securities covered by such judgment Registration Statement. In case any action or settlement to proceeding shall be brought against the Company or its directors or officers or any such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability controlling Person in respect of which indemnity may be sought against a Holder of Restricted Securities covered by any Registration Statement, such claim or action. The indemnifying party Holder shall have the rights and duties given the Company in Section 2.7(a) (except that the Holder may but shall not be liable under this Agreement for any amount paid required to assume the defense thereof), and the Company or payable its directors or incurred pursuant officers or such controlling Person shall have the rights and duties given to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayedeach Holder by Section 2.7(a). (dc) If the indemnification provided for in this Section 11 2.7 is held by a court of competent jurisdiction unavailable to be unavailable to, or unenforceable by, an indemnified party under Section 2.7(a) or (b) (other than by reason of exceptions provided in those Sections) in respect of any losslosses, claimclaims, actiondamages, damageliabilities, liability judgments or expense expenses referred to in this Section 11therein, then the each applicable indemnifying partyparty (in the case of the Holders severally and not jointly), in lieu of indemnifying such indemnified party under this Agreementparty, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims damages, actionliabilities, damage, liability judgments or expense expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company on the one hand and the indemnifying party. If Holder on the other hand from sale of Restricted Securities, or (ii) if such allocation provided by the preceding sentence clause (i) above is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence clause (i) above but also the relative fault of the indemnified party Company and such Holder in connection with the indemnifying partystatements or omissions which resulted in such losses, claims, damages, liabilities, judgments or expenses, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, Company on the one hand, hand and of the indemnified party, such Holder on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party Company or by such Holder and the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ parties relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties amount paid to a party as a result of the losses, claims, damages, liabilities judgments and expenses referred to above shall be deemed to include, subject to the limitations set forth in the second paragraph of Section 2.7(a), any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any action or claim. The Company and each Holder of Restricted Securities covered by any Registration Statement agree that it would not be just and equitable if contribution pursuant to this Agreement Section 2.7(c) were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method or of allocation that which does not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 11(d2.7(c). In , no event Holder (and none of its related indemnified Persons) shall be required to contribute, in the aggregate, any amount in excess of the amount by which a Holder the dollar amount of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in upon the sale of Registrable the Restricted Securities that gives rise exceeds the amount of any damages which such Holder has otherwise been required to pay by reason of such obligation to contributeuntrue statement or omission or alleged omission. No indemnified party Person guilty or liable of fraudulent misrepresentation misrepresentations (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) . The indemnity and contribution provisions of contained in this Section 11 shall remain 2.7 are in full force and effect regardless of addition to any investigation made by or on behalf of any liability which the indemnifying Person may otherwise have to the indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any HolderPersons referred to above.

Appears in 2 contracts

Sources: Registration Rights Agreement (Senesco Technologies Inc), Registration Rights Agreement (Senesco Technologies Inc)

Indemnification; Contribution. (a) The Company shallagrees, to the fullest extent permitted by law, to indemnify and hold harmless each Holder of Registrable Securitiesand each Person, if any, who controls any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such PersonAct, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any and all losses, claims, actions, damages, liabilities and expenses, joint damages or several, to which such Covered Person may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to or any document incorporated by reference in the same, (ii) any omission or alleged omission of a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expensesliabilities, joint or several, to which they or any of them may become subject under the Securities ActAct or otherwise ("Indemnified Holder"), and to reimburse the Exchange ActHolders and such controlling Person or Persons, if any, for any state blue sky securities lawslegal or other expenses incurred by them in connection with defending any action, any equivalent non-U.S. securities laws suit or otherwiseproceeding (including governmental investigations) as provided in Section 4(c) hereof, insofar as such losses, claims, actions, damages, liabilities or expenses actions, suits or proceedings (including governmental investigations) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the any Shelf Registration Statement, Prospectusor, preliminary Prospectusif any Shelf Registration Statement shall be amended or supplemented, free writing prospectus (in the Shelf Registration Statement as defined in Rule 405 under the Securities Act so amended or any successor rule to Rule 405) supplemented, or any amendment arise out of or supplement to the same or (ii) are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, butexcept insofar as such losses, in the case claims, damages, liabilities or actions arise out of each of clauses (i) and (ii), only to the extent that or are based upon any such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission which was made in such the Shelf Registration Statement or in the Shelf Registration Statement as so amended or supplemented, in reliance upon and in conformity with information furnished in writing to the Company by any Holder expressly for use therein. The Company's indemnity agreement contained in this Section 4(a), and the covenants, representations and warranties of the Company contained in this Agreement, shall remain in full force and effect regardless of any investigation made by or on behalf of any Person, and the indemnity agreement contained in this Section 4 shall survive any termination of this Agreement. The liabilities of the Company in this Section 4 are in addition to any other liabilities of the Company under this Agreement or otherwise. (b) Each Holder agrees, severally and not jointly, to the extent permitted by law, to indemnify, hold harmless and reimburse the Company and each Person, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act, to the same extent and upon the same terms as the indemnity agreement of the Company set forth in Section 4(a) hereof, but only with respect to alleged untrue statements or omissions made in the Shelf Registration Statement or in the Shelf Registration Statement, Prospectusas amended or supplemented (if applicable), preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, upon and in conformity with, written with information prepared and furnished in writing to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liabilitytherein. The obligation to indemnify pursuant to indemnity agreement on the part of each Holder contained in this Section 11(b4(b) shall be individual remain in full force and severaleffect regardless of any investigation made by or on behalf of the Company or any other Person, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b4(b) shall not apply to amounts paid in settlement survive any termination of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise havethis Agreement. (c) Any If a claim is made or an action, suit or proceeding (including governmental investigations) is commenced or threatened against any person as to which indemnity may be sought under Section 4(a) or 4(b) hereof, such Person entitled (the "Indemnified Person") shall notify the Person against whom such indemnity may be sought (the "Indemnifying Person") promptly after any assertion of such claim threatening to indemnification pursuant to this Agreement institute an action, suit or proceeding or, if such an action, suit or proceeding is commenced against such Indemnified Person, promptly after such Indemnified Person shall give prompt written notice have been served with a summons or other first legal process, giving information as to the indemnifying party nature and basis of any claim with respect to which it seeks indemnificationthe claim. Notwithstanding the previous sentence, any failure or delay Failure to so notify the indemnifying party Indemnifying Person shall not not, however, relieve the indemnifying party Indemnifying Person from any liability which it may have on account of its obligations the indemnity under this Agreement, except Section 4(a) or 4(b) hereof if the Indemnifying Person has not been prejudiced in any material respect by such failure. Subject to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partyimmediately succeeding sentence, the indemnifying party Indemnifying Person shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, assume the defense of any such claim litigation or actionproceeding, including the employment of counsel and the payment of all expenses, with such counsel reasonably acceptable being designated, subject to the indemnified party. Notwithstanding the previous immediately succeeding sentence, any in writing by a majority in principal amount of the Holders in the case of parties indemnified party pursuant to Section 4(b) hereof and by the Company in the case of parties indemnified pursuant to Section 4(a) hereof. Any Indemnified Person shall continue to be entitled have the right to participate in the defense of such claim litigation or action, with counsel of proceeding and to retain its own choicecounsel, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs fees and expenses subsequently incurred of such counsel shall be at the expense of such Indemnified Person unless (i) the Indemnifying Person and the Indemnified Person shall have mutually agreed to the retention of such counsel or (ii) the named parties to any such proceeding (including any impleaded parties) include (x) the Indemnifying Person and (y) the Indemnified Person and, in the written opinion of counsel to such Indemnified Person, representation of both parties by the indemnified party same counsel would be inappropriate due to actual or likely conflicts of interest between them, in connection with either of which cases the reasonable fees and expenses of counsel (including disbursements) for such defense unless Indemnified Person shall be reimbursed by the Indemnifying Person to the Indemnified Person. If there is a conflict as described in clause (Aii) above, and the indemnifying party has agreed Indemnified Persons have participated in writing the litigation or proceeding utilizing separate counsel whose fees and expenses have been reimbursed by the Indemnifying Person, and the Indemnified Persons, or any of them, are found to pay be solely liable, such fees, costs Indemnified Person shall repay to the Indemnifying Parties such fees and expenses, (B) the indemnifying party has failed to assume the defense expenses of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed separate counsel as the defense of such claim or action, Indemnifying Person shall have reimbursed. It is understood that the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shallIndemnifying Person shall not, in connection with any one claim litigation or action or separate but substantially similar proceeding or related actions litigation or proceedings in the same jurisdiction arising out of as to which the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is Indemnified Persons are entitled to indemnification pursuant to this Agreement without the consent of the indemnified partysuch separate representation, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for the reasonable fees and out-of-pocket expenses of more than one separate firm (together with not more than one appropriate local counsel) for all such Indemnified Persons. Subject to the next paragraph, all such fees and expenses shall be reimbursed by payment to the Indemnified Persons of such reasonable fees and expenses of counsel promptly after payment thereof by the Indemnified Persons. In furtherance of the requirement above that fees and expenses of any amount paid or payable or incurred separate counsel for the Indemnified Persons shall be reasonable, the Holders and the Company agree that the Indemnifying Person's obligations to pay such fees and expenses shall be conditioned upon the following: (1) in case separate counsel is proposed to be retained by the Indemnified Persons pursuant to or clause (ii) of the preceding paragraph, the Indemnified Persons shall in connection with any judgment entered or settlement effected good faith fully consult with the Indemnifying Person in advance as to the selection of such counsel; (2) reimbursable fees and expenses of such separate counsel shall be detailed and supported in a manner reasonably acceptable to the Indemnifying Person (but nothing herein shall be deemed to require the furnishing to the Indemnifying Person of any information, including, without limitation, computer print-outs of lawyers' daily time entries, to the extent that, in the judgment of such counsel, furnishing such information might reasonably be expected to result in a waiver of any attorney-client privilege); and (3) the Company and the Holders shall cooperate in monitoring and controlling the fees and expenses of separate counsel for Indemnified Persons for which the Indemnifying Person is liable hereunder, and the Indemnified Person shall use every reasonable effort to cause such separate counsel to minimize the duplication of activities as between themselves and counsel to the Indemnifying Person. The Indemnifying Person shall not be liable for any settlement of any litigation or proceeding effected without the written consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (Indemnifying Person, but if settled with such consent not or if there be a final judgment against the Indemnified Person, the Indemnifying Person agrees, subject to be unreasonably withheldthe provisions of this Section 4, conditioned to indemnify the Indemnified Person from and against any loss, damage, liability or delayed)expenses by reason of such settlement or judgment. The Indemnifying Person shall not, without the prior written consent of the Indemnified Persons, effect any settlement of any pending or threatened litigation, proceeding or claim in respect of which indemnity has been properly sought by the Indemnified Persons hereunder, unless such settlement includes an unconditional release by the claimant of all Indemnified Persons from all liability with respect to claims which are the subject matter of such litigation, proceeding or claim. (d) If the indemnification provided for in this Section 11 4 is held by a court of competent jurisdiction unavailable to be unavailable to, or unenforceable by, insufficient to hold harmless an indemnified party Indemnified Person under this Section 4 in respect of any losslosses, claimclaims, actiondamages or liabilities (or actions, damage, liability suits or expense proceedings (including governmental investigations) in respect thereof) referred to in therein, then each Indemnifying Person under this Section 11, then the applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, 4 shall contribute to the amount paid or payable by such indemnified party Indemnified Person as a result of such losslosses, claimclaims, action, damage, liability damages or expense liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Indemnifying Person on the one hand and the indemnifying partyIndemnified Person on the other from the sale of the Registrable Securities. If If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, the indemnifying party then each Indemnifying Person shall contribute to such amount paid or payable by such Indemnified Person in such proportion as is appropriate to reflect not only the such relative benefits referred to in the preceding sentence but also the relative fault of each Indemnifying Person, if any, on the indemnified party one hand and the indemnifying partyIndemnified Person on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions, suits or proceedings (including governmental investigations) in respect thereof), as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by Company on the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party one hand or the indemnified party. The relative fault shall also be determined by reference to Holders on the other and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties Company and the Holders agree that it would not be just and equitable if contribution pursuant to this Agreement Section 4 were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method or of allocation that which does not take into account of the equitable considerations referred to in this Section 11(d)4. In The amount paid or payable by an Indemnified Person as a result of the losses, claims, damages or liabilities (or actions, suits or proceedings (including governmental proceedings) in respect thereof) referred to in this Section 4 shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Person in connection with investigating or defending any such actions, suits or proceedings (including governmental proceedings) or claims, provided that the provisions of this Section 4 have been complied with (in all material respects) in respect of any separate counsel for such Indemnified Person. Notwithstanding the provisions of this Section 4, no event Holder shall be required to contribute any amount greater than the excess of the amount by which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually total received by such Holder in with respect to the sale of its Registrable Securities that gives rise pursuant to a Shelf Registration Statement exceeds the sum of (A) the amount paid by such obligation Holder for such Registrable Securities plus (B) the amount of any damages which such Holder has otherwise been required to contributepay by reason of such untrue or alleged untrue statement or omission or alleged omission. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. (e) . The provisions of Holders' obligations in this Section 11 4 to contribute are several in proportion to their respective obligations and not joint. The agreement with respect to contribution contained in this Section 4 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party the Company or any officerHolder, director or controlling person of such indemnified party and shall survive the Transfer any termination of any Registrable Securities by any Holderthis Agreement.

Appears in 2 contracts

Sources: Purchase Agreement (CMS Energy Corp), Registration Rights Agreement (CMS Energy Corp)

Indemnification; Contribution. (a) The Company shall, to the fullest extent permitted by law, will indemnify and hold harmless each Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, holder and each other Personaffiliate thereof of Common Stock registered pursuant to this Agreement with the Commission, if any, who acts on behalf of or controls under any such Holder Blue Sky Law or Controlling Person (each of the foregoing, a “Covered Person”) regulation against any losses, claims, actions, damages, liabilities and expensesor liabilities, joint or several, to which such Covered Person holder may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, or liabilities (or expenses actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statementpreliminary prospectus, Prospectusregistration statement, preliminary Prospectusprospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to thereto, or any document incorporated by reference in arise out of or are based upon the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company misleading, and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall will reimburse each Covered Person such holder and affiliate for any legal or other expenses reasonably incurred by such Covered Person holder in connection with investigating, investigating or defending or settling any such lossaction or claim regardless of the negligence of any such holder or affiliate; provided, claimhowever, action, damage or liability. Notwithstanding the previous sentence, that the Company shall not be so liable in any such case to the extent that any such loss, claim, action, damage, or liability or expense arises out of or is based upon any such an untrue statement or alleged untrue statement, statement or omission or alleged omission, omission made or incorporated by reference in any such Registration Statementpreliminary prospectus, Prospectusregistration statement or prospectus, preliminary Prospectus, free writing prospectus or any such amendment or supplement to or any document incorporated by reference in the same thereto, in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by any such Covered Person holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise havetherein. (b) In connection with any registration in which a Holder Each holder of Registrable Securities is participating, each such Holder shall furnish Common Stock registered pursuant to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, this Agreement will indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person Company against any losses, claims, actions, damages, or liabilities and expenses, joint or several, to which they or any of them the Company may become subject subject, under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, or liabilities (or expenses actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in the Registration Statementany preliminary prospectus, Prospectusregistration statement or prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement thereto, or arise out of or supplement to are based upon the same or (ii) any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, butin each case to the extent, in the case of each of clauses (i) and (ii), but only to the extent extent, that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statementany preliminary prospectus, Prospectusregistration statement or prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same thereto, in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by such Holder holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise havetherein. (c) Any Person entitled Promptly after receipt by an indemnified party under Sections 7(a) or (b) above of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to indemnification pursuant to this Agreement shall give prompt written notice to be made against the indemnifying party under either such subsection, notify the indemnifying party in writing of any claim with respect the commencement thereof; but the omission so to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve it from any liability that it may otherwise have to any indemnified party. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, commencement thereof the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, assume the defense of any such claim or action, with counsel reasonably acceptable thereof by notice in writing to the indemnified party. Notwithstanding After notice from the previous sentence, any indemnifying party to such indemnified party shall continue of its election to be entitled to participate in assume the defense of such claim or actionthereof, with counsel of its own choice, but the indemnifying party shall not be obligated liable to reimburse the such indemnified party under either of such subsections for any feeslegal expenses of other counsel or any other expense, costs and expenses in each case subsequently incurred by the such indemnified party party, in connection with such the defense unless (A) thereof other than reasonable costs of investigation incurred prior to the assumption by the indemnifying party has agreed party, unless such expenses have been specifically authorized in writing to pay such feesby the indemnifying party, costs and expenses, (B) the indemnifying party has failed to assume the defense and employ counsel, or the named parties to any such action include both the indemnified party and the indemnifying party, as appropriate, and such indemnified party has been advised by counsel that the representation of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, indemnified party and the indemnifying party fails by the same counsel would be inappropriate due to employ actual or potential differing interests between them, in each of which cases the fees of counsel reasonably acceptable to for the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen will be paid by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 7 is held by a court of competent jurisdiction unavailable or insufficient to be unavailable to, or unenforceable by, hold harmless an indemnified party under Section 7(a) or 7(b) in respect of any losslosses, claimclaims, actiondamages, damage, liability or expense liabilities (or action in respect thereof) referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability or expense liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company and the indemnifying partyholder or holders from this Agreement and from the offering of the shares of Common Stock. If If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, the then each indemnifying party shall contribute to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only the such relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party Company and the indemnifying partyholders in connection with the statement or omissions that resulted in such losses, claims, damages, or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to holder and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties Company and the holders agree that it would not be just and equitable if contribution pursuant to this Agreement Section 7(d) were determined by pro rata allocation (even if the holders were treated as one entity for such purpose) or by any other method or of allocation that does not take into account the equitable considerations referred to above in this subsection (d). Except as provided in Section 7(c), the amount paid or payable by an indemnified party as a result of the losses, claims, damages, or liabilities (or actions in respect thereof) referred to above in this Section 11(d). In no event 7(d) shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received include any legal or other expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise to connection with investigation or defending any such obligation to contributeaction or claim. No indemnified party person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. Notwithstanding any provision in this Section 7(d) to the contrary, no holder shall be liable for any amount, in the aggregate, in excess of the net proceeds to such holder from the sale of such holder's shares (obtained upon exercise of Warrants) giving rise to such losses, claims, damages, or liabilities. (e) The provisions obligations of the Company under this Section 11 7 shall remain be in full force and effect regardless of addition to any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party liability that the Company may otherwise have and shall survive extend, upon the Transfer same terms and conditions, to each person, if any, who controls any holder of Warrants within the meaning of the Act. The obligations of the holders of Common Stock under this Section 7 shall be in addition to any Registrable Securities by any Holderliability that such holders may otherwise have and shall extend, upon the same terms and conditions to each person, if any, who controls the Company within the meaning of the Act.

Appears in 2 contracts

Sources: Warrant Agreement (Talisman Enterprise Inc), Warrant Agreement (Talisman Enterprise Inc)

Indemnification; Contribution. (a) The Company shall, Agilent and World Trade jointly and severally agree to the fullest extent permitted by law, indemnify and hold harmless each Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of ▇▇▇▇▇▇▇ ▇▇▇▇▇ and its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board membersaffiliates, directors, officers, trustees, managers, members, employees, agents, Affiliates agents and shareholders, controlling persons (▇▇▇▇▇▇▇ ▇▇▇▇▇ and each such other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a person being an Covered PersonIndemnified Party”) from and against any and all losses, claims, actions, damages, liabilities damages and expensesliabilities, joint or several, to which such Covered Person may become Indemnified Party becomes subject under the Securities Actany applicable law, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities otherwise related to or expenses arise arising out of or are based upon in connection with (ia) any Refinancing or any other transaction contemplated by this Agreement and (b) any untrue statement or alleged untrue statement of a material fact contained in any information (whether oral or incorporated written) or documents furnished or made available by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act World Trade or Agilent or any successor rule of their affiliates or the relevant issuer or obligor under any Refinancing, directly or through ▇▇▇▇▇▇▇ ▇▇▇▇▇, to Rule 405) any holder of securities placed or underwritten by ▇▇▇▇▇▇▇ ▇▇▇▇▇ or any amendment of its affiliates in connection with any Refinancing or supplement otherwise contemplated pursuant to this Agreement or any document incorporated by reference in the same, (ii) any omission or the alleged omission of to state therein a material fact required to be stated necessary in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary order to make the statements made therein not misleading, in light of the circumstances under which they were made; provided, however, that neither Agilent nor World Trade shall be liable, in the same not misleading or case of this clause (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In additionb), the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any losssuch losses, claimclaims, action, damage, liability damages or expense arises liabilities arise out of or is are based upon any on such untrue statement or alleged untrue statement, statement or omission or alleged omission, omission made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same therein in reliance upon, upon and in conformity with, with written information prepared and relating to ▇▇▇▇▇▇▇ ▇▇▇▇▇ (or the relevant affiliate thereof) furnished to the Company Agilent or World Trade by such Covered Person ▇▇▇▇▇▇▇ ▇▇▇▇▇ expressly for use in such Registration Statement, Prospectus, preliminary Prospectus therein. In no event shall Agilent or free writing prospectus. This indemnity shall World Trade be liable for fees and expenses of more than one counsel (in addition to any liability the Company may otherwise have. (blocal counsel) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests separate from their own counsel for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, all Indemnified Parties in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances allegations or allegationscircumstances. Agilent and World Trade jointly and severally agree to promptly reimburse any Indemnified Party for all expenses (including reasonable counsel fees and expenses) as they are incurred in connection with the investigation of, preparation for or defense of any pending or threatened claim or any action or proceeding arising from any of the matters referred to in the preceding sentence, whether or not such Indemnified Party is a party and whether or not such claim, action or proceeding is initiated or brought by or on behalf of World Trade or Agilent or the relevant issuer or whether or not resulting in any liability. Neither Agilent nor World Trade shall be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry settlement of any proceeding effected without its written consent, but if settled with such consent or if there shall be a final judgment for the plaintiff, Agilent and World Trade jointly or enter into or severally agree to indemnify the Indemnified Party from and against any loss or liability by reason of such settlement relating or judgment. Agilent and World Trade further jointly and severally agree not to such assert any claim against any Indemnified Party for consequential, punitive or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations exemplary damages on any indemnified party and includes as an unconditional term theory of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with the transactions described in or contemplated by this Agreement. Neither Agilent nor World Trade shall be liable to an Indemnified Party under clause (a) of the foregoing indemnification provision to the extent that any judgment entered loss, claim, damage, liability or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 expense is held finally determined by a court of competent jurisdiction to be unavailable tohave resulted primarily from such Indemnified Party’s bad faith, gross negligence or unenforceable by, willful misconduct. If the indemnification of an indemnified party in respect of any loss, claim, action, damage, liability or expense referred to Indemnified Party provided for in this Section 11Agreement is for any reason held unenforceable, then the applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall Agilent and World Trade jointly and severally agree to contribute to the amount paid losses, claims, damages or payable by liabilities for which such indemnified party as a result of such loss, claim, action, damage, liability or expense indemnification is held unenforceable (a) in such proportion as is appropriate to reflect the relative benefits received by to World Trade and Agilent, on the indemnified party one hand, and ▇▇▇▇▇▇▇ ▇▇▇▇▇, on the indemnifying party. If other hand, of any Refinancing, or (b) (but only if) the allocation provided for in clause (a) is for any reason prohibited by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence clause (a) but also World Trade and Agilent’s relative fault, on the one hand, and the relative fault of ▇▇▇▇▇▇▇ ▇▇▇▇▇, on the indemnified party and the indemnifying partyother hand, as well as any other relevant equitable considerations. The Agilent and World Trade jointly and severally agree that for the purposes of this paragraph the relative fault of the indemnifying partybenefits to World Trade and Agilent, on the one hand, and of the indemnified partyto ▇▇▇▇▇▇▇ ▇▇▇▇▇, on the other hand, shall be determined deemed to be in the same proportion that the total value received or contemplated to be received by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or World Trade and/or Agilent in any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable Refinancing bears to the Companyfees paid or to be paid to ▇▇▇▇▇▇▇ ▇▇▇▇▇ under any commitment letter or engagement letter, andas the case may be, relating with respect to any action or inaction required of the Company in connection with any registration of securitiessuch Refinancing; provided, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference however, that, to the parties’ relative intentextent permitted by applicable law, knowledge, access to information and opportunity to correct or prevent such statement, omission or violation. The parties agree that it would not be just and equitable if contribution pursuant to this Agreement were determined by pro rata allocation or by any other method or allocation that does not take into account the equitable considerations referred to in this Section 11(d). In no event shall the amount which a Holder of Registrable Securities may Indemnified Parties be obligated required to contribute pursuant in respect of a specific transaction an aggregate amount in excess of the fees actually paid in such transaction to this Section 11(d) exceed ▇▇▇▇▇▇▇ ▇▇▇▇▇. The foregoing contribution agreement shall be in addition to any rights that any Indemnified Party may have at common law or otherwise. No investigation or failure to investigate by any Indemnified Party shall impair the foregoing indemnification and contribution agreement or any other right an amount equal Indemnified Party may have. Agilent and World Trade jointly and severally agree that, without ▇▇▇▇▇▇▇ ▇▇▇▇▇’▇ prior written consent, neither World Trade nor Agilent nor any of their affiliates or subsidiaries will settle, compromise or consent to the net proceeds (after deducting Selling Expenses) actually received by such Holder entry of any judgment in any pending or threatened claim, action or proceeding in respect of which indemnification has been or could be sought under the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party guilty or liable of fraudulent misrepresentation within the meaning of Section 11(f) of the Securities Act shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The indemnification provisions of this Section 11 shall remain Agreement (whether or not ▇▇▇▇▇▇▇ ▇▇▇▇▇ or any other Indemnified Party is an actual or potential party to such claim, action or proceeding), unless such settlement, compromise or consent (a) includes an unconditional written release, in full force form and effect regardless substance satisfactory to ▇▇▇▇▇▇▇ ▇▇▇▇▇ and each Indemnified Party, from all liability arising out of such claim, action or proceeding and (b) does not include any investigation made statement as to, or an admission of, fault, culpability or failure to act by or on behalf of any indemnified party Indemnified Party. In the event that an Indemnified Party is requested or required to appear as a witness in any action brought by or on behalf of or against Agilent or any officerof its subsidiaries or affiliates in which such Indemnified Party is not named as a defendant, director World Trade and Agilent agree to reimburse such Indemnified Party for all reasonable expenses incurred by it in connection with such Indemnified Party’s appearing and preparing to appear as such a witness, including, without limitation, the fees and expenses of its legal counsel. In the event that ▇▇▇▇▇▇▇ ▇▇▇▇▇ (or controlling person an affiliate of such indemnified party ▇▇▇▇▇▇▇ ▇▇▇▇▇) acts as underwriter or placement agent in connection with a Securities Offering or any other offering of securities contemplated under Section 4(d) hereof or acts as arranger under any credit facilities or any other financing contemplated under Section 4(d) hereof, the indemnification and contribution provisions set forth in the related placement agreement, underwriting agreement or credit facilities, as the case may be, shall survive supersede and replace the Transfer provisions of any Registrable Securities by any Holderthis Section 6 in all respects.

Appears in 2 contracts

Sources: Related Agreement (Agilent Technologies Inc), Related Agreement (Agilent Technologies Inc)

Indemnification; Contribution. (a) The Company shallagrees, to the fullest extent permitted by law, to indemnify and hold harmless each Holder of Registrable Securitiesand each Person, if any, who controls any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such PersonAct, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any and all losses, claims, actions, damages, liabilities and expenses, joint damages or several, to which such Covered Person may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to or any document incorporated by reference in the same, (ii) any omission or alleged omission of a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expensesliabilities, joint or several, to which they or any of them may become subject under the Securities ActAct or otherwise ("Indemnified Holder"), and to reimburse the Exchange ActHolders and such controlling Person or Persons, if any, for any state blue sky securities lawslegal or other expenses incurred by them in connection with defending any action, any equivalent non-U.S. securities laws suit or otherwiseproceeding (including governmental investigations) as provided in Section 4(c) hereof, insofar as such losses, claims, actions, damages, liabilities or expenses actions, suits or proceedings (including governmental investigations) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the any Shelf Registration Statement, Prospectusor, preliminary Prospectusif any Shelf Registration Statement shall be amended or supplemented, free writing prospectus (in the Shelf Registration Statement as defined in Rule 405 under the Securities Act so amended or any successor rule to Rule 405) supplemented, or any amendment arise out of or supplement to the same or (ii) are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, butexcept insofar as such losses, in the case claims, damages, liabilities or actions arise out of each of clauses (i) and (ii), only to the extent that or are based upon any such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission which was made in such the Shelf Registration Statement or in the Shelf Registration Statement as so amended or supplemented, in reliance upon and in conformity with information furnished in writing to the Company by any Holder expressly for use therein. The Company's indemnity agreement contained in this Section 4(a), and the covenants, representations and warranties of the Company contained in this Agreement, shall remain in full force and effect regardless of any investigation made by or on behalf of any Person, and the indemnity agreement contained in this Section 4 shall survive any termination of this Agreement. The liabilities of the Company in this Section 4 are in addition to any other liabilities of the Company under this Agreement or otherwise. (b) Each Holder agrees, severally and not jointly, to the extent permitted by law, to indemnify, hold harmless and reimburse the Company and each Person, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act, to the same extent and upon the same terms as the indemnity agreement of the Company set forth in Section 4(a) hereof, but only with respect to alleged untrue statements or omissions made in the Shelf Registration Statement or in the Shelf Registration Statement, Prospectusas amended or supplemented (if applicable), preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, upon and in conformity with, written with information prepared and furnished in writing to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liabilitytherein. The obligation to indemnify pursuant to indemnity agreement on the part of each Holder contained in this Section 11(b4(b) shall be individual remain in full force and severaleffect regardless of any investigation made by or on behalf of the Company or any other Person, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b4(b) shall not apply to amounts paid in settlement survive any termination of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise havethis Agreement. (c) Any If a claim is made or an action, suit or proceeding (including governmental investigations) is commenced or threatened against any person as to which indemnity may be sought under Section 4(a) or 4(b) hereof, such Person entitled (the "Indemnified Person") shall notify the Person against whom such indemnity may be sought (the "Indemnifying Person") promptly after any assertion of such claim threatening to indemnification pursuant to this Agreement institute an action, suit or proceeding or, if such an action, suit or proceeding is commenced against such Indemnified Person, promptly after such Indemnified Person shall give prompt written notice have been served with a summons or other first legal process, giving information as to the indemnifying party nature and basis of any claim with respect to which it seeks indemnificationthe claim. Notwithstanding the previous sentence, any failure or delay Failure to so notify the indemnifying party Indemnifying Person shall not not, however, relieve the indemnifying party Indemnifying Person from any liability which it may have on account of its obligations the indemnity under this Agreement, except Section 4(a) or 4(b) hereof if the Indemnifying Person has not been prejudiced in any material respect by such failure. Subject to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partyimmediately succeeding sentence, the indemnifying party Indemnifying Person shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, assume the defense of any such claim litigation or actionproceeding, including the employment of counsel and the payment of all expenses, with such counsel reasonably acceptable being designated, subject to the indemnified party. Notwithstanding the previous immediately succeeding sentence, any in writing by a majority in interest of the Holders in the case of parties indemnified party pursuant to Section 4(b) hereof and by the Company in the case of parties indemnified pursuant to Section 4(a) hereof. Any Indemnified Person shall continue to be entitled have the right to participate in the defense of such claim litigation or action, with counsel of proceeding and to retain its own choicecounsel, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs fees and expenses subsequently incurred of such counsel shall be at the expense of such Indemnified Person unless (i) the Indemnifying Person and the Indemnified Person shall have mutually agreed to the retention of such counsel or (ii) the named parties to any such proceeding (including any impleaded parties) include (x) the Indemnifying Person and (y) the Indemnified Person and, in the written opinion of counsel to such Indemnified Person, representation of both parties by the indemnified party same counsel would be inappropriate due to actual or likely conflicts of interest between them, in connection with either of which cases the reasonable fees and expenses of counsel (including disbursements) for such defense unless Indemnified Person shall be reimbursed by the Indemnifying Person to the Indemnified Person. If there is a conflict as described in clause (Aii) above, and the indemnifying party has agreed Indemnified Persons have participated in writing the litigation or proceeding utilizing separate counsel whose fees and expenses have been reimbursed by the Indemnifying Person, and the Indemnified Persons, or any of them, are found to pay be solely liable, such fees, costs Indemnified Person shall repay to the Indemnifying Parties such fees and expenses, (B) the indemnifying party has failed to assume the defense expenses of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed separate counsel as the defense of such claim or action, Indemnifying Person shall have reimbursed. It is understood that the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shallIndemnifying Person shall not, in connection with any one claim litigation or action or separate but substantially similar proceeding or related actions litigation or proceedings in the same jurisdiction arising out of as to which the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is Indemnified Persons are entitled to indemnification pursuant to this Agreement without the consent of the indemnified partysuch separate representation, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for the reasonable fees and out-of-pocket expenses of more than one separate firm (together with not more than one appropriate local counsel) for all such Indemnified Persons. Subject to the next paragraph, all such fees and expenses shall be reimbursed by payment to the Indemnified Persons of such reasonable fees and expenses of counsel promptly after payment thereof by the Indemnified Persons. In furtherance of the requirement above that fees and expenses of any amount paid or payable or incurred separate counsel for the Indemnified Persons shall be reasonable, the Holders and the Company agree that the Indemnifying Person's obligations to pay such fees and expenses shall be conditioned upon the following: (1) in case separate counsel is proposed to be retained by the Indemnified Persons pursuant to or clause (ii) of the preceding paragraph, the Indemnified Persons shall in connection with any judgment entered or settlement effected good faith fully consult with the Indemnifying Person in advance as to the selection of such counsel; (2) reimbursable fees and expenses of such separate counsel shall be detailed and supported in a manner reasonably acceptable to the Indemnifying Person (but nothing herein shall be deemed to require the furnishing to the Indemnifying Person of any information, including, without limitation, computer print-outs of lawyers' daily time entries, to the extent that, in the judgment of such counsel, furnishing such information might reasonably be expected to result in a waiver of any attorney-client privilege); and (3) the Company and the Holders shall cooperate in monitoring and controlling the fees and expenses of separate counsel for Indemnified Persons for which the Indemnifying Person is liable hereunder, and the Indemnified Person shall use every reasonable effort to cause such separate counsel to minimize the duplication of activities as between themselves and counsel to the Indemnifying Person. The Indemnifying Person shall not be liable for any settlement of any litigation or proceeding effected without the written consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (Indemnifying Person, but if settled with such consent not or if there be a final judgment against the Indemnified Person, the Indemnifying Person agrees, subject to be unreasonably withheldthe provisions of this Section 4, conditioned to indemnify the Indemnified Person from and against any loss, damage, liability or delayed)expenses by reason of such settlement or judgment. The Indemnifying Person shall not, without the prior written consent of the Indemnified Persons, effect any settlement of any pending or threatened litigation, proceeding or claim in respect of which indemnity has been properly sought by the Indemnified Persons hereunder, unless such settlement includes an unconditional release by the claimant of all Indemnified Persons from all liability with respect to claims which are the subject matter of such litigation, proceeding or claim. (d) If the indemnification provided for in this Section 11 4 is held by a court of competent jurisdiction unavailable to be unavailable to, or unenforceable by, insufficient to hold harmless an indemnified party Indemnified Person under this Section 4 in respect of any losslosses, claimclaims, actiondamages or liabilities (or actions, damage, liability suits or expense proceedings (including governmental investigations) in respect thereof) referred to in therein, then each Indemnifying Person under this Section 11, then the applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, 4 shall contribute to the amount paid or payable by such indemnified party Indemnified Person as a result of such losslosses, claimclaims, action, damage, liability damages or expense liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Indemnifying Person on the one hand and the indemnifying partyIndemnified Person on the other from the sale of the Registrable Securities. If If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, the indemnifying party then each Indemnifying Person shall contribute to such amount paid or payable by such Indemnified Person in such proportion as is appropriate to reflect not only the such relative benefits referred to in the preceding sentence but also the relative fault of each Indemnifying Person, if any, on the indemnified party one hand and the indemnifying partyIndemnified Person on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions, suits or proceedings (including governmental investigations) in respect thereof), as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by Company on the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party one hand or the indemnified party. The relative fault shall also be determined by reference to Holders on the other and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties Company and the Holders agree that it would not be just and equitable if contribution pursuant to this Agreement Section 4 were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method or of allocation that which does not take into account of the equitable considerations referred to in this Section 11(d)4. In The amount paid or payable by an Indemnified Person as a result of the losses, claims, damages or liabilities (or actions, suits or proceedings (including governmental proceedings) in respect thereof) referred to in this Section 4 shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Person in connection with investigating or defending any such actions, suits or proceedings (including governmental proceedings) or claims, provided that the provisions of this Section 4 have been complied with (in all material respects) in respect of any separate counsel for such Indemnified Person. Notwithstanding the provisions of this Section 4, no event Holder shall be required to contribute any amount greater than the excess of the amount by which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually total received by such Holder in with respect to the sale of its Registrable Securities that gives rise pursuant to a Shelf Registration Statement exceeds the sum of (A) the amount paid by such obligation Holder for such Registrable Securities plus (B) the amount of any damages which such Holder has otherwise been required to contributepay by reason of such untrue or alleged untrue statement or omission or alleged omission. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. (e) . The provisions of Holders' obligations in this Section 11 4 to contribute are several in proportion to their respective obligations and not joint. The agreement with respect to contribution contained in this Section 4 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party the Company or any officerHolder, director or controlling person of such indemnified party and shall survive the Transfer any termination of any Registrable Securities by any Holderthis Agreement.

Appears in 2 contracts

Sources: Registration Rights Agreement (CMS Energy Corp), Purchase Agreement (CMS Energy Corp)

Indemnification; Contribution. (a) The Company shallIn connection with any registration of Registrable Securities pursuant to this Article III, Parent agrees to indemnify and hold harmless, to the fullest extent permitted by lawLaw, indemnify each of the Investors and hold harmless their respective Affiliates, the Investors’ Representative and each Holder of Registrable Securitiesits Affiliates, any and each Person who is controls an Investor or might be deemed to be a “controlling person” of the Company or any of its subsidiaries Investors’ Representative within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, the directors, officers, trusteesemployees, partners, affiliates, members, managers, memberstrustees, employees, agents, Affiliates and shareholders, assignees and each other Person, if any, who acts on behalf representatives of or controls any such Holder or Controlling Person (each of the foregoingforegoing (collectively, a the Covered PersonIndemnified Persons”) from and against any and all losses, claims, actions, damages, liabilities liabilities, judgments, actions and expenses, joint or several, to which such Covered Person may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to or any document incorporated by reference in the same, (ii) any omission or alleged omission of a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company including reasonable attorneys’ fees and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably actually incurred by them in connection with investigating, defending or settling any such losses, claims, damages, liabilities, actions or proceedings) (“Losses”) joint or several arising out of or based upon (i) any untrue or alleged untrue statement of material fact contained in any part of any Registration Statement, any preliminary or final prospectus or other disclosure document used in connection with the Registrable Securities, any Issuer FWP or any amendment or supplement to any of the foregoing, or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading or (ii) any violation or alleged violation by Parent or any of its Subsidiaries of any federal, state, foreign or common law rule or regulation applicable to Parent or any of its Subsidiaries and relating to action or inaction in connection with any such registration, Registration Statement, other disclosure document or Issuer FWP; provided, however, that Parent will not be required to indemnify any Indemnified Person for any losses, claims, damages, liabilities, judgments, actions or expenses resulting from any such untrue statement or omission if such untrue statement or omission was made in conformity with information with respect to such Indemnified Person or related Investors furnished to Parent in writing by or on behalf of such related Investors expressly for use therein. (b) In connection with any Registration Statement, preliminary or final prospectus, or Issuer FWP, in which an Investor is participating, each such Investor agrees to indemnify, severally and not jointly, Parent, its Directors, its officers who sign such Registration Statement and each Person, if any, who controls Parent (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act) to the same extent as the foregoing indemnity from Parent to the Investors, but only with respect to information with respect to such Investor furnished to Parent in writing by such Investor expressly for use in such Registration Statement, preliminary or final prospectus, or Issuer FWP to the extent such information is included therein in reliance upon and in conformity with the information furnished to Parent by such Investor expressly for use therein; provided, however, that in no event shall any Investor’s liability pursuant to this Section 2.08 in respect of the offering to which such loss, claim, actiondamages, damage liabilities, judgments, actions or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not expenses relate exceed an amount equal to the net proceeds to such Investor (after deducting Selling Expensesdeduction of all Underwriters’ discounts and commissions) actually received by from such Holder in offering less the sale amount of Registrable Securities to any damages which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply Investor has otherwise been required to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent pay by reason of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveinformation. (c) Any In case any claim, action or proceeding (including any governmental investigation) is instituted involving any Person entitled to indemnification in respect of which indemnity may be sought pursuant to this Agreement shall give prompt written notice to Section 2.08(a) or Section 2.08(b), such Person (hereinafter called the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so “indemnified party”) will (i) promptly notify the Person against whom such indemnity may be sought (hereinafter called the “indemnifying party party”) in writing; provided, however, that the failure to give such notice shall not relieve the indemnifying party of its obligations under pursuant to this Agreement, Agreement except to the extent that such indemnifying party has been prejudiced in any material respect by such failure and (ii) permit the indemnifying party is actually and materially prejudiced by reason to assume the defense of such failure claim, action or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice proceeding with counsel reasonably satisfactory to the indemnified party as promptly as practicable after receipt of written notice from such to represent the indemnified party (in which case, indemnifying party shall pay the fees and disbursements of such claim counsel related to such claim, action or action, to assume, at the indemnifying party’s expense, the defense of proceeding). In any such claim claim, action or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentenceproceeding, any indemnified party shall continue will have the right to be entitled to participate in the defense of such claim or action, with counsel of retain its own choicecounsel, but the indemnifying party shall not fees and expenses of such counsel will be obligated to reimburse at the expense of such indemnified party for any fees(without prejudice to such indemnified party’s indemnity and other rights under the Charter, costs Bylaws and expenses subsequently incurred by the indemnified party in connection with such defense applicable Law, if any) unless (A) the indemnifying party has and the indemnified party have mutually agreed in writing to pay the retention of such fees, costs and expensescounsel, (B) the named parties to any such claim, action or proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and the indemnified party has been advised in writing by counsel, with a copy provided to Parent, that representation of both parties by the same counsel would be inappropriate due to actual or potential conflicting interests between them, (C) the indemnifying party has failed to assume the defense of such claim and employ counsel reasonably satisfactory to the indemnified party, or (D) any such, claim, action within or proceeding is a reasonable time after receipt of notice of such claim criminal or regulatory enforcement action, (C) having assumed the defense of such claim or action, . It is understood that the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shallwill not, in connection with any one claim or claim, action or separate but substantially similar proceeding or related claims, actions or proceedings in the same jurisdiction arising out of the same general circumstances or allegationsjurisdiction, be liable for the fees, costs reasonable fees and expenses of more than one separate firm of attorneys for the indemnified parties (in addition to any local counsel) counsel at any time for all such indemnified parties) and that all such reasonable fees and expenses will be reimbursed reasonably promptly following a written request by an indemnified party stating under which clause of (A) through (D) above reimbursement is sought and delivery of documentation of such fees and expenses. In the case of the retention of any such separate firm for the indemnified parties, such firm will be designated in writing by the indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall will not be liable under this Agreement for any amount paid settlement of any claim, action or payable or incurred pursuant to or in connection with any judgment entered or settlement proceeding effected with the without its written consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such which consent shall not to be unreasonably withheld, conditioned or delayed), but if such claim, action or proceeding is settled with such consent or if there has been a final non-appealable judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party will have requested an indemnifying party to reimburse the indemnified party for reasonable fees and expenses of counsel as contemplated by the third sentence of this Section 2.08(c), the indemnifying party agrees that it will be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party has not reimbursed the indemnified party in accordance with such request or reasonably objected in writing, on the basis of the standards set forth herein, to the propriety of such reimbursement prior to the date of such settlement. No indemnifying party will, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened proceeding (i) in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding or (ii) which involves the imposition of equitable remedies on the indemnified party or the imposition of any obligation on the indemnified party, other than as a result of the imposition of financial obligations for which the indemnified person will be indemnified hereunder and provides for no admission of wrongdoing on the part thereof. (d) If the indemnification provided for in this Section 11 2.08 from the indemnifying party is held by a court of competent jurisdiction unavailable to be unavailable to, or unenforceable by, an indemnified party hereunder in respect of any losslosses, claimclaims, actiondamages, damageliabilities, liability judgments, actions or expense expenses referred to in this Section 112.08, then the applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreementparty, shall will contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damageliabilities, liability judgments, actions or expense expenses (i) in such proportion as is appropriate to reflect the relative benefits received by fault of the indemnifying party and indemnified party and in connection with the indemnifying party. If actions that resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations, or (ii) if the allocation provided by the preceding sentence clause (i) is not permitted by applicable lawLaw, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits fault referred to in the preceding sentence clause (i) but also the relative fault benefit of ▇▇▇▇▇▇, on the indemnified party one hand, and the indemnifying partyInvestors, on the other, in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities, judgments, actions or expenses, as well as any other relevant equitable considerations. The relative fault of the such indemnifying party, on the one hand, party and of the indemnified party, on the other hand, shall party will be determined by reference to, among other things, whether the any action in question, including any untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact fact, has been taken by, or relates to information supplied by the by, such indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementaction. The amount paid or payable by a party as a result of the losses, omission claims, damages, liabilities and expenses referred to above will be deemed to include, subject to the limitations set forth in Section 2.08(c), any legal or violation. other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding. (e) The parties agree that it would not be just and equitable if contribution pursuant to this Agreement Section 2.08(d) were determined by pro rata allocation or by any other method or of allocation that does not take into account the equitable considerations referred to in this Section 11(d2.08(d). In no event shall the amount which a Holder No Person guilty of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds “fraudulent misrepresentation” (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party guilty or liable of fraudulent misrepresentation within the meaning of Section 11(f) of the Securities Act shall Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. Notwithstanding the provisions of Section 2.08(d) and this Section 2.08(e), each Investor’s liability pursuant to Section 2.08(d) in respect of the offering to which such loss, claim, damages, liabilities, judgments, actions or expenses relate shall not exceed an amount equal to the proceeds to such Investor (after deduction of all Underwriters’ discounts and commissions) from such offering less the amount of any damages which such Investor has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. Each Investor’s obligation to contribute pursuant to this Section 2.08 is several in proportion to the respective number of Registrable Securities held by such Investor hereunder and not joint. (ef) The provisions For purposes of this Section 11 2.08, each Indemnified Person shall remain have the same rights to contribution as such Investor, and each officer, Director and Person, if any, who controls Parent within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act shall have the same rights to contribution as Parent, subject in full force and effect regardless each case to the limitations set forth in the immediately preceding paragraph. Any party entitled to contribution will, promptly after receipt of notice of commencement of any investigation action, suit or proceeding against such party in respect of which a claim for contribution may be made against another party or parties under this Section 2.08, notify such party or parties from whom contribution may be sought, but the omission to so notify such party or parties shall not relieve the party or parties from whom contribution may be sought from any obligation it or they may have under this Section 2.08 or otherwise except to the extent that it has been prejudiced in any material respect by such failure. No party shall be liable for contribution with respect to any action or on behalf claim settled without its written consent; provided, however, that such written consent was not unreasonably withheld. (g) If indemnification is available under this Section 2.08, the indemnifying party will indemnify each indemnified party to the full extent provided in Section 2.08(a) and Section 2.08(b) without regard to the relative fault of any said indemnifying party or indemnified party or any officer, director other equitable consideration provided for in Section 2.08(d) or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any HolderSection 2.08(e).

Appears in 2 contracts

Sources: Investor Rights Agreement (Forward Air Corp), Investor Rights Agreement (Forward Air Corp)

Indemnification; Contribution. (a) The Company shall, and shall cause each of its Subsidiaries to, jointly and severally, without limitation as to time, indemnify, defend and hold harmless, to the fullest full extent permitted by law, indemnify and hold harmless each Holder holder of Registrable Securities, any the partners, members, officers, directors, agents and employees of each of them, each Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries controls each such holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”Act), their respective direct and indirect general and limited the partners, advisory board members, officers, directors, officers, trustees, managers, members, employees, agents, Affiliates agents and shareholders, employees of each such controlling person and each other Person, if any, who acts on behalf of any financial or controls any such Holder or Controlling Person investment adviser (each of the foregoingeach, a “Covered Person”) ), to the fullest extent lawful, from and against any and all losses, claims, actions, damages, liabilities liabilities, actions or proceedings (whether commenced or threatened), costs (including, without limitation, costs of preparation and expensesattorneys’ fees) and expenses (including expenses of investigation) (collectively, joint or several“Losses”), to which such Covered Person may become subject under the Securities Actas incurred, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise arising out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined or form of prospectus or in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to supplements thereto or in any document incorporated by reference in the samepreliminary prospectus, (ii) or arising out of or based upon any omission or alleged omission of a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in therein not misleading, except to the extent that the same not misleading arise out of or are based upon information furnished in writing to the Company by such Covered Person or the related holder of Registrable Securities expressly for use therein or (iiiii) any violation or alleged violation by the Company of the Securities Act any federal, state or any other similar federal or state securities laws or any common law rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action required of or inaction required of by the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, registration; provided that the Company shall not be so liable to any Person who participates as an underwriter in the offering or sale of Registrable Securities or any other Person, if any, who controls such case underwriters within the meaning of the Securities Act to the extent that any loss, claim, action, damage, liability or expense arises such Losses arise out of or is are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any preliminary prospectus if (i) such Person failed to send or deliver a copy of the prospectus with or prior to the delivery of written confirmation of the sale by such Person to the Person asserting the claim from which such Losses arise, (ii) the prospectus would have corrected such untrue statement or alleged untrue statement, statement or such omission or alleged omission, and (iii) the Company has complied with its obligations under Section 5D(c). Each indemnity and reimbursement of costs and expenses shall remain in full force and effect regardless of any investigation made by or incorporated by reference on behalf of such Covered Person. If the Public Offering pursuant to any registration statement provided for under this Section 5 is made through underwriters, no action or failure to act on the part of such underwriters (whether or not such underwriter is an Affiliate of any holder of Registrable Securities) shall affect the obligations of the Company to indemnify any holder of Registrable Securities or any other Person pursuant to the preceding sentence. If the Public Offering pursuant to any registration statement provided for under this Article 5 is made through underwriters, the Company agrees to enter into an underwriting agreement in customary form with such underwriters and the Company agrees to indemnify such underwriters, their officers, directors, employees and agents, if any, and each Person, if any, who controls such underwriters within the meaning of Section 15 of the Securities Act to the same extent as provided in this Section 5F with respect to the indemnification of the holders of Registrable Securities; provided that the Company shall not be required to indemnify any such Registration Statementunderwriter, Prospectus, preliminary Prospectus, free writing prospectus or any amendment officer, director or supplement to employee of such underwriter or any document incorporated by reference in Person who controls such underwriter within the same in reliance uponmeaning of Section 15 of the Securities Act, and in conformity with, written information prepared and furnished to the Company by extent that the loss, claim, damage, liability (or proceedings in respect thereof) or expense for which indemnification is claimed results from such Covered underwriter’s failure to send or give a copy of an amended or supplemented final prospectus to the Person expressly for use asserting an untrue statement or alleged untrue statement or omission or alleged omission at or prior to the written confirmation of the sale of Registrable Securities to such Person if such statement or omission was corrected in such Registration Statement, Prospectus, preliminary Prospectus amended or free writing supplemented final prospectus prior to such written confirmation and the underwriter was provided with such amended or supplemented final prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration Registration Statement in which a Holder holder of Registrable Securities is participating, each such Holder holder, or an authorized officer of such holder, shall furnish to the Company in writing such information regarding such holder as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shallprospectus and agrees, severally and not jointly, to indemnify, defend and hold harmless to the fullest full extent permitted by law, indemnify and hold harmless the Company, its directors and directors, officers, employees, agents and any employees, each Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any controls the Company (within the meaning of them may become subject under Section 15 of the Securities Act, Act and Section 20 of the Exchange Act), any state blue sky securities lawsand the partners, any equivalent non-U.S. securities laws members, directors, officers, agents or otherwiseemployees of such controlling persons, insofar as such losses, claims, actions, damages, liabilities or expenses arise from and against all Losses arising out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the any Registration Statement, Prospectusprospectus, preliminary Prospectusor form of prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment arising out of or supplement to the same or (ii) based upon any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, butto the extent, but only to the extent, that such untrue or alleged untrue statement is contained in, or such omission or alleged omission is required to be contained in, any information regarding such holder so furnished in writing by such holder to the Company expressly for use in such Registration Statement or prospectus and that such statement or omission was relied upon by the Company in preparation of such Registration Statement, prospectus or form of prospectus; provided that such holder of Registrable Securities shall not be liable in any such case of each of clauses (i) and (ii), only to the extent that the holder has furnished in writing to the Company within a reasonable period of time prior to the filing of any such untrue statement Registration Statement or alleged untrue statement, prospectus or omission amendment or alleged omission, is made supplement thereto information expressly for use in such Registration Statement, Prospectus, preliminary Prospectus, free writing Statement or prospectus or any amendment or supplement to the same in reliance uponthereto which corrected or made not misleading, and in conformity with, written information prepared and previously furnished to the Company, and the Company by failed to include such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectusinformation therein. In addition, such Holder no event shall reimburse the Company, its directors liability of any holder of Registrable Securities hereunder be greater in amount than the dollar amount of the proceeds (net of payment of all taxes and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(btherewith) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in holder upon the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge giving rise to such indemnification obligation. Such indemnity shall remain in full force and agree that, unless otherwise expressly agreed to in writing effect regardless of any investigation made by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address on behalf of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveindemnified party. (c) Any If any Person shall be entitled to indemnification pursuant to this Agreement indemnity hereunder (an “Indemnified Party”), such Indemnified Party shall give prompt written notice to the indemnifying party or parties from which such indemnity is sought (the “Indemnifying Parties”) of the commencement of any claim action, suit, proceeding or investigation or written threat thereof (a “Proceeding”) with respect to which it such Indemnified Party seeks indemnification. Notwithstanding indemnification or contribution pursuant hereto; provided that the previous sentence, any failure or delay to so notify the indemnifying party Indemnifying Parties shall not relieve the indemnifying party of its obligations under this Agreement, Indemnifying Parties from any obligation or liability except to the extent that the indemnifying party is actually and materially Indemnifying Parties have been prejudiced by reason of such failure or delayfailure. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and The Indemnifying Parties shall have the right, exercisable by giving written notice to an Indemnified Party promptly after the indemnified party as promptly as practicable after receipt of written notice from such indemnified party Indemnified Party of such claim or actionProceeding, to assume, at the indemnifying party’s Indemnifying Parties’ expense, the defense of any such claim or actionProceeding, with counsel reasonably acceptable satisfactory to such Indemnified Party; provided that an Indemnified Party or parties (if more than one such Indemnified Party is named in any Proceeding) shall have the indemnified party. Notwithstanding the previous sentence, right to employ separate counsel in any indemnified party shall continue to be entitled such Proceeding and to participate in the defense of such claim or action, with counsel of its own choicethereof, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs fees and expenses subsequently incurred by of such counsel shall be at the indemnified party in connection with expense of such defense unless Indemnified Party or parties unless: (Ai) the indemnifying party has agreed in writing Indemnifying Parties agree to pay such fees, costs fees and expenses, ; (Bii) the indemnifying party has failed Indemnifying Parties fail promptly to assume the defense of such claim Proceeding or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails fail to employ counsel reasonably acceptable satisfactory to the indemnified party such Indemnified Party or to pursue the defense of such claim parties; or action in a reasonably vigorous manner, (Diii) the use named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party or parties and the Indemnifying Parties or an Affiliate of counsel chosen by the indemnifying party to represent the indemnified party would present Indemnifying Parties or such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that Indemnified Parties, and there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which such Indemnified Party or parties that are different from or additional to those available to the indemnifying party. Subject Indemnifying Parties, in which case, if such Indemnified Party or parties notifies the Indemnifying Parties in writing that it elects to employ separate counsel at the foregoing sentenceexpense of the Indemnifying Parties, no indemnifying party shallthe Indemnifying Parties shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Indemnifying Parties, it being understood, however, that, unless there exists a conflict among Indemnified Parties, the Indemnifying Parties shall not, in connection with any one claim or action such Proceeding or separate but substantially similar or related actions Proceedings in the same jurisdiction jurisdiction, arising out of the same general circumstances allegations or allegationscircumstances, be liable for the fees, costs fees and expenses of more than one separate firm of attorneys (in addition to any together with appropriate local counsel) at any time for all indemnified such Indemnified Party or parties. The indemnifying party Whether or not such defense is assumed by the Indemnifying Parties, such Indemnifying Parties or Indemnified Party or parties shall not have the right be subject to settle a claim any liability for any settlement made without its or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the their consent of the indemnified party, (but such consent shall not be unreasonably withheld). The indemnifying party Indemnifying Parties shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim which (i) provides for other than monetary damages without the consent of the Indemnified Party or action unless such judgment parties (which consent shall not be unreasonably withheld or settlement delayed) or (ii) does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes include as an unconditional term of such judgment or settlement thereof the giving by the claimant or plaintiff in such judgment or settlement to such indemnified partyIndemnified Party or parties of a release, in form and substance reasonably satisfactory to such indemnified partythe Indemnified Party or parties, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not Proceeding for which such Indemnified Party would be liable under this Agreement for any amount paid or payable or incurred pursuant entitled to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed)indemnification hereunder. (d) If the indemnification provided for in this Section 11 5F is held by a court of competent jurisdiction unavailable to be unavailable to, an Indemnified Party or unenforceable by, an indemnified party is insufficient to hold such Indemnified Party harmless for any Losses in respect of any loss, claim, action, damage, liability or expense referred to in which this Section 115F would otherwise apply by its terms, then the each applicable indemnifying partyIndemnifying Party, in lieu of indemnifying such indemnified party under this AgreementIndemnified Party, shall have an obligation to contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such lossLosses, claim, action, damage, liability or expense in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party Indemnifying Party, on the one hand, and such Indemnified Party, on the indemnifying partyother hand, in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of the indemnifying partysuch Indemnifying Party, on the one hand, and of the indemnified partyIndemnified Party, on the other hand, shall be determined by reference to, among other things, whether the any action in question, including any untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact fact, has been taken by, or relates to information supplied by the indemnifying party by, such Indemnifying Party or by the indemnified partyIndemnified Party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent any such statementaction, omission statement or violationomission. The amount paid or payable by a party as a result of any Losses shall be deemed to include any legal or other fees or expenses incurred by such party in connection with any Proceeding, to the extent such party would have been indemnified for such expenses if the indemnification provided for in Section 5F(a) or 5F(b) was available to such party. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Agreement Section 5F(d) were determined by pro rata allocation or by any other method or of allocation that does not take into account of the equitable considerations referred to in this Section 11(d5F(d). In no event shall Notwithstanding the amount which provisions of this Section 5F(d), an Indemnifying Party that is a Holder holder of Registrable Securities may shall not be obligated required to contribute pursuant to this Section 11(d) exceed an any amount equal to in excess of the amount by which the net proceeds (after deducting Selling Expenses) actually received by such Holder in Indemnifying Party exceeds the sale amount of Registrable Securities any damages that gives rise such Indemnifying Party has otherwise been required to pay by reasons of such obligation to contributeuntrue or alleged untrue statement or omission or alleged omission. No indemnified party person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 2 contracts

Sources: Securityholders Agreement (Vitamin Shoppe, Inc.), Securityholders Agreement (Vs Holdings, Inc.)

Indemnification; Contribution. (a) The Company EchoStar shall, to the fullest extent permitted by lawand it hereby agrees to, indemnify and hold harmless each Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), Investors and their respective direct directors, officers, employees, Affiliates and indirect general controlling Persons, if any, and limited each underwriter, its partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates employees and shareholders, and each other Personcontrolling Persons, if any, who acts on behalf of in any offering or controls any such Holder or Controlling Person (each sale of the foregoingRegistrable Securities, a “Covered Person”) against any losses, claims, actionsdamages or liabilities, damagesactions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable fees of counsel) (collectively, liabilities and expenses, joint or several, “Claims”) to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such lossesClaims (including any amounts paid in settlement effected with the consent of EchoStar as provided herein), claimsor actions or proceedings in respect thereof, actions, damages, liabilities or expenses arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statementregistration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement thereto, any “issuer free writing prospectus” as defined in Rule 433 under the Securities Act, any “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or any document incorporated by reference in the sametherein, (ii) or arise out of or are based upon any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein, in the same not misleading or (iii) any violation or alleged violation by the Company light of the Securities Act circumstances in which they were made, not misleading, and EchoStar shall, and it hereby agrees to, reimburse periodically the Investors or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person underwriter for any legal or other out-of-pocket expenses reasonably incurred by such Covered Person them in connection with investigating, investigating or defending or settling any such lossClaims; provided, claimhowever, action, damage or liability. Notwithstanding the previous sentence, the Company that EchoStar shall not be so liable to any such Person in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made (i) in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with written information furnished to EchoStar by the Investors expressly for use therein, (ii) in any prospectus used after such time as EchoStar advised such Investor in writing that the filing of a post-effective amendment or supplement thereto was required, other than such prospectus as so amended or supplemented or (iii) in any prospectus used after such time as the obligation of EchoStar to keep such prospectus effective and current shall have expired. (b) The Investors shall, and hereby agrees to, indemnify and hold harmless EchoStar, its directors, officers, employees, Affiliates and controlling Persons, if any, and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any offering or sale of Registrable Securities, against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Investors as provided herein), or actions or proceedings in *** Certain confidential portions of this exhibit were omitted by means of redacting a portion of the text. Copies of the exhibit containing the redacted portions have been filed separately with the Securities and Exchange Commission subject to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act. respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Registration Statementsuch registration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or supplement to the same or (ii) are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, but, in the each case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, upon and in conformity with, with written information prepared and furnished to EchoStar by the Company by such Holder Investors expressly for use in therein, and periodically reimburse such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling indemnified Person for any legal or other out-of-pocket expenses reasonably incurred by them such indemnified Person in connection with investigating, investigating or defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveClaim. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt Promptly after receipt by an indemnified party under Section 4.4(a) or Section 4.4(b) of written notice to of the commencement of any action or proceeding for which indemnification under Section 4.4(a) or Section 4.4(b) may be requested, such indemnified party shall notify such indemnifying party in writing of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure commencement of such action or delay proceeding; but the omission to so notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party in respect of such action or proceeding hereunder unless the indemnifying party was materially prejudiced by such failure of its obligations under this Agreementthe indemnified party to give such notice, except to the extent that and in no event shall such omission relieve the indemnifying party is actually and materially prejudiced by reason of from any other liability it may have to such failure or delayindemnified party. In case a claim any such action or an action that is subject or potentially subject to indemnification pursuant to this Agreement is proceeding shall be brought against any indemnified party and it shall notify an indemnified partyindemnifying party of the commencement thereof, the such indemnifying party shall be entitled to participate in and shall have the righttherein and, exercisable by giving written notice to the extent that it shall determine, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party as promptly as practicable party, and, after receipt of written notice from the indemnifying party to such indemnified party of such claim or action, its election so to assume, at the indemnifying party’s expense, assume the defense of any thereof, such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated liable to reimburse the such indemnified party for any fees, costs and legal or any other expenses subsequently incurred by the such indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense thereof other than reasonable costs of such claim or action within a reasonable time after receipt of notice of such claim or actioninvestigation; provided, however, that (Ci) having assumed the defense of such claim or action, if the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue promptly assume and control the defense of such claim action or proceeding; (ii) if such indemnified party who is a defendant in any action in a reasonably vigorous manner, (D) the use of counsel chosen by or proceeding that is also brought against the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably shall have concluded that there may be one or more legal or equitable defenses available to it and/or other any other such indemnified party which that are different from or additional to those not available to the indemnifying party. Subject ; or (iii) if representation of both parties by the same counsel is otherwise inappropriate under applicable standards of professional conduct, then, in any such case, the indemnified party shall have the right to assume or continue its own defense as set forth above (but with no more than one firm of counsel for all indemnified parties in each jurisdiction) and the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, shall be liable for any expenses therefor (including, without limitation, any such counsel’s reasonable fees). If the feesindemnifying party is not entitled to, costs or elects not to, assume the defense of a claim, it will not be obligated to pay the fees and expenses of more than one firm of attorneys counsel (in addition to any and one local counselcounsel per jurisdiction) for all each indemnified partiesparty with respect to such claim. The indemnifying party will not be subject to any liability for any settlement made without its consent, which consent shall not have the right to settle a claim be unreasonably withheld or action for which any indemnified delayed. No indemnifying party is entitled to indemnification pursuant to this Agreement shall, without the prior written consent of the indemnified party, The indemnifying party shall not compromise or consent to the entry of any judgment or enter into or agree *** Certain confidential portions of this exhibit were omitted by means of redacting a portion of the text. Copies of the exhibit containing the redacted portions have been filed separately with the Securities and Exchange Commission subject to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act. any settlement agreement with respect to any settlement relating to such claim action or action proceeding in respect of which indemnification is sought under Section 4.4(a) or Section 4.4(b) (whether or not the indemnified party is an actual or potential party thereto), unless such judgment compromise, consent or settlement does not impose any admission includes an unconditional release of wrongdoing or ongoing obligations on any the indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall litigation, does not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with subject the consent of an indemnified party unless to any material injunctive relief or other material equitable remedy and does not include a statement or admission of fault, culpability or a failure to act, by or on behalf of the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed)indemnified party. (d) If The Investors and EchoStar agree that if, for any reason, the indemnification provided for in provisions contemplated by Sections 4.4(a) or 4.4(b) of this Section 11 is held by a court of competent jurisdiction Agreement are unavailable to be unavailable to, or unenforceable by, are insufficient to hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable lawfault of, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, with respect to such offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the such indemnifying party or by the such indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission. If, omission however, the allocation in the second preceding sentence is not permitted by Applicable Law, then each indemnifying party shall contribute to the amount paid or violationpayable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Agreement Section 4.4(d) were to be determined by pro rata allocation or by any other method or of allocation that does not take into account the equitable considerations referred to in the preceding sentences of this Section 11(d4.4(d). In no event The amount paid or payable by an indemnified party as a result of the Claims referred to above shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal include (subject to the net proceeds (after deducting Selling Expenseslimitations set forth in Section 4.4(c) actually received of this Agreement) any legal or other fees or expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise to connection with investigating or defending any such obligation to contributeaction, proceeding or claim. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act or any successor provision thereof) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 2 contracts

Sources: Investor Rights Agreement (EchoStar CORP), Investor Rights Agreement (DISH Network CORP)

Indemnification; Contribution. (a) The Company shall, to the fullest extent permitted by lawand it hereby agrees to, indemnify and hold harmless each Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of Participating Investor and its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, officers, directors, officers, trustees, managers, members, employees, agents, Affiliates employees and shareholders, and each other Personcontrolling Persons, if any, who acts on behalf and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any offering or sale of or controls any such Holder or Controlling Person (each of the foregoingCommon Shares, a “Covered Person”) against any losses, claims, actions, damages, damages or liabilities and expenses, joint or several, to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such losses, claims, actionsdamages or liabilities, damagesor actions or proceedings in respect thereof, liabilities or expenses including any amounts paid in settlement as provided herein (collectively, "Claims"), arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statementregistration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement to thereto, or any document incorporated by reference in the sametherein, (ii) or arise out of or are based upon any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein, in light of the same circumstances in which they were made, not misleading or (iii) any violation or alleged violation by misleading, and the Company of the Securities Act shall, and it hereby agrees to, reimburse each Participating Investor or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person underwriter for any legal or other out-of-pocket expenses reasonably incurred by such Covered Person it in connection with investigating, investigating or defending or settling any such lossClaims; provided, claimhowever, action, damage or liability. Notwithstanding the previous sentence, that the Company shall not be so liable to any such Person in any such case to the extent that any loss, claim, action, damage, liability or expense arises such Claims arise out of or is are based upon any such an untrue statement or alleged untrue statement, statement or omission or alleged omissionomission made in such registration statement, made or incorporated by reference in any such Registration Statementpreliminary or final prospectus, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same thereto, in reliance upon, upon and in conformity with, written with information prepared and furnished in writing to the Company by such Covered Person Participating Investor or any underwriter expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise havetherein. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder Participating Investor shall, and hereby agrees to the fullest extent permitted by law, (1) indemnify and hold harmless the Company, its directors and directors, officers, employeesemployees and controlling Persons, agents if any, and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any Person who is offering or might be deemed to be a Controlling Person sale of Common Shares, against any losses, claims, actions, damages, liabilities and expenses, joint or several, Claims to which they or any of them each such indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in the Registration Statementsuch registration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or supplement to the same or (ii) are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, but, in the each case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by such Holder Participating Investor expressly for use in such Registration Statementtherein, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall and (2) reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person Company for any legal or other out-of-pocket expenses reasonably incurred by them the Company in connection with investigating, investigating or defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveClaim. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt Promptly after receipt by an indemnified party under Section 4.7(a) or Section 4.7(b) of written notice to of the commencement of any action or proceeding for which indemnification under Section 4.7(a) or Section 4.7(b) may be requested, such indemnified party shall notify the indemnifying party in writing of any claim with respect the commencement of such action or proceeding, but the omission so to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party in respect of such action or proceeding hereunder unless the indemnifying party was materially prejudiced by such failure of its obligations under this Agreementthe indemnified party to give such notice, except to the extent that and in no event shall such omission relieve the indemnifying party is actually and materially prejudiced by reason of from any other liability it may have to such failure or delayindemnified party. In case a claim any such action or an action that is subject or potentially subject to indemnification pursuant to this Agreement is proceeding shall be brought against any indemnified party and it shall notify an indemnified partyindemnifying party of the commencement thereof, the such indemnifying party shall be entitled to participate in and shall have the righttherein and, exercisable by giving written notice to the extent that it shall determine, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party as promptly as practicable party, and, after receipt of written notice from the indemnifying party to such indemnified party of such claim or action, its election so to assume, at the indemnifying party’s expense, assume the defense of any thereof, such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated liable to reimburse the such indemnified party for any fees, costs and legal or any other expenses subsequently incurred by the such indemnified party in connection with such the defense unless (A) thereof other than reasonable costs of investigation. If the indemnifying party has agreed in writing to pay such feesis not entitled to, costs and expensesor elects not to, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or actionclaim, (C) having assumed it will not be obligated to pay the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs fees and expenses of more than one firm of attorneys (in addition counsel for each indemnified party with respect to any local counsel) for all indemnified partiessuch claim. The indemnifying party will not be subject to any liability for any settlement made without its consent, which consent shall not have the right to settle a claim be unreasonably withheld or action for which any indemnified delayed. No indemnifying party is entitled to indemnification pursuant to this Agreement shall, without the prior written consent of the indemnified party, The indemnifying party shall not compromise or consent to the entry of any judgment or enter into or agree any settlement agreement with respect to any settlement relating to such claim action or action proceeding in respect of which indemnification is sought under Section 4.7(a) or Section 4.7(b) (whether or not the indemnified party is an actual or potential party thereto), unless such judgment compromise, consent or settlement does not impose any admission includes an unconditional release of wrongdoing or ongoing obligations on any the indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall litigation and does not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with subject the consent of an indemnified party unless the indemnifying party has also consented to such judgment any material injunctive relief or settlement (such consent not to be unreasonably withheld, conditioned or delayed)other material equitable remedy. (d) If Each Participating Investor and the Company agree that if, for any reason, the indemnification provided for in this Section 11 is held provisions contemplated by a court of competent jurisdiction Sections 4.7(a) or 4.7(b) hereof are unavailable to be unavailable to, or unenforceable by, are insufficient to hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein (other than as a result of the provisos thereto), then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of benefits derived by the indemnifying party, on the one hand, and of the indemnified party, on the other hand, as well as other equitable considerations. The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission deemed to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable include (subject to the Company, and, relating to limitations set forth in Section 4.7(c) hereof) any action legal or inaction required of the Company other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any registration of securitiessuch action, whether such action proceeding or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission or violation. The parties agree that it would not be just and equitable if contribution pursuant to this Agreement were determined by pro rata allocation or by any other method or allocation that does not take into account the equitable considerations referred to in this Section 11(d). In no event shall the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contributeclaim. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 2 contracts

Sources: Shareholders Agreement (Arch Capital Group LTD), Shareholders Agreement (H&f Corp Investors Iv Bermuda LTD)

Indemnification; Contribution. (a) The Company shallshall indemnify, to the fullest extent permitted by law, indemnify and hold harmless each Holder holder of Registrable Securities, its officers, directors, partners, employees and agents, if any, and each Person, if any, who controls such holder within the meaning of Section 15 of the Securities Act, against all losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (under the Securities Act or common law or otherwise), joint or several, resulting from any Person who is violation by the Company of the provisions of the Securities Act or might be deemed any untrue statement or alleged untrue statement of a material fact contained in any registration statement or prospectus (and as amended or supplemented if amended or supplemented) or any preliminary prospectus or caused by any omission or alleged omission to state therein a material fact required to be a “controlling person” stated therein or necessary to make the statements therein (in the case of any prospectus, in light of the circumstances under which they were made) not misleading, except to the extent that such losses, claims, damages, liabilities (or proceedings in respect thereof) or expenses are caused by any untrue statement or alleged untrue statement contained in or by any omission or alleged omission from information concerning any holder furnished in writing to the Company by such holder expressly for use therein. If the Public Offering pursuant to any registration statement provided for under this Article III is made through underwriters, no action or failure to act on the part of such underwriters (whether or not such underwriter is an Affiliate of any holder of Registrable Securities) shall affect the obligations of the Company to indemnify any holder of Registrable Securities or any of its subsidiaries other Person pursuant to the preceding sentence. If the Public Offering pursuant to any registration statement provided for under this Article III is made through underwriters, the Company agrees to enter into an underwriting agreement in customary form with such underwriters and the Company agrees to indemnify such underwriters, their officers, directors, employees and agents, if any, and each Person, if any, who controls such underwriters within the meaning of Section 15 of the Securities Act or Section 20 to the same extent as herein before provided with respect to the indemnification of the Exchange Act holders of Registrable Securities; provided that the Company shall not be required to indemnify any such underwriter, or any officer, director or employee of such underwriter or any Person who controls such underwriter within the meaning of Section 15 of the Securities Act, to the extent that the loss, claim, damage, liability (or proceedings in respect thereof) or expense for which indemnification is claimed results from such underwriter's failure to send or give a copy of an amended or supplemented final prospectus to the Person asserting an untrue statement or alleged untrue statement or omission or alleged omission at or prior to the written confirmation of the sale of Registrable Securities to such Person if such statement or omission was corrected in such amended or supplemented final prospectus prior to such written confirmation and the underwriter was provided with such amended or supplemented final prospectus. (b) In connection with any registration statement in which a holder of Registrable Securities is participating, each such Personholder, a “Controlling Person”)severally and not jointly, shall indemnify, to the fullest extent permitted by law, the Company, each underwriter and their respective direct and indirect general and limited partners, advisory board membersofficers, directors, officers, trustees, managers, members, employees, employees and agents, Affiliates and shareholdersif any, and each other Person, if any, who acts on behalf controls the Company or such underwriter within the meaning of or controls any such Holder or Controlling Person (each Section 15 of the foregoingSecurities Act, a “Covered Person”) against any losses, claims, actions, damages, liabilities (or proceedings in respect thereof) and expenses, joint or several, to which such Covered Person may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) resulting from any untrue statement or alleged untrue statement of a material fact contained in fact, or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to or any document incorporated by reference in the same, (ii) any omission or alleged omission of a material fact required to be stated in the registration statement or prospectus or preliminary prospectus or any such Registration Statement, Prospectus, preliminary Prospectus amendment thereof or free writing prospectus supplement thereto or necessary to make the statements made in the same not misleading or therein (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading, but, in the case of each any prospectus, in light of clauses (ithe circumstances under which they were made) and (ii)not misleading, but only to the extent that such untrue statement is contained in or alleged untrue statement, or such omission or alleged omission, is made from information so concerning a holder furnished in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder holder expressly for use in therein; provided that such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) holder's obligations hereunder shall be individual and several, not joint and several, for each participating Holder and shall be proportional limited to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by to such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders holder of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed sold pursuant to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveregistration statement. (c) Any Person entitled to indemnification pursuant to under the provisions of this Agreement Section 3.7 shall (i) give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding indemnification and (ii) unless in such indemnified party's reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist in respect of such claim, permit such indemnifying party to assume the previous sentencedefense of such claim, any failure or delay with counsel reasonably satisfactory to the indemnified party; and if such defense is so notify the assumed, such indemnifying party shall not relieve enter into any settlement without the indemnifying consent of the indemnified party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of if such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice settlement attributes liability to the indemnified party as promptly as practicable after receipt of written notice from and such indemnified indemnifying party of such claim shall not be subject to any liability for any settlement made without its consent (which shall not be unreasonably withheld); and any underwriting agreement entered into with respect to any registration statement provided for under this Article III shall so provide. In the event an indemnifying party shall not be entitled, or actionelects not, to assume, at the indemnifying party’s expense, assume the defense of any a claim, such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse pay the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs fees and expenses of more than one counsel or firm of attorneys (in addition to any local counsel) counsel for all parties indemnified parties. The by such indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for claim, unless in the reasonable judgment of any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an such indemnified party unless the indemnifying a conflict of interest may exist between such indemnified party has also consented and any other of such indemnified parties in respect to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed)claim. (d) If for any reason the indemnification provided for in this Section 11 foregoing indemnity is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, an indemnified party in respect of any loss, claim, action, damage, liability or expense referred to in this Section 11unavailable, then the applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such the indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability liabilities or expense expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party on the one hand and the indemnified party and on the indemnifying party. If other or (ii) if the allocation provided by the preceding sentence clause (i) above is not permitted by applicable lawApplicable Law or provides a lesser sum to the indemnified party than the amount hereinafter calculated, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in received by the preceding sentence indemnifying party on the one hand and the indemnified party on the other but also the relative fault of the indemnified indemnifying party and the indemnifying party, indemnified party as well as any other relevant equitable considerations. The relative fault of Notwithstanding the indemnifying partyforegoing, on the one hand, and of the indemnified party, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission or violation. The parties agree that it would not be just and equitable if contribution pursuant to this Agreement were determined by pro rata allocation or by any other method or allocation that does not take into account the equitable considerations referred to in this Section 11(d). In no event shall the amount which a Holder holder of Registrable Securities may shall be obligated required to contribute pursuant any amount in excess of the amount such holder would have been required to this pay to an indemnified party if the indemnity under Section 11(d3.7(b) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contributewas available. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The obligation of any Person to contribute pursuant to this Section 3.7 shall be several and not joint. (e) The An indemnifying party shall make payments of all amounts required to be made pursuant to the foregoing provisions of this Section 11 3.7 to or for the account of the indemnified party from time to time promptly upon receipt of bills or invoices relating thereto or when otherwise due or payable. (f) The indemnity and contribution agreements contained in this Section 3.7 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party a participating holder of Registrable Securities, its officers, directors, agents or any officerPerson, director or controlling person of if any, who controls such indemnified party holder as aforesaid, and shall survive the Transfer of any Registrable Equity Securities by such holder and the termination of this Agreement for any Holderreason.

Appears in 2 contracts

Sources: Stockholders Agreement (Associated Materials Inc), Stockholders Agreement (AMH Holdings, Inc.)

Indemnification; Contribution. (a) The Incident to any registration statement referred to in this Article 4, the Company shall, to the fullest extent permitted by law, will indemnify and hold harmless each underwriter, each Holder who offers or sells any such Registrable Securities in connection with such registration statement (including its partners (including partners of Registrable Securitiespartners and stockholders of any such partners), any Person who is or might be deemed to be a “controlling person” and directors, officers, employees and agents of the Company or any of its subsidiaries them (a "Selling Holder"), and each person who controls any of them within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a "Controlling Person"), their respective direct from and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any and all losses, claims, actions, damages, liabilities expenses and expensesliabilities, joint or severalseveral (including any investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, as the same are incurred), to which such Covered Person they, or any of them, may become subject under the Securities Act, the Exchange ActAct or other federal or state statutory law or regulation, any state blue sky securities laws, any equivalent non-U.S. securities laws at common law or otherwise, insofar as such losses, claims, actions, damages, damages or liabilities or expenses arise out of or are based upon on (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement (including any related preliminary or incorporated by reference in any Registration Statementdefinitive prospectus, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to such registration statement or any document incorporated by reference in the sameprospectus), (ii) any omission or alleged omission of to state in such document a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus it or necessary to make the statements made in the same it not misleading misleading, or (iii) any violation or alleged violation by the Company of the Securities Act or Act, any other similar federal or state securities or "blue sky" laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company thereunder in connection with any registration of securities. In additionsuch registration; provided, however, that the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any will not be liable to the extent that such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, expense or liability or expense arises out of or from and is based upon any such on an untrue statement or alleged untrue statement, or omission or alleged omission, untrue statement or omission made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, on and in conformity with, written with information prepared and furnished in writing to the Company by such Covered underwriter, Selling Holder or Controlling Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus registration statement. With respect to such untrue statement or free omission or alleged untrue statement or omission in the information furnished in writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing by such information as the Company reasonably requests Selling Holder expressly for use in connection with any such Registration Statement or Prospectus. Each registration statement, such Selling Holder shall, to the fullest extent permitted by law, will indemnify and hold harmless each other underwriter, the CompanyCompany (including its directors, its directors and officers, employees, shareholders and agents), each other Holder (including its partners (including partners of partners and stockholders of such partners) and directors, officers, employees and agents of any of them, and each person who controls any Person who is of them within the meaning of Section 15 of the Securities Act or might be deemed to be a Controlling Person Section 20 of the Exchange Act, from and against any and all losses, claims, actions, damages, liabilities expenses and expensesliabilities, joint or several, to which they they, or any of them them, may become subject under the Securities Act, the Exchange ActAct or other federal or state statutory law or regulation, any state blue sky securities lawsat common law or otherwise to the same extent provided in the immediately preceding sentence. In no event, any equivalent non-U.S. securities laws or otherwisehowever, insofar as shall the liability of a Selling Holder for indemnification under this Section 4.7(a) exceed the lesser of (i) that proportion of the total of such losses, claims, actions, damages, damages or liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement indemnified against equal to the same proportion of the total securities sold under such registration statement which is being sold by such Selling Holder or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Selling Holder in the from its sale of Registrable Securities under such registration statement. (b) In the event the Company, any selling Holder or other person receives a complaint, claim or other notice of any liability or action, giving rise to which a claim for indemnification under Section 4.7(a) above, the person claiming indemnification under such Registration Statement paragraph shall promptly notify the person against whom indemnification is sought of such complaint, notice, claim or Prospectus relates. The indemnity agreement contained in this Section 11(b) action, and such indemnifying person shall not apply have the right to amounts paid in settlement of investigate and defend any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the . No indemnifying party’s expense, person in the defense of any such claim or actionlitigation, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection except with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the each indemnified partyperson, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement which does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes include as an unconditional term of such judgment or settlement thereof the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, person of a full and final release from all liability in respect of such claim or actionlitigation. The indemnifying party person claiming indemnification shall have the right to employ separate counsel in any such action and to participate in the defense thereof but the fees and expenses of such counsel shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with at the consent expense of an indemnified party the person against whom indemnification is sought (unless the indemnifying party has also consented fails to promptly defend, in which case the fees and expenses of such judgment separate counsel shall be borne by the person against whom indemnification is sought). In no event shall a person against whom indemnification is sought be obligated to indemnify any person for any settlement of any claim or settlement (such consent not to be unreasonably withheld, conditioned or delayed)action effected without the indemnifying person's prior written consent. (dc) If the indemnification provided for in this Section 11 4.7(a) above for any reason is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, to an indemnified party in respect of any losslosses, claimclaims, actiondamages, damage, liability expenses or expense liabilities referred to in therein, then each indemnifying party under this Section 11, then the applicable indemnifying party4.7, in lieu of indemnifying such indemnified party under this Agreementthereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability expenses or expense liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company, the other Selling Holders and the indemnifying party. If underwriters from the offering of the Registrable Securities or (ii) if the allocation provided by the preceding sentence clause (i) above is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence clause (i) above but also the relative fault of the indemnified party Company, the other Selling Holders and the indemnifying partyunderwriters in connection with the statements or omissions which resulted in such losses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company, the Selling Holders and the underwriters shall be deemed to be in the same respective proportions that the net proceeds from the offering (before deducting expenses) received by the Company and the Selling Holders and the underwriting discount received by the underwriters, in each case as set forth in the table on the cover page of the applicable prospectus, bear to the aggregate public offering price of the Registrable Securities. The relative fault of the indemnifying partyCompany, on the one hand, Selling Holders and of the indemnified party, on the other hand, underwriters shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party Selling Holders or the indemnified party. The relative fault shall also be determined by reference to underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties Company, the Selling Holders, and the underwriters agree that it would not be just and equitable if contribution pursuant to this Agreement Section 4.7(c) were determined by pro rata or per capita allocation or by any other method or of allocation that which does not take into account of the equitable considerations referred to in this Section 11(d)the immediately preceding paragraph. In no event event, however, shall the amount which a Selling Holder of Registrable Securities may be obligated required to contribute pursuant to any amount under this Section 11(d4.7(c) exceed an amount in excess of the lesser of (i) that proportion of the total of such losses, claims, damages or liabilities indemnified against equal to the net proportion of the total Registrable Securities sold under such registration statement which are being sold by such Selling Holder or (ii) the proceeds (after deducting Selling Expenses) actually received by such Selling Holder in the from its sale of Registrable Securities that gives rise to under such obligation to contributeregistration statement. No indemnified party person found guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not found guilty of such fraudulent misrepresentation. (ed) The provisions amount paid by an indemnifying party or payable to an indemnified party as a result of the losses, claims, damages and liabilities referred to in this Section 11 4.7 shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim, payable as the same are incurred. The indemnification and contribution provided for in this Section 4.7 will remain in full force and effect regardless of any investigation made by or on behalf of any the indemnified party parties or any officer, director director, employee, agent or controlling person of such the indemnified party parties. (e) The indemnification provided by this Section 4.7 shall be a continuing right to indemnification and shall survive the Transfer registration and sale of any Registrable Securities by any Holderperson entitled to indemnification hereunder and the expiration or termination of this Agreement.

Appears in 2 contracts

Sources: Stock Rights and Restrictions Agreement (Vermont Teddy Bear Co Inc), Stock Rights and Restrictions Agreement (Vermont Teddy Bear Co Inc)

Indemnification; Contribution. (a) The Company shall, to To the fullest extent permitted by applicable law, the Company shall, and it hereby agrees to, indemnify and hold harmless ▇▇▇▇▇▇, each Holder underwriter and the equityholders, controlling persons, directors, officers and employees of each of the foregoing in any offering or Sale of the Registrable Securities, any Person who is or might be deemed including pursuant to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act 4.01, Section 4.02 or Section 20 of the Exchange Act (each such Person4.05, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any losses, claims, actionsdamages or liabilities, damagesactions or proceedings (whether commenced or threatened) in respect thereof and expenses (including actual and documented out-of-pocket fees of legal counsel reasonably incurred) (collectively, liabilities and expenses, joint or several, “Claims”) to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such lossesClaims (including any amounts paid in settlement effected with the consent of the Company as provided herein), claimsor actions or proceedings in respect thereof, actions, damages, liabilities or expenses arise out of of, relate to, are in connection with, or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final Prospectus contained therein, or any amendment or supplement to thereto, or any document incorporated by reference therein, or arise out of, relate to, are in the sameconnection with, (ii) or are based upon any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein, in light of the same circumstances in which they were made, not misleading or (iii) any violation or alleged violation by misleading, and the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under shall, and it hereby agrees to, reimburse periodically each such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered indemnified Person for any actual and documented out-of-pocket legal or other actual and documented out-of-pocket expenses reasonably incurred by such Covered Person it in connection with investigating, investigating or defending or settling any such lossClaims; provided, claimhowever, action, damage or liability. Notwithstanding the previous sentence, that the Company shall not be so liable to any such Person in any such case to the extent that any losssuch Claims arise out of, claimrelate to, actionare in connection with, damage, liability or expense arises out of or is are based upon any such an untrue statement or alleged untrue statement, statement or omission or alleged omission, omission made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, or preliminary or final Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be amendment or supplement thereto, in addition reliance upon written information furnished to any liability the Company may otherwise have(x) by ▇▇▇▇▇▇ or any Representative of ▇▇▇▇▇▇, it being understood and agreed that the only such information furnished by ▇▇▇▇▇▇ or any Representative of ▇▇▇▇▇▇ consists of the information described as such in Section 4.13(b) or (y) by or on behalf of any underwriter expressly for use therein. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to To the fullest extent permitted by applicable law, ▇▇▇▇▇▇ shall, and hereby agrees to, (i) indemnify and hold harmless the Company, its directors and directors, officers, employeesemployees and its other equityholders and each underwriter, agents its partners, officers, directors, employees and controlling Persons, if any, in any Person who is offering or might be deemed to be a Controlling Person Sale of Registrable Securities by it against any losses, claims, actions, damages, liabilities and expenses, joint or several, Claims to which they or any of them each such indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such lossesClaims (including any amounts paid in settlement as provided herein), claimsor actions or proceedings in respect thereof, actions, damages, liabilities or expenses arise out of of, relate to, are in connection with, or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in the any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final Prospectus contained therein, or any amendment of or supplement to the same thereto, or (ii) any document incorporated by reference therein, or arise out of, relate to, are in connection with, or are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, but, in the each case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, upon and in conformity with, with written information prepared and regarding ▇▇▇▇▇▇ furnished to the Company by ▇▇▇▇▇▇ or any Representative of ▇▇▇▇▇▇, it being understood and agreed that the only such Holder expressly information furnished by ▇▇▇▇▇▇ or any Representative of ▇▇▇▇▇▇ consists of the number of shares of Common Stock owned by ▇▇▇▇▇▇, the number of Registrable Securities proposed to be Sold by ▇▇▇▇▇▇, the name and address of ▇▇▇▇▇▇ and the method of distribution (including the description of any debt-for-equity exchange) proposed by ▇▇▇▇▇▇, any financial statements or other information (or omissions thereof) about the SpinCo Business to the extent relating to any date or period ended on or before the Effective Date, in each case, to the extent provided by ▇▇▇▇▇▇ or any Representative of ▇▇▇▇▇▇ (for use the avoidance of doubt, including information provided prior to the date hereof, whether for inclusion in such Registration Statementthe Company’s registration statement on Form 10 or otherwise) (collectively, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall the “▇▇▇▇▇▇ Information”) and (ii) reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person Company for any actual and documented out-of-pocket legal or other out-of-pocket expenses reasonably incurred by them the Company in connection with investigating, investigating or defending or settling any such lossClaim; provided, claimhowever, action, damage that in no event shall any indemnity or liability. The obligation to indemnify pursuant to reimbursement by ▇▇▇▇▇▇ under this Section 11(b4.13(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder ▇▇▇▇▇▇ (or, in the sale case of a Debt Exchange, the anticipated fair value of the securities or indebtedness received by ▇▇▇▇▇▇) in respect of the Sale of Registrable Securities giving rise to which such Registration Statement indemnification or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise havereimbursement obligation. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to ▇▇▇▇▇▇ and the indemnifying party of Company agree that if, for any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partyreason, the indemnifying party shall be entitled to participate in and shall have the right, exercisable indemnification provisions contemplated by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim Section 4.13(a) or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (ASection 4.13(b) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant unavailable to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented are insufficient to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein, then the applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, each Indemnifying Party (as defined below) shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying partyIndemnifying Party, on the one hand, and of the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such Indemnifying Party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party such Indemnifying Party or by the such indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission. If, omission however, the allocation in the first sentence of this Section 4.13(c) is not permitted by applicable law, then each Indemnifying Party shall contribute to the amount paid or violationpayable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the Indemnifying Party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Agreement Section 4.13(c) were to be determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the preceding sentences of this Section 11(d4.13(c). In no event The amount paid or payable by an indemnified party as a result of the Claims referred to above shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal include (subject to the net proceeds (after deducting Selling Expenseslimitations set forth in Section 4.14) actually received any actual and documented out-of-pocket legal or other out-of-pocket fees or expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise to connection with investigating or defending any such obligation to contributeaction, proceeding or claim. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 2 contracts

Sources: Registration Rights Agreement (Amentum Holdings, Inc.), Registration Rights Agreement (Amazon Holdco Inc.)

Indemnification; Contribution. (a) The Company shall, to the fullest extent permitted by lawand it hereby agrees to, indemnify and hold harmless each Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of Participating Investor and its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, officers, directors, officers, trustees, managers, members, employees, agents, Affiliates employees and shareholders, and each other Personcontrolling Persons, if any, who acts on behalf and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any offering or sale of or controls any such Holder or Controlling Person (each of the foregoingCommon Shares, a “Covered Person”) against any losses, claims, actions, damages, damages or liabilities and expenses, joint or several, to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such losses, claims, actionsdamages or liabilities, damagesor actions or proceedings in respect thereof, liabilities or expenses including any amounts paid in settlement as provided herein (collectively, "Claims"), arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statementregistration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement to thereto, or any document incorporated by reference in the sametherein, (ii) or arise out of or are based upon any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein, in light of the same circumstances in which they were made, not misleading or (iii) any violation or alleged violation by misleading, and the Company of the Securities Act shall, and it hereby agrees to, reimburse each Participating Investor or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person underwriter for any legal or other out-of-pocket expenses reasonably incurred by such Covered Person it in connection with investigating, investigating or defending or settling any such lossClaims; provided, claimhowever, action, damage or liability. Notwithstanding the previous sentence, that the Company shall not be so liable to any such Person in any such case to the extent that any loss, claim, action, damage, liability or expense arises such Claims arise out of or is are based upon any such an untrue statement or alleged untrue statement, statement or omission or alleged omissionomission made in such registration statement, made or incorporated by reference in any such Registration Statementpreliminary or final prospectus, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same thereto, in reliance upon, upon and in conformity with, written with information prepared and furnished in writing to the Company by such Covered Person Participating Investor or any underwriter expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise havetherein. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder Participating Investor shall, and hereby agrees to the fullest extent permitted by law, (1) indemnify and hold harmless the Company, its directors and directors, officers, employeesemployees and controlling Persons, agents if any, and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any Person who is offering or might be deemed to be a Controlling Person sale of Common Shares, against any losses, claims, actions, damages, liabilities and expenses, joint or several, Claims to which they or any of them each such indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in the Registration Statementsuch registration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or supplement to the same or (ii) are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, but, in the each case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by such Holder Participating Investor expressly for use in such Registration Statementtherein, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall and (2) reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person Company for any legal or other out-of-pocket expenses reasonably incurred by them the Company in connection with investigating, investigating or defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveClaim. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt Promptly after receipt by an indemnified party under Section 4.7(a) or Section 4.7(b) of written notice to of the commencement of any action or proceeding for which indemnification under Section 4.7(a) or Section 4.7(b) may be requested, such indemnified party shall notify the indemnifying party in writing of any claim with respect the commencement of such action or proceeding, but the omission so to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party in respect of such action or proceeding hereunder unless the indemnifying party was materially prejudiced by such failure of its obligations under this Agreementthe indemnified party to give such notice, except to the extent that and in no event shall such omission relieve the indemnifying party is actually and materially prejudiced by reason of from any other liability it may have to such failure or delayindemnified party. In case a claim any such action or an action that is subject or potentially subject to indemnification pursuant to this Agreement is proceeding shall be brought against any indemnified party and it shall notify an indemnified partyindemnifying party of the commencement thereof, the such indemnifying party shall be entitled to participate in and shall have the righttherein and, exercisable by giving written notice to the extent that it shall determine, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party as promptly as practicable party, and, after receipt of written notice from the indemnifying party to such indemnified party of such claim or action, its election so to assume, at the indemnifying party’s expense, assume the defense of any thereof, such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated liable to reimburse the such indemnified party for any fees, costs and legal or any other expenses subsequently incurred by the such indemnified party in connection with such the defense unless (A) thereof other than reasonable costs of investigation. If the indemnifying party has agreed in writing to pay such feesis not entitled to, costs and expensesor elects not to, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or actionclaim, (C) having assumed it will not be obligated to pay the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs fees and expenses of more than one firm of attorneys (in addition counsel for each indemnified party with respect to any local counsel) for all indemnified partiessuch claim. The indemnifying party will not be subject to any liability for any settlement made without its consent, which consent shall not have the right to settle a claim be unreasonably withheld or action for which any indemnified delayed. No indemnifying party is entitled to indemnification pursuant to this Agreement shall, without the prior written consent of the indemnified party, The indemnifying party shall not compromise or consent to the entry of any judgment or enter into or agree any settlement agreement with respect to any settlement relating to such claim action or action proceeding in respect of which indemnification is sought under Section 4.7(a) or Section 4.7(b) (whether or not the indemnified party is an actual or potential party thereto), unless such judgment compromise, consent or settlement does not impose any admission includes an unconditional release of wrongdoing or ongoing obligations on any the indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall litigation and does not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with subject the consent of an indemnified party unless the indemnifying party has also consented to such judgment any material injunctive relief or settlement (such consent not to be unreasonably withheld, conditioned or delayed)other material equitable remedy. (d) If Each Participating Investor and the Company agree that if, for any reason, the indemnification provided for in this Section 11 is held provisions contemplated by a court of competent jurisdiction Sections 4.7(a) or 4.7(b) hereof are unavailable to be unavailable to, or unenforceable by, are insufficient to hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein (other than as a result of the provisos thereto), then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of benefits derived by the indemnifying party, on the one hand, and of the indemnified party, on the other hand, as well as other equitable considerations. The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission deemed to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable include (subject to the Company, and, relating to limitations set forth in Section 4.7(c) hereof) any action legal or inaction required of the Company other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any registration of securitiessuch action, whether such action pro- ceeding or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission or violation. The parties agree that it would not be just and equitable if contribution pursuant to this Agreement were determined by pro rata allocation or by any other method or allocation that does not take into account the equitable considerations referred to in this Section 11(d). In no event shall the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contributeclaim. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 2 contracts

Sources: Shareholders Agreement (Arch Capital Group LTD), Shareholder Agreement (Arch Capital Group LTD)

Indemnification; Contribution. (a) The Company shall, to If any Registrable Securities are included in a registration statement under this Agreement: 7.1. To the fullest extent permitted by applicable law, the Company shall indemnify and hold harmless each Holder of Registrable SecuritiesSelling Holder, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Selling Holder or Controlling Person (each within the meaning of the foregoingSecurities Act, a “Covered and each officer, director, partner, and employee of such Selling Holder and such controlling Person”) , against any and all losses, claims, actions, damages, liabilities and expenses, expenses (joint or several), including attorneys’ fees and disbursements and expenses of investigation, incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation, or to which such Covered Person any of the foregoing Persons may become subject under the Securities Act, the Exchange Act, any Act or other federal or state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or and expenses arise out of or are based upon any of the following statements, omissions or violations (collectively a “Violation”): (i) any Any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any preliminary prospectus or incorporated by reference in any Registration Statementfinal prospectus contained therein, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) amendments or any amendment or supplement to or any document incorporated by reference in the same, supplements thereto; or (ii) any The omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statementtherein, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same therein not misleading; provided, buthowever, in that the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company indemnification required by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) 7.1 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action liability or proceeding expense if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such Holder. The Company case for any such loss, claim, damage, liability or expense to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only conformity with written information furnished or to be furnished to the Company by the indemnified party expressly for use in connection with such registration; provided, further, that the indemnity agreement contained in this Section 7 shall not apply to any Registration Statement or Prospectus relating underwriter to the extent that any such loss is based on or arises out of an untrue statement or alleged untrue statement of a material fact, or an omission or alleged omission to state a material fact, contained in or omitted from any preliminary prospectus if the final prospectus shall correct such untrue statement or alleged untrue statement, or such omission or alleged omission, and a copy of the final prospectus has not been sent or given to such person at or prior to the confirmation of sale to such person if such underwriter was under an obligation to deliver such final prospectus and failed to do so. The Company shall also indemnify underwriters, selling brokers, dealer managers and similar securities industry professionals participating in the distribution, their officers, directors, agents and employees and each person who controls such persons (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) to the same extent as provided above with respect to the indemnification of the Selling Holders. 7.2. To the extent permitted by applicable law, each Selling Holder shall indemnify and hold harmless the Company, each of its directors, each of its officers who shall have signed the registration statement, each Person, if any, who controls the Company within the meaning of the Securities Act, any other Selling Holder, any controlling Person of any such other Selling Holder and each officer, director, partner, and employee of such other Selling Holder and such controlling Person, against any and all losses, claims, damages, liabilities and expenses (joint and several), including attorneys’ fees and disbursements and expenses of investigation, incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation, or to which any of the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or other federal or state laws, insofar as such losses, claims, damages, liabilities and expenses arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such Selling Holder expressly for use in connection with such registration; provided, however, that (x) the indemnification required by this Section 7.2 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or expense if settlement is effected without the consent of the relevant Selling Holder of Registrable Securities Securities, which consent shall not be unreasonably withheld, and (y) in no event shall the amount of any indemnity under this Section 7.2 exceed the gross proceeds from the applicable offering received by such Selling Holder. 7.3. Promptly after receipt by an indemnified party under this Section 7 of notice of the commencement of any action, suit, proceeding, investigation or threat thereof made in writing for which such indemnified party may make a claim under this Section 7, such indemnified party shall deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any amendmentother indemnifying party similarly noticed, supplement or preliminary materials associated to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall have the right to retain its own counsel, with the same are statements specifically relating fees and disbursements and expenses to (a) be paid by the beneficial ownership indemnifying party, if representation of shares of Common Stock such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such Holder and its Affiliates, (b) the name and address of counsel in such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation proceeding. The failure to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt deliver written notice to the indemnifying party within a reasonable time following the commencement of any claim with respect such action, if prejudicial to which it seeks indemnification. Notwithstanding the previous sentenceits ability to defend such action, any failure or delay to so notify the shall relieve such indemnifying party of any liability to the indemnified party under this Section 7 but shall not relieve the indemnifying party of its obligations under this Agreement, except any liability that it may have to the extent that the indemnifying any indemnified party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification otherwise than pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in Section 7. Any fees and shall have the right, exercisable expenses incurred by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from (including any fees and expenses incurred in connection with investigating or preparing to defend such indemnified party of such claim action or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable proceeding) shall be paid to the indemnified party, as incurred, within thirty (30) days of written notice thereof to the indemnifying party (regardless of whether it is ultimately determined that an indemnified party is not entitled to indemnification hereunder). Notwithstanding the previous sentence, any Any such indemnified party shall continue have the right to be entitled employ separate counsel in any such action, claim or proceeding and to participate in the defense of such claim or action, with counsel of its own choicethereof, but the indemnifying party fees and expenses of such counsel shall not be obligated to reimburse the expenses of such indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (Ai) the indemnifying party has agreed in writing to pay such fees, costs fees and expenses, expenses or (Bii) the indemnifying party has shall have failed to promptly assume the defense of such action, claim or action within a reasonable time after receipt of notice of proceeding or (iii) the named parties to any such action, claim or action, proceeding (Cincluding any impleaded parties) having assumed the defense of include both such claim or action, indemnified party and the indemnifying party fails to employ counsel reasonably acceptable to the party, and such indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of shall have been advised by counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional in addition to those available to the indemnifying party. Subject to party and that the foregoing sentence, no assertion of such defenses would create a conflict of interest such that counsel employed by the indemnifying party shallcould not faithfully represent the indemnified party (in which case, if such indemnified party notifies the indemnifying party in writing that it elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense of such action, claim or proceeding on behalf of such indemnified party, it being understood, however, that the indemnifying party shall not, in connection with any one such action, claim or action proceeding or separate but substantially similar or related actions actions, claims or proceedings in the same jurisdiction arising out of the same general circumstances allegations or allegationscircumstances, be liable for the fees, costs reasonable fees and expenses of more than one separate firm of attorneys (in addition to any together with appropriate local counsel) at any time for all such indemnified parties. The , unless in the reasonable judgment of such indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such action, claim or proceeding, in which event the indemnifying party shall not have be obligated to pay the right fees and expenses of such additional counsel or counsels). No indemnifying party shall be liable to settle a claim or action for which any an indemnified party is entitled to indemnification pursuant to this Agreement for any settlement of any action, proceeding or claim without the written consent of the indemnified indemnifying party, The indemnifying party shall not which consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under unreasonably withheld. 7.4. If the indemnification required by this Agreement for any amount paid or payable or incurred pursuant Section 7 from the indemnifying party is unavailable to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, an indemnified party hereunder in respect of any losslosses, claimclaims, actiondamages, damage, liability liabilities or expense expenses referred to in this Section 11, then the applicable 7: (i) The indemnifying party, in lieu of indemnifying such indemnified party under this Agreementparty, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability liabilities or expense expenses in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, fault of the indemnifying party shall contribute to such amount and indemnified parties in connection with the actions which resulted in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying partylosses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative fault of the such indemnifying party, on the one hand, party and of the indemnified party, on the other hand, parties shall be determined by reference to, among other things, whether the untrue any Violation has been committed by, or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the by, such indemnifying party or by the indemnified partyparties, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission or violationViolation. The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 7.1 and Section 7.2, any legal or other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding. (ii) The parties hereto agree that it would not be just and equitable if contribution pursuant to this Agreement Section 7.4 were determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in this Section 11(d7.4(i). In no event shall the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of 7.5. If indemnification is available under this Section 11 7, the indemnifying parties shall remain indemnify each indemnified party to the full extent provided in full force and effect regardless this Section 7 without regard to the relative fault of any investigation made by such indemnifying party or on behalf of any indemnified party or any officer, director or controlling person other equitable consideration referred to in Section 7.4. 7.6. The obligations of such indemnified party the Company and the Selling Holders of Registrable Securities under this Section 7 shall survive the Transfer completion of any offering of Registrable Securities by any Holderpursuant to a registration statement under this Agreement, and otherwise.

Appears in 2 contracts

Sources: Investment Agreement (Gleacher & Company, Inc.), Investment Agreement (First Albany Companies Inc)

Indemnification; Contribution. (a) The In the event of any registration of any securities of the Company shallunder the Securities Act, to the fullest extent permitted by lawCompany will, and hereby does, indemnify and hold harmless each Holder in the case of any registration statement filed pursuant to Section 2 or 3, the holder of any Registrable SecuritiesSecurities covered by such registration statement, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct directors and indirect general and limited partners, advisory board members, directors, officers, trusteeseach officer and director of each underwriter, managers, members, employees, agents, Affiliates and shareholders, each other person who participates as an underwriter in the offering or sale of such securities and each other Personperson, if any, who acts on behalf of controls such holder or controls any such Holder or Controlling Person (each underwriter within the meaning of the foregoing, a “Covered Person”) Securities Act against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which such Covered Person holder or any such director or officer or participating or controlling person may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses (or actions or proceedings or investigations in respect thereof) arise out of or are based upon (ix) any untrue statement or alleged untrue statement of a any material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 registration statement under which such securities were registered under the Securities Act Act, any preliminary prospectus (unless, with respect to the indemnification of the officers and directors of each underwriter and each other person participating as an underwriter, any such statement is corrected in a subsequent prospectus and the underwriters are given the opportunity to circulate the corrected prospectus to all persons receiving the preliminary prospectus), final prospectus or any successor rule to Rule 405) summary prospectus included therein, or any amendment or supplement to thereto, or any document incorporated by reference in the sametherein, or (iiy) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading misleading, or (iiiz) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to laws, and the Company will reimburse such holder and relating to any action or inaction required of the Company in connection with any registration of securities. In additioneach such director, the Company shall reimburse each Covered Person officer, participating person and controlling person for any legal or any other expenses reasonably incurred by such Covered Person them in connection with investigating, investigating or defending or settling any such loss, claim, actionliability, damage action or liability. Notwithstanding the previous sentenceproceeding; provided, however, that the Company shall not be so liable to any seller, director, officer, participating person or controlling person in any such case to the extent that any such loss, claim, action, damage, liability (or action or proceeding in respect thereof) or expense arises out of or is based upon any such an untrue statement or alleged untrue statement, statement or omission or alleged omissionomission made in such registration statement, any such preliminary prospectus, final prospectus, summary prospectus, amendment or supplement in reliance upon and in conformity with written information furnished to the Company in an instrument executed by or under the direction of such seller, director, officer, participating person or controlling person for use in the preparation thereof, which information was specifically stated to be for use in the registration statement, prospectus, offering circular or other document. Such indemnity shall remain in full force and effect regardless of any investigation made by or incorporated on behalf of such seller or any such director, officer, participating person or controlling person and shall survive the transfer of such securities by reference such seller. The Company shall agree to provide for contribution relating to such indemnity as shall be reasonably requested by any seller of Registrable Securities or the underwriters. (b) The Company may require, as a condition to including any Registrable Securities in any registration statement filed pursuant to Section 2(a), that the Company shall have received an undertaking satisfactory to it from the prospective sellers of such Registration Statementsecurities and their underwriters, Prospectusto indemnify and hold harmless (in the same manner and to the same extent as set forth in subdivision (a) of this Section 6) the Company, each director of the Company, each officer of the Company who shall sign such registration statement and each other person, if any, who controls the Company within the meaning of the Securities Act, with respect to any statement in or omission from such registration statement, any preliminary Prospectusprospectus, free writing final prospectus or summary prospectus included therein, or any amendment or supplement to thereto, but only if such statement or any document incorporated by reference in the same omission was made in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company through an instrument duly executed by such Covered Person expressly sellers or their underwriters specifically stating that it is for use in the preparation of such Registration Statement, Prospectusregistration statement, preliminary Prospectus prospectus, final prospectus, summary prospectus, amendment or free writing prospectussupplement. This Such indemnity shall be remain in addition to full force and effect regardless of any liability investigation made by or on behalf of the Company may otherwise have. (b) In connection with or any registration in which a Holder such director, officer or controlling person and shall survive the transfer of Registrable Securities is participating, each such Holder shall furnish securities by such sellers. Anything contained herein to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Actcontrary notwithstanding, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out maximum liability of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading, but, each prospective seller in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) prospective seller shall be individual and several, not joint and several, for each participating Holder and shall be proportional limited to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in prospective seller from the sale of such Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveSecurities. (c) Any Person entitled Promptly after receipt by an indemnified party of notice of the commencement of any action or proceeding involving a claim referred to indemnification pursuant in the preceding subdivisions of this Section 6, such indemnified party will, if a claim in respect thereof is to this Agreement shall be made against an indemnifying party, give prompt written notice to the indemnifying party latter of the commencement of such action; provided, however, that the failure of any claim with respect indemnified party to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party give notice as provided herein shall not relieve the indemnifying party of its obligations under the preceding subdivisions of this Agreement, Section 6 except to the extent that the indemnifying party is actually party's rights are prejudiced, or liabilities and materially prejudiced by reason obligations under this Section 6 are increased, as a result of such failure or delayto give notice. In case a claim or an any such action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have to assume the rightdefense thereof, exercisable by giving written notice jointly with any other indemnifying party similarly notified, to the extent that it may wish, with counsel reasonably satisfactory to such indemnified party as promptly as practicable after receipt of written party. After notice from the indemnifying party to such indemnified party of such claim or action, its election so to assume, at the indemnifying party’s expense, assume the defense of any such claim or actionthereof, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated liable to reimburse the such indemnified party for any fees, costs and legal or other expenses subsequently incurred by the indemnified party in connection with such the defense thereof unless (Ai) the indemnifying party has agreed in writing shall have failed to pay such fees, costs and expensesretain counsel for the indemnified party as aforesaid, (Bii) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to and the indemnified party or shall have mutually agreed to pursue the defense retention of such claim counsel or action in a reasonably vigorous manner, (Diii) representation of such indemnified party by the use of counsel chosen retained by the indemnifying party would be inappropriate due to represent actual or potential differing interests between such indemnified party and any other person represented by such counsel in such proceeding or the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has shall have reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The which case the indemnifying party shall not have the right to settle a claim or direct the defense of such action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent on behalf of the indemnified party, The ). No indemnifying party shall not will consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement which does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes include as an unconditional term of such judgment or settlement thereof the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, party of a full and final release from all liability in respect of to such claim or actionlitigation. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with settlement of any judgment entered or settlement proceeding effected with without the written consent of an indemnified party unless the such indemnifying party has also consented to such judgment or settlement (such which consent shall not to be unreasonably withheld), conditioned but if settled with such consent or delayed). (d) If if there be a final judgment for the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, an indemnified party in respect of any loss, claim, action, damage, liability or expense referred to in this Section 11, then the applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable lawplaintiff, the indemnifying party shall contribute agrees to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnify each indemnified party from and the indemnifying party, as well as against any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, shall be determined loss or liability by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission or violation. The parties agree that it would not be just and equitable if contribution pursuant to this Agreement were determined by pro rata allocation or by any other method or allocation that does not take into account the equitable considerations referred to in this Section 11(d). In no event shall the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party guilty or liable of fraudulent misrepresentation within the meaning of Section 11(f) of the Securities Act shall be entitled to contribution from any Person who was not guilty reason of such fraudulent misrepresentationsettlement or judgment. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 2 contracts

Sources: Purchase Agreement (Bianco Joseph J), Purchase Agreement (Alliance Entertainment Corp)

Indemnification; Contribution. (a) The Company shall, to the fullest extent permitted by lawand hereby agrees to, indemnify and hold harmless each Participating Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of and its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates agents and shareholders, and each other Personcontrolling Persons, if any, who acts on behalf of in any offering or controls any such Holder or Controlling Person (each sale of the foregoingParticipating Shares pursuant to the Shelf Registration Statement, a “Covered Person”) against any losses, claims, actionsdamages or liabilities, damagesactions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable fees of counsel) (collectively, liabilities and expenses, joint or several, “Claims”) to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such lossesClaims (including any amounts paid in settlement effected with the consent of the Company as provided herein), claimsor actions or proceedings in respect thereof, actions, damages, liabilities or expenses (i) arise out of or are based upon (i) any untrue or alleged an untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to or any document incorporated by reference in the same, (ii) any omission or alleged omission of a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Shelf Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule Prospectus or preliminary Prospectus contained therein with respect to Rule 405) Participating Shares, or any amendment of or supplement to the same thereto, or any document incorporated by reference therein, or (ii) arise out of or are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements therein, in each case in light of the circumstances in which they were made, not misleading; provided that the Company shall not be liable to any such Participating Holder in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the same Shelf Registration Statement, or Prospectus or preliminary Prospectus relating to the Participating Shares, or amendment or supplement thereto, in reliance upon and in conformity with written information furnished to the Company by the Participating Holder with respect to such Participating Holder expressly for use therein, or by such Participating Holder’s failure to furnish the Company, upon the Company’s reasonable request, with the information with respect to such Participating Holder, or such Participating Holder’s intended method of distribution, that is the subject of the untrue statement or omission, or if such Participating Holder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable Prospectus (excluding any documents incorporated by reference therein) or of the applicable Prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Company had previously furnished copies thereof to the Participating Holders, and such Prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in the Shelf Registration Statement. (b) Each Participating Holder, severally and not jointly, shall, and hereby agrees to, indemnify and hold harmless the Company, its directors, officers, employees and controlling Persons, if any, in any offering or sale of Participating Shares pursuant to the Shelf Registration Statement, against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of such Participating Holder as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Shelf Registration Statement or any Prospectus or preliminary Prospectus contained therein with respect to the Participating Shares, or any document incorporated by reference therein, or arise out of or are based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, but, in the each case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by such Participating Holder with respect to such Participating Holder expressly for use therein; provided, that in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder no event shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to indemnity under this Section 11(b2.05(b), when combined with any contribution under Section 2.05(d) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net total proceeds (after deducting Selling Expenses) actually from the offering received by such Participating Holder unless such liability arises out of or is based on Fraud (as defined in the sale of Registrable Securities to which such Registration Statement Merger Agreement) or Prospectus relates. The indemnity agreement contained Willful Breach (as defined in this Section 11(bthe Merger Agreement) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveParticipating Holder. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt Promptly after receipt by an indemnified party under Section 2.05(a) or Section 2.05(b) of written notice to of the commencement of any action or proceeding for which indemnification under Section 2.05(a) or Section 2.05(b) may be requested, such indemnified party shall notify such indemnifying party in writing of the commencement of such action or proceeding. In case any such action or proceeding shall be brought against any indemnified party and it notifies an indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentencecommencement thereof, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the righttherein and, exercisable by giving written notice to the extent that it shall determine, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party as promptly as practicable of its election so to assume the defense thereof, such indemnifying party shall not be liable to such indemnified party for any legal or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, that (i) if the indemnifying party fails to take reasonable steps necessary to defend diligently the action or proceeding within twenty (20) days after receipt of written receiving notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to that the indemnified party. Notwithstanding the previous sentence, any party believes it has failed to do so; (ii) if such indemnified party shall continue to be entitled to participate who is a defendant in the defense of such claim any action or action, with counsel of its own choice, but proceeding which is also brought against the indemnifying party reasonably shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably have concluded that there may be one or more legal or equitable defenses available to it and/or other any other such indemnified party which are different from or additional to those not available to the indemnifying party. Subject ; or (iii) if representation of both parties by the same counsel is otherwise inappropriate under applicable standards of professional conduct, then, in any such case, the indemnified party shall have the right to assume or continue its own defense as set forth above (but with no more than one firm of counsel for all indemnified parties) and the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, shall be liable for any expenses therefor (including, without limitation, any such reasonable counsel’s fees). If the feesindemnifying party is not entitled to, costs or elects not to, assume the defense of a claim, it will not be obligated to pay the fees and expenses of more than one firm of attorneys (in addition counsel for each indemnified party with respect to any local counsel) for all indemnified partiessuch claim. The indemnifying party shall will not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree be subject to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the made without its consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). No indemnifying party shall, without the prior written consent of the indemnified party, compromise or consent to entry of any judgment or enter into any settlement agreement with respect to any action or proceeding in respect of which indemnification is sought under Section 2.05(a) or Section 2.05(b) (whether or not the indemnified party is an actual or potential party thereto), unless such compromise, consent or settlement is solely for monetary damages and includes an unconditional release of the indemnified party from all liability in respect of such claim or litigation, and does not include a statement or admission of fault, culpability or a failure to act, by or on behalf of the indemnified party. (d) If The Participating Holders and the Company agree that if, for any reason, the indemnification provided for in this provisions contemplated by Section 11 is held by a court of competent jurisdiction 2.05(a) or Section 2.05(b) hereof are unavailable to be unavailable to, or unenforceable by, are insufficient to hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the such indemnifying party or by the such indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission. If, omission however, the allocation in the first sentence of this Section 2.05(d) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or violationpayable by such indemnified party in such proportion as is appropriate to reflect not only such relative fault, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Agreement Section 2.05(d) were to be determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the preceding sentences of this Section 11(d2.05(d). In Notwithstanding any of the foregoing, in no event shall the amount which a any contribution by any Participating Holder of Registrable Securities may be obligated to contribute pursuant to under this Section 11(d) 2.05(d), when combined with any amounts payable or paid by such Participating Holder under Section 2.05(b), exceed an amount equal to the net total proceeds (after deducting Selling Expenses) actually from the offering received by such Holder Participating Holder, unless such liability arises out of or is based on Fraud (as defined in the sale of Registrable Securities that gives rise to Merger Agreement) or Willful Breach (as defined in the Merger Agreement) by such obligation to contributeParticipating Holder. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 2 contracts

Sources: Registration Rights Agreement, Registration Rights Agreement (Alphabet Inc.)

Indemnification; Contribution. (a) The Company shall, to the fullest extent permitted by law, shall indemnify and hold harmless each Holder, its respective officers and directors, and each person, if any, who controls such Holder within the meaning of Registrable Securitieseither Section 15 of the Securities Act or Section 20 of the Exchange Act and any agents, representatives or advisers thereof against all losses, claims, damages, liabilities and expenses (including reasonable attorneys' fees and expenses and reasonable costs of investigation) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon (i) any untrue or alleged untrue statement of material fact contained in any Registration Statement, any Prospectus or preliminary Prospectus, or any amendment or supplement to any of the foregoing, (ii) any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, in light of the circumstances then existing) not misleading, or (iii) any violation or alleged violation by the Company of any United States federal, state or common law rule or regulation applicable to the Company and relating to action required of or inaction by the Company in connection with any such registration except in each case insofar as the same arise out of or are based upon, any such untrue statement or omission made in reliance on and in conformity with written information with respect to a Holder furnished to the Company by such Holder or its counsel expressly for use therein. In connection with an Underwritten Offering, the Company shall indemnify the underwriters thereof, their officers, directors and agents and each Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries controls such underwriters (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (Act) to the same extent as provided above with respect to the indemnification of each such Person, a “Controlling Person”Holder. Notwithstanding the foregoing provisions of this Section 11(a), their respective direct and indirect general and limited partnersthe Company shall not be liable to any Holder, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each any Person who participates as an underwriter in the offering or sale of Registrable Securities or any other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person underwriter (each within the meaning of the foregoing, a “Covered Person”) against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which such Covered Person may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to or any document incorporated by reference in the same, (ii) any omission or alleged omission of a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading or (iii) any violation or alleged violation by the Company Section 15 of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required Section 20 of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to under this Section 11(b) shall be individual and several, not joint and several, 11 for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, liability (or action or proceeding in respect thereof) or expense that arises out of an untrue statement or alleged untrue statement or omission or alleged omission in the preliminary Prospectus if such settlement is effected without the consent a Holder, or other Person on behalf of such Holder. The Company and , failed to send or deliver a copy of a final Prospectus to the Holders Person asserting the claim prior to the written confirmation of the sale of the Registrable Securities hereby acknowledge to such Person and agree that, unless otherwise expressly agreed to such statement or omission was corrected in writing by such Holders, final Prospectus and the only information Company had previously and timely furnished or to be furnished sufficient copies thereof to the Company for use Holders in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated accordance with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise havethis Agreement. (cb) Any Person entitled to indemnification pursuant hereunder agrees to this Agreement shall give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim with respect indemnification or contribution pursuant to which this Section 11 (provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 11 except to the extent the indemnifying party shall have been materially prejudiced as a result of such failure). In case any such action shall be brought against any indemnified party and it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so shall notify the indemnifying party shall not relieve of the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partycommencement thereof, the indemnifying party shall be entitled to participate in and shall have the righttherein and, exercisable by giving written notice to the extent that it shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party as promptly as practicable (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and after receipt of written notice from the indemnifying party to such indemnified party of such claim or action, its election so to assume, at the indemnifying party’s expense, assume the defense of any such claim or actionthereof, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated liable to reimburse the such indemnified party under this Section 11 for any feeslegal expenses of other counsel or any other expenses, costs and expenses in each case subsequently incurred by the such indemnified party party, in connection with such the defense unless thereof other than reasonable costs of investigation. Notwithstanding the foregoing, if (Ai) the indemnifying party has agreed in writing shall not have employed counsel reasonably satisfactory to pay such fees, costs and expenses, (B) the indemnifying indemnified party has failed to assume take charge of the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense commencement of such claim action (so long as such failure to employ counsel is not the result of an unreasonable determination by such indemnified party that counsel selected pursuant to the immediately preceding sentence is unsatisfactory) or action, if the indemnifying party fails shall not have demonstrated to employ counsel reasonably acceptable to the reasonable satisfaction of the indemnified party its ability to finance such defense, or to pursue the defense of such claim or action in a reasonably vigorous manner, (Dii) the use of counsel chosen by actual or potential defendants in, or targets of, any such action include both the indemnifying party to represent the and such indemnified party would present and such counsel with a conflict of interest or (E) the indemnified party has shall have reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to party which, if the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in and such indemnified party were to be represented by the same jurisdiction arising out counsel, could result in a conflict of interest for such counsel or materially prejudice the prosecution of the same general circumstances or allegationsdefenses available to such indemnified party, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all then such indemnified parties. The indemnifying party shall not have the right to settle employ separate counsel, in which case the fees and expenses of one counsel or firm of counsel (plus one local or regulatory counsel or firm of counsel) selected by a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent majority in interest of the indemnified party, The parties shall be borne by the indemnifying party and the fees and expenses of all other counsel retained by the indemnified parties shall not be paid by the indemnified parties. No indemnified party shall consent to the entry of any judgment or enter into or agree to any settlement relating to such without the consent (which consent, in the case of an action, suit, claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified partyproceeding exclusively seeking monetary relief, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed)) of each indemnifying party. (dc) If the indemnification from the indemnifying party provided for in this Section 11 is held by a court of competent jurisdiction unavailable to be unavailable to, or unenforceable by, an indemnified party hereunder in respect of any losslosses, claimclaims, actiondamages, damage, liability liabilities or expense expenses referred to in this Section 11therein, then the applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreementparty, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability or expense liabilities and expenses in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, fault of the indemnifying party shall contribute to such amount and indemnified party in connection with the actions or omissions which resulted in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party losses, claims, damages, liabilities and the indemnifying partyexpenses, as well as any other relevant equitable considerations. The relative fault of the such indemnifying party, on the one hand, party and of the indemnified party, on the other hand, party shall be determined by reference to, among other things, whether the any action in question, including any untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact fact, has been made by, or relates to information supplied by (in writing, in the case of a Holder) by, such indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statementaction or omission. The amount paid or payable by a party as a result of the losses, omission claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 11(b) hereof, any legal and other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or violationproceeding. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Agreement Section 11(c) were determined by pro rata allocation or by any other method or of allocation that which does not take into account of the equitable considerations referred to above in this Section 11(d11(c). In no event Any underwriter's obligations in this Section 11(c) to contribute shall be several in proportion to the amount which a Holder number of Registrable Securities may underwritten by them and not joint. Notwithstanding the provisions of this Section 11(c), no underwriter shall be obligated required to contribute pursuant to this Section 11(d) exceed an any amount equal in excess of the amount by which the total price at which the Registrable Securities underwritten by it and distributed to the net proceeds (after deducting Selling Expenses) actually received public were offered to the public exceeds the amount of any damages which such underwriter has otherwise been required to pay by reason of such Holder in the sale of Registrable Securities that gives rise to such obligation to contributeuntrue or alleged untrue statement or omission or alleged omission. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. If indemnification is available under this Section 11, the indemnifying parties shall indemnify each indemnified party to the fullest extent provided in Section 11(a) hereof without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 11(c). (ed) The provisions of this Section 11 shall be in addition to any liability which any party may have to any other party and shall survive any termination of this Agreement. The indemnification provided by this Section 11 shall survive the transfer of such Registrable Securities by the Holder and shall remain in full force and effect regardless irrespective of any investigation made by or on behalf of any an indemnified party or any officerparty, director or controlling person of so long as such indemnified party and shall survive the Transfer is not guilty of any Registrable Securities by any Holderacting in a fraudulent, reckless or grossly negligent manner.

Appears in 2 contracts

Sources: Registration Rights Agreement (Wellchoice Inc), Registration Rights Agreement (Wellchoice Inc)

Indemnification; Contribution. (a) The Company shall, to the fullest extent permitted by lawand it hereby agrees to, indemnify and hold harmless each Holder Stockholder (which, for purposes of Registrable Securitiesthis Article VI, any Person who is or might shall be deemed to be a “controlling person” include each holder of the Company or any of Registrable Shares) and its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), controlled Affiliates and their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agentsmanagers, Affiliates partners, accountants, attorneys and shareholders, agents and each other Person, if any, Person who acts on behalf of or controls any such Holder or Controlling Person (each within the meaning of the foregoingSecurities Act and the Exchange Act) such Persons, a “Covered Person”) in any offering or sale of the Registrable Shares, from and against any losses, claims, actionsdamages or liabilities, damagesactions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable fees of counsel) (collectively, liabilities and expenses, joint or several, “Claims”) to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such lossesClaims (including any amounts paid in settlement effected with the consent of the Company as provided herein), claimsor actions or proceedings in respect thereof, actionsarise out of or are based upon (i) an untrue or alleged untrue statement of a material fact in any registration statement used to register Registrable Shares pursuant to this Agreement or any amendment thereof or supplement thereto, damagesor any document incorporated by reference therein, liabilities or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading and (ii) any untrue or alleged untrue statement of a material fact in any prospectus or preliminary prospectus used to register Registrable Shares pursuant to this Agreement or any amendment thereof or supplement thereto, or any document incorporated by reference therein, or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse periodically the indemnified person for any legal or other out-of-pocket expenses reasonably incurred by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any such Person in any such case only to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, made in reliance upon and in conformity with written information furnished to the Company by the Stockholder Group expressly for use therein. The members of the Stockholder Group shall, and hereby agree, severally and not jointly, to (i) indemnify and hold harmless the Company, its directors, officers, employees and each Person who controls (within the meaning of the Securities Act or the Exchange Act) such Persons, if any, in any offering or sale of Registrable Shares, against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule registration statement used to Rule 405) register Registrable Shares pursuant to this Agreement or any amendment thereof or supplement to thereto, or any document incorporated by reference in the sametherein, (ii) or any omission or alleged omission of a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading or and (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (iii) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, any prospectus or preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule used to Rule 405) register Registrable Shares pursuant to this Agreement or any amendment of thereof or supplement to the same thereto, or (ii) any document incorporated by reference therein, or any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein, in the same light of the circumstances under which they were made, not misleading, but, in the each case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by such Holder the Stockholder Group expressly for use in such Registration Statementtherein, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall and (ii) reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person Company for any legal or other out-of-pocket expenses reasonably incurred by them the Company in connection with investigating, investigating or defending or settling any such lossClaim. Notwithstanding the foregoing, claim, action, damage or liability. The obligation to indemnify pursuant to no member of the Stockholder Group shall be liable under this Section 11(b6.1(a) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to amounts in excess of the net proceeds (after deducting Selling Expensesnet of underwriting discounts and commissions) actually received by such Holder holder in the sale offering giving rise to such liability. (b) Promptly after receipt by an indemnified party under Section 6.1(a) or Section 6.1(b) of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement written notice of the commencement of any such loss, claim, damage, liability, action or proceeding if for which indemnification under Section 6.1(a) or Section 6.1(b) may be requested, such settlement is effected without indemnified party shall notify such indemnifying party in writing of the consent commencement of such Holder. The Company and action or proceeding; but the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed omission so to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party in respect of such action or proceeding hereunder unless the indemnifying party was materially prejudiced by such failure of its obligations under this Agreementthe indemnified party to give such notice, except to the extent that and in no event shall such omission relieve the indemnifying party is actually and materially prejudiced by reason of from any other liability it may have to such failure or delayindemnified party. In case a claim any such action or an action that is subject or potentially subject to indemnification pursuant to this Agreement is proceeding shall be brought against any indemnified party and it shall notify an indemnified partyindemnifying party of the commencement thereof, the such indemnifying party shall be entitled to participate in and shall have the righttherein and, exercisable by giving written notice to the extent that it shall determine, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party as promptly as practicable of its election so to assume the defense thereof, such indemnifying party shall not be liable to such indemnified party for any legal or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, that (i) if the indemnifying party fails to take reasonable steps necessary to defend diligently the action or proceeding within 20 days after receipt of written receiving notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to that the indemnified party. Notwithstanding the previous sentence, any party believes it has failed to do so; (ii) if such indemnified party shall continue to be entitled to participate who is a defendant in the defense of such claim any action or action, with counsel of its own choice, but proceeding which is also brought against the indemnifying party reasonably shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably have concluded that there may be one or more legal or equitable defenses available to it and/or other any other such indemnified party which are different from or additional to those not available to the indemnifying party. Subject ; or (iii) if representation of both parties by the same counsel is otherwise inappropriate under applicable standards of professional conduct, then, in any such case, the indemnified party shall have the right to assume or continue its own defense as set forth above (but with no more than one firm of counsel for all indemnified parties in each jurisdiction) and the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, shall be liable for any expenses therefor (including, without limitation, any such reasonable counsel’s fees). If the feesindemnifying party is not entitled to, costs or elects not to, assume the defense of a claim, it will not be obligated to pay the fees and expenses of more than one firm of attorneys (in addition counsel for each indemnified party with respect to any local counsel) for all indemnified partiessuch claim. The indemnifying party will not be subject to any liability for any settlement made without its consent, which consent shall not have the right to settle a claim be unreasonably withheld or action for which any indemnified delayed. No indemnifying party is entitled to indemnification pursuant to this Agreement shall, without the prior written consent of the indemnified party, The indemnifying party shall not compromise or consent to the entry of any judgment or enter into or agree any settlement agreement with respect to any settlement relating to such claim action or action proceeding in respect of which indemnification is sought under Section 6.1(a) or Section 6.1(b) (whether or not the indemnified party is an actual or potential party thereto), unless such judgment compromise, consent or settlement does not impose any admission includes an unconditional release of wrongdoing or ongoing obligations on any the indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall litigation, does not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with subject the consent of an indemnified party unless to any material injunctive relief or other material equitable remedy and does not include a statement or admission of fault, culpability or a failure to act, by or on behalf of the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed)indemnified party. (dc) If The members of the Stockholder Group and the Company agree that if, for any reason, the indemnification provided for in this Section 11 is held provisions contemplated by a court of competent jurisdiction Sections 6.1(a) or 6.1(b) hereof are unavailable to be unavailable to, or unenforceable by, are insufficient to hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable lawfault of, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, with respect to such offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the such indemnifying party or by the such indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission. If, omission however, the allocation in the second preceding sentence is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or violationpayable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Agreement Section 6.1(c) were to be determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the preceding sentences of this Section 11(d6.1(c). In no event The amount paid or payable by an indemnified party as a result of the Claims referred to above shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal include (subject to the net proceeds (after deducting Selling Expenseslimitations set forth in Section 6.1(b) actually received hereof) any legal or other fees or expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise to connection with investigating or defending any such obligation to contributeaction, proceeding or claim. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. Notwithstanding the foregoing, no member of the Stockholder Group shall be required to make a contribution in excess of the amount received by such person from the sale of its Registrable Shares in connection with the offering that gave rise to the contribution obligation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 2 contracts

Sources: Stockholders Agreement (Engility Holdings, Inc.), Agreement and Plan of Merger (Engility Holdings, Inc.)

Indemnification; Contribution. (aA) The Incident to any registration statement referred to in this Agreement, the Company shall, to the fullest extent permitted by law, will indemnify and hold harmless each underwriter, each Holder who offers or sells any such Registrable Securities in connection with such registration statement (including its partners (including partners of Registrable Securitiespartners and stockholders of any such partners), any Person who is or might be deemed to be a “controlling person” and directors, officers, employees and agents of the Company or any of its subsidiaries them (a "Selling Holder"), and each person who controls any of them within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a "Controlling Person")), their respective direct from and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any and all losses, claims, actions, damages, liabilities expenses and expensesliabilities, joint or severalseveral (including any investigation, reasonable attorney's fees and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, as the same are incurred), to which such Covered Person they, or any of them, may become subject under the Securities Act, the Exchange ActAct or other federal or state statutory law or regulation, any state blue sky securities laws, any equivalent non-U.S. securities laws at common law or otherwise, insofar as such losses, claims, actions, damages, damages or liabilities or expenses arise out of or are based upon on (ix) any untrue statement or alleged untrue statement of a material fact contained in such registration statement (including any related preliminary or incorporated by reference in any Registration Statementdefinitive prospectus, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to such registration statement or any document incorporated by reference in the sameprospectus), (iiy) any omission or alleged omission of to state in such document a material fact required to be stated in any such Registration Statementit, Prospectusin light of the circumstances under which it was made, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same it not misleading misleading, or (iiiz) any violation or alleged violation by the Company of the Securities Act or Act, any other similar federal or state securities or "blue sky" laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company thereunder in connection with any registration of securities. In additionsuch registration; provided, however, that the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any will not be liable to the extent that such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, expense or liability or expense arises out of or from and is based upon any such on an untrue statement or alleged untrue statement, or omission or alleged omission, untrue statement or omission made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, on and in conformity with, written with information prepared and furnished in writing to the Company by such Covered underwriter, Selling Holder or Controlling Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus registration statement. With respect to an untrue statement or free omission or alleged untrue statement or omission made in reliance upon the information furnished in writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing by such information as the Company reasonably requests Selling Holder expressly for use in connection with any such Registration Statement or Prospectus. Each registration statement, such Selling Holder shall, to the fullest extent permitted by law, will indemnify and hold harmless each underwriter, the CompanyCompany (including its directors, its directors and officers, employeesemployees and agents), each other Holder (including its partners (including partners of partners and stockholders of such partners) and directors, officers, employees and agents of any of them, and each person who controls any Person who is of them within the meaning of Section 15 of the Securities Act or might be deemed to be a Controlling Person Section 20 of the Exchange Act), from and against any and all losses, claims, actions, damages, liabilities expenses and expensesliabilities, joint or several, to which they they, or any of them them, may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) other federal or any amendment of state statutory law or supplement regulation, at common law or otherwise to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made extent provided in the same immediately preceding sentence. The Company shall not misleading, but, in the case of each of clauses (i) and (ii), only be obligated hereunder to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or indemnify any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, liability or action or proceeding if such settlement is effected without the consent of such Holderthe Company (which consent shall not be unreasonably withheld). The Company and In no event, however, shall the Holders liability of a Selling Holder for indemnification under this Section 5 exceed the lesser of (x) that proportion of the total of such losses, claims, damages or liabilities indemnified against equal to the proportion of the total securities sold under such registration statement which is being sold by such Selling Holder or (y) the proceeds received by such Selling Holder from its sale of Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by under such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveregistration statement. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 5(a) above for any reason is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, to an indemnified party in respect of any losslosses, claimclaims, actiondamages, damage, liability expenses or expense liabilities referred to in therein, then each indemnifying party under this Section 11, then the applicable indemnifying party5, in lieu of indemnifying such indemnified party under this Agreementthereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability expenses or expense liabilities (x) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company, the other Selling Holders and the indemnifying party. If underwriters from the offering of the Registrable Securities or (y) if the allocation provided by the preceding sentence clause (x) above is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence clause (x) above but also the relative fault of the indemnified party Company, the other Selling Holders and the indemnifying partyunderwriters in connection with the statements or omissions which resulted in such losses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company, the Selling Holders and the underwriters shall be deemed to be in the same respective proportions that the net proceeds from the offering (before deducting expenses) received by the Company and the Selling Holders and the underwriting discount received by the underwriters, in each case as set forth in the table on the cover page of the applicable prospectus, bear to the aggregate public offering price of the Registrable Securities. The relative fault of the indemnifying partyCompany, on the one hand, Selling Holders and of the indemnified party, on the other hand, underwriters shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party Selling Holders or the indemnified party. The relative fault shall also be determined by reference to underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties Company, the Selling Holders, and the underwriters agree that it would not be just and equitable if contribution pursuant to this Agreement Section 5(b) were determined by pro rata or per capita allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in this Section 11(d)the immediately preceding paragraph. In no event event, however, shall the amount which a Selling Holder of Registrable Securities may be obligated required to contribute pursuant to any amount under this Section 11(d5(b) exceed an amount in excess of the lesser of (x) that proportion of the total of such losses, claims, damages or liabilities indemnified against equal to the net proportion of the total Registrable Securities sold under such registration statement which are being sold by such Selling Holder or (y) the proceeds (after deducting Selling Expenses) actually received by such Selling Holder in the from its sale of Registrable Securities that gives rise to under such obligation to contributeregistration statement. No indemnified party person found guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not found guilty of such fraudulent misrepresentation. (eC) The provisions amount paid by an indemnifying party or payable to an indemnified party as a result of the losses, claims, damages and liabilities referred to in this Section 11 5 shall be 10 deemed to include, subject to the limitations set forth above, any reasonable legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim, payable as the same are incurred. The indemnification and contribution provided for in this Section 5 will remain in full force and effect regardless of any investigation made by or on behalf of any the indemnified party parties or any officer, director director, employee, agent or controlling person of such the indemnified party and shall survive the Transfer of any Registrable Securities by any Holderparties.

Appears in 2 contracts

Sources: Registration Rights Agreement (Physicians Specialty Corp), Registration Rights Agreement (Physicians Specialty Corp)

Indemnification; Contribution. (a) The Incident to any registration of any Registrable Securities under the Securities Act pursuant to this Agreement, the Company shall, to the fullest extent permitted by law, will indemnify and hold harmless each Holder who offers or sells any such Registrable Securities in connection with such registration statement (including its partners (including partners of Registrable Securitiespartners and stockholders of any such partners), any Person who is or might be deemed to be a “controlling person” and directors, officers, employees, representatives and agents of the Company or any of its subsidiaries them, and each person who controls any of them within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”Act), their respective direct from and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any and all losses, claims, actions, damages, liabilities reasonable expenses and expensesliabilities, joint or severalseveral (including any reasonable investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, as the same are incurred), to which such Covered Person they, or any of them, may become subject under the Securities Act, the Exchange ActAct or other federal or state statutory law or regulation, any state blue sky securities laws, any equivalent non-U.S. securities laws at common law or otherwise, insofar as such losses, claims, actions, damages, damages or liabilities or expenses arise out of or are based upon on (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement (including any related preliminary or incorporated by reference in any Registration Statementdefinitive prospectus, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to such registration statement or any document incorporated by reference in the same, prospectus) or (ii) any omission or alleged omission of to state in such document a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus it or necessary to make the statements in it not misleading; provided, however, that the Company will not be liable to the extent that (1) such loss, claim, damage, expense or liability arises from and is based on an untrue statement or omission or alleged untrue statement or omission made in the same not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable reliance on and in conformity with information furnished in writing to the Company by or on behalf of such Holder in accordance with Section 4(b) of this Agreement for use in such registration statement, or (2) in the case of a sale directly by such Holder (including a sale of Registrable Securities through any underwriter retained by such Holder to engage in a distribution solely on behalf of such Holder), such untrue statement or alleged untrue statement or omission or alleged omission was contained in a preliminary prospectus and relating corrected in a final or amended prospectus, and such Holder failed to any action or inaction required deliver a copy of the Company in connection with any registration final or amended prospectus at or prior to the confirmation of securities. In addition, the Company shall reimburse each Covered sale of the Registrable Securities to the Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling asserting any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable liability in any case where such case delivery is required by the Securities Act or any state securities laws. With respect to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made untrue statement or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference omission in the same information furnished in reliance upon, and in conformity with, written information prepared and furnished writing to the Company by or on behalf of such Covered Person expressly Holder in accordance with Section 4(b) of this Agreement for use in such Registration Statementregistration statement, Prospectussuch Holder, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which on a Holder of Registrable Securities is participatingseveral and not joint basis, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, will indemnify and hold harmless the CompanyCompany (including its directors, its directors and officers, employees, representatives and agents), each other Holder (including its partners (including partners of partners and stockholders of such partners) and directors, officers, employees, representatives and agents of any of them, and each person who controls any Person who is of them within the meaning of Section 15 of the Securities Act or might be deemed to be a Controlling Person Section 20 of the Exchange Act), from and against any and all losses, claims, actions, damages, liabilities reasonable expenses and expensesliabilities, joint or severalseveral (including any reasonable investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, as the same are incurred), to which they they, or any of them them, may become subject under the Securities Act, the Exchange ActAct or other federal or state statutory law or regulation, any state blue sky securities laws, any equivalent non-U.S. securities laws at common law or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (db) If the indemnification provided for in this Section 11 5(a) above for any reason is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, to an indemnified party in respect of any losslosses, claimclaims, actiondamages, damage, liability expenses or expense liabilities referred to in therein, then each indemnifying party under this Section 11, then the applicable indemnifying party5, in lieu of indemnifying such indemnified party under this Agreementthereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability expenses or expense liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company and the indemnifying party. If other Holders from the offering of the Registrable Securities or (ii) if the allocation provided by the preceding sentence clause (i) above is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence clause (i) above but also the relative fault of the indemnified party Company and the indemnifying partyother Holders in connection with the statements or omissions which resulted in such losses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company and the Holders shall be deemed to be in the same respective proportions that the net proceeds from the offering received by the Company and the Holders, in each case as set forth in the table on the cover page of the applicable prospectus, bear to the aggregate public offering price of the Registrable Securities. The relative fault of the indemnifying party, on Company and the one hand, and of the indemnified party, on the other hand, Holders shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required on behalf of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to Holders and the partiesParties’ relative intent, knowledge, knowledge and access to information and opportunity to correct or prevent such statement, omission or violationinformation. The parties Company and the Holders agree that it would not be just and equitable if contribution pursuant to this Agreement Section 5(b) were determined by pro rata or per capita allocation or by any other method or of allocation that which does not take into account of the equitable considerations referred to in this Section 11(d). In no event shall the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contributeimmediately preceding paragraph. No indemnified party person found guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not found guilty of such fraudulent misrepresentation. (ec) The provisions amount paid by an indemnifying party or payable to an indemnified party as a result of the losses, claims, damages and liabilities referred to in this Section 11 5 shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim, payable as the same are incurred. The indemnification and contribution provided for in this Section 5 will remain in full force and effect regardless of any investigation made by or on behalf of any the indemnified party parties or any officer, director director, employee, agent or controlling person of the indemnified parties. No indemnifying party, in the defense of any such claim or litigation, shall enter into a consent of entry of any judgment or enter into a settlement without the consent of the indemnified party, which consent will not be unreasonably withheld. Any indemnified party that proposes to assert the right to be indemnified under this Section 5 will, promptly after receipt of notice of commencement or threat of any claim or action against such party in respect of which a claim is to be made against an indemnifying party under this Section 5 notify the indemnifying party in writing (such written notice, an “Indemnification Notice”) of the commencement or threat of such action, enclosing a copy of all papers served or notices received (if applicable), but the omission so to notify the indemnifying party will not relieve the indemnifying party from any liability that the indemnifying party may have to any indemnified party under the foregoing provisions of this Section 5 unless, and only to the extent that, such omission results in the forfeiture of substantive rights or defenses by the indemnifying party. The indemnified party will have the right to retain its own counsel in any such action if (i) the employment of counsel by the indemnified party has been authorized by the indemnifying party, (ii) the indemnified party’s counsel, with the concurrence of indemnifying party’s counsel, shall have reasonably concluded that there is a substantial likelihood of a conflict of interest between the indemnifying party and the indemnified party in the conduct of the defense of such action or (iii) the indemnifying party shall not in fact have employed counsel to assume the defense of such action within a reasonable period of time following its receipt of the Indemnification Notice, in each of which cases the fees and expenses of the indemnified party’s separate counsel shall be at the expense of the indemnifying party; provided, however, that the indemnified party shall agree to repay any expenses so advanced hereunder if it is ultimately determined by a court of competent jurisdiction that the indemnified party to whom such expenses are advanced is not entitled to be indemnified; and provided, further, that so long as the indemnified party has reasonably concluded that no conflict of interest exists, the indemnifying party may assume the defense of any action hereunder with counsel reasonably satisfactory to the indemnified party. (d) In the event of an underwritten offering of Registrable Securities under this Agreement, the Company and the Holders shall enter into standard indemnification and underwriting agreements with the underwriter thereof. To the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the provisions of this Section 5, the provisions in the underwriting agreement shall control. (e) The obligation of the Company and Holders under this Section 5 shall survive the Transfer completion of any offering of Registrable Securities by any Holderin a registration statement under Section 2, and otherwise.

Appears in 2 contracts

Sources: Registration Rights Agreement (Aptevo Therapeutics Inc.), Class a Stockholders’ Registration Rights Agreement (Emergent BioSolutions Inc.)

Indemnification; Contribution. (a) The Company shall, and shall cause each of its Subsidiaries to, jointly and severally, without limitation as to time, indemnify, defend and hold harmless, to the fullest extent permitted by law, indemnify and hold harmless each Holder holder of Registrable Securities, any the partners, members, officers, directors, managers, agents, employees and Affiliates of each of them, each Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries controls each such holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”Act), their respective direct and indirect general and limited the partners, advisory board members, officers, directors, officers, trustees, managers, members, employees, agents, Affiliates agents and shareholders, employees of each such controlling person and each other Person, if any, who acts on behalf of any financial or controls any such Holder or Controlling Person investment adviser (each of the foregoingeach, a “Covered Person”) ), to the fullest extent permitted by law, from and against any and all losses, claims, actions, damages, liabilities liabilities, actions or proceedings (whether commenced or threatened), costs (including reasonable and expensesdocumented costs of preparation and attorneys’ fees) and expenses (including reasonable and documented expenses of investigation) (as used in this Section 13.7, joint or severalcollectively, to which such Covered Person may become subject under the Securities Act“Losses”), the Exchange Actas incurred, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise arising out of or are based upon (iA) any untrue or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined or form of prospectus under which any Registrable Securities were registered or in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement supplements thereto or in any preliminary prospectus (if used prior to the effective date of such Registration Statement), or any document incorporated by reference in the same, (ii) arising out of or based upon any omission or alleged omission of a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein (in the case of a prospectus or preliminary prospectus, in light of the circumstances under which they were made) not misleading, except to the extent that the same not misleading arise out of or are based upon information furnished in writing to the Company by such Covered Person or the related holder of Registrable Securities expressly for use therein or (iiiB) any violation or alleged violation by the Company of the Securities Act any federal, state or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws common law applicable to the Company and relating to any action required of or inaction required of by the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, registration; provided that the Company shall not be so liable to any Person who participates as an underwriter in the offering or sale of Registrable Securities or any other Person, if any, who controls such case underwriter(s) within the meaning of the Securities Act to the extent that any loss, claim, action, damage, liability or expense arises such Losses arise out of or is are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any preliminary prospectus if (1) such Person failed to send or deliver a copy of the prospectus with or prior to the delivery of written confirmation of the sale by such Person to the Person asserting the claim from which such Losses arise, (2) the prospectus would have corrected such untrue statement or alleged untrue statement, statement or such omission or alleged omission, and (3) the Company has complied with its obligations under Section 13.4(c). Each indemnity and reimbursement of costs and expenses shall remain in full force and effect regardless of any investigation made by or incorporated by reference on behalf of such Covered Person. If the Public Offering pursuant to any Registration Statement provided for under this Section 13.7 is made through underwriter(s), no action or failure to act on the part of such underwriter(s) (whether or not such underwriter is an Affiliate of any holder of Registrable Securities) shall affect the obligations of the Company to indemnify any holder of Registrable Securities or any other Person pursuant to this Section 13.7. If the Public Offering pursuant to any Registration Statement provided for under this Article XIII is made through underwriter(s), the Company agrees to enter into an underwriting agreement in customary form with such underwriter(s) and the Company agrees to indemnify such underwriter(s), their officers, directors, managers, employees and agents, if any, and each Person, if any, who controls such underwriter(s) within the meaning of Section 15 of the Securities Act to the same extent as provided in this Section 13.7 with respect to the indemnification of the holders of Registrable Securities; provided that the Company shall not be required to indemnify any such Registration Statementunderwriter, Prospectus, preliminary Prospectus, free writing prospectus or any amendment officer, director, manager or supplement to employee of such underwriter or any document incorporated by reference in Person who controls such underwriter within the same in reliance uponmeaning of Section 15 of the Securities Act, and in conformity with, written information prepared and furnished to the Company by extent that the loss, claim, damage, liability (or proceedings in respect thereof) or expense for which indemnification is claimed results from such Covered underwriter’s failure to send or give a copy of an amended or supplemented final prospectus to the Person expressly for use asserting an untrue statement or alleged untrue statement or omission or alleged omission at or prior to the written confirmation of the sale of Registrable Securities to such Person if such statement or omission was corrected in such Registration Statement, Prospectus, preliminary Prospectus amended or free writing supplemented final prospectus prior to such written confirmation and the underwriter was provided with such amended or supplemented final prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration Registration Statement in which a Holder holder of Registrable Securities is participating, each such Holder holder, or an authorized officer of such holder, shall furnish to the Company in writing such information regarding such holder as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shallprospectus and agrees, severally and not jointly, to indemnify, defend and hold harmless to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and directors, managers, officers, employees, agents and any employees, each Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any controls the Company (within the meaning of them may become subject under Section 15 of the Securities Act, Act and Section 20 of the Exchange Act), any state blue sky securities lawsand the partners, any equivalent non-U.S. securities laws members, directors, managers, officers, agents or otherwiseemployees of such controlling persons, insofar as such losses, claims, actions, damages, liabilities or expenses arise from and against all Losses arising out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the any Registration Statement, Prospectusprospectus, preliminary Prospectusor form of prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment arising out of or supplement to the same or (ii) based upon any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, butto the extent, but only to the extent, that such untrue or alleged untrue statement is contained in, or such omission or alleged omission is required to be contained in, any information regarding such holder so furnished in writing by such holder to the Company expressly for use in such Registration Statement or prospectus and that such statement or omission was relied upon by the Company in preparation of such Registration Statement, prospectus or form of prospectus; provided that such holder of Registrable Securities shall not be liable in any such case of each of clauses (i) and (ii), only to the extent that the holder has furnished in writing to the Company within a reasonable period of time prior to the filing of any such untrue statement Registration Statement or alleged untrue statement, prospectus or omission amendment or alleged omission, is made supplement thereto information expressly for use in such Registration Statement, Prospectus, preliminary Prospectus, free writing Statement or prospectus or any amendment or supplement to the same in reliance uponthereto which corrected or made not misleading, and in conformity with, written information prepared and previously furnished to the Company, and the Company by failed to include such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectusinformation therein. In additionno event shall the liability of any holder of Registrable Securities hereunder be greater in amount than the dollar amount of the proceeds (net of payment of all taxes, such Holder shall reimburse the Company, its directors fees and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(btherewith) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in holder upon the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge giving rise to such indemnification obligation. Such indemnity shall remain in full force and agree that, unless otherwise expressly agreed to in writing effect regardless of any investigation made by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address on behalf of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveIndemnified Party. (c) Any If any Person shall be entitled to indemnification or contribution pursuant to this Agreement Section 13.7 (an “Indemnified Party”), then such Indemnified Party shall give prompt written notice to the indemnifying party or parties from which such indemnity is sought (the “Indemnifying Parties”) of the commencement of any claim action, suit, proceeding or investigation or written threat thereof (each, a “Proceeding”) with respect to which it such Indemnified Party seeks indemnification. Notwithstanding indemnification or contribution pursuant hereto; provided that the previous sentence, any failure or delay to so notify the indemnifying party Indemnifying Parties shall not relieve the indemnifying party of its obligations under this Agreement, Indemnifying Parties from any obligation or liability except to the extent that the indemnifying party is actually and materially Indemnifying Parties have been prejudiced by reason of such failure or delayfailure. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and The Indemnifying Parties shall have the right, exercisable by giving written notice to an Indemnified Party promptly after the indemnified party as promptly as practicable after receipt of written notice from such indemnified party Indemnified Party of such claim or actionProceeding, to assume, at the indemnifying party’s Indemnifying Parties’ expense, the defense of any such claim or actionProceeding, with counsel reasonably acceptable satisfactory to such Indemnified Party; provided that an Indemnified Party or parties (if more than one such Indemnified Party is named in any Proceeding) shall have the indemnified party. Notwithstanding the previous sentence, right to employ separate counsel in any indemnified party shall continue to be entitled such Proceeding and to participate in the defense of such claim or action, with counsel of its own choicethereof, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs fees and expenses subsequently incurred by of such counsel shall be at the indemnified party in connection with expense of such defense unless Indemnified Party or parties unless: (A) the indemnifying party has agreed in writing Indemnifying Parties agree to pay such fees, costs fees and expenses, ; (B) the indemnifying party has failed Indemnifying Parties fail promptly to assume the defense of such claim Proceeding or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails fail to employ counsel reasonably acceptable satisfactory to the indemnified party such Indemnified Party or to pursue the defense of such claim parties; or action in a reasonably vigorous manner, (DC) the use named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party or parties and the Indemnifying Parties or an Affiliate of counsel chosen by the indemnifying party to represent the indemnified party would present Indemnifying Parties or such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that Indemnified Parties, and there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which such Indemnified Party or parties that are different from or additional to those available to the indemnifying party. Subject Indemnifying Parties, in which case, if such Indemnified Party or parties notifies the Indemnifying Parties in writing that it elects to employ separate counsel at the foregoing sentenceexpense of the Indemnifying Parties, no indemnifying party shallthe Indemnifying Parties shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Indemnifying Parties, it being understood, however, that, unless there exists a conflict among Indemnified Parties, the Indemnifying Parties shall not, in connection with any one claim or action such Proceeding or separate but substantially similar or related actions Proceedings in the same jurisdiction jurisdiction, arising out of the same general circumstances allegations or allegationscircumstances, be liable for the fees, costs fees and expenses of more than one separate firm of attorneys (in addition to any together with appropriate local counsel) at any time for all indemnified such Indemnified Party or parties. The indemnifying party shall Whether or not have the right to settle a claim or action for which any indemnified party such defense is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving assumed by the claimant Indemnifying Parties, such Indemnifying Parties or plaintiff in such judgment Indemnified Party or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party parties shall not be liable under this Agreement subject to any liability for any amount paid settlement made without its or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the their consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (but such consent shall not to be unreasonably withheld, conditioned or delayed). The Indemnifying Parties shall not consent to entry of any judgment or enter into any settlement which (1) provides for other than monetary damages without the consent of the Indemnified Party or parties (which consent shall not be unreasonably withheld, conditioned or delayed) or (2) does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or parties of a release, in form and substance satisfactory to the Indemnified Party or parties, from all liability in respect of such Proceeding for which such Indemnified Party would be entitled to indemnification hereunder. (d) If the indemnification provided for in this Section 11 13.7 is held by a court of competent jurisdiction unavailable to be unavailable to, an Indemnified Party or unenforceable by, an indemnified party is insufficient to hold such Indemnified Party harmless for any Losses in respect of any loss, claim, action, damage, liability or expense referred to in which this Section 1113.7 would otherwise apply by its terms, then the each applicable indemnifying partyIndemnifying Party, in lieu of indemnifying such indemnified party under this AgreementIndemnified Party, shall have an obligation to contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such lossLosses, claim, action, damage, liability or expense in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party Indemnifying Party, on the one hand, and such Indemnified Party, on the indemnifying partyother hand, in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of the indemnifying partysuch Indemnifying Party, on the one hand, and of the indemnified partyIndemnified Party, on the other hand, shall be determined by reference to, among other things, whether the any action in question, including any untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact fact, has been taken by, or relates to information supplied by the indemnifying party by, such Indemnifying Party or by the indemnified partyIndemnified Party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent any such statementaction, omission statement or violationomission. The amount paid or payable by a party as a result of any Losses shall be deemed to include any legal or other fees or expenses incurred by such party in connection with any Proceeding, to the extent such party would have been indemnified for such expenses if the indemnification provided for in Section 13.7(a) or 13.7(b) was available to such party. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Agreement Section 13.7(d) were determined by pro rata allocation or by any other method or of allocation that does not take into account of the equitable considerations referred to in this Section 11(d13.7(d). In no event shall Notwithstanding the amount which provisions of this Section 13.7(d), an Indemnifying Party that is a Holder holder of Registrable Securities may shall not be obligated required to contribute pursuant to this Section 11(d) exceed an any amount equal to in excess of the amount by which the net proceeds (after deducting Selling Expenses) actually received by such Holder in Indemnifying Party exceeds the sale amount of Registrable Securities any damages that gives rise such Indemnifying Party has otherwise been required to pay by reasons of such obligation to contributeuntrue or alleged untrue statement or omission or alleged omission. No indemnified party person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 2 contracts

Sources: Limited Liability Company Agreement (Hc2 Holdings, Inc.), Business Purchase Agreement (Hc2 Holdings, Inc.)

Indemnification; Contribution. (a) The Incident to any registration of any Registrable Securities under the Securities Act pursuant to this Agreement, the Company shallwill, to the fullest extent permitted by law, indemnify and hold harmless each Holder who offers or sells any such Registrable Securities in connection with such registration statement (including its partners (including partners of Registrable Securitiespartners and stockholders of any such partners), any Person who is or might be deemed to be a “controlling person” and directors, officers, stockholders, affiliates, employees, representatives and agents of the Company or any of its subsidiaries them, and each person who controls any of them within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”Act), their respective direct from and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any and all losses, claims, actions, damages, liabilities reasonable expenses and expensesliabilities, joint or severalseveral (including any reasonable investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, as the same are incurred), to which such Covered Person they, or any of them, may become subject under the Securities Act, the Exchange ActAct or other federal or state statutory law or regulation, any state blue sky securities laws, any equivalent non-U.S. securities laws at common law or otherwise, insofar as such losses, claims, actions, damages, damages or liabilities or expenses arise out of or are based upon on (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement (including any related preliminary or incorporated by reference in any Registration Statementdefinitive prospectus, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to such registration statement or any document incorporated by reference in the sameprospectus), (ii) any omission or alleged omission of to state in such document a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus it or necessary to make the statements in it not misleading; provided, however, that the Company will not be liable to the extent that (1) such loss, claim, damage, expense or liability arises from and is based on an untrue statement or omission or alleged untrue statement or omission made in reliance on and in conformity with information furnished in writing to the same not misleading Company by or on behalf of such Holder in accordance with Section 4(a) of this Agreement for use in such registration statement, or (2) in the case of a sale directly by such Holder (including a sale of Registrable Securities through any underwriter retained by such Holder to engage in a distribution solely on behalf of such Holder), such untrue statement or alleged untrue statement or omission or alleged omission was contained in a preliminary prospectus and corrected in a final or amended prospectus, and such Holder failed to deliver a copy of the final or amended prospectus at or prior to the confirmation of the sale of the Registrable Securities to the Person asserting any such loss, claim, damage or liability in any case where such delivery is required by the Securities Act or any state securities laws, or (iii) any violation or alleged violation by the Company any other party hereto, of the Securities Act or Act, the Exchange Act, any other similar federal or state securities laws law or any rule or regulation promulgated under such federal the Securities Act, the Exchange Act or any state securities laws applicable law. With respect to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made untrue statement or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference omission in the same information furnished in reliance upon, and in conformity with, written information prepared and furnished writing to the Company by or on behalf of such Covered Person expressly Holder in accordance with Section 4(a) of this Agreement for use in such Registration Statementregistration statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, will severally and not jointly indemnify and hold harmless the CompanyCompany (including its directors, its directors and officers, employees, representatives and agents), each other Holder (including its partners (including partners of partners and stockholders of such partners) and directors, officers, employees, representatives and agents of any of them, and each person who controls any Person who is of them within the meaning of Section 15 of the Securities Act or might be deemed to be a Controlling Person Section 20 of the Exchange Act), from and against any and all losses, claims, actions, damages, liabilities reasonable expenses and expensesliabilities, joint or severalseveral (including any reasonable investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, as the same are incurred), to which they they, or any of them them, may become subject under the Securities Act, the Exchange ActAct or other federal or state statutory law or regulation, any state blue sky securities laws, any equivalent non-U.S. securities laws at common law or otherwise, insofar as such lossesprovided, claimshowever, actions, damages, liabilities or expenses arise out that the indemnification obligations of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b5(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, liability or action or proceeding if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; and provided, further, that, in no event shall any indemnity under this Section 5(a) exceed the net proceeds from the offering received by such Holder. The Company and , except in the Holders case of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing fraud or willful misconduct by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveHolder. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (db) If the indemnification provided for in this Section 11 5(a) above for any reason is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, to an indemnified party in respect of any losslosses, claimclaims, actiondamages, damage, liability expenses or expense liabilities referred to in therein, then each indemnifying party under this Section 11, then the applicable indemnifying party5, in lieu of indemnifying such indemnified party under this Agreementthereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability expenses or expense liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company and the indemnifying party. If other Holders from the offering of the Registrable Securities or (ii) if the allocation provided by the preceding sentence clause (i) above is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence clause (i) above but also the relative fault of the indemnified party Company and the indemnifying partyother Holders in connection with the statements or omissions which resulted in such losses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company and the Holders shall be deemed to be in the same respective proportions that the net proceeds from the offering received by the Company and the Holders, in each case as set forth in the table on the cover page of the applicable prospectus, bear to the aggregate public offering price of the Registrable Securities. The relative fault of the indemnifying party, on Company and the one hand, and of the indemnified party, on the other hand, Holders shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required on behalf of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to Holders and the parties’ relative intent, knowledge, knowledge and access to information and opportunity to correct or prevent such statement, omission or violationinformation. The parties Company and the Holders agree that it would not be just and equitable if contribution pursuant to this Agreement Section 5(b) were determined by pro rata or per capita allocation or by any other method or of allocation that which does not take into account of the equitable considerations referred to in this Section 11(d). In no event shall the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contributeimmediately preceding paragraph. No indemnified party person found guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not found guilty of such fraudulent misrepresentation. (ec) The provisions amount paid by an indemnifying party or payable to an indemnified party as a result of the losses, claims, damages and liabilities referred to in this Section 11 5 shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim, payable as the same are incurred. The indemnification and contribution provided for in this Section 5 will remain in full force and effect regardless of any investigation made by or on behalf of any the indemnified party parties or any officer, director director, employee, agent or controlling person of the indemnified parties. No indemnifying party, in the defense of any such claim or litigation, shall enter into a consent of entry of any judgment or enter into a settlement without the consent of the indemnified party, which consent will not be unreasonably withheld. Any indemnified party and shall survive that proposes to assert the Transfer right to be indemnified under this Section 5 will, promptly after receipt of notice of commencement or threat of any claim or action against such party in respect of which a claim is to be made against an indemnifying party under this Section 5 notify the indemnifying party in writing (such written notice, an “Indemnification Notice”) of the commencement or threat of such action, enclosing a copy of all papers served or notices received (if applicable), but the omission so to notify the indemnifying party will not relieve the indemnifying party from any liability that the indemnifying party may have to any indemnified party under the foregoing provisions of this Section 5 unless, and only to the extent that, such omission results in the forfeiture of substantive rights or defenses by the indemnifying party. The indemnified party will have the right to retain its own counsel in any such action if (i) the employment of counsel by the indemnified party has been authorized by the indemnifying party, (ii) the indemnified party’s counsel, shall have reasonably concluded that there is a reasonable likelihood of a conflict of interest between the indemnifying party and the indemnified party in the conduct of the defense of such action or (iii) the indemnifying party shall not in fact have employed counsel to assume the defense of such action within a reasonable period of time following its receipt of the Indemnification Notice, in each of which cases the fees and expenses of the indemnified party’s separate counsel shall be at the expense of the indemnifying party; provided, however, that the indemnified party shall agree to repay any expenses so advanced hereunder if it is ultimately determined by a court of competent jurisdiction that the indemnified party to whom such expenses are advanced is not entitled to be indemnified; and provided, further, that so long as the indemnified party has reasonably concluded that no conflict of interest exists, the indemnifying party may assume the defense of any action hereunder with counsel reasonably satisfactory to the indemnified party. (d) In the event of an underwritten offering of Registrable Securities by any Holderunder this Agreement, the Company shall enter into standard indemnification and underwriting agreements with the underwriter thereof.

Appears in 2 contracts

Sources: Joint Venture Agreement (Winwin Gaming Inc), Registration Rights Agreement (Winwin Gaming Inc)

Indemnification; Contribution. (a) The Company shall, agrees to the fullest extent permitted by law, indemnify and hold harmless the Advisor and its affiliates and each Holder of Registrable Securitiestheir respective partners, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act executives, officers, directors, employees, agents and advisors (each such Personperson and entity, a including the Advisor, being an Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered PersonIndemnified Party”) from and against any and all losses, claims, actionsdamages, damagesjudgments, liabilities and expenses, joint joint, several or severalotherwise, to which such Covered Person Indemnified Party may become subject under the Securities Actany applicable federal or state law, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities related to or expenses arise arising out of any activity contemplated by this Agreement or are based upon (i) any untrue the Advisor’s retention pursuant to, and the Advisor’s or alleged untrue statement its affiliates’ performance of a material fact contained in or incorporated by reference in any Registration Statementthe services contemplated by, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act this Agreement or any successor rule to Rule 405) action, claim, proceeding or any amendment investigation, whether or supplement to or any document incorporated by reference in the same, (ii) any omission or alleged omission of a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with pending litigation related thereto and will reimburse any registration of securities. In addition, the Company shall reimburse each Covered Person Indemnified Party for any legal or other all expenses reasonably (including counsel fees and disbursements) upon request as they are incurred by such Covered Person in connection with investigatingthe investigation of, defending preparation for or settling defense of any such losspending or threatened action, claim, litigation, proceeding or investigation arising therefrom, whether or not such Indemnified Party is a party and whether or not such action, damage claim, litigation, proceeding or liability. Notwithstanding investigation is initiated or brought by the previous sentenceCompany; provided, however, that the Company shall not be so liable in any such case under the foregoing indemnification provision (and amounts previously paid that are determined not required to be paid by the Company pursuant to the terms of this paragraph shall be repaid promptly) to the extent that any loss, claim, actiondamage, damagejudgment, liability or expense arises out is found in a final non-appealable judgment by a court of competent jurisdiction to have resulted solely from the Advisor’s willful misconduct or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use gross negligence in connection with any such Registration Statement or Prospectus. Each Holder shall, to of the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claimsadvice, actions, damagesinactions or services referred to above. The Company also agrees that no Indemnified Party shall have any liability (whether direct or indirect, liabilities and expenses, joint in contract or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws tort or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus related to or free writing prospectus. In addition, such Holder shall reimburse arising out of the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify Advisor’s retention pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders performance of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing services contemplated by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying partyAdvisor’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party conduct in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim retention or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action performance is found in a reasonably vigorous mannerfinal, (D) the use non-appealable judgment by a court of counsel chosen by the indemnifying party competent jurisdiction to represent the indemnified party would present such counsel with a conflict of interest have constituted willful misconduct or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed)gross negligence. (db) If the indemnification provided for in this Section 11 hereunder is held finally judicially determined by a court of competent jurisdiction to be unavailable toto an Indemnified Party, or unenforceable byinsufficient to hold any Indemnified Party harmless, an indemnified party in respect of any losslosses, claimclaims, actiondamages, damagejudgments, liability liabilities or expense referred expenses (other than any losses, claims, damages, judgments, liabilities or expenses found in a final non-appealable judgment by a court of competent jurisdiction to in this Section 11have resulted solely from an Indemnified Party’s willful misconduct or gross negligence), then the applicable indemnifying partyCompany, in lieu of indemnifying such indemnified party under this AgreementIndemnified Party, shall contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such losslosses, claimclaims, actiondamages, damagejudgments, liability liabilities or expense expenses (i) in such proportion as is appropriate to reflect the relative benefits received received, or sought to be received, by the indemnified party Company, on the one hand, and the indemnifying party. If Indemnified Parties, on the other hand, in connection with the transactions to which such indemnification, contribution or reimbursement is sought, or (ii) if (but only if) the allocation provided by the preceding sentence clause (i) above is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence clause (i) but also the relative fault of the indemnified party Company, on the one hand, and the indemnifying partyIndemnified Parties, on the other hand, as well as any other relevant equitable considerations; provided, however, that in no event shall the Indemnified Parties’ aggregate contribution hereunder exceed the amount of fees actually received by the Advisor in respect of the transaction at issue pursuant to this Agreement. The relative fault amount paid or payable by a party as a result of the indemnifying partylosses, on the one handclaims, damages and of the indemnified party, on the liabilities referred to above will be deemed to include any legal or other hand, shall be determined by reference to, among other things, whether the untrue fees or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to expenses reasonably incurred in defending any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified partyclaim. The relative fault shall also be determined by reference to Company and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission or violation. The parties Advisor agree that it would not be just and equitable if contribution pursuant to this Agreement paragraph were determined by pro rata allocation or by any other method or allocation that which does not take into account the equitable considerations referred to in this Section 11(d)paragraph. In no event shall The indemnity, contribution and expense reimbursement obligations of the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to Company under this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party guilty or liable of fraudulent misrepresentation within the meaning of Section 11(f) of the Securities Act 14 shall be entitled in addition to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions liability the Company may have, and notwithstanding any other provision of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officerAgreement, director or controlling person of such indemnified party and shall survive the Transfer termination of any Registrable Securities by any Holderthis Agreement.

Appears in 1 contract

Sources: Financial Advisor Agreement (Tandem Health Care, Inc.)

Indemnification; Contribution. (a) The Company Coty Parent shall, to the fullest extent permitted by lawand it hereby agrees to, (i) indemnify and hold harmless each Holder Registration Equityholder in any offering or sale of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each and such Person, a “Controlling Person”), their respective direct and indirect general and limited Registration Equityholder’s partners, advisory board members, directors, officers, trustees, managers, members, employeesmanagers and Affiliates (but not, agentsfor the avoidance of doubt, Affiliates and shareholders, any Stockholder Designee in such person’s capacity as a Director of Coty Parent) and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoingforegoing Persons within the meaning of the Securities Act or the Exchange Act, a “Covered Person”) from and against any and all losses, claims, actions, damages, liabilities or liabilities, or any actions or proceedings (whether commenced or threatened) in respect thereof and expensescosts and expenses (including reasonable fees of counsel) (collectively, joint or several, “Claims”) to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such lossesClaims (including any amounts paid in settlement reached in accordance with the requirements for consent as provided herein), claimsor actions or proceedings in respect thereof, actions, damages, liabilities or expenses arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement to thereto, or any document incorporated by reference in the sametherein, (ii) or arise out of or are based upon any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein (in the same not misleading case of any preliminary or (iii) final Prospectus, including any violation or alleged violation by Free Writing Prospectus, incorporated into such Registration Statement, in the Company light of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company circumstances in which they were made), not misleading; and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall (ii) reimburse upon written demand each Covered Person indemnified party for any reasonable and documented legal or other out-of-pocket expenses reasonably incurred by such Covered Person indemnified party in connection with investigating, investigating or defending (or settling preparing to defend) any such lossClaims; provided, claimhowever, action, damage or liability. Notwithstanding the previous sentence, the Company that Coty Parent shall not be so liable to an indemnified party in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such Registration Statement, or preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), or amendment or supplement thereto, in reliance upon and in conformity with information furnished in writing to Coty Parent about a Registration Equityholder by or on behalf of such indemnified party expressly for use therein, or if the Registration Equityholder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable Prospectus (excluding any documents incorporated by reference therein) or of the applicable Prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if Coty Parent had previously furnished copies thereof to such Registration Equityholder a reasonable period of time prior to such sale and such Prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such Registration Statement. (b) Each Registration Equityholder shall, and hereby agrees to, severally and not jointly (i) indemnify and hold harmless Coty Parent in any offering or sale of Registrable Securities, each Director and officer of Coty Parent (including any such Director or officer who shall sign the applicable Registration Statement) and each Person, if any, who controls any of the foregoing Persons within the meaning of the Securities Act or the Exchange Act, from and against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement reached in accordance with the requirements for consent as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or supplement to the same or (ii) are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same not misleading, but, therein (in the case of each any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), in the light of clauses (i) the circumstances in which they were made), not misleading; and (ii) reimburse upon written demand each indemnified party for any reasonable and documented legal or other out-of-pocket expenses reasonably incurred by such indemnified party in connection with investigating or defending (or preparing to defend) any such Claims, in each case, to the extent, that such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with information about such Registration Equityholder furnished in writing to Coty Parent by or on behalf of such Registration Equityholder expressly for use therein, or if such Registration Equityholder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable Prospectus (excluding any documents incorporated by reference therein) or of the applicable Prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), only if Coty Parent had previously furnished copies thereof to the extent that Registration Equityholders a reasonable period of time prior to such sale and such Prospectus corrected such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to Each Registration Equityholder, on the indemnifying party of one hand, and Coty Parent, on the other hand, agrees that if, for any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partyreason, the indemnifying party shall be entitled to participate in and shall have the right, exercisable indemnification provisions contemplated by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim Section 2.7(a) or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (ASection 2.7(b) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant unavailable to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented are insufficient to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, with respect to statements or omissions that that resulted in such Claims. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the such indemnifying party or by the such indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission. If, omission however, the allocation in the first sentence of this Section 2.7(c) is not permitted by applicable Requirements of Law, then each indemnifying party shall contribute to the amount paid or violationpayable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The relative benefits received by Coty Parent, on the one hand, and a Registration Equityholder, on the other hand, shall be deemed to be in the same proportion as the total net proceeds from the offering of securities (net of discounts and commissions but before deducting expenses) giving rise to the applicable Claim bears to the net proceeds received by such Registration Equityholder with respect to its sale of Registrable Securities giving rise to such Claim. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Agreement Section 2.7(c) were to be determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the preceding sentences of this Section 11(d2.7(c). In no event The amount paid or payable by an indemnified party as a result of the Claims referred to above shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal include (subject to the net proceeds (after deducting Selling Expenseslimitations set forth in Section 2.8) actually received any legal or other fees or expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise connection with investigating or defending (or preparing to defend) any such obligation to contributeProceeding. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) . The provisions of Registration Equityholders obligations to contribute as provided in this Section 11 shall remain in full force 2.7(c) are several and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holdernot joint.

Appears in 1 contract

Sources: Contribution Agreement (Coty Inc.)

Indemnification; Contribution. (a) The Company shall, to To the fullest extent permitted by law, the Company will indemnify Diversified, each of its officers, directors, members and hold harmless partners, and each Holder of Registrable Securitiesperson controlling Diversified, any Person who is with respect to which registration, qualification or might be deemed compliance has been effected pursuant to be a “this Agreement, each director and controlling person” person of the Company or any of its subsidiaries within the meaning of Section 15 and each officer of the Securities Act or Section 20 of Company who signed the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholdersRegistration Statement, and each other Personunderwriter, if any, and each person who acts on behalf of or controls any underwriter, against all claims, losses, damages and liabilities (or actions, proceedings or settlements, if such Holder or Controlling Person (each settlements are effected with the written consent of the foregoingCompany, a “Covered Person”in respect thereof) against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which such Covered Person may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise arising out of or are based upon (i) on any untrue statement (or alleged untrue statement statement) of a material fact contained in any prospectus, offering circular or other document (including any related registration statement, notification or the like, any amendments or supplements thereto and any documents incorporated by reference in therein) incident to any Registration Statementsuch registration, Prospectusqualification or compliance, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to or any document incorporated by reference in the same, omission (ii) any omission or alleged omission of omission) to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading misleading, or (iii) any violation or alleged violation by the Company of the Securities Act or the Exchange Act or any other similar federal or state applicable securities laws or other federal, state or common law or any rule or regulation promulgated under such federal or state securities laws thereunder applicable to the Company and relating to any action or inaction required of the Company in connection with any registration such registration, qualification or compliance, and will reimburse Diversified, each of securities. In additionits officers, the Company shall reimburse directors, members and partners, and each Covered Person person controlling Diversified, each such director, controlling person and officer, each such underwriter and each person who controls any such underwriter, for any legal or and any other expenses reasonably incurred by such Covered Person in connection with investigating, investigating and defending or settling any such claim, loss, claimdamage, actionliability, damage action or liability. Notwithstanding the previous sentenceproceeding; provided, however, that the Company shall will not be so liable in any such case to the extent that any loss, such claim, actionloss, damage, liability or expense arises out of or is based upon on any such untrue statement or alleged untrue omission made in such registration statement, prospectus, offering circular or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any other document incorporated by reference in the same in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by Diversified or such Covered Person expressly underwriter and stated to be specifically for use therein. Such indemnity obligation shall remain in such Registration Statement, Prospectus, preliminary Prospectus full force and effect regardless of any investigation made by or free writing prospectus. This indemnity on behalf of Diversified and shall be in addition to any liability survive the Company may otherwise havetransfer of Registrable Securities by Diversified. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to To the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, Diversified will indemnify and hold harmless the Company, each of its directors directors, officers and officerscontrolling persons, employeesand each underwriter, agents if any, of the Company’s securities covered by such a registration statement, each person who controls the Company or such underwriter within the meaning of the Securities Act or the Exchange Act or the rules and any Person who is or might be deemed to be a Controlling Person regulations thereunder, against any all claims, losses, claims, damages and liabilities (or actions, damages, liabilities and expenses, joint proceedings or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise settlements in respect thereof) arising out of or are based upon (i) on any untrue statement (or alleged untrue statement statement) of a material fact contained in the Registration Statementany such registration statement, Prospectusprospectus, preliminary Prospectusoffering circular or other document, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or omission (ii) any omission or alleged omission of omission) to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, butand will reimburse the Company and such directors, officers, members, partners, persons, underwriters or control persons for any legal or any other expenses reasonably incurred in connection with investigating and defending or settling any such claim, loss, damage, liability, action or proceeding, in each case to the case of each of clauses (i) and (ii)extent, but only to the extent extent, that such untrue statement (or alleged untrue statement, ) or omission (or alleged omission, ) is made in such Registration Statementregistration statement, Prospectusprospectus, preliminary Prospectus, free writing prospectus offering circular or any amendment or supplement to the same other document in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by such Holder expressly Diversified and stated to be specifically for use in such Registration Statementtherein; provided, Prospectushowever, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse that the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) liability of Diversified hereunder shall be individual and several, not joint and several, for each participating Holder and shall be proportional limited to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in Diversified from the sale of Registrable Registered Securities as contemplated herein giving rise to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person Each party entitled to indemnification pursuant to under this Agreement Section 4 (the “Indemnified Party”) shall give prompt written notice to the indemnifying party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any claim with respect as to which it seeks indemnification. Notwithstanding indemnity may be sought, and shall permit the previous sentenceIndemnifying Party to assume the defense of any such claim or any litigation resulting therefrom, provided that counsel for the Indemnifying Party, who shall conduct the defense of such claim or any litigation resulting therefrom, shall be approved by the Indemnified Party (whose approval shall not unreasonably be withheld), and the Indemnified Party may participate in such defense at such party’s expense, and provided further that the failure or delay of any Indemnified Party to so notify the indemnifying party give notice as provided herein shall not relieve the indemnifying party Indemnifying Party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of unless such failure or delayto notify materially adversely affects the Indemnifying Party’s ability to defend such action. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partyNo Indemnifying Party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or actionlitigation, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection except with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified partyeach Indemnified Party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement which does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes include as an unconditional term of such judgment or settlement thereof the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, Indemnified Party of a full and final release from all liability in respect of such claim or actionlitigation. The indemnifying party Each Indemnified Party shall not furnish such information regarding itself or the claim in question as an Indemnifying Party may reasonably request in writing and as shall be liable under this Agreement for any amount paid or payable or incurred pursuant to or reasonably required in connection with any judgment entered or settlement effected with the consent defense of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed)claim and litigation resulting therefrom. (d) If the indemnification provided for in this Section 11 is held 4 shall for any reason be unenforceable or otherwise unavailable by a court of competent jurisdiction to be unavailable toan Indemnified Party, or unenforceable by, an indemnified party although otherwise available in respect of any loss, claim, action, damage, liability or expense referred to in this Section 11accordance with its terms, then the applicable indemnifying partyeach Indemnifying Party shall, in lieu of indemnifying such indemnified party under this AgreementIndemnified Party, shall contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of the losses, claims, damages, liabilities or expenses with respect to which such lossIndemnified Party has claimed indemnification, claim, action, damage, liability or expense in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party Indemnified Party on the one hand and the indemnifying partyIndemnifying Party on the other in connection with the statements or omissions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative fault fault, in the case of the indemnifying partyan untrue statement, on the one handalleged untrue statement, and of the indemnified party, on the other handomission or alleged omission, shall be determined by reference toby, among other things, whether the untrue or such statement, alleged untrue statement of a material fact or the statement, omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party Indemnifying Party or the indemnified party. The relative fault shall also be determined by reference to the Indemnified Party, and such parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, alleged statement, omission or violationalleged omission. The parties Company and Diversified agree that it would not be just and equitable if contribution pursuant hereto were to this Agreement were be determined by pro rata allocation or by any other method or of allocation that which does not take into account such equitable considerations. The amount paid or payable by an Indemnified Party as a result of the equitable considerations losses, claims, damages, liabilities or expenses referred to herein shall be deemed to include any legal fees, charges or other expenses reasonably incurred by such Indemnified Party in this Section 11(d)connection with investigating or defending against any action or claim which is the subject hereof. In no event case, however, shall Diversified be responsible for a portion of the amount which a Holder contribution obligation in excess of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in Diversified from the sale of Registrable Securities that gives securities as contemplated herein giving rise to such obligation to contributeliability. No indemnified party person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was is not guilty of such fraudulent misrepresentation. (e) The provisions of Anything to the contrary contained in this Section 11 4 notwithstanding, Diversified shall remain not be liable for any indemnification or contribution in full force and effect regardless excess of the net proceeds received by it from any investigation made by or on behalf sale of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holderwhich has been registered hereunder.

Appears in 1 contract

Sources: Registration Rights Agreement (Cygne Designs Inc)

Indemnification; Contribution. (a) The Company shall, and shall cause each of its Subsidiaries to, jointly and severally, without limitation as to time, indemnify, defend and hold harmless, to the fullest full extent permitted by law, indemnify and hold harmless each Holder holder of Registrable Securities, any the partners, members, officers, directors, agents, representatives and employees of each of them, each Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries controls each such holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”Act), their respective direct and indirect general and limited the partners, advisory board members, officers, directors, officers, trustees, managers, members, employees, agents, Affiliates representatives and shareholders, employees of each such controlling person and each other Person, if any, who acts on behalf of any financial or controls any such Holder or Controlling Person investment adviser (each of the foregoingeach, a "Covered Person”) "), to the fullest extent lawful, from and against any and all losses, claims, actions, damages, liabilities liabilities, actions or proceedings (whether commenced or threatened), costs (including costs of preparation and expensesattorneys' fees) and expenses (including expenses of investigation) (collectively, joint or several"Losses"), to which such Covered Person may become subject under the Securities Actas incurred, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise arising out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined or form of prospectus or in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to supplements thereto or in any document incorporated by reference in the samepreliminary prospectus, (ii) or arising out of or based upon any omission or alleged omission of a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in therein not misleading, except to the extent that the same not misleading arise out of or are based upon information furnished in writing to the Company by such Covered Person or the related holder of Registrable Securities expressly for use therein or (iiiii) any violation or alleged violation by the Company of the Securities Act any federal, state or any other similar federal or state securities laws or any common law rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action required of or inaction required of by the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, registration; provided that the Company shall not be so liable to any Person who participates as an underwriter in the offering or sale of Registrable Securities or any other Person, if any, who controls such case underwriters within the meaning of the Securities Act to the extent that any loss, claim, action, damage, liability or expense arises such Losses arise out of or is are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any preliminary prospectus if (i) such Person failed to send or deliver a copy of the prospectus with or prior to the delivery of written confirmation of the sale by such Person to the Person asserting the claim from which such Losses arise, (ii) the prospectus would have corrected such untrue statement or alleged untrue statement, statement or such omission or alleged omission, and (iii) the Company has complied with its obligations under Section 3.4(c). Each indemnity and reimbursement of costs and expenses shall remain in full force and effect regardless of any investigation made by or incorporated by reference in on behalf of such Covered Person. If the public offering pursuant to any Registration Statement provided for under this ARTICLE III is made through underwriters, no action or failure to act on the part of such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus underwriters (whether or not such underwriter is an Affiliate of any holder of Registrable Securities) shall affect the obligations of the Company to indemnify any holder of Registrable Securities or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished other Person pursuant to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise havepreceding sentence. (b) In connection with any registration Registration Statement in which a Holder holder of Registrable Securities is participating, each such Holder holder, or an authorized officer of such holder, shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shallprospectus and such holder of Registrable Securities agrees, severally and not jointly, to indemnify, defend and hold harmless to the fullest full extent permitted by law, indemnify and hold harmless the Company, its directors and directors, officers, agents, representatives and employees, agents and any each Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any controls the Company (within the meaning of them may become subject under Section 15 of the Securities Act, Act and Section 20 of the Exchange Act), any state blue sky securities lawsand the partners, any equivalent non-U.S. securities laws members, directors, officers, agents, representatives or otherwiseemployees of such controlling persons, insofar as such losses, claims, actions, damages, liabilities or expenses arise from and against all Losses arising out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the any Registration Statement, Prospectusprospectus, preliminary Prospectusor form of prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment arising out of or supplement to the same or (ii) based upon any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, butto the extent, but only to the extent, that such untrue or alleged untrue statement is contained in, or such omission or alleged omission is required to be contained in, any information so furnished in writing by such holder to the Company expressly for use in such Registration Statement or prospectus and that such statement or omission was relied upon by the Company in preparation of such Registration Statement, prospectus or form of prospectus; provided that such holder of Registrable Securities shall not be liable in any such case of each of clauses (i) and (ii), only to the extent that the holder has furnished in writing to the Company within a reasonable period of time prior to the filing of any such untrue statement Registration Statement or alleged untrue statement, prospectus or omission amendment or alleged omission, is made supplement thereto information expressly for use in such Registration Statement, Prospectus, preliminary Prospectus, free writing Statement or prospectus or any amendment or supplement to the same in reliance uponthereto which corrected or made not misleading, and in conformity with, written information prepared and previously furnished to the Company, and the Company by failed to include such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectusinformation therein. In addition, such Holder no event shall reimburse the Company, its directors liability of any holder of Registrable Securities hereunder be greater in amount than the dollar amount of the proceeds (net of payment of all taxes and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(btherewith) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in holder upon the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed giving rise to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveindemnification obligation. (c) Any If any Person shall be entitled to indemnification pursuant to this Agreement indemnity hereunder (an "Indemnified Party"), such Indemnified Party shall give prompt written notice to the indemnifying party or parties from which such indemnity is sought (the "Indemnifying Parties") of the commencement of any claim action, suit, proceeding or investigation or written threat thereof (a "Proceeding") with respect to which it such Indemnified Party seeks indemnification. Notwithstanding indemnification or contribution pursuant hereto; provided that the previous sentence, any failure or delay to so notify the indemnifying party Indemnifying Parties shall not relieve the indemnifying party of its obligations under this Agreement, Indemnifying Parties from any obligation or liability except to the extent that the indemnifying party is actually and materially Indemnifying Parties have been prejudiced by reason of such failure or delayfailure. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and The Indemnifying Parties shall have the right, exercisable by giving written notice to an Indemnified Party promptly after the indemnified party as promptly as practicable after receipt of written notice from such indemnified party Indemnified Party of such claim or actionProceeding, to assume, at the indemnifying party’s Indemnifying Parties' expense, the defense of any such claim or actionProceeding, with counsel reasonably acceptable satisfactory to such Indemnified Party; provided that an Indemnified Party or Parties (if more than one such Indemnified Party is named in any Proceeding) shall have the indemnified party. Notwithstanding the previous sentence, right to employ separate counsel in any indemnified party shall continue to be entitled such Proceeding and to participate in the defense of such claim or action, with counsel of its own choicethereof, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs fees and expenses subsequently incurred by of such counsel shall be at the indemnified party in connection with expense of such defense Indemnified Party or Parties unless (Ai) the indemnifying party has agreed in writing Indemnifying Parties agree to pay such fees, costs fees and expenses, (Bii) the indemnifying party has failed Indemnifying Parties fail promptly to assume the defense of such claim Proceeding or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails fail to employ counsel reasonably acceptable satisfactory to the indemnified party such Indemnified Party or to pursue the defense of such claim Parties, or action in a reasonably vigorous manner, (Diii) the use named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party or Parties and the Indemnifying Parties or an Affiliate of counsel chosen by the indemnifying party to represent the indemnified party would present Indemnifying Parties or such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that Indemnified Parties, and there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which such Indemnified Party or Parties that are different from or additional to those available to the indemnifying party. Subject Indemnifying Parties, in which case, if such Indemnified Party or Parties notifies the Indemnifying Parties in writing that it elects to employ separate counsel at the foregoing sentenceexpense of the Indemnifying Parties, no indemnifying party shallthe Indemnifying Parties shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Indemnifying Parties, it being understood, however, that, unless there exists a conflict among Indemnified Parties, the Indemnifying Parties shall not, in connection with any one claim or action such Proceeding or separate but substantially similar or related actions Proceedings in the same jurisdiction jurisdiction, arising out of the same general circumstances allegations or allegationscircumstances, be liable for the fees, costs fees and expenses of more than one separate firm of attorneys (in addition to any together with appropriate local counsel) at any time for all indemnified partiessuch Indemnified Party or Parties. Whether or not such defense is assumed by the Indemnifying Parties, such Indemnifying Parties or Indemnified Party or Parties shall not be subject to any liability for any settlement made without its or their consent (but such consent shall not be unreasonably withheld). The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party Indemnifying Parties shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim which (i) provides for other than monetary damages without the consent of the Indemnified Party or action unless such judgment Parties (which consent shall not be unreasonably withheld or settlement delayed) or (ii) does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes include as an unconditional term of such judgment or settlement thereof the giving by the claimant or plaintiff in such judgment or settlement to such indemnified partyIndemnified Party or Parties of a release, in form and substance reasonably satisfactory to such indemnified partythe Indemnified Party or Parties, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not Proceeding for which such Indemnified Party would be liable under this Agreement for any amount paid or payable or incurred pursuant entitled to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed)indemnification hereunder. (d) If the indemnification provided for in this Section 11 3.6 is held by a court of competent jurisdiction unavailable to be unavailable to, an Indemnified Party or unenforceable by, an indemnified party is insufficient to hold such Indemnified Party harmless for any Losses in respect of any loss, claim, action, damage, liability or expense referred to in which this Section 113.6 would otherwise apply by its terms, then the each applicable indemnifying partyIndemnifying Party, in lieu of indemnifying such indemnified party under this AgreementIndemnified Party, shall have a joint and several obligation to contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such lossLosses, claim, action, damage, liability or expense in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party Indemnifying Party, on the one hand, and such Indemnified Party, on the indemnifying partyother hand, in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of the indemnifying partysuch Indemnifying Party, on the one hand, and of the indemnified partyIndemnified Party, on the other hand, shall be determined by reference to, among other things, whether the any action in question, including any untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact fact, has been taken by, or relates to information supplied by the indemnifying party by, such Indemnifying Party or by the indemnified partyIndemnified Party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent any such statementaction, omission statement or violationomission. The amount paid or payable by a party as a result of any Losses shall be deemed to include any legal or other fees or expenses incurred by such party in connection with any Proceeding, to the extent such party would have been indemnified for such expenses if the indemnification provided for in Section 3.6(a) or 3.6(b) was available to such party. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Agreement Section 3.6(d) were determined by pro rata allocation or by any other method or of allocation that does not take into account of the equitable considerations referred to in this Section 11(d3.6(d). In no event shall Notwithstanding the amount which provisions of this Section 3.6(d), an Indemnifying Party that is a Holder holder of Registrable Securities may shall not be obligated required to contribute pursuant to this Section 11(d) exceed an any amount equal to in excess of the amount by which the net proceeds (after deducting Selling Expenses) actually received by such Holder in Indemnifying Party exceeds the sale amount of Registrable Securities any damages that gives rise such Indemnifying Party has otherwise been required to pay by reasons of such obligation to contributeuntrue or alleged untrue statement or omission or alleged omission. No indemnified party person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 1 contract

Sources: Stockholders Agreement (New York & Company, Inc.)

Indemnification; Contribution. (a) The Company shall, Incident to the fullest extent permitted by any registration statement referred to in this Article IV and subject to applicable law, the Company will indemnify and hold harmless each underwriter, each Holder who offers or sells any such Registrable Securities in connection with such registration statement (including its partners (including partners of Registrable Securitiespartners and stockholders of any such partners), any Person who is or might be deemed to be a “controlling person” and directors, officers, employees and agents of the Company or any of its subsidiaries them (a "Selling Holder"), and each person who controls any of them within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a "Controlling Person") (each, an "Indemnified Party"), their respective direct from and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any and all losses, claims, actions, damages, liabilities expenses and expensesliabilities, joint or severalseveral (including any investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted), to which such Covered Person they, or any of them, may become subject under the Securities Act, the Exchange ActAct or other federal or state statutory law or regulation, any state blue sky securities laws, any equivalent non-U.S. securities laws at common law or otherwise, insofar as such losses, claims, actions, damages, expenses or liabilities or expenses arise out of or are based upon on (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement (including any related preliminary or incorporated by reference in any Registration Statementdefinitive prospectus, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to such registration statement or any document incorporated by reference in the sameprospectus), (ii) any omission or alleged omission of to state in such document a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus it or necessary to make the statements made in the same it not misleading misleading, or (iii) any violation or alleged violation by the Company of the Securities Act or Act, any other similar federal or state securities or "blue sky" laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company thereunder in connection with any registration of securities. In additionsuch registration; PROVIDED, HOWEVER, that the Company shall reimburse each Covered Person for will not be liable to any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any Indemnified Party to the extent that such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, expense or liability or expense arises out of or from and is based upon any such on an untrue statement or alleged untrue statement, or omission or alleged omission, untrue statement or omission made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, on and in conformity with, written with information prepared and furnished in writing to the Company by such Covered Person Indemnified Party expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be registration statement (in addition to any liability such Person's capacity as a shareholder of the Company may otherwise have. and not in its capacity as an officer or director of the Company and which such information relates to such Person's capacity as a shareholder). With respect to (bbut only with respect to) In connection with any registration such untrue statement or omission or alleged untrue statement or omission in which a Holder of Registrable Securities is participating, each such Holder shall furnish the information furnished in writing to the Company in writing by such information as the Company reasonably requests Selling Holder expressly for use in connection with any such Registration Statement registration statement (in such Person's capacity as a shareholder of the Company and not in its capacity as an officer or Prospectus. Each director of the Company and which such information relates to such Person's capacity as a shareholder), such Selling Holder shall, to the fullest extent permitted by law, will indemnify and hold harmless each underwriter, the CompanyCompany (including its directors, its directors and officers, employeesemployees and agents), each other Investor (including its partners (including partners of partners and stockholders of such partners) and directors, officers, employees and agents of any of them) so registered, and any Person who is or might be deemed to be a each Controlling Person thereof, from and against any and all losses, claims, actions, damages, liabilities expenses and expensesliabilities, joint or several, to which they they, or any of them them, may become subject under the Securities Act, the Exchange ActAct or other federal or state statutory law or regulation, any state blue sky securities lawsat common law or otherwise to the same extent provided in the immediately preceding sentence. In no event, any equivalent non-U.S. securities laws however, shall the aggregate liability of a Selling Holder for indemnification and/or contribution under this Section 4.7 in its capacity as such (and not in its capacity as an officer or otherwise, insofar as director of the Company) exceed the lesser of (i) that proportion of the total of such losses, claims, actions, damages, damages or liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement indemnified against equal to the same proportion of the total securities sold under such registration statement which is being sold by such Selling Holder or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net cash proceeds (after deducting Selling Expenses) actually received by such Selling Holder in the from its sale of Registrable Securities to which under such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveregistration statement. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (db) If the indemnification provided for in this Section 11 4.7(a) above for any reason is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, to an indemnified party in respect of any losslosses, claimclaims, actiondamages, damage, liability expenses or expense liabilities referred to in therein, then each indemnifying party under this Section 11, then the applicable indemnifying party4.7, in lieu of indemnifying such indemnified party under this Agreementthereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability expenses or expense liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company, the Selling Holders and the indemnifying party. If underwriters from the offering of the Registrable Securities or (ii) if the allocation provided by the preceding sentence clause (i) above is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence clause (i) above but also the relative fault of the indemnified party Company, the Selling Holders and the indemnifying partyunderwriters in connection with the statements or omissions which resulted in such losses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company, the Selling Holders and the underwriters shall be deemed to be in the same respective proportions that the net proceeds from the offering (before deducting expenses) received by the Company and the Selling Holders and the underwriting discount received by the underwriters, in each case as set forth in the table on the cover page of the applicable prospectus, bear to the aggregate public offering price of the Registrable Securities. The relative fault of the indemnifying partyCompany, on the one hand, Selling Holders and of the indemnified party, on the other hand, underwriters shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party Selling Holders or the indemnified party. The relative fault shall also be determined by reference to underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties Company, the Selling Holders, and the underwriters agree that it would not be just and equitable if contribution pursuant to this Agreement Section 4.7(b) were determined by pro rata or per capita allocation or by any other method or of allocation that which does not take into account of the equitable considerations referred to in this Section 11(d)the immediately preceding paragraph. In no event event, however, shall the a Selling Holder be required to make any indemnification payment under Section 4.7(a) and/or contribute any amount which a Holder of Registrable Securities may be obligated to contribute pursuant to under this Section 11(d4.7(b) exceed an amount in excess, in the aggregate, of the lesser of (i) that proportion of the total of such losses, claims, damages or liabilities indemnified against equal to the proportion of the total Registrable Securities sold under such registration statement which are being sold by such Selling Holder or (ii) the net cash proceeds (after deducting Selling Expenses) actually received by such Selling Holder in the from its sale of Registrable Securities that gives rise to under such obligation to contributeregistration statement. No indemnified party person found guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not found guilty of such fraudulent misrepresentation. (ec) The provisions amount paid by an indemnifying party or payable to an indemnified party as a result of the losses, claims, damages and liabilities referred to in this Section 11 4.7 shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim, payable as the same are incurred. The indemnification and contribution provided for in this Section 4.7 will remain in full force and effect regardless of any investigation made by or on behalf of any the indemnified party parties or any officer, director director, employee, agent or controlling person of such the indemnified party and shall survive the Transfer of any Registrable Securities by any Holderparties.

Appears in 1 contract

Sources: Securityholders' Agreement (Harvard Bioscience Inc)

Indemnification; Contribution. (a) The Company shall, agrees to the fullest extent permitted by law, indemnify and hold harmless (i) each Holder of Registrable Securitiescovered by any Registration Statement, any (ii) each other Person who is participates as an underwriter in the offering or might be deemed to be a “controlling person” sale of the Company or any of its subsidiaries such securities, (iii) each Person, if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act Act) any such Holder or underwriter (each such Person, any of the Persons referred to in this clause (iii) being hereinafter referred to as a “Controlling controlling Person”), their and (iv) the respective direct and indirect general and limited partners, advisory board membersofficers, directors, officers, trustees, managers, memberspartners, employees, agents, Affiliates representatives and shareholders, and each other Person, if any, who acts on behalf agents of or controls any such Holder or Controlling underwriter or any controlling Person (each of the foregoingany Person referred to in clause (i), a (ii), (iii) or (iv) may hereinafter be referred to as an Covered indemnified Person”) ), to the fullest extent lawful, from and against any and all losses, claims, actions, damages, liabilities and liabilities, judgments or expenses, joint or severalseveral (or actions or proceedings, whether commenced or threatened, in respect thereof) (collectively, “Claims”), to which such Covered indemnified Person may become subject under either Section 15 of the Securities Act, Act or Section 20 of the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon (i) upon, or are caused by any untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus Statement or Prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to thereto), or any document incorporated by reference in the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading misleading, or (iii) any violation or alleged a violation by the Company of the Securities Act or any other similar federal or state securities laws law, or any rule or regulation promulgated under such federal the Securities Act or any state securities laws law, or any other law applicable to the Company and relating to any action such registration or inaction required of the Company in connection with any registration of securities. In additionqualification, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, except insofar as such losses, claims, actions, damages, liabilities liabilities, judgments or expenses arise out of any such indemnified Person; (x) are caused by any such untrue statement or are based upon (i) any untrue omission or alleged untrue statement or omission that is based upon information relating to such indemnified Person furnished in writing to the Company by or on behalf of a material fact contained in any of such indemnified Person expressly for use therein; (y) with respect to the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under result from the fact that such Holder sold Securities Act to a Person to whom there was not sent or any successor rule to Rule 405) given, at or any amendment of or supplement prior to the same or (ii) any omission or alleged omission written confirmation of such sale, a material fact required to be stated in such Registration Statement, copy of the Prospectus, preliminary Prospectus as amended or free writing prospectus supplemented, if the Company shall have previously furnished copies thereof to such Holder in accordance with this Agreement and said Prospectus, as amended or necessary to make the statements made in the same not misleadingsupplemented, but, in the case of each of clauses (i) and (ii), only to the extent that would have corrected such untrue statement or alleged untrue statementomission; or (z) as a result of the use by an indemnified Person of any Prospectus when, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to upon receipt of a notice from the Company of the existence of any fact of the kind described in Section 2.3(b)(iv), the indemnified Person or the related Holder was not permitted to do so. Such indemnity shall remain in full force and effect regardless of any investigation made by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and on behalf of any indemnified Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to survive the net proceeds (after deducting Selling Expenses) actually received transfer of such securities by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders In case any action shall be brought or asserted against any of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim indemnified Persons with respect to which it seeks indemnification. Notwithstanding indemnity may be sought against the previous sentenceCompany, any failure or delay to so such indemnified Person shall promptly notify the indemnifying party Company and the Company shall not relieve assume the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delaydefense thereof. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an Such indemnified party, the indemnifying party shall be entitled to participate in and Person shall have the right, exercisable by giving written notice right to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of employ separate counsel in any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled action and to participate in the defense of such claim or action, with counsel of its own choicethereof, but the indemnifying party fees and expenses of such counsel shall not be obligated to reimburse at the expense of the indemnified party for any fees, costs and expenses subsequently incurred Person unless (i) the employment of such counsel shall have been specifically authorized in writing by the indemnified party in connection with such defense unless Company, (Aii) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has Company shall have failed to assume the defense of and employ counsel, or (iii) the named parties to any such claim or action within a reasonable time after receipt of notice of such claim or action, (Cincluding any implied parties) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to include both the indemnified party or to pursue Person and the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent Company and the indemnified party would present such Person shall have been advised in writing by its counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject Company (in which case the Company shall not have the right to assume the foregoing sentencedefense of such action on behalf of the indemnified Person), no indemnifying party shallit being understood, however, that the Company shall not, in connection with any one claim or such action or separate but substantially similar or related actions in the same jurisdiction or proceedings arising out of the same general circumstances allegations or allegationscircumstances, be liable for the fees, costs reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for all the indemnified partiesPersons, which firm shall be (x) designated by such indemnified Persons; and (y) reasonably satisfactory to the Company. The indemnifying party Company shall not have be liable for any settlement of any such action or proceeding effected without the right Company’s prior written consent, which consent shall not be withheld unreasonably, and the Company agrees to settle a claim or action for which indemnify and hold harmless any indemnified party is entitled to indemnification pursuant to this Agreement without Person from and against any loss, claim, damage, liability, judgment or expense by reason of any settlement of any action effected with the written consent of the Company. The Company shall not, without the prior written consent of each indemnified partyPerson, The indemnifying party shall not settle or compromise or consent to the entry of judgment on or otherwise seek to terminate any judgment pending or enter into threatened action, claim, litigation or agree proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not any indemnified Person is a party thereto), unless such settlement, compromise, consent or termination includes an unconditional release of each indemnified Person from all liability arising out of such action, claim litigation or proceeding. (b) Each Holder of Restricted Securities covered by any Registration Statement agrees, severally and not jointly, to indemnify and hold harmless the Company and its directors, officers and any settlement Person controlling (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Company, and the respective officers, directors, partners, employees, representatives and agents of each such Person, to the same extent as the foregoing indemnity from the Company to each of the indemnified Persons, but only (i) with respect to actions based on information relating to such claim Holder furnished in writing by or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term behalf of such judgment Holder expressly for use in any Registration Statement or settlement Prospectus, and (ii) to the giving extent of the gross proceeds, if any, received by such Holder from the claimant sale or plaintiff in other disposition of his or its Restricted Securities covered by such judgment Registration Statement. In case any action or settlement to proceeding shall be brought against the Company or its directors or officers or any such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability controlling Person in respect of which indemnity may be sought against a Holder of Restricted Securities covered by any Registration Statement, such claim or action. The indemnifying party Holder shall have the rights and duties given the Company in Section 2.7(a) (except that the Holder may but shall not be liable under this Agreement for any amount paid required to assume the defense thereof), and the Company or payable its directors or incurred pursuant officers or such controlling Person shall have the rights and duties given to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayedeach Holder by Section 2.7(a). (dc) If the indemnification provided for in this Section 11 2.7 is held by a court of competent jurisdiction unavailable to be unavailable to, or unenforceable by, an indemnified party under Section 2.7(a) or (b) (other than by reason of exceptions provided in those Sections) in respect of any losslosses, claimclaims, actiondamages, damageliabilities, liability judgments or expense expenses referred to in this Section 11therein, then the each applicable indemnifying partyparty (in the case of the Holders severally and not jointly), in lieu of indemnifying such indemnified party under this Agreementparty, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damageliabilities, liability judgments or expense expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company on the one hand and the indemnifying party. If Holder on the other hand from sale of Restricted Securities, or (ii) if such allocation provided by the preceding sentence clause (i) above is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence clause (i) above but also the relative fault of the indemnified party Company and such Holder in connection with the indemnifying partystatements or omissions which resulted in such losses, claims, damages, liabilities, judgments or expenses, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, Company on the one hand, hand and of the indemnified party, such Holder on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party Company or by such Holder and the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ parties relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties amount paid to a party as a result of the losses, claims, damages, liabilities judgments and expenses referred to above shall be deemed to include, subject to the limitations set forth in the second paragraph of Section 2.7(a), any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any action or claim. The Company and each Holder of Restricted Securities covered by any Registration Statement agree that it would not be just and equitable if contribution pursuant to this Agreement Section 2.7(c) were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method or of allocation that which does not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 11(d2.7(c). In , no event Holder (and none of its related indemnified Persons) shall be required to contribute, in the aggregate, any amount in excess of the amount by which a Holder the dollar amount of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in upon the sale of Registrable the Restricted Securities that gives rise exceeds the amount of any damages which such Holder has otherwise been required to pay by reason of such obligation to contributeuntrue statement or omission or alleged omission. No indemnified party Person guilty or liable of fraudulent misrepresentation misrepresentations (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) . The indemnity and contribution provisions of contained in this Section 11 shall remain 2.7 are in full force and effect regardless of addition to any investigation made by or on behalf of any liability which the indemnifying Person may otherwise have to the indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any HolderPersons referred to above.

Appears in 1 contract

Sources: Financial Advisory Agreement (Senesco Technologies Inc)

Indemnification; Contribution. (a) The Company shallagrees to indemnify, to the fullest extent permitted by law, indemnify defend and hold harmless each Holder, each person, if any, who controls any Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their ) and the respective direct and indirect general and limited partners, advisory board membersofficers, directors, officers, trustees, managers, memberspartners, employees, agents, Affiliates representatives and shareholders, and each other Person, if any, who acts on behalf agents of the Holders or controls any such Holder or Controlling Person (each of the foregoingeach, a an Covered PersonIndemnified Party) ), from and against any lossesloss, claimsdamage, actionsexpense, damagesliability, liabilities and expenses, joint claim or several, to any actions in respect thereof (including the reasonable cost of investigation) which such Covered Person Indemnified Party may incur or become subject to under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such lossesloss, claimsdamage, actionsexpense, damagesliability, liabilities claim or expenses arise action arises out of or are is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any Shelf Registration Statement or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to or including any document incorporated by reference therein, or in the sameany amendment or supplement thereto or in any preliminary prospectus, (ii) or arises out of or is based upon any omission or alleged omission of to state a material fact required to be stated in any such Shelf Registration Statement, Prospectus, preliminary Prospectus Statement or free writing prospectus in any amendment or supplement thereto or necessary to make the statements made in the same therein not misleading misleading, or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of to state a material fact required to be stated necessary in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary order to make the statements made in the same not misleading, but, any Prospectus or in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to thereto or in any preliminary prospectus, in the same in reliance uponlight of the circumstances under which they were made, not misleading, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statementshall reimburse, Prospectusas incurred, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person Indemnified Parties for any legal or other expenses reasonably incurred by them in connection with investigating, investigating or defending or settling any such loss, claimdamage, actionexpense, damage liability, claim or action in respect thereof; provided, however, that (i) insofar as any such loss, damage, expense, liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual , claim or action arises out of or is based upon any untrue statement or omission or alleged untrue statement or omission of a material fact contained in, or omitted from, and several, not joint and several, for each participating in conformity with information furnished in writing by or on behalf of any Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds Company expressly for use therein and (after deducting Selling Expensesii) actually received by such Holder with respect to any untrue statement or omission or alleged untrue statement or omission made in any preliminary prospectus relating to a Shelf Registration Statement, the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(bsubsection (a) shall not apply inure to amounts paid the benefit of any Holder from whom the person asserting any such losses, damages, expenses, liabilities, claims or actions purchased the Registrable Securities concerned, to the extent that a prospectus relating to such Registrable Securities was required to be delivered by such Holder under the Securities Act in settlement of connection with such purchase and any such loss, claimdamage, expense, liability, claim or action of such Holder results from the fact that there was not sent or given to such person, at or prior to the written confirmation of the sale of such Registrable Securities to such person, (x) a copy of the final prospectus if the Company had previously furnished copies thereof to such Holder or (y) an amendment or supplement to such final Prospectus if the Company had previously furnished copies thereof to such Holder; provided further, however, that this indemnity agreement will be in addition to any liability which the Company may otherwise have to such Indemnified Party. (b) Each Holder, severally and not jointly, agrees to indemnify, defend and hold harmless the Company, its directors, officers, employees, representatives, agents and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, a “Company Indemnified Party”) from and against any loss, damage, expense, liability, claim or any actions in respect thereof (including the reasonable cost of investigation) which such Company Indemnified Party may incur or become subject to under the Securities Act, the Exchange Act or otherwise, insofar as such loss, damage, expense, liability, claim or action arises out of or proceeding if such settlement is effected without the consent based upon any untrue statement or alleged untrue statement of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to a material fact contained in information furnished in writing by or on behalf of such Holders, the only information furnished or to be furnished Holder to the Company expressly for use in any Shelf Registration Statement or Prospectus relating to the Registrable Securities Prospectus, including any document incorporated by reference therein, or in any amendmentamendment or supplement thereto or in any preliminary prospectus, or arises out of or is based upon any omission or alleged omission to state a material fact required to be stated in any Shelf Registration Statement or in any amendment or supplement thereto or necessary to make the statements therein not misleading, or arises out of or is based upon any omission or alleged omission to state a material fact necessary in order to make the statements in any Prospectus or in any amendment or supplement thereto or in any preliminary materials associated prospectus, in the light of the circumstances under which they were made, not misleading, in each case in connection with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock such information furnished in writing by such Holder and its Affiliates, (b) the name and address or on behalf of such Holder and (c) to the Company expressly for such use; and, subject to the limitation set forth immediately preceding this clause, each Holder shall reimburse, as incurred, the Company for any additional information about such Holder legal or other expenses reasonably incurred by the plan of distribution (other than for an underwritten offering) required by law Company or regulation to be disclosed in any such documentcontrolling person in connection with investigating or defending any loss, damage, expense, liability, claim or action in respect thereof. This indemnity shall agreement will be in addition to any liability which such Holder may otherwise havehave to the Company or any of its controlling persons. In no event shall the liability of any selling Holder of Registrable Securities hereunder be greater in amount than the dollar amount of the proceeds received by such Holder upon the sale of the Registrable Securities pursuant to the Shelf Registration Statement giving rise to such indemnification obligation. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of If any claim with respect to which it seeks indemnification. Notwithstanding the previous sentenceaction, any failure suit or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreementproceeding (each, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement “Proceeding”) is brought against an indemnified partyany person in respect of which indemnity may be sought pursuant to either subsection (a) or (b) of this Section 6, such person (the indemnifying party “Indemnified Party”) shall promptly notify the person against whom such indemnity may be entitled to participate sought (the “Indemnifying Party”) in and shall have writing of the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party institution of such claim or action, to assume, at Proceeding and the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party Indemnifying Party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim Proceeding; provided, however, that the omission to notify such Indemnifying Party shall not relieve such Indemnifying Party from any liability which it may have to such Indemnified Party or action within a reasonable time after receipt of notice otherwise. Such Indemnified Party shall have the right to employ its own counsel in any such case, but the fees and expenses of such claim or action, (C) having assumed counsel shall be at the expense of such Indemnified Party unless the employment of such counsel shall have been authorized in writing by such Indemnifying Party in connection with the defense of such claim Proceeding or action, the indemnifying party fails such Indemnifying Party shall not have employed counsel to employ counsel reasonably acceptable to the indemnified party or to pursue have charge of the defense of such claim Proceeding within thirty (30) days of the receipt of notice thereof or action in a such Indemnified Party shall have reasonably vigorous manner, (D) concluded upon the use written advice of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which that are different from or from, additional to or in conflict with those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys such Indemnifying Party (in addition to any local counsel) for all indemnified parties. The indemnifying party which case such Indemnifying Party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent direct that portion of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term defense of such judgment or settlement Proceeding on behalf of the giving by Indemnified Party, but such Indemnifying Party may employ counsel and participate in the claimant or plaintiff in defense thereof but the fees and expenses of such judgment or settlement to counsel shall be at the expense of such indemnified partyIndemnifying Party), in form any of which events such reasonable fees and substance reasonably satisfactory to expenses shall be borne by such indemnified partyIndemnifying Party and paid as incurred (it being understood, of a full and final release from all liability in respect of however, that such claim or action. The indemnifying party Indemnifying Party shall not be liable under this Agreement for the expenses of more than one separate counsel in any one Proceeding or series of related Proceedings together with reasonably necessary local counsel representing the Indemnified Parties who are parties to such action). An Indemnifying Party shall not be liable for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement of such Proceeding effected without the written consent of such Indemnifying Party, but if settled with the written consent of such Indemnifying Party, such Indemnifying Party agrees to indemnify and hold harmless an indemnified Indemnified Party from and against any loss or liability by reason of such settlement. Notwithstanding the foregoing sentence, if at any time an Indemnified Party shall have requested an Indemnifying Party to reimburse such Indemnified Party for fees and expenses of counsel as contemplated by the second sentence of this paragraph, then such Indemnifying Party agrees that it shall be liable for any settlement of any Proceeding effected without its written consent if (i) such settlement is entered into more than sixty (60) Business Days after receipt by such Indemnifying Party of the aforesaid request, (ii) such Indemnifying Party shall not have reimbursed such Indemnified Party in accordance with such request prior to the date of such settlement and (iii) such Indemnified Party shall have given such Indemnifying Party at least thirty (30) days’ prior notice of its intention to settle. No Indemnifying Party shall, without the prior written consent of any Indemnified Party, effect any settlement of any pending or threatened Proceeding in respect of which such Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the indemnifying party has also consented subject matter of such Proceeding and does not include an admission of fault, culpability or a failure to act, by or on behalf of such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed)Indemnified Party. (d) If the indemnification provided for in this Section 11 6 is held by a court unavailable to an Indemnified Party under subsections (a) and (b) of competent jurisdiction to be unavailable to, or unenforceable by, an indemnified party this Section 6 in respect of any losslosses, claimdamages, actionexpenses, damageliabilities, liability claims or expense actions referred to in this Section 11therein, then the each applicable indemnifying partyIndemnifying Party, in lieu of indemnifying such indemnified party under this AgreementIndemnified Party, shall contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such losslosses, claimdamages, actionexpenses, damageliabilities, liability claims or expense actions (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company on the one hand and the indemnifying party. If Holders on the other hand from the offering of the Registrable Securities or (ii) if the allocation provided by the preceding sentence clause (i) above is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence clause (i) above but also the relative fault of the indemnified party Company on the one hand and of the indemnifying partyHolders on the other in connection with the statements or omissions which resulted in such losses, damages, expenses, liabilities, claims or actions, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, Company on the one hand, hand and of the indemnified party, Holders on the other hand, shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party Company or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to Holders and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties amount paid or payable by a party as a result of the losses, damages, expenses, liabilities, claims and actions referred to above shall be deemed to include any reasonable legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any Proceeding. (e) The Company and the Holders agree that it would not be just and equitable if contribution pursuant to this Agreement Section 6 were determined by pro rata allocation or by any other method or of allocation that which does not take into account of the equitable considerations referred to in subsection (d) above. Notwithstanding the provisions of this Section 11(d). In 6, no event Holder shall be required to contribute any amount in excess of the amount by which a Holder of the total price at which the Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal sold by it were offered to the net proceeds (after deducting Selling Expenses) actually received public exceeds the amount of any damages which it has otherwise been required to pay by reason of such Holder in the sale of Registrable Securities that gives rise to such obligation to contributeuntrue or alleged untrue statement or omission or alleged omission. No indemnified party person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. The Holders’ respective obligations to contribute pursuant to this Section 6 are several in proportion to the respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint. The remedies provided for in this Section 6 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. (ef) The indemnity and contribution provisions of contained in this Section 11 6 shall remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of any indemnified party Holder or any officerperson controlling any Holder or the Company, director or the Company’s officers or directors or any person controlling person of such indemnified party the Company and shall survive (iii) the Transfer sale of any Registrable Securities Security by any Holder.

Appears in 1 contract

Sources: Registration Rights Agreement (Genome Therapeutics Corp)

Indemnification; Contribution. (a) The Company shall, to the fullest extent permitted by law, will indemnify and hold harmless each Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, holder and each other Personaffiliate thereof of Common Stock registered pursuant to this Agreement with the Commission, if any, who acts on behalf of or controls under any such Holder Blue Sky Law or Controlling Person (each of the foregoing, a “Covered Person”) regulation against any losses, claims, actions, damages, liabilities and expensesor liabilities, joint or several, to which such Covered Person holder may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, or liabilities (or expenses actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statementpreliminary prospectus, Prospectusregistration statement, preliminary Prospectusprospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to thereto, or any document incorporated by reference in arise out of or are based upon the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company misleading, and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall will reimburse each Covered Person such holder and affiliate for any legal or other expenses reasonably incurred by such Covered Person holder in connection with investigating, investigating or defending or settling any such lossaction or claim regardless of the negligence of any such holder or affiliate; provided, claimhowever, action, damage or liability. Notwithstanding the previous sentence, that the Company shall not be so liable in any such case to the extent that any such loss, claim, action, damage, or liability or expense arises out of or is based upon any such an untrue statement or alleged untrue statement, statement or omission or alleged omission, omission made or incorporated by reference in any such Registration Statementpreliminary prospectus, Prospectusregistration statement or prospectus, preliminary Prospectus, free writing prospectus or any such amendment or supplement to or any document incorporated by reference in the same thereto, in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by any such Covered Person holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise havetherein. (b) In connection with any registration in which a Holder Each holder of Registrable Securities is participating, each such Holder shall furnish Common Stock registered pursuant to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, this Agreement will indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person Company against any losses, claims, actions, damages, or liabilities and expenses, joint or several, to which they or any of them the Company may become subject subject, under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, or liabilities (or expenses actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in the Registration Statementany preliminary prospectus, Prospectusregistration statement or prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement thereto, or arise out of or supplement to are based upon the same or (ii) any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have.in (c) Any Person entitled Promptly after receipt by an indemnified party under Sections 8(a) or (b) above of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to indemnification pursuant to this Agreement shall give prompt written notice to be made against the indemnifying party under either such subsection, notify the indemnifying party in writing of any claim with respect the commencement thereof; but the omission so to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve it from any liability that it may otherwise have to any indemnified party. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, commencement thereof the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, assume the defense of any such claim or action, with counsel reasonably acceptable thereof by notice in writing to the indemnified party. Notwithstanding After notice from the previous sentence, any indemnifying party to such indemnified party shall continue of its election to be entitled to participate in assume the defense of such claim or actionthereof, with counsel of its own choice, but the indemnifying party shall not be obligated liable to reimburse the such indemnified party under either of such subsections for any feeslegal expenses of other counsel or any other expense, costs and expenses in each case subsequently incurred by the such indemnified party party, in connection with such the defense unless (A) thereof other than reasonable costs of investigation incurred prior to the assumption by the indemnifying party has agreed party, unless such expenses have been specifically authorized in writing to pay such feesby the indemnifying party, costs and expenses, (B) the indemnifying party has failed to assume the defense and employ counsel, or the named parties to any such action include both the indemnified party and the indemnifying party, as appropriate, and such indemnified party has been advised by counsel that the representation of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, indemnified party and the indemnifying party fails by the same counsel would be inappropriate due to employ actual or potential differing interests between them, in each of which cases the fees of counsel reasonably acceptable to for the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen will be paid by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 8 is held by a court of competent jurisdiction unavailable or insufficient to be unavailable to, or unenforceable by, hold harmless an indemnified party under Section 8(a) or 8(b) in respect of any losslosses, claimclaims, actiondamages, damage, liability or expense liabilities (or action in respect thereof) referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability or expense liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company and the indemnifying partyholder or holders from this Agreement and from the offering of the shares of Common Stock. If If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, the then each indemnifying party shall contribute to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only the such relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party Company and the indemnifying partyholders in connection with the statement or omissions that resulted in such losses, claims, damages, or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to holder and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties Company and the holders agree that it would not be just and equitable if contribution pursuant to this Agreement Section 8(d) were determined by pro rata allocation or by any other method or allocation that does not take into account the equitable considerations referred to in this Section 11(d). In no event shall the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party guilty or liable of fraudulent misrepresentation within the meaning of Section 11(f) of the Securities Act shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.determined (e) The provisions obligations of the Company under this Section 11 8 shall remain be in full force and effect regardless of addition to any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party liability that the Company may otherwise have and shall survive extend, upon the Transfer same terms and conditions, to each person, if any, who controls any holder of Warrants within the meaning of the Act. The obligations of the holders of Common Stock under this Section 8 shall be in addition to any Registrable Securities by any Holderliability that such holders may otherwise have and shall extend, upon the same terms and conditions to each person, if any, who controls the Company within the meaning of the Act.

Appears in 1 contract

Sources: Warrant Agreement (Grand Adventures Tour & Travel Publishing Corp)

Indemnification; Contribution. (a) The Company shall, agrees to the fullest extent permitted by law, indemnify and hold harmless (i) the Holder, (ii) each Holder of Registrable Securities, any other Person who is participates as an underwriter in the offering or might be deemed to be a “controlling sale of such securities, (iii) each person” of the Company or any of its subsidiaries , if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act Act) the Holder or underwriter (each such Person, any of the persons referred to in this clause (iii) being hereinafter referred to as a “Controlling Person”), their "controlling person") and (iv) the respective direct and indirect general and limited partners, advisory board membersofficers, directors, officers, trustees, managers, memberspartners, employees, agents, Affiliates representatives and shareholders, and each other Person, if any, who acts on behalf agents of or controls any such the Holder or Controlling Person underwriter or any controlling person (each of any person referred to in clause (i), (ii), (iii) or (iv) may hereinafter be referred to as an "indemnified Person"), to the foregoingfullest extent lawful, a “Covered Person”) from and against any and all losses, claims, actions, damages, liabilities and liabilities, judgments or expenses, joint or severalseveral (or actions or proceedings, whether commenced or threatened, in respect thereof) (collectively, "Claims"), to which such Covered indemnified Person may become subject under either Section 15 of the Securities Act, Act or Section 20 of the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon (i) upon, or are caused by any untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus Statement or Prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to thereto), or any document incorporated by reference in the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading misleading, or (iii) any violation or alleged a violation by the Company of the Securities Act or any other similar federal or state securities laws law, or any rule or regulation promulgated under such federal the Securities Act or any state securities laws law, or any other law applicable to the Company and relating to any action such registration or inaction required of the Company in connection with any registration of securities. In additionqualification, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, except insofar as such losses, claims, actions, damages, liabilities liabilities, judgments or expenses arise out of any such indemnified Person; (x) are caused by any such untrue statement or are based upon (i) any untrue omission or alleged untrue statement or omission that is based upon information relating to such indemnified Person furnished in writing to the Company by or on behalf of a material fact contained in any of such indemnified Person expressly for use therein; (y) with respect to the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under result from the fact that the Holder sold Securities Act to a person to whom there was not sent or any successor rule to Rule 405) given, at or any amendment of or supplement prior to the same or (ii) any omission or alleged omission written confirmation of such sale, a material fact required to be stated in such Registration Statement, copy of the Prospectus, preliminary Prospectus as amended or free writing prospectus or necessary to make supplemented, if the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only Company shall have previously furnished copies thereof to the extent that Holder in accordance with this Agreement and said Prospectus, as amended or supplemented, would have corrected such untrue statement or alleged untrue statementomission; or (z) as a result of the use by an indemnified Person of any Prospectus when, upon receipt of a Blackout Notice or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to a notice from the Company of the existence of any fact of the kind described in Section 2.4(b)(iv), the indemnified Person or the Holder was not permitted to do so. Such indemnity shall remain in full force and effect regardless of any investigation made by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and on behalf of any indemnified Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to survive the net proceeds (after deducting Selling Expenses) actually received transfer of such securities by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders In case any action shall be brought or asserted against any of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim indemnified Persons with respect to which it seeks indemnification. Notwithstanding indemnity may be sought against the previous sentenceCompany, any failure or delay to so such indemnified Person shall promptly notify the indemnifying party Company and the Company shall not relieve assume the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delaydefense thereof. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an Such indemnified party, the indemnifying party shall be entitled to participate in and Person shall have the right, exercisable by giving written notice right to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of employ separate counsel in any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled action and to participate in the defense of such claim or action, with counsel of its own choicethereof, but the indemnifying party fees and expenses of such counsel shall not be obligated to reimburse at the expense of the indemnified party for any fees, costs and expenses subsequently incurred Person unless (i) the employment of such counsel shall have been specifically authorized in writing by the indemnified party in connection with such defense unless Company, (Aii) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has Company shall have failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to and employ counsel reasonably acceptable or (iii) the named parties to any such action (including any implied parties) include both the indemnified party or to pursue Person and the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent Company and the indemnified party would present such Person shall have been advised in writing by its counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject Company (in which case the Company shall not have the right to assume the foregoing sentencedefense of such action on behalf of the indemnified Person), no indemnifying party shallit being understood, however, that the Company shall not, in connection with any one claim or such action or separate but substantially similar or related actions in the same jurisdiction or proceedings arising out of the same general circumstances allegations or allegationscircumstances, be liable for the fees, costs reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for all the indemnified partiesPersons, which firm shall be (x) designated by such indemnified Persons and (y) reasonably satisfactory to the Company. The indemnifying party Company shall not have be liable for any settlement of any such action or proceeding effected without the right Company's prior written consent, which consent shall not be withheld unreasonably, and the Company agrees to settle a claim or action for which indemnify and hold harmless any indemnified party is entitled to indemnification pursuant to this Agreement without Person from and against any loss, claim, damage, liability, judgment or expense by reason of any settlement of any action effected with the written consent of the Company. The Company shall not, without the prior written consent of each indemnified partyPerson, The indemnifying party shall not settle or compromise or consent to the entry of judgment on or otherwise seek to terminate any judgment pending or enter into threatened action, claim, litigation or agree to proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not any settlement relating to such claim or action indemnified Person is a party thereto), unless such judgment settlement, compromise, consent or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and termination includes as an unconditional term release of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such each indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release Person from all liability arising out of such action, claim litigation or proceeding. (b) The Holder agrees to indemnify and hold harmless the Company and its directors, officers and any person controlling (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Company, and the respective officers, directors, partners, employees, representatives and agents of each person, to the same extent as the foregoing indemnity from the Company to each of the indemnified Persons, but only (i) with respect to actions based on information relating to the Holder furnished in writing by or on behalf of such Holder expressly for use in any Registration Statement or Prospectus, and (ii) to the extent of the gross proceeds, if any, received by such Holder from the sale or other disposition of its Restricted Securities covered by such Registration Statement. In case any action or proceeding shall be brought against the Company or its directors or officers or any such controlling person in respect of which indemnity may be sought against the Holder, such claim or action. The indemnifying party Holder shall have the rights and duties given the Company in Section 2.8(a) (except that the Holder may but shall not be liable under this Agreement for any amount paid required to assume the defense thereof), and the Company or payable its directors or incurred pursuant officers or such controlling person shall have the rights and duties given to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayedHolder by Section 2.8(a). (dc) If the indemnification provided for in this Section 11 2.8 is held by a court of competent jurisdiction unavailable to be unavailable to, or unenforceable by, an indemnified party under Section 2.8(a) or (b) (other than by reason of exceptions provided in those Sections) in respect of any losslosses, claimclaims, actiondamages, damageliabilities, liability judgments or expense expenses referred to in this Section 11therein, then the each applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreementparty, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims damages, actionliabilities, damage, liability judgments or expense expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company on the one hand and the indemnifying party. If Holder on the other hand from sale of Restricted Securities or (ii) if such allocation provided by the preceding sentence clause (i) above is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence clause (i) above but also the relative fault of the indemnified party Company and the indemnifying partyHolder in connection with the statements or omissions which resulted in such losses, claims, damages, liabilities, judgments or expenses, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, Company on the one hand, hand and of the indemnified party, Holder on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party Company or by the indemnified party, whether Holder and the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ parties relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties amount paid to a party as a result of the losses, claims, damages, liabilities judgments and expenses referred to above shall be deemed to include, subject to the limitations set forth in the second paragraph of Section 2.8(a), any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any action or claim. The Company and the Holder agree that it would not be just and equitable if contribution pursuant to this Agreement Section 2.8(c) were determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 11(d). In no event 2.8(c) the Holder (and its related indemnified Persons) shall not be required to contribute, in the aggregate, any amount in excess of the amount by which a Holder the dollar amount of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in upon the sale of Registrable the Restricted Securities that gives rise exceeds the amount of any damages which such Holder has otherwise been required to pay by reason of such obligation to contributeuntrue statement or omission or alleged omission. No indemnified party person guilty or liable of fraudulent misrepresentation misrepresentations (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. (e) . The indemnity, and contribution provisions of contained in this Section 11 shall remain 2.8 are in full force and effect regardless of addition to any investigation made by or on behalf of any liability which the indemnifying person may otherwise have to the indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holderpersons referred to above.

Appears in 1 contract

Sources: Registration Rights Agreement (Commodore Environmental Services Inc /De/)

Indemnification; Contribution. (a) The Whether or not the Rights Offering, the Closing or the other transactions contemplated hereby are consummated or this Agreement is terminated, the Company shall(in such capacity, to the fullest extent permitted by law“Indemnifying Party”) shall indemnify, indemnify defend and hold harmless each Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (Standby Purchaser and each such Person, a “Controlling Person”)Affiliated Purchaser, their respective direct Affiliates and indirect general and limited partners, advisory board memberstheir respective officers, directors, officers, trusteesmembers, managers, memberspartners, employees, agents, Affiliates advisors, controlling persons, heirs, trustees, beneficiaries, successors and shareholdersassigns, and each other Personas applicable (each, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a an Covered Indemnified Person”) ), from and against any and all losses, claims, actions, damages, liabilities liabilities, amounts paid in settlement and reasonable expenses, joint or several, several (“Losses”) incurred by such Indemnified Person or to which any such Covered Indemnified Person may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise arising out of or are based upon in connection with any claim, challenge, litigation, investigation or proceeding (“Proceedings”) arising out of or relating to the Rights Offering, the Standby Offering, this Agreement, the Registration Statement, or the Prospectus, any amendment or supplement thereto or the transactions contemplated by any of the foregoing and shall reimburse such Indemnified Persons for any reasonable legal fees and expenses or other out-of-pocket expenses incurred in connection with investigating, responding to or defending any of the foregoing; provided that the foregoing indemnification will not apply to Losses to the extent that they resulted from (i) any untrue statements or alleged untrue statement of a material fact contained omissions in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) Prospectus or any amendment or supplement to or any document incorporated by reference in the same, (ii) any omission or alleged omission of a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements thereto made in the same not misleading reliance upon or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under in conformity with information relating to such federal or state securities laws applicable Indemnified Person furnished to the Company and relating to any action in writing by or inaction required on behalf of such Indemnified Person expressly for use in the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus Prospectus or any amendment or supplement thereto or (ii) the material breach of this Agreement by a Standby Purchaser or an Affiliated Purchaser. If for any reason the foregoing indemnification is unavailable to or any document incorporated by reference Indemnified Person (except as set forth in the same in reliance upon, and in conformity with, written information prepared and furnished proviso to the Company immediately preceding section) or insufficient to hold it harmless, then the Indemnifying Party shall contribute to the amount paid or payable by such Covered Indemnified Person expressly for use as a result of such Losses in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition proportion as is appropriate to reflect the relative fault of the Indemnifying Party on the one hand and such Indemnified Person on the other hand as well as any liability the Company may otherwise haverelevant equitable considerations. (b) In connection Promptly after receipt by an Indemnified Person of notice of the commencement of any Proceedings with respect to which the Indemnified Person may be entitled to indemnification hereunder, such Indemnified Person will, if a claim is to be made hereunder against the Indemnifying Party in respect thereof, notify the Indemnifying Party in writing of the commencement thereof; provided that the omission so to notify the Indemnifying Party will not relieve the Indemnifying Party from any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish liability that it may have hereunder except to the Company in writing extent it has been materially prejudiced by such information as the Company reasonably requests for use in connection with failure. In case any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person Proceedings are brought against any losses, claims, actions, damages, liabilities Indemnified Person and expenses, joint or several, to which they or any it notifies the Indemnifying Party of them may become subject under the Securities Actcommencement thereof, the Exchange ActIndemnifying Party will be entitled to participate therein, any state blue sky securities lawsand, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company it may elect by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice delivered to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or actionIndemnified Person, to assume, at the indemnifying party’s expense, assume the defense of any such claim or actionthereof, with counsel reasonably acceptable satisfactory to such Indemnified Person; provided that if the indemnified party. Notwithstanding defendants in any such Proceedings include both such Indemnified Person and the previous sentence, any indemnified party Indemnifying Party and such Indemnified Person shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably have concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which that are different from or additional to those available to the indemnifying partyIndemnifying Party, such Indemnified Person shall have the right to select separate counsel to assert such legal defenses and to otherwise participate in the defense of such Proceedings on behalf of such Indemnified Person. Subject Upon receipt of notice from the Indemnifying Party to such Indemnified Person of its election so to assume the foregoing sentencedefense of such Proceedings and approval by such Indemnified Person of counsel, no indemnifying party shall, the Indemnifying Party shall not be liable to such Indemnified Person for expenses incurred by such Indemnified Person thereafter in connection with any one claim or action or the defense thereof (other than reasonable costs of investigation) unless (i) such Indemnified Person shall have employed separate but substantially similar or related actions counsel in connection with the same jurisdiction arising out assertion of legal defenses in accordance with the same general circumstances or allegationsproviso to the preceding sentence (it being understood, however, that the Indemnifying Party shall not be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any counsel, plus local counsel, in any jurisdiction representing the Indemnified Person), (ii) for all indemnified parties. The indemnifying party the Indemnifying Party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance employed counsel reasonably satisfactory to such indemnified party, Indemnified Person to represent such Indemnified Person within a reasonable time after notice of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, an indemnified party in respect of any loss, claim, action, damage, liability or expense referred to in this Section 11, then the applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault commencement of the indemnified party and Proceedings or (iii) the indemnifying party, as well as any other relevant equitable considerations. The relative fault Indemnifying Party shall have authorized in writing the employment of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under counsel for such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission or violation. The parties agree that it would not be just and equitable if contribution pursuant to this Agreement were determined by pro rata allocation or by any other method or allocation that does not take into account the equitable considerations referred to in this Section 11(d). In no event shall the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party guilty or liable of fraudulent misrepresentation within the meaning of Section 11(f) of the Securities Act shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentationIndemnified Person. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 1 contract

Sources: Standby Purchase Agreement (RMG Networks Holding Corp)

Indemnification; Contribution. (a) The Incident to any registration of any Registrable Securities under the Securities Act pursuant to this Agreement, the Company shall, to the fullest extent permitted by law, will indemnify and hold harmless each Holder the Investor if it offers or sells any such Registrable Securities in connection with such registration statement (including Investor's members (including partners, members or stockholders of Registrable Securitiessuch members), any Person who is or might be deemed to be a “controlling person” directors, officers, employees, representatives and agents of the Company or any of its subsidiaries them, and any underwriter (as defined in the Securities Act) for the Investor (each, a "Selling Investor" and collectively, the "Selling Investors"), and each person who controls any of them within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a "Controlling Person")), their respective direct from and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any and all losses, claims, actions, damages, liabilities expenses and expensesliabilities, joint or severalseveral (including any investigation, legal and other expenses reasonably incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, as the same are incurred), to which such Covered Person they, or any of them, may become subject under the Securities Act, the Exchange ActAct or other federal or state statutory law or regulation, any state blue sky securities laws, any equivalent non-U.S. securities laws at common law or otherwise, insofar as such losses, claims, actions, damages, damages or liabilities or expenses arise out of or are based upon on (i) any untrue statement or alleged untrue statement of a any material fact contained in such registration statement or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act including any related preliminary or any successor rule to Rule 405) definitive prospectus, or any amendment or supplement to such registration statement or any document incorporated by reference in the same, prospectus) or (ii) any omission or alleged omission of a to state in such document any material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus it or necessary to make the statements made in the same it not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or Act, the Exchange Act, any other similar federal or state securities laws law or any rule or regulation promulgated under such federal the Securities Act, the Exchange Act or any state securities laws applicable to the Company and relating to any action or inaction required of the Company law in connection with any the offering covered by such registration of securities. In additionstatement; provided, however, that the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any will not be liable to the extent that such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, expense or liability or expense arises out of or from and is based upon any such on an untrue statement or alleged untrue statement, or omission or alleged omission, untrue statement or omission made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, on and in conformity with, written with information prepared and furnished in writing to the Company by such Covered the Selling Investor or Controlling Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise haveregistration statement. (b) In connection To the extent permitted by applicable law, with any registration respect to such untrue statement or omission or alleged untrue statement or omission in which a Holder of Registrable Securities is participating, each such Holder shall furnish the information furnished in writing to the Company in writing by such information as the Company reasonably requests Selling Investor expressly for use in connection with any such Registration Statement or Prospectus. Each Holder shallregistration statement, to the fullest extent permitted by law, such Selling Investor will indemnify and hold harmless the CompanyCompany (including its directors, and officers), each other Selling Investor (including its directors partners or members (including partners, members or stockholders of such entities) and directors, officers, employees, representatives and agents of any of them, and each person who controls any Person who is of them within the meaning of Section 15 of the Securities Act or might be deemed to be a Controlling Person Section 20 of the Exchange Act), from and against any and all losses, claims, actions, damages, liabilities expenses and expensesliabilities, joint or several, to which they they, or any of them them, may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) other federal or any amendment of state statutory law or supplement regulation, at common law or otherwise to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made extent provided in the same not misleadingimmediately preceding sentence; provided, buthowever, in that the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement of such Selling Investor contained in this Section 11(b7(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, liability or action or proceeding if such settlement is effected without the consent of such Holder. The Company and Selling Investor, which consent shall not be unreasonably withheld; provided further, that in no event shall any indemnity by a Selling Investor under this Section 7(b) exceed the Holders of net proceeds from the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing offering received by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveSelling Investor. (c) Any Person entitled If for any reason the foregoing indemnities are unavailable, or are insufficient to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against hold harmless an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable other than by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out reason of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification exceptions provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, an indemnified party in respect of any loss, claim, action, damage, liability or expense referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, Section 7 shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damageexpenses, liability liabilities, actions or expense proceedings in such proportion as is appropriate to reflect the relative benefits received by to and faults of the indemnifying party on the one hand and the indemnified party on the other hand in connection with the offering of Registrable Securities (taking into account the portion of the proceeds realized by each such party) and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount statements or omissions or alleged statements or omissions which resulted in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying partyloss, damage, liability, action, proceeding or expense, as well as any other relevant equitable considerations. The relative benefits received by the Company, the Selling Investors and the underwriters shall be deemed to be in the same respective proportions that the net proceeds from the offering (before deducting expenses) received by the Company and the Selling Investors and the underwriting discount received by the underwriters, in each case as set forth in the table on the cover page of the applicable prospectus, bear to the aggregate public offering price of the Registrable Securities. The relative fault of the indemnifying partyCompany, on the one hand, Selling Investors and of the indemnified party, on the other hand, underwriters shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party Selling Investors or the indemnified party. The relative fault shall also be determined by reference to underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission; provided, omission that in no event shall any contribution by a Selling Investor hereunder exceed the net proceeds from the offering received by such Selling Investor. (d) The amount paid by an indemnifying party or violation. The parties agree that it would not be just payable to an indemnified party as a result of the losses, claims, damages and equitable if contribution pursuant to this Agreement were determined by pro rata allocation or by any other method or allocation that does not take into account the equitable considerations liabilities referred to in this Section 11(d)7 shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim, payable as the same are incurred. In no event shall the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to The indemnification and contribution provided for in this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party guilty or liable of fraudulent misrepresentation within the meaning of Section 11(f) of the Securities Act shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall 7 will remain in full force and effect notwithstanding the termination of this Agreement and regardless of any investigation made by or on behalf of any the indemnified party parties or any officer, director director, employee, agent or controlling person of such the indemnified party and shall survive parties. No indemnifying party, in the Transfer defense of any Registrable Securities by such claim or litigation, shall enter into a consent of entry of any Holderjudgment or enter into a settlement without the consent of the indemnified party, which consent will not be unreasonably withheld.

Appears in 1 contract

Sources: Merger Agreement (Hickok Inc)

Indemnification; Contribution. (a) The Company Buyer shall, to the fullest extent permitted by lawand hereby agrees to, indemnify and hold harmless each Participating Holder of Registrable Securities, in any Person who is offering or might be deemed to be a “controlling person” sale of the Company or any of its subsidiaries within Participating Shares pursuant to the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such PersonShelf Registration Statement, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any losses, claims, actionsdamages (including reasonable attorney’s fees) or liabilities, damagesactions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable fees of counsel) (collectively, liabilities and expenses, joint or several, “Claims”) to which each such Covered Person Participating Holder may become subject under (and the Buyer will pay to each such Participating Holder any legal or other expenses reasonably incurred thereby in connection with investigating or defending any Claim as such expenses are incurred), insofar as such Claims (including any amounts paid in settlement effected with the consent of the Buyer as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon (i) an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, (ii) any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in each case in light of the circumstances in which they were made, not misleading or (iii) any violation or alleged violating by the Buyer (or any of its agents or Affiliates) of the Securities Act, the Exchange Act, any state blue sky securities lawslaw, or any equivalent non-U.S. rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities laws or otherwiselaw; provided, insofar as that the Buyer shall not be liable to any such losses, claims, actions, damages, liabilities or expenses Participating Holder in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or prospectus, or amendment or supplement thereto, in reliance upon and in conformity with written information furnished to the Buyer by the Participating Holder with respect to such Participating Holder expressly for use therein, or by such Participating Holder’s failure to furnish the Buyer, upon request, with the information with respect to such Participating Holder, that is the subject of the untrue statement or omission, or if such Participating Holder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable prospectus (iexcluding any documents incorporated by reference therein) or of the applicable prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Buyer had previously furnished copies thereof to the Participating Holders, and such prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement. (b) Each Participating Holder, severally and not jointly, shall, and hereby agrees to, indemnify and hold harmless the Buyer, its directors, officers, employees and controlling Persons, if any, in any offering or sale of Participating Shares pursuant to a registration statement hereunder, against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statementregistration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) prospectus contained therein, or any amendment or supplement to thereto, or any document incorporated by reference in the sametherein, (ii) or arise out of or are based upon any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same therein not misleading, but, in the each case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company Buyer by such Participating Holder with respect to such Participating Holder expressly for use therein; provided, that in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder no event shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to indemnity under this Section 11(b6.6(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expensesunderwriting fees, commissions and discounts) actually from the sale of Participating Shares pursuant to the Shelf Registration Statement received by such Participating Holder in the sale unless such liability arises out of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action is based on fraud or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing willful misconduct by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveParticipating Holder. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt Promptly after receipt by an indemnified party under Section 6.6(a) or Section 6.6(b) of written notice to of the commencement of any action or proceeding for which indemnification under Section 6.6(a) or Section 6.6(b) may be requested, such indemnified party shall notify such indemnifying party in writing of the commencement of such action or proceeding. In case any such action or proceeding shall be brought against any indemnified party and it shall notify an indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentencecommencement thereof, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the righttherein and, exercisable by giving written notice to the extent that it shall determine, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party as promptly as practicable of its election so to assume the defense thereof, such indemnifying party shall not be liable to such indemnified party for any legal or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, that (i) if the indemnifying party fails to take reasonable steps necessary to defend diligently the action or proceeding within twenty (20) days after receipt of written receiving notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to that the indemnified party. Notwithstanding the previous sentence, any party believes it has failed to do so; (ii) if such indemnified party shall continue to be entitled to participate who is a defendant in the defense of such claim any action or action, with counsel of its own choice, but proceeding which is also brought against the indemnifying party reasonably shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably have concluded that there may be one or more legal or equitable defenses available to it and/or other any other such indemnified party which are different from or additional to those not available to the indemnifying party. Subject ; or (iii) if representation of both parties by the same counsel is otherwise inappropriate under applicable standards of professional conduct, then, in any such case, the indemnified party shall have the right to assume or continue its own defense as set forth above (but with no more than one firm of counsel for all indemnified parties) and the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, shall be liable for any expenses therefor (including, without limitation, any such reasonable counsel’s fees). If the feesindemnifying party is not entitled to, costs or elects not to, assume the defense of a claim, it will not be obligated to pay the fees and expenses of more than one firm of attorneys (in addition counsel for each indemnified party with respect to any local counsel) for all indemnified partiessuch claim. The indemnifying party will not be subject to any liability for any settlement made without its consent, which shall not have the right to settle a claim be unreasonably withheld, conditioned or action for which any indemnified delayed. No indemnifying party is entitled to indemnification pursuant to this Agreement shall, without the prior written consent of the indemnified party, The indemnifying party (which shall not be unreasonably withheld, conditioned or delayed), compromise or consent to the entry of any judgment or enter into or agree any settlement agreement with respect to any settlement relating to such claim action or action proceeding in respect of which indemnification is sought under Section 6.6(a) or Section 6.6(b) (whether or not the indemnified party is an actual or potential party thereto), unless such judgment compromise, consent or settlement does not impose any admission is solely for monetary damages and includes an unconditional release of wrongdoing or ongoing obligations on any the indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall litigation, and does not be liable under this Agreement for any amount paid include a statement or payable admission of fault, culpability or incurred pursuant a failure to act, by or in connection with any judgment entered or settlement effected with on behalf of the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed)party. (d) If The Participating Holders and the Buyer agree that if, for any reason, the indemnification provided for in this provisions contemplated by Section 11 is held by a court of competent jurisdiction 6.6(a) or Section 6.6(b) hereof are unavailable to be unavailable to, or unenforceable by, are insufficient to hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the such indemnifying party or by the such indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission. If, omission however, the allocation in the first sentence of this Section 6.6(d) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or violationpayable by such indemnified party in such proportion as is appropriate to reflect not only such relative fault, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Agreement Section 6.6(d) were to be determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the preceding sentences of this Section 11(d6.6(d). In Notwithstanding any of the foregoing, in no event shall any contribution by any Participating Holder under this Section 6.6(d), when combined with any amounts payable or paid by such Participating Holder under Section 6.6(b), exceed the amount which a Holder gross proceeds from the sale of Registrable Securities may be obligated to contribute Participating Shares pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually Shelf Registration Statement received by such Holder in the sale Participating Holder, unless such liability arises out of Registrable Securities that gives rise to or is based on fraud or willful misconduct by such obligation to contributeParticipating Holder. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 1 contract

Sources: Membership Interest Purchase Agreement (Everyday Health, Inc.)

Indemnification; Contribution. (a) The Company shall, agrees to the fullest extent permitted by law, indemnify and hold harmless each Initial Purchaser and each Holder of Registrable SecuritiesSecurities and each person, if any, who controls any Person who is or might be deemed to be a “controlling person” of the Company Initial Purchaser or any Holder of its subsidiaries Registrable Securities within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities, joint or several, to which such persons may become subject, under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Prospectus (or any amendment or supplement thereto), or the Registration Statement (or any amendment or supplement thereto) or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; and will reimburse such person for any legal or other expenses reasonably incurred by such person in connection with investigating or defending any such action or claim as such expenses are incurred; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any preliminary prospectus, Prospectus, Registration Statement or any such amendment or supplement in reliance upon and in conformity with written information furnished to the Company by or on behalf of the Initial Purchasers, such Holder of Registrable Securities (which also acknowledges the indemnity provisions herein) or any person, if any, who controls an Initial Purchaser or any such Holder of Registrable Securities expressly for use in the Registration Statement (or any amendment thereto), or any preliminary prospectus or the Prospectus (or any such amendment or supplement thereto); provided further, however, that this indemnity agreement shall not apply to any loss, claim, damage or liability (1) arising from an offer or sale of Registrable Securities occurring during a Deferral Period, if a Deferral Notice was given to such Notice Holder in accordance with Section 8(c), or (2) if the Holder fails to deliver at or prior to the written confirmation of sale, the most recent Prospectus, as amended or supplemented, and such Prospectus, as amended or supplemented, would have corrected such untrue statement or omission or alleged untrue statement or omission of a material fact and the delivery thereof was required by law. (b) In connection with any Shelf Registration in which a Holder, including, without limitation, the Initial Purchasers, of Registrable Securities is participating, in furnishing information relating to such Holder of Registrable Securities to the Company in writing expressly for use in such Registration Statement, any preliminary prospectus, the Prospectus or any amendments or supplements thereto, the Holders of such Registrable Securities agree, severally and not jointly, to indemnify and hold harmless each Initial Purchaser and each person, if any, who controls an Initial Purchaser within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholdersthe Company, and each other Personperson, if any, who acts on behalf controls the Company within the meaning of or controls any either such Holder or Controlling Person (each of the foregoingSection, a “Covered Person”) against any lossesand all loss, claimsclaim, actions, damages, liabilities damage and expenses, joint or several, to which such Covered Person may become subject under liability described in the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwiseindemnity contained in subsection (a) of this Section, insofar as such losses, claims, actions, damages, damages or liabilities (or expenses actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus Statement (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) amendment thereto), or any preliminary prospectus or the Prospectus (or any amendment or supplement to thereto), or any document incorporated by reference in arise out of or are based upon the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the same not misleading or (iii) any violation or alleged violation by reliance upon and in conformity with written information furnished to the Company by or on behalf of such Holder of Registrable Securities (which also acknowledges the indemnity provisions herein) or any person, if any, who controls any such Holder of Registrable Securities expressly for use in the Registration Statement (or any amendment thereto) or such preliminary prospectus or the Prospectus (or any amendment or supplement thereto). The Initial Purchasers agree to indemnify and hold harmless the Company, the Holders of Registrable Securities, and each person, if any, who controls the Company or any Holder of Registrable Securities within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act against any other similar federal and all loss, claim, damage and liability described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or state securities laws omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any rule amendment thereto), or regulation promulgated under such federal any preliminary prospectus or state securities laws applicable the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company and relating to any action by or inaction required on behalf of the Company Initial Purchasers expressly for use in connection with the Registration Statement (or any registration of securities. In addition, amendment thereto) or such preliminary prospectus or the Prospectus (or any amendment or supplement thereto); and will reimburse the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person the Company in connection with investigating, investigation or defending or settling any such loss, claim, action, damage action or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar claim as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveincurred. (c) Any Person entitled Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to indemnification pursuant to this Agreement shall give prompt written notice to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of any claim with respect the commencement thereof; but the omission so to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partycommencement thereof, the indemnifying party shall be entitled to participate in and shall have the righttherein and, exercisable by giving written notice to the indemnified extent that it shall wish, jointly with any other indemnifying party as promptly as practicable after receipt of written notice from such indemnified party of such claim or actionsimilarly notified, to assume, at the indemnifying party’s expense, assume the defense of any such claim or actionthereof, with counsel reasonably acceptable satisfactory to the indemnified party. Notwithstanding the previous sentence, any such indemnified party (who shall continue to be entitled to participate in the defense of such claim or actionnot, except with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party (which consent shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed), be counsel to the indemnifying party), and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation. (d) No indemnifying party shall, without the written consent of the indemnified party, effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect of which indemnification or contribution may be sought under this Section 6 (whether or not the indemnified party is an actual or potential party to such action or claim) unless such settlement, compromise or judgment (i) includes an unconditional release of the indemnified party from all liability arising out of such action or claim and (ii) does not include any statement as to, or an admission of, fault, culpability or a failure to act, by or on behalf of any indemnified party. The consent in this last sentence shall not be unreasonably withheld, conditioned or delayed and the indemnifying party agrees that the indemnified party shall in all cases be justified in withholding consent unless such settlement, compromise or judgment (i) includes an unconditional release of the indemnified party from all liability arising out of such action or claim and (ii) does not include a statement as to, or an admission of, fault, culpability or a failure to act, by or on behalf of any indemnified party. (e) If the indemnification provided for in to which an indemnified party is entitled under this Section 11 6 is held by a court of competent jurisdiction for any reason unavailable to be unavailable to, or unenforceable by, insufficient although applicable in accordance with its terms to hold harmless an indemnified party in respect of any losslosses, claimclaims, action, damage, liability damages or expense liabilities (or actions in respect thereof) referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the aggregate amount paid of such losses, claims, damages and liabilities (or payable actions in respect thereof) incurred by such indemnified party party, as a result of such lossincurred, claim, action, damage, liability or expense in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, fault of the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only or parties on the relative benefits referred to in the preceding sentence but also the relative fault one hand and of the indemnified party and on the indemnifying partyother hand in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative fault of the indemnifying party, Company on the one hand, hand and the Holders of the indemnified party, Registrable Securities or the Initial Purchasers on the other hand, hand shall be determined by reference to, among other things, whether the any such untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party Company or by the indemnified party, whether the violation Holder of the Registrable Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to Initial Purchasers and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Agreement Section 6(e) were determined by pro rata allocation or by any other method or of allocation that which does not take into account of the equitable considerations referred to above in this Section 11(d6(e). In no event The aggregate amount of losses, claims, damages, and liabilities incurred by an indemnified party and referred to above in this Section 6(e) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 6, neither the Holder of any Registrable Securities nor an Initial Purchaser, shall be required to indemnify or contribute any amount in excess of the amount by which a the total price at which the Registrable Securities sold by such Holder of Registrable Securities or by the Initial Purchaser, as the case may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal be, and distributed to the net proceeds (after deducting Selling Expenses) actually received by public were offered to the public exceeds the amount of any damages that such Holder in the sale of Registrable Securities that gives rise or the Initial Purchaser has otherwise been required to pay by reason of such obligation to contributeuntrue or alleged untrue statement or omission or alleged omission. No indemnified party person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. (e) The provisions . For purposes of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party 6(e), each person, if any, who controls an Initial Purchaser or any officer, director or controlling person Holder of such indemnified party and shall survive the Transfer of any Registrable Securities by any within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act shall have the same rights to contribution as the Initial Purchaser or such Holder, and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act shall have the same rights to contribution as the Company.

Appears in 1 contract

Sources: Registration Rights Agreement (SLM Corp)

Indemnification; Contribution. (a) The In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the Company shall, to the fullest extent permitted by lawand it hereby agrees to, indemnify and hold harmless each Holder of Registrable Securitiesharmless, any Person who is or might be deemed cause to be a “controlling person” of the Company or any of indemnified and held harmless, each Investor and its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board membersofficers, directors, officers, trustees, managers, memberspartners, employees, agents, Affiliates representatives, trustees and shareholders, and each other Personcontrolling Persons, if any, who acts on behalf of in any offering or controls any such Holder or Controlling Person (each sale of the foregoingRegistrable Shares, a “Covered Person”) against any losses, claims, actionsdamages or liabilities in respect thereof and expenses (including reasonable fees and expenses of counsel) or Actions in respect thereof (collectively, damages, liabilities and expenses, joint or several“Claims”), to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such losses, claims, actions, damages, liabilities or expenses Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statementregistration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement to thereto, or any document incorporated by reference in the sametherein, (ii) or arise out of or are based upon any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein, in light of the same circumstances in which they were made, not misleading or (iii) any violation or alleged violation by misleading, and the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under shall, and it hereby agrees to, reimburse, upon request, each such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person Investor for any legal or other out-of-pocket fees and expenses reasonably incurred and documented by such Covered Person them in connection with investigating, investigating or defending or settling any such lossClaims; provided, claim, action, damage or liability. Notwithstanding the previous sentence, that the Company shall not be so liable to any Investor (or its officers, directors, managers, partners, employees, agents, representatives, trustees and controlling Persons, if any) in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Investor Information furnished to the Company in writing by such Investor or on behalf of such Investor by any Representative of such Investor, expressly for use therein, that is the subject of the untrue statement or omission. (ib) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Investor who includes Registrable Shares in such registration statement shall, and hereby agrees, on a several basis (and not jointly or jointly and severally) to, indemnify and hold harmless the Company and its officers, directors, managers, employees, agents, representatives and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or Actions in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Registration Statementany registration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or supplement to the same or (ii) are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, butand each such Investor shall, and it hereby agrees to, on a several basis (and not jointly or jointly and severally), reimburse the Company for any legal or other out-of-pocket fees and expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in the each case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, upon and in conformity with, written information prepared and with the Required Investor Information furnished to the Company in writing by such Holder Investor or its Representative expressly for use in therein that is the subject of the untrue statement or omission; provided, however, that the liability of each such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) Investor hereunder shall be individual and several, not joint and several, for each participating Holder and shall be proportional limited to and shall not exceed an amount equal to the dollar amount of the net proceeds (after deducting Selling Expenses) actually received by such Holder in Investor from the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing Shares sold by such Holders, the only information furnished Investor pursuant to such registration statement or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveprospectus. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to The Investors and the indemnifying party of Company agree that if, for any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partyreason, the indemnifying party shall be entitled to participate in and shall have the right, exercisable indemnification provisions contemplated by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim Section 2.8(a) or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (ASection 2.8(b) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant unavailable to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented are insufficient to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the such indemnifying party or by the such indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission. If, omission however, the allocation in the first sentence of this Section 2.8(c) is not permitted by applicable Law, then each indemnifying party shall contribute to the amount paid or violationpayable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Agreement Section 2.8(c) were to be determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the preceding sentences of this Section 11(d2.8(c). In no event The amount paid or payable by an indemnified party as a result of the Claims referred to above shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal include (subject to the net proceeds (after deducting Selling Expenseslimitations set forth in Section 2.9) actually received any legal or other out-of-pocket fees or expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise to connection with investigating or defending any such obligation to contributeAction. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. Notwithstanding the foregoing, no Investor shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Investor from the sale of Registrable Shares sold by such Investor pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Investor pursuant to Section 2.8(b) (except in the case of fraud or willful misconduct by such Investor). (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 1 contract

Sources: Registration Rights Agreement (Liberty Tax, Inc.)

Indemnification; Contribution. (a) The Company shall, to the fullest extent permitted by lawand it hereby agrees to, indemnify and hold harmless each Holder of Registrable Securitiesthe Stockholder, any Person who is or might be deemed to be a “the Stockholder’s Subsidiaries and their controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other PersonPersons, if any, who acts on behalf of in any offering or controls any such Holder or Controlling Person (each sale of the foregoingRegistrable Securities, a “Covered Person”) including pursuant to Section 5.1, Section 5.2 or Section 5.4, against any losses, claims, actionsdamages or liabilities, damagesactions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable actual out-of- pocket fees of counsel) (collectively, liabilities and expenses, joint or several, “Claims”) to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such lossesClaims (including any amounts paid in settlement effected with the consent of the Company as provided herein), claimsor actions or proceedings in respect thereof, actions, damages, liabilities or expenses arise out of of, relate to, are in connection with, or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statementregistration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement to thereto, or any document incorporated by reference therein, or arise out of, relate to, are in the sameconnection with, (ii) or are based upon any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein, in light of the same circumstances in which they were made, not misleading or (iii) any violation or alleged violation by misleading, and the Company of shall, and it hereby agrees to, reimburse periodically the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company Stockholder and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person its Subsidiaries for any actual and documented out-of-pocket legal or other actual and documented out-of-pocket expenses reasonably incurred by such Covered Person them in connection with investigating, investigating or defending or settling any such lossClaims; provided, claimhowever, action, damage or liability. Notwithstanding the previous sentence, that the Company shall not be so liable to any such Person in any such case to the extent that any losssuch Claims arise out of, claimrelate to, actionare in connection with, damage, liability or expense arises out of or is are based upon any such an untrue statement or alleged untrue statement, statement or omission or alleged omissionomission made in such registration statement, made or incorporated by reference in any such Registration Statementpreliminary or final prospectus, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same thereto, in reliance upon, and in conformity with, written upon information prepared and furnished to the Company by such Covered Person the Stockholder, any of its Subsidiaries, any underwriter or any Representative of the Stockholder, expressly for use in such Registration Statementtherein, Prospectusor by the Stockholder’s failure to furnish the Company, preliminary Prospectus upon request, with the information with respect to the Stockholder or free writing prospectus. This indemnity shall be in addition to its Subsidiaries, or any liability underwriter or Representative of the Company may otherwise haveStockholder, or the Stockholder’s or its Subsidiary’s intended method of distribution, that is the subject of the untrue statement or omission. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder The Stockholder shall, to the fullest extent permitted by lawand hereby agrees to, (i) indemnify and hold harmless the Company, its directors and directors, officers, employeesemployees and controlling Persons, agents if any, and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any Person who is offering or might be deemed to be a Controlling Person sale of Registrable Securities against any losses, claims, actions, damages, liabilities and expenses, joint or several, Claims to which they or any of them each such indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such lossesClaims (including any amounts paid in settlement as provided herein), claimsor actions or proceedings in respect thereof, actions, damages, liabilities or expenses arise out of of, relate to, are in connection with, or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in the Registration Statementany registration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment of or supplement to the same thereto, or (ii) any document incorporated by reference therein, or arise out of, relate to, are in connection with, or are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, but, in the each case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by such Holder the Stockholder expressly for use in such Registration Statementtherein, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall and (ii) reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person Company for any actual and documented out-of-pocket legal or other out-of-pocket expenses reasonably incurred by them the Company in connection with investigating, investigating or defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveClaim. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to The Stockholder and the indemnifying party of Company agree that if, for any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partyreason, the indemnifying party shall be entitled to participate in and shall have the right, exercisable indemnification provisions contemplated by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim Section 5.9(a) or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (ASection 5.9(b) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant unavailable to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented are insufficient to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the such indemnifying party or by the such indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission. If, omission however, the allocation in the first sentence of this Section 5.9(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or violationpayable by such indemnified party in such proportion as is appropriate to reflect not only such relative fault, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Agreement Section 5.9(c) were to be determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the preceding sentences of this Section 11(d5.9(c). In no event The amount paid or payable by an indemnified party as a result of the Claims referred to above shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal include (subject to the net proceeds (after deducting Selling Expenseslimitations set forth in Section 5.10) actually received any actual and documented out-of-pocket legal or other out- of-pocket fees or expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise to connection with investigating or defending any such obligation to contributeaction, proceeding or claim. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 1 contract

Sources: Stockholder Agreement

Indemnification; Contribution. (a) The Company shall, to the fullest extent permitted by law, will indemnify and hold harmless each Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, holder and each other Personaffiliate thereof of Common Stock registered pursuant to this Agreement with the Commission, if any, who acts on behalf of or controls under any such Holder Blue Sky Law or Controlling Person (each of the foregoing, a “Covered Person”) regulation against any losses, claims, actions, damages, liabilities and expensesor liabilities, joint or several, to which such Covered Person holder may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, or liabilities (or expenses actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statementpreliminary prospectus, Prospectusregistration statement, preliminary Prospectusprospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to thereto, or any document incorporated by reference in arise out of or are based upon the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company misleading, and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall will reimburse each Covered Person such holder and affiliate for any legal or other expenses reasonably incurred by such Covered Person holder in connection with investigating, investigating or defending or settling any such lossaction or claim regardless of the negligence of any such holder or affiliate; provided, claimhowever, action, damage or liability. Notwithstanding the previous sentence, that the Company shall not be so liable in any such case to the extent that any such loss, claim, action, damage, or liability or expense arises out of or is based upon any such an untrue statement or alleged untrue statement, statement or omission or alleged omission, omission made or incorporated by reference in any such Registration Statementpreliminary prospectus, Prospectusregistration statement or prospectus, preliminary Prospectus, free writing prospectus or any such amendment or supplement to or any document incorporated by reference in the same thereto, in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by any such Covered Person holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise havetherein. (b) In connection with any registration in which a Holder Each holder of Registrable Securities is participating, each such Holder shall furnish Common Stock registered pursuant to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, this Agreement will indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person Company against any losses, claims, actions, damages, or liabilities and expenses, joint or several, to which they or any of them the Company may become subject subject, under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, or liabilities (or expenses actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in the Registration Statementany preliminary prospectus, Prospectusregistration statement or prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement thereto, or arise out of or supplement to are based upon the same or (ii) any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, butin each case to the extent, in the case of each of clauses (i) and (ii), but only to the extent extent, that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statementany preliminary prospectus, Prospectusregistration statement or prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same thereto, in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by such Holder holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise havetherein. (c) Any Person entitled Promptly after receipt by an indemnified party under Sections 8(a) or (b) above of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to indemnification pursuant to this Agreement shall give prompt written notice to be made against the indemnifying party under either such subsection, notify the indemnifying party in writing of any claim with respect the commencement thereof; but the omission so to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve it from any liability that it may otherwise have to any indemnified party. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, commencement thereof the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, assume the defense of any such claim or action, with counsel reasonably acceptable thereof by notice in writing to the indemnified party. Notwithstanding After notice from the previous sentence, any indemnifying party to such indemnified party shall continue of its election to be entitled to participate in assume the defense of such claim or actionthereof, with counsel of its own choice, but the indemnifying party shall not be obligated liable to reimburse the such indemnified party under either of such subsections for any feeslegal expenses of other counsel or any other expense, costs and expenses in each case subsequently incurred by the such indemnified party party, in connection with such the defense unless (A) thereof other than reasonable costs of investigation incurred prior to the assumption by the indemnifying party has agreed party, unless such expenses have been specifically authorized in writing to pay such feesby the indemnifying party, costs and expenses, (B) the indemnifying party has failed to assume the defense and employ counsel, or the named parties to any such action include both the indemnified party and the indemnifying party, as appropriate, and such indemnified party has been advised by counsel that the representation of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, indemnified party and the indemnifying party fails by the same counsel would be inappropriate due to employ actual or potential differing interests between them, in each of which cases the fees of counsel reasonably acceptable to for the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen will be paid by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 8 is held by a court of competent jurisdiction unavailable or insufficient to be unavailable to, or unenforceable by, hold harmless an indemnified party under Section 8(a) or 8(b) in respect of any losslosses, claimclaims, actiondamages, damage, liability or expense liabilities (or action in respect thereof) referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability or expense liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company and the indemnifying partyholder or holders from this Agreement and from the offering of the shares of Common Stock. If If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, the then each indemnifying party shall contribute to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only the such relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party Company and the indemnifying partyholders in connection with the statement or omissions that resulted in such losses, claims, damages, or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to holder and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties Company and the holders agree that it would not be just and equitable if contribution pursuant to this Agreement Section 8(d) were determined by pro rata allocation (even if the holders were treated as one entity for such purpose) or by any other method or of allocation that does not take into account the equitable considerations referred to above in this subsection (e). Except as provided in Section 8(c), the amount paid or payable by an indemnified party as a result of the losses, claims, damages, or liabilities (or actions in respect thereof) referred to above in this Section 11(d). In no event 8(d) shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received include any legal or other expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise to connection with investigation or defending any such obligation to contributeaction or claim. No indemnified party person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. (e) The provisions of . Notwithstanding any provision in this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.Section

Appears in 1 contract

Sources: Warrant Agreement (Lorecom Technologies Inc)

Indemnification; Contribution. (a) The Incident to any registration statement referred to in this Article V, the Company shall, to the fullest extent permitted by law, will indemnify and hold harmless each Holder underwriter and each Mezzanine Investor who offers or sells any such Registrable Interests in connection with such registration statement (including their respective partners (including partners of Registrable Securitiespartners and stockholders and members of any such partners), any Person who is or might be deemed to be a “controlling person” and directors, officers, managers, members, employees and agents of the Company or any of its subsidiaries them (a "SELLING HOLDER"), and each person who controls any of them within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”"CONTROLLING PERSON"), their respective direct from and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any and all losses, claims, actions, damages, liabilities expenses and expensesliabilities, joint or severalseveral (including any investigation, reasonable legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted), as the same are incurred to which such Covered Person they, or any of them, may become subject under the Securities Act, the Exchange Act, any or other federal or state blue sky securities lawsstatutory law or regulation, any equivalent non-U.S. securities laws at common law or otherwise, insofar as such losses, claims, actions, damages, damages or liabilities or expenses arise out of or are based upon on (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement (including any related preliminary or incorporated by reference in any Registration Statementdefinitive prospectus, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to such registration statement or any document incorporated by reference in the sameprospectus), (ii) any omission or alleged omission of to state in such document a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus it or necessary to make the statements made in the same it not misleading misleading, or (iii) any violation or alleged violation by the Company of the Securities Act or Act, any other similar federal or state securities or "blue sky" laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company thereunder in connection with any registration of securities. In additionsuch registration; provided, however, that the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any will not be liable to the extent that such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, expense or liability or expense arises out of or from and is based upon any such on an untrue statement or alleged untrue statement, or omission or alleged omission, untrue statement or omission made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, on and in conformity with, written with information prepared and furnished in writing to the Company by such Covered Selling Holder or Controlling Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus registration statement or free writing prospectus. This indemnity shall be in addition is due to the failure of such Selling Holder or Controlling Person to deliver a copy of the prospectus or any liability supplements thereto a reasonable period of time after the Company may otherwise have. has furnished such Selling Holder or Controlling Person with a sufficient number of copies of the same or by the delivery of prospectuses by such Selling Holder or Controlling Person after the Company notified such Selling Holder or Controlling Person in writing to discontinue delivery of prospectuses. With respect (bi) In connection with any registration to such untrue statement or omission or alleged untrue statement or omission in which a Holder of Registrable Securities is participating, each such Holder shall furnish the information furnished in writing to the Company in writing by such information as the Company reasonably requests Selling Holder or Controlling Person expressly for use in connection with any such Registration Statement registration statement or Prospectus. Each Holder shall, (ii) to the fullest extent permitted by lawfailure of any Selling Holder of Controlling Person to refrain from delivering any prospectus or supplements thereto a reasonable period of time following notice from the Company to discontinue delivery such prospectus or supplements, such Selling Holder will indemnify and hold harmless each underwriter, the CompanyCompany (including its directors, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Persons), and each other Selling Holder (including its partners (including partners of partners and stockholders of such partners) and directors, officers, employees, agents and Controlling Person of any of them), from and against any and all losses, claims, actions, damages, liabilities expenses and expensesliabilities, joint or several, to which they they, or any of them them, may become subject under the Securities Act, the Exchange Act, any or other federal or state blue sky securities lawsstatutory law or regulation, any equivalent non-U.S. securities laws at common law or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement otherwise to the same or (ii) any omission or alleged omission extent provided in the immediately preceding sentence. In no event, however, shall the liability of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus Selling Holder or free writing prospectus or necessary to make the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to indemnification under this Section 11(b5.6(a) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not in its capacity as such exceed an amount equal to the net proceeds (after before deducting Selling Expensesexpenses) actually received by such Selling Holder in the from its sale of Registrable Securities to which Interests under such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveregistration statement. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (db) If the indemnification provided for in this Section 11 5.6(a) above for any reason is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, to an indemnified party Indemnified Party in respect of any losslosses, claimclaims, actiondamages, damage, liability expenses or expense liabilities referred to in therein, then each Indemnifying Party under this Section 11, then the applicable indemnifying party5.6, in lieu of indemnifying such indemnified party under this Agreementthereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability expenses or expense liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company, the other Selling Holders and the indemnifying party. If underwriters, if any, from the offering of the Registrable Interests or (ii) if the allocation provided by the preceding sentence clause (i) above is not permitted by applicable lawApplicable Law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence clause (i) above but also the relative fault of the indemnified party Company, the other Selling Holders and the indemnifying partyunderwriters, if any, in connection with the statements or omissions which resulted in such losses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company, the Selling Holders and the underwriters, if any, shall be deemed to be in the same respective proportions that the net proceeds from the offering (before deducting expenses) received by the Company and the Selling Holders and the underwriting discount received by the underwriters, if any, in each case as set forth in the table on the cover page of the applicable prospectus, bear to the aggregate public offering price of the Registrable Interests. The relative fault of the indemnifying partyCompany, on the one handSelling Holders and the underwriters, and of the indemnified party, on the other handif any, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party Selling Holders or the indemnified party. The relative fault shall also be determined by reference to underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties Company and the Selling Holders agree that it would not be just and equitable if contribution pursuant to this Agreement Section 5.6(b) were determined by pro rata or per capita allocation or by any other method or of allocation that which does not take into account of the equitable considerations referred to in this Section 11(d)the immediately preceding paragraph. In no event event, however, shall the amount which a Selling Holder of Registrable Securities may be obligated required to contribute pursuant to any amount under this Section 11(d5.6(b) exceed an amount equal to in excess of the net proceeds (after before deducting Selling Expensesexpenses) actually received by such Selling Holder in the from its sale of Registrable Securities that gives rise to Interests under such obligation to contributeregistration statement. No indemnified party person found guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not found guilty of such fraudulent misrepresentation. (ec) As promptly as is reasonably practicable after receipt by a party seeking indemnification pursuant to this Section 5.6 (an "INDEMNIFIED PARTY") of written notice of any investigation, claim, proceeding or other action in respect of which indemnification is being sought (each, a "CLAIM"), the Indemnified Party promptly shall notify the party against whom indemnification pursuant to this Section 5.6 is being sought (the "INDEMNIFYING PARTY") of the commencement thereof; but the omission to so notify the Indemnifying Party shall not relieve it from any liability hereunder, except to the extent that the Indemnifying Party is materially prejudiced by reason of such failure. In connection with any Claim, the Indemnifying Party shall be entitled to assume the defense thereof. Notwithstanding the assumption of the defense of any Claim by the Indemnifying Party, the Indemnified Party shall have the right to employ separate legal counsel and to participate in the defense of such Claim, and the Indemnifying Party shall bear the reasonable fees, out-of-pocket costs and expenses of such separate legal counsel to the Indemnified Party if (and only if): (x) the Indemnifying Party shall have agreed to pay such fees, costs and expenses, (y) the Indemnified Party shall reasonably have concluded that representation by the same legal counsel would not be appropriate due to (i) actual or potentially differing interests between such parties in the conduct of the defense of such Claim, or (ii) legal defenses that may be available to the Indemnified Party that are in addition to or disparate from those available to the Indemnifying Party, or (z) the Indemnifying Party shall have failed to employ legal counsel reasonably satisfactory to the Indemnified Party and take action to defend such claim within 30 days after notice of the commencement of such Claim or the Indemnifying Party shall, in the reasonable judgment of the Indemnified Party, have ceased to conduct a diligent defense of such claim. If the Indemnified Party employs separate legal counsel in circumstances other than as described in clauses (x), (y) or (z) above, the fees, costs and expenses of such legal counsel shall be borne exclusively by the Indemnified Party. Except as provided above, the Indemnifying Party shall not, in connection with any Claim in the same jurisdiction, be liable for the fees and expenses of more than one firm of counsel for the Indemnified Party (together with appropriate local counsel). No Indemnifying Party shall, without the prior written consent of the Indemnified Party, settle or compromise any Claim or consent to the entry of any judgment with respect thereto, unless such settlement, compromise or consent (i) includes an unconditional release of each Indemnifying Party from all liabilities with respect to such Claim or judgment and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any Indemnified Party. (d) The provisions of indemnification and contribution provided for in this Section 11 shall 5.6 will remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party the Indemnified Parties or any officer, director director, employee, agent or controlling person Controlling Person of such indemnified party and shall survive the Transfer of any Registrable Securities by any HolderIndemnified Parties.

Appears in 1 contract

Sources: Investor Rights Agreement (Bh Re LLC)

Indemnification; Contribution. (a) The Company shall, to the fullest extent permitted by lawand hereby agrees to, indemnify and hold harmless each Participating Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of and its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates employees and shareholders, and each other Personcontrolling Persons, if any, who acts on behalf of in any offering or controls any such Holder or Controlling Person (each sale of the foregoingParticipating Shares pursuant to a registration statement hereunder, a “Covered Person”) against any losses, claims, actionsdamages (including reasonable attorney’s fees) or liabilities, damagesactions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable fees of counsel) (collectively, liabilities and expenses, joint or several, “Claims”) to which each such Covered Person indemnified party may become subject under (and the Company will pay to each such Participating Holder or other aforementioned person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any Claim as such expenses are incurred), insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon (i) an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, (ii) any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in each case in light of the circumstances in which they were made, not misleading or (iii) any violation by the indemnifying party (or any of its agents or Affiliates, but excluding any Holder) of the Securities Act, the Exchange Act, any state blue sky securities lawslaw, or any equivalent nonrule or regulation promulgated under the Securities Act, the Exchange Act or any state securities law; provided that the Company shall not be liable to any such Participating Holder in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with written information furnished to the Company by any Holder for use therein, or by any Holder’s failure to furnish the Company, upon request, with the information with respect to such Holder, or such Holder’s intended method of distribution, that is the subject of the untrue statement or omission, or if any Holder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable prospectus (excluding any documents incorporated by reference therein) or of the applicable prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Company had previously furnished copies thereof to the Participating Holders, and such prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement. (b) Each Holder, severally and not jointly, shall, and hereby agrees to, indemnify and hold harmless the Company, its directors, officers, employees and controlling Persons, if any, in any offering or sale of Participating Shares pursuant to a registration statement hereunder, or any other sale by a Holder of Company Common Stock issued as Earn-U.S. securities laws or otherwiseOut Consideration, against any Claims to which each such indemnified party may become subject, insofar as such lossesClaims (including any amounts paid in settlement as provided herein), claimsor actions or proceedings in respect thereof, actions, damages, liabilities or expenses arise out of or are based upon (i) any (A) an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statementregistration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement to thereto, or any document incorporated by reference in the sametherein, or (iiB) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same therein not misleading, but, in the each case of each of clauses (iA) and (ii), B) only to the extent that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by such Holder with respect to such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus therein or free writing prospectus. In addition, such Holder shall reimburse (ii) any violation or alleged violation by the Company, indemnifying party (or any of its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(bAffiliates) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such HoldersAct, the only information furnished Exchange Act, any state securities law, or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law rule or regulation to be disclosed in promulgated under the Securities Act, the Exchange Act or any such document. This indemnity shall be in addition to any liability which such Holder may otherwise havestate securities law. (c) Any Person entitled to indemnification of a Claim pursuant to this Section 3.05 shall be determined in accordance with the procedures and restrictions of Article V of the Purchase Agreement as a claim under Section 5.1(b) or 5.2(b) of the Purchase Agreement, as applicable. Any payments made to an indemnified party in respect of Claims pursuant to this Section 3.05 shall give prompt written notice be treated as an adjustment to the indemnifying party Total Consideration for Tax purposes in accordance with Section 5.7 of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except Purchase Agreement to the extent that the indemnifying party is actually and materially prejudiced permitted by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed)Law. (d) If The Participating Holders and the Company agree that if, for any reason, the indemnification provided for in this provisions contemplated by Section 11 is held by a court of competent jurisdiction 3.05(a) or Section 3.05(b) hereof are unavailable to be unavailable to, or unenforceable by, are insufficient to hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the such indemnifying party or by the such indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission. If, omission however, the allocation in the first sentence of this Section 3.05(d) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or violationpayable by such indemnified party in such proportion as is appropriate to reflect not only such relative fault, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Agreement Section 3.05(d) were to be determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the preceding sentences of this Section 11(d3.05(d). In no event shall the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 1 contract

Sources: Earn Out Agreement (Sonus Networks Inc)

Indemnification; Contribution. (a) The Incident to any registration of any Registrable Securities under the Securities Act pursuant to this Agreement, the Company shall, to the fullest extent permitted by law, will indemnify and hold harmless each Holder who offers or sells any such Registrable Securities in connection with such registration statement (including its partners (including partners of Registrable Securitiespartners and stockholders of any such partners), any Person who is or might be deemed to be a “controlling person” and directors, officers, employees, representatives and agents of the Company or any of its subsidiaries them, and each person who controls any of them within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”Act), their respective direct from and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any and all losses, claims, actions, damages, liabilities reasonable expenses and expensesliabilities, joint or severalseveral (including any reasonable investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, as the same are incurred), to which such Covered Person they, or any of them, may become subject under the Securities Act, the Exchange ActAct or other federal or state statutory law or regulation, any state blue sky securities laws, any equivalent non-U.S. securities laws at common law or otherwise, insofar as such losses, claims, actions, damages, damages or liabilities or expenses arise out of or are based upon on (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement (including any related preliminary or incorporated by reference in any Registration Statementdefinitive prospectus, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to such registration statement or any document incorporated by reference in the same, prospectus) or (ii) any omission or alleged omission of to state in such document a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus it or necessary to make the statements in it not misleading; provided, however, that the Company will not be liable to the extent that (1) such loss, claim, damage, expense or liability arises from and is based on an untrue statement or omission or alleged untrue statement or omission made in the same not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable reliance on and in conformity with information furnished in writing to the Company by or on behalf of such Holder in accordance with Section 4(b) of this Agreement for use in such registration statement, or (2) in the case of a sale directly by such Holder (including a sale of Registrable Securities through any underwriter retained by such Holder to engage in a distribution solely on behalf of such Holder), such untrue statement or alleged untrue statement or omission or alleged omission was contained in a preliminary prospectus and relating corrected in a final or amended prospectus, and such Holder failed to any action or inaction required deliver a copy of the Company in connection with any registration final or amended prospectus at or prior to the confirmation of securities. In addition, the Company shall reimburse each Covered sale of the Registrable Securities to the Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling asserting any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable liability in any case where such case delivery is required by the Securities Act or any state securities laws. With respect to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made untrue statement or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference omission in the same information furnished in reliance upon, and in conformity with, written information prepared and furnished writing to the Company by or on behalf of such Covered Person expressly Holder in accordance with Section 4(b) of this Agreement for use in such Registration Statementregistration statement, Prospectussuch Holder, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which on a Holder of Registrable Securities is participatingseveral and not joint basis, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, will indemnify and hold harmless the CompanyCompany (including its directors, its directors and officers, employees, representatives and agents), each other Holder (including its partners (including partners of partners and stockholders of such partners) and directors, officers, employees, representatives and agents of any of them, and each person who controls any Person who is of them " = "1" "" "" within the meaning of Section 15 of the Securities Act or might be deemed to be a Controlling Person Section 20 of the Exchange Act), from and against any and all losses, claims, actions, damages, liabilities reasonable expenses and expensesliabilities, joint or severalseveral (including any reasonable investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, as the same are incurred), to which they they, or any of them them, may become subject under the Securities Act, the Exchange ActAct or other federal or state statutory law or regulation, any state blue sky securities laws, any equivalent non-U.S. securities laws at common law or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (db) If the indemnification provided for in this Section 11 5(a) above for any reason is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, to an indemnified party in respect of any losslosses, claimclaims, actiondamages, damage, liability expenses or expense liabilities referred to in therein, then each indemnifying party under this Section 11, then the applicable indemnifying party5, in lieu of indemnifying such indemnified party under this Agreementthereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability expenses or expense liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company and the indemnifying party. If other Holders from the offering of the Registrable Securities or (ii) if the allocation provided by the preceding sentence clause (i) above is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence clause (i) above but also the relative fault of the indemnified party Company and the indemnifying partyother Holders in connection with the statements or omissions which resulted in such losses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company and the Holders shall be deemed to be in the same respective proportions that the net proceeds from the offering received by the Company and the Holders, in each case as set forth in the table on the cover page of the applicable prospectus, bear to the aggregate public offering price of the Registrable Securities. The relative fault of the indemnifying party, on Company and the one hand, and of the indemnified party, on the other hand, Holders shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required on behalf of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to Holders and the partiesParties’ relative intent, knowledge, knowledge and access to information and opportunity to correct or prevent such statement, omission or violationinformation. The parties Company and the Holders agree that it would not be just and equitable if contribution pursuant to this Agreement Section 5(b) were determined by pro rata or per capita allocation or by any other method or of allocation that which does not take into account of the equitable considerations referred to in this Section 11(d). In no event shall the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contributeimmediately preceding paragraph. No indemnified party person found guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not found guilty of such fraudulent misrepresentation. (ec) The provisions amount paid by an indemnifying party or payable to an indemnified party as a result of the losses, claims, damages and liabilities referred to in this Section 11 5 shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim, payable as the same are incurred. The indemnification and contribution provided for in this Section 5 will remain in full force and effect regardless of any investigation made by or on behalf of any the indemnified party parties or any officer, director director, employee, agent or controlling person of the indemnified parties. No indemnifying party, in the defense of any such claim or litigation, shall enter into a consent of entry of any judgment or enter into a settlement without the consent of the indemnified party, which consent will not be unreasonably withheld. Any indemnified party and shall survive that proposes to assert the Transfer of any Registrable Securities by any Holder.right to be indemnified under this " = "1" "" ""

Appears in 1 contract

Sources: Registration Rights Agreement (Aptevo Therapeutics Inc.)

Indemnification; Contribution. (a) The Company shall, agrees to the fullest extent permitted by law, indemnify and hold harmless (i) each Holder of Registrable Securitiescovered by any Registration Statement, any (ii) each other Person who is participates as an underwriter in the offering or might be deemed to be a “controlling person” sale of the Company or any of its subsidiaries such securities, (iii) each Person, if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls Act) any such Holder or Controlling underwriter (any of the Persons referred to in this clause (iii) being hereinafter referred to as a "controlling Person"), and (iv) the respective officers, directors, partners, employees, representatives and agents of any such Holder or underwriter or any controlling Person (each of any Person referred to in clause (i), (ii), (iii) or (iv) may hereinafter be referred to as an "indemnified Person"), to the foregoingfullest extent lawful, a “Covered Person”) from and against any and all losses, claims, actions, damages, liabilities and liabilities, judgments or expenses, joint or severalseveral (or actions or proceedings, whether commenced or threatened, in respect thereof) (collectively, "Claims"), to which such Covered indemnified Person may become subject under either Section 15 of the Securities Act, Act or Section 20 of the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon (i) upon, or are caused by any untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus Statement or Prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to thereto), or any document incorporated by reference in the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading misleading, or (iii) any violation or alleged a violation by the Company of the Securities Act or any other similar federal or state securities laws law, or any rule or regulation promulgated under such federal the Securities Act or any state securities laws law, or any other law applicable to the Company and relating to any action such registration or inaction required of the Company in connection with any registration of securities. In additionqualification, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, except insofar as such losses, claims, actions, damages, liabilities liabilities, judgments or expenses arise out of any such indemnified Person; (x) are caused by any such untrue statement or are based upon (i) any untrue omission or alleged untrue statement or omission that is based upon information relating to such indemnified Person furnished in writing to the Company by or on behalf of a material fact contained in any of such indemnified Person expressly for use therein; (y) with respect to the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under result from the fact that such Holder sold Securities Act to a Person to whom there was not sent or any successor rule to Rule 405) given, at or any amendment of or supplement prior to the same or (ii) any omission or alleged omission written confirmation of such sale, a material fact required to be stated in such Registration Statement, copy of the Prospectus, preliminary Prospectus as amended or free writing prospectus supplemented, if the Company shall have previously furnished copies thereof to such Holder in accordance with this Agreement and said Prospectus, as amended or necessary to make the statements made in the same not misleadingsupplemented, but, in the case of each of clauses (i) and (ii), only to the extent that would have corrected such untrue statement or alleged untrue statementomission; or (z) as a result of the use by an indemnified Person of any Prospectus when, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to upon receipt of a notice from the Company of the existence of any fact of the kind described in Section 2.4(b)(iv), the indemnified Person or the related Holder was not permitted to do so. Such indemnity shall remain in full force and effect regardless of any investigation made by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and on behalf of any indemnified Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to survive the net proceeds (after deducting Selling Expenses) actually received transfer of such securities by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders In case any action shall be brought or asserted against any of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim indemnified Persons with respect to which it seeks indemnification. Notwithstanding indemnity may be sought against the previous sentenceCompany, any failure or delay to so such indemnified Person shall promptly notify the indemnifying party Company and the Company shall not relieve assume the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delaydefense thereof. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an Such indemnified party, the indemnifying party shall be entitled to participate in and Person shall have the right, exercisable by giving written notice right to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of employ separate counsel in any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled action and to participate in the defense of such claim or action, with counsel of its own choicethereof, but the indemnifying party fees and expenses of such counsel shall not be obligated to reimburse at the expense of the indemnified party for any fees, costs and expenses subsequently incurred Person unless (i) the employment of such counsel shall have been specifically authorized in writing by the indemnified party in connection with such defense unless Company, (Aii) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has Company shall have failed to assume the defense of and employ counsel, or (iii) the named parties to any such claim or action within a reasonable time after receipt of notice of such claim or action, (Cincluding any implied parties) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to include both the indemnified party or to pursue Person and the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent Company and the indemnified party would present such Person shall have been advised in writing by its counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject Company (in which case the Company shall not have the right to assume the foregoing sentencedefense of such action on behalf of the indemnified Person), no indemnifying party shallit being understood, however, that the Company shall not, in connection with any one claim or such action or separate but substantially similar or related actions in the same jurisdiction or proceedings arising out of the same general circumstances allegations or allegationscircumstances, be liable for the fees, costs reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for all the indemnified partiesPersons, which firm shall be (x) designated by such indemnified Persons; and (y) reasonably satisfactory to the Company. The indemnifying party Company shall not have be liable for any settlement of any such action or proceeding effected without the right Company's prior written consent, which consent shall not be withheld unreasonably, and the Company agrees to settle a claim or action for which indemnify and hold harmless any indemnified party is entitled to indemnification pursuant to this Agreement without Person from and against any loss, claim, damage, liability, judgment or expense by reason of any settlement of any action effected with the written consent of the Company. The Company shall not, without the prior written consent of each indemnified partyPerson, The indemnifying party shall not settle or compromise or consent to the entry of judgment on or otherwise seek to terminate any judgment pending or enter into threatened action, claim, litigation or agree proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not any indemnified Person is a party thereto), unless such settlement, compromise, consent or termination includes an unconditional release of each indemnified Person from all liability arising out of such action, claim litigation or proceeding. (b) Each Holder of Restricted Securities covered by any Registration Statement agrees, severally and not jointly, to indemnify and hold harmless the Company and its directors, officers and any settlement Person controlling (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Company, and the respective officers, directors, partners, employees, representatives and agents of each such Person, to the same extent as the foregoing indemnity from the Company to each of the indemnified Persons, but only (i) with respect to actions based on information relating to such claim Holder furnished in writing by or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term behalf of such judgment Holder expressly for use in any Registration Statement or settlement Prospectus, and (ii) to the giving extent of the gross proceeds, if any, received by such Holder from the claimant sale or plaintiff in other disposition of his or its Restricted Securities covered by such judgment Registration Statement. In case any action or settlement to proceeding shall be brought against the Company or its directors or officers or any such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability controlling Person in respect of which indemnity may be sought against a Holder of Restricted Securities covered by any Registration Statement, such claim or action. The indemnifying party Holder shall have the rights and duties given the Company in Section 2.8(a) (except that the Holder may but shall not be liable under this Agreement for any amount paid required to assume the defense thereof), and the Company or payable its directors or incurred pursuant officers or such controlling Person shall have the rights and duties given to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayedeach Holder by Section 2.8(a). (dc) If the indemnification provided for in this Section 11 2.8 is held by a court of competent jurisdiction unavailable to be unavailable to, or unenforceable by, an indemnified party under Section 2.8(a) or (b) (other than by reason of exceptions provided in those Sections) in respect of any losslosses, claimclaims, actiondamages, damageliabilities, liability judgments or expense expenses referred to in this Section 11therein, then the each applicable indemnifying partyparty (in the case of the Holders severally and not jointly), in lieu of indemnifying such indemnified party under this Agreementparty, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damageliabilities, liability judgments or expense expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company on the one hand and the indemnifying party. If Holder on the other hand from sale of Restricted Securities, or (ii) if such allocation provided by the preceding sentence clause (i) above is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence clause (i) above but also the relative fault of the indemnified party Company and such Holder in connection with the indemnifying partystatements or omissions which resulted in such losses, claims, damages, liabilities, judgments or expenses, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, Company on the one hand, hand and of the indemnified party, such Holder on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party Company or by such Holder and the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ parties relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties amount paid to a party as a result of the losses, claims, damages, liabilities judgments and expenses referred to above shall be deemed to include, subject to the limitations set forth in the second paragraph of Section 2.8(a), any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any action or claim. The Company and each Holder of Restricted Securities covered by any Registration Statement agree that it would not be just and equitable if contribution pursuant to this Agreement Section 2.8(c) were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method or of allocation that which does not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 11(d2.8(c). In , no event Holder (and none of its related indemnified Persons) shall be required to contribute, in the aggregate, any amount in excess of the amount by which a Holder the dollar amount of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in upon the sale of Registrable the Restricted Securities that gives rise exceeds the amount of any damages which such Holder has otherwise been required to pay by reason of such obligation to contributeuntrue statement or omission or alleged omission. No indemnified party Person guilty or liable of fraudulent misrepresentation misrepresentations (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) . The indemnity and contribution provisions of contained in this Section 11 shall remain 2.8 are in full force and effect regardless of addition to any investigation made by or on behalf of any liability which the indemnifying Person may otherwise have to the indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any HolderPersons referred to above.

Appears in 1 contract

Sources: Registration Rights Agreement (Senesco Technologies Inc)

Indemnification; Contribution. (a) The Company shall, agrees to the fullest extent permitted by law, indemnify and hold harmless (i) each Holder of Registrable Securitiescovered by any Registration Statement, any (ii) each other Person who is participates as an underwriter in the offering or might be deemed to be a “controlling sale of such securities, (iii) each person” of the Company or any of its subsidiaries , if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls Act) any such Holder or Controlling Person underwriter (each any of the foregoingpersons referred to in this clause (iii) being hereinafter referred to as a "controlling person") and (iv) the respective officers, a “Covered directors, partners, employees, representatives and agents of any such Holder or underwriter or any controlling person (any person referred to in clause (i), (ii), (iii) or (iv) may hereinafter be referred to as an "indemnified Person”) "), to the fullest extent lawful, from and against any and all losses, claims, actions, damages, liabilities and liabilities, judgments or expenses, joint or severalseveral (or actions or proceedings, whether commenced or threatened, in respect thereof) (collectively, "Claims"), to which such Covered indemnified Person may become subject under either Section 15 of the Securities Act, Act or Section 20 of the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon (i) upon, or are caused by any untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus Statement or Prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to thereto), or any document incorporated by reference in the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading misleading, or (iii) any violation or alleged a violation by the Company of the Securities Act or any other similar federal or state securities laws law, or any rule or regulation promulgated under such federal the Securities Act or any state securities laws law, or any other law applicable to the Company and relating to any action such registration or inaction required of the Company in connection with any registration of securities. In additionqualification, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, except insofar as such losses, claims, actions, damages, liabilities liabilities, judgments or expenses arise out of any such indemnified Person; (x) are caused by any such untrue statement or are based upon (i) any untrue omission or alleged untrue statement or omission that is based upon information relating to such indemnified Person furnished in writing to the Company by or on behalf of a material fact contained in any of such indemnified Person expressly for use therein; (y) with respect to the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under result from the fact that such Holder sold Securities Act to a person to whom there was not sent or any successor rule to Rule 405) given, at or any amendment of or supplement prior to the same or (ii) any omission or alleged omission written confirmation of such sale, a material fact required to be stated in such Registration Statement, copy of the Prospectus, preliminary Prospectus as amended or free writing prospectus supplemented, if the Company shall have previously furnished copies thereof to such Holder in accordance with this Agreement and said Prospectus, as amended or necessary to make the statements made in the same not misleadingsupplemented, but, in the case of each of clauses (i) and (ii), only to the extent that would have corrected such untrue statement or alleged untrue statementomission; or (z) as a result of the use by an indemnified Person of any Prospectus when, upon receipt of a Blackout Notice or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to a notice from the Company of the existence of any fact of the kind described in Section 2.4(b)(iv), the indemnified Person or the related Holder was not permitted to do so. Such indemnity shall remain in full force and effect regardless of any investigation made by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and on behalf of any indemnified Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to survive the net proceeds (after deducting Selling Expenses) actually received transfer of such securities by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders In case any action shall be brought or asserted against any of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim indemnified Persons with respect to which it seeks indemnification. Notwithstanding indemnity may be sought against the previous sentenceCompany, any failure or delay to so such indemnified Person shall promptly notify the indemnifying party Company and the Company shall not relieve assume the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delaydefense thereof. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an Such indemnified party, the indemnifying party shall be entitled to participate in and Person shall have the right, exercisable by giving written notice right to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of employ separate counsel in any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled action and to participate in the defense of such claim or action, with counsel of its own choicethereof, but the indemnifying party fees and expenses of such counsel shall not be obligated to reimburse at the expense of the indemnified party for any fees, costs and expenses subsequently incurred Person unless (i) the employment of such counsel shall have been specifically authorized in writing by the indemnified party in connection with such defense unless Company, (Aii) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has Company shall have failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to and employ counsel reasonably acceptable or (iii) the named parties to any such action (including any implied parties) include both the indemnified party or to pursue Person and the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent Company and the indemnified party would present such Person shall have been advised in writing by its counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject Company (in which case the Company shall not have the right to assume the foregoing sentencedefense of such action on behalf of the indemnified Person), no indemnifying party shallit being understood, however, that the Company shall not, in connection with any one claim or such action or separate but substantially similar or related actions in the same jurisdiction or proceedings arising out of the same general circumstances allegations or allegationscircumstances, be liable for the fees, costs reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for all the indemnified partiesPersons, which firm shall be (x) designated by such indemnified Persons and (y) reasonably satisfactory to the Company. The indemnifying party Company shall not have be liable for any settlement of any such action or proceeding effected without the right Company's prior written consent, which consent shall not be withheld unreasonably, and the Company agrees to settle a claim or action for which indemnify and hold harmless any indemnified party is entitled to indemnification pursuant to this Agreement without Person from and against any loss, claim, damage, liability, judgment or expense by reason of any settlement of any action effected with the written consent of the Company. The Company shall not, without the prior written consent of each indemnified partyPerson, The indemnifying party shall not settle or compromise or consent to the entry of judgment on or otherwise seek to terminate any judgment pending or enter into threatened action, claim, litigation or agree proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not any indemnified Person is a party thereto), unless such settlement, compromise, consent or termination includes an unconditional release of each indemnified Person from all liability arising out of such action, claim litigation or proceeding. (b) Each Holder of Restricted Securities covered by any Registration Statement agrees, severally and not jointly, to indemnify and hold harmless the Company and its directors, officers and any settlement person controlling (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Company, and the respective officers, directors, partners, employees, representatives and agents of each person, to the same extent as the foregoing indemnity from the Company to each of the indemnified Persons, but only (i) with ---- respect to actions based on information relating to such claim Holder furnished in writing by or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term behalf of such judgment Holder expressly for use in any Registration Statement or settlement Prospectus, and (ii) to the giving extent of the gross proceeds, if any, received by such Purchaser from the claimant sale or plaintiff in other disposition of his or its Restricted Securities covered by such judgment Registration Statement. In case any action or settlement to proceeding shall be brought against the Company or its directors or officers or any such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability controlling person in respect of which indemnity may be sought against a Holder of Restricted Securities covered by any Registration Statement, such claim or action. The indemnifying party Holder shall have the rights and duties given the Company in Section 2.8(a) (except that the Holder may but shall not be liable under this Agreement for any amount paid required to assume the defense thereof), and the Company or payable its directors or incurred pursuant officers or such controlling person shall have the rights and duties given to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayedeach Holder by Section 2.8(a). (dc) If the indemnification provided for in this Section 11 2.8 is held by a court of competent jurisdiction unavailable to be unavailable to, or unenforceable by, an indemnified party under Section 2.8(a) or (b) (other than by reason of exceptions provided in those Sections) in respect of any losslosses, claimclaims, actiondamages, damageliabilities, liability judgments or expense expenses referred to in this Section 11therein, then the each applicable indemnifying partyparty (in the case of the Holders severally and not jointly), in lieu of indemnifying such indemnified party under this Agreementparty, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims damages, actionliabilities, damage, liability judgments or expense expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company on the one hand and the indemnifying party. If Holder on the other hand from sale of Restricted Securities or (ii) if such allocation provided by the preceding sentence clause (i) above is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence clause (i) above but also the relative fault of the indemnified party Company and such Holder in connection with the indemnifying partystatements or omissions which resulted in such losses, claims, damages, liabilities, judgments or expenses, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, Company on the one hand, hand and of the indemnified party, such Holder on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party Company or by such Holder and the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ parties relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties amount paid to a party as a result of the losses, claims, damages, liabilities judgments and expenses referred to above shall be deemed to include, subject to the limitations set forth in the second paragraph of Section 2.8(a), any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any action or claim. The Company and each Holder of Restricted Securities covered by any Registration Statement agree that it would not be just and equitable if contribution pursuant to this Agreement Section 2.8(c) were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method or of allocation that which does not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 11(d). In 2.8(c) no event Holder (and none of its related indemnified Persons) shall be required to contribute, in the aggregate, any amount in excess of the amount by which a Holder the dollar amount of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in upon the sale of Registrable the Restricted Securities that gives rise exceeds the amount of any damages which such Holder has otherwise been required to pay by reason of such obligation to contributeuntrue statement or omission or alleged omission. No indemnified party person guilty or liable of fraudulent misrepresentation misrepresentations (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. (e) . The indemnity, and contribution provisions of contained in this Section 11 shall remain 2.8 are in full force and effect regardless of addition to any investigation made by or on behalf of any liability which the indemnifying person may otherwise have to the indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holderpersons referred to above.

Appears in 1 contract

Sources: Registration Rights Agreement (Senesco Technologies Inc)

Indemnification; Contribution. (a) The Company shall, to If any Registrable Securities are included in a registration statement under this Agreement: 11.1. To the fullest extent permitted by applicable law, the Company shall indemnify and hold harmless each Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) ▇▇. ▇▇▇▇ against any and all losses, claims, actions, damages, liabilities and expenses, expenses (joint or several), including reasonable attorneys' fees and disbursements and reasonable expenses of investigation, incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation, or to which such Covered Person any of the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act, any Act or other federal or state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or and expenses arise out of or are based upon any of the following statements, omissions or violations (collectively a "Violation"): (i) any Any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any preliminary prospectus or incorporated by reference in any Registration Statementfinal prospectus contained therein, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) amendments or any amendment or supplement to or any document incorporated by reference in the same, supplements thereto; or (ii) any The omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statementtherein, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same therein not misleading; provided, buthowever, in that the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company indemnification required by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) 11.1 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action liability or proceeding expense if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such Holder. The Company case for any such loss, claim, damage, liability or expense to the extent that it arises out of or is based upon a Violation that occurs in reliance upon and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in conformity with information furnished in writing by such Holders, the only information furnished or to be furnished to the Company by the indemnified party expressly for use in connection with such registration. 11.2. To the extent permitted by applicable law, ▇▇. ▇▇▇▇ shall indemnify and hold harmless the Company, each of the directors of the Company, each of the officers of the Company who shall have signed the registration statement, each Person, if any, who controls the Company within the meaning of the Securities Act, any Registration Statement other Selling Holder, any controlling Person of any such other Selling Holder and each officer, director, partner, and employee of such other Selling Holder and such controlling Person, against any and all losses, claims, damages, liabilities and expenses (joint and several), including reasonable attorneys' fees and disbursements and reasonable expenses of investigation, incurred by such party pursuant to any actual or Prospectus relating threatened action, suit, proceeding or investigation, or to which any of the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or other federal or state laws, but only insofar as such losses, claims, damages, liabilities and expenses arise out of or are based upon any Violation, in each case to the Registrable Securities extent that such Violation arises out of or is based upon information furnished by ▇▇. ▇▇▇▇ in writing expressly for use in connection with such registration; provided, however, that (x) any amendmentindemnification required by this Section 11.2 shall not apply to amounts paid in settlement of any such loss, supplement claim, damage, liability or preliminary materials associated expense if such settlement is effected without the consent of ▇▇. ▇▇▇▇ (which consent shall not be unreasonably withheld) and (y) in no event shall the amount of any indemnity under this Section 11.2 exceed the gross proceeds from the applicable offering received by ▇▇. ▇▇▇▇. 11.3. Promptly after receipt by an indemnified party under this Section 11 of notice of the commencement of any action, suit, proceeding, investigation or threat thereof made in writing for which such indemnified party may make a claim under this Section 11, such indemnified party shall deliver to the indemnifying party a written notice thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall have the right to retain its own counsel, with the same are statements specifically relating fees and disbursements and expenses to (a) be paid by the beneficial ownership indemnifying party, if representation of shares of Common Stock such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such Holder and its Affiliates, (b) the name and address of counsel in such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation proceeding. The failure to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt deliver written notice to the indemnifying party within a reasonable time following the commencement of any claim with respect such action, if prejudicial to which it seeks indemnification. Notwithstanding the previous sentenceits ability to defend such action, any failure or delay to so notify the shall relieve such indemnifying party of any liability to the indemnified party under this Section 11 to the extent of such prejudice but shall not relieve the indemnifying party of its obligations under this Agreement, except any liability that it may have to the extent that the indemnifying any indemnified party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification otherwise than pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in Section 11. Any fees and shall have the right, exercisable expenses incurred by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from (including any fees and expenses incurred in connection with investigating or preparing to defend such indemnified party of such claim action or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable proceeding) shall be paid to the indemnified party, as incurred, within thirty (30) days of written notice thereof to the indemnifying party (regardless of whether it is ultimately determined that an indemnified party is not entitled to indemnification hereunder). Notwithstanding the previous sentence, any Any such indemnified party shall continue have the right to be entitled employ separate counsel in any such action, claim or proceeding and to participate in the defense of such claim or action, with counsel of its own choicethereof, but the indemnifying party fees and expenses of such counsel shall not be obligated to reimburse the expenses of such indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (Ai) the indemnifying party has agreed in writing to pay such fees, costs fees and expenses, expenses or (Bii) the indemnifying party has shall have failed to promptly assume the defense of such action, claim or action within a reasonable time after receipt of notice of proceeding or (iii) the named parties to any such action, claim or action, proceeding (Cincluding any impleaded parties) having assumed the defense of include both such claim or action, indemnified party and the indemnifying party fails to employ counsel reasonably acceptable to the party, and such indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of shall have been advised by counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which that are different from or additional in addition to those available to the indemnifying party. Subject to party and that the foregoing sentence, no assertion of such defenses would create a conflict of interest such that counsel employed by the indemnifying party shallcould not faithfully represent the indemnified party (in which case, if such indemnified party notifies the indemnifying party in writing that it elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense of such action, claim or proceeding on behalf of such indemnified party, it being understood, however, that the indemnifying party shall not, in connection with any one such action, claim or action proceeding or separate but substantially similar or related actions actions, claims or proceedings in the same jurisdiction arising out of the same general circumstances allegations or allegationscircumstances, be liable for the fees, costs reasonable fees and expenses of more than one separate firm of attorneys (in addition to any together with appropriate local counsel) at any time for all such indemnified parties. The , unless in the reasonable judgment of such indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such action, claim or proceeding, in which event the indemnifying party shall not have be obligated to pay the right to settle a claim fees and expenses of such additional counsel or action for which any indemnified counsels). 11.4. If the indemnification required by this Section 11 from the indemnifying party is entitled unavailable to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, an indemnified party hereunder in respect of any losslosses, claimclaims, actiondamages, damage, liability liabilities or expense expenses referred to in this Section 11, then the applicable : (i) The indemnifying party, in lieu of indemnifying such indemnified party under this Agreementparty, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability liabilities or expense expenses in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, fault of the indemnifying party shall contribute to such amount and indemnified parties in connection with the actions that resulted in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying partylosses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative fault of the such indemnifying party, on the one hand, party and of the indemnified party, on the other hand, parties shall be determined by reference to, among other things, whether the untrue any Violation has been committed by, or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the by, such indemnifying party or by the indemnified partyparties, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission or violationViolation. The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 11.1 and Section 11.2, any legal or other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding. (ii) The parties hereto agree that it would not be just and equitable if contribution pursuant to this Agreement Section 11.4 were determined by pro rata allocation or by any other method or of allocation that does not take into account the equitable considerations referred to in this Section 11(d11.4(i). In no event shall the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) 11.5. If indemnification is available under this Section 11, the indemnifying parties shall indemnify each indemnified party to the full extent provided in this Section 11 without regard to the relative fault of such indemnifying party or indemnified party or any other equitable consideration referred to in Section 11.4. 11.6. The provisions obligations of the Company and ▇▇. ▇▇▇▇ under this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer termination of any Registrable Securities by any Holderthis Agreement.

Appears in 1 contract

Sources: Registration Rights Agreement (CDW Computer Centers Inc)

Indemnification; Contribution. (a) The Company shall, to the fullest extent permitted by lawand it hereby agrees to, (i) indemnify and hold harmless each Holder of Registrable SecuritiesDemand Shareholder (but not, pursuant to this Section 6.6, any Person who is Shareholder Designee in his or might be deemed to be her capacity as a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”Director), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Personunderwriter in any offering or sale of Registrable Shares, and its and their respective Representatives and Controlling Persons, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) from and against any and all losses, claims, actionsdamages or liabilities, damagesactions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable fees of counsel) (collectively, liabilities and expenses, joint or several, “Claims”) to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such lossesClaims (including any amounts paid in settlement reached in accordance with the requirements for consent as provided herein), claimsor actions or proceedings in respect thereof, actions, damages, liabilities or expenses arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement to thereto, or any document incorporated by reference in the sametherein, (ii) or arise out of or are based upon any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein (in the same not misleading case of any preliminary or final Prospectus (iii) including any violation or alleged violation by the Company Free Writing Prospectus incorporated into such Registration Statement), in light of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under circumstances in which they were made), not misleading; and (ii) reimburse periodically upon demand such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person indemnified party for any legal or other out-of-pocket expenses reasonably incurred by such Covered Person indemnified party in connection with investigating, investigating or defending or settling any such lossClaims; provided, claimhowever, action, damage or liability. Notwithstanding the previous sentence, that the Company shall not be so liable to any such indemnified party in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such Registration Statement, or preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), or amendment or supplement thereto, in reliance upon and in conformity with information furnished in writing to the Company by a Demand Shareholder or any Representative of a Demand Shareholder expressly for use therein, or if a Demand Shareholder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable Prospectus (excluding any documents incorporated by reference therein) or of the applicable Prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Company had previously furnished copies thereof to the Original Shareholder, on behalf of the Demand Shareholders, and such Prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such Registration Statement. (b) Each Demand Shareholder shall, and hereby agrees to, (i) indemnify and hold harmless the Company and each underwriter in any offering or sale of Registrable Shares, and its and their respective Representatives and Controlling Persons, if any, from and against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement reached in accordance with the requirements for consent as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or supplement to the same or (ii) are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same not misleading, but, therein (in the case of each any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), in light of clauses (i) the circumstances in which they were made), not misleading; and (ii)) reimburse periodically upon demand such indemnified party for any legal or other out-of-pocket expenses reasonably incurred by such indemnified party in connection with investigating or defending any such Claims, in each case only to the extent that such untrue statement or alleged untrue statement, statement or omission or alleged omissionomission was made in reliance upon and in conformity with information furnished in writing to the Company by a Demand Shareholder or any Representative of a Demand Shareholder, is expressly for use therein, or if a Demand Shareholder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable Prospectus (excluding any documents incorporated by reference therein) or of the applicable Prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Company had previously furnished copies thereof to the Original Shareholder, on behalf of the Demand Shareholders, and such Prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such Registration Statement; provided, Prospectushowever, preliminary Prospectus, free writing prospectus or any amendment or supplement to that the same in reliance upon, and in conformity with, written information prepared and furnished to liability of the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) Demand Shareholders hereunder shall be individual and several, not joint and several, for each participating Holder and shall be proportional limited to and shall not exceed an amount equal to the dollar amount of the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities Demand Shareholders from Shareholder Shares sold by the Demand Shareholders pursuant to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveProspectus. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to Each Demand Shareholder and the indemnifying party of Company agree that if, for any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partyreason, the indemnifying party shall be entitled to participate in and shall have the right, exercisable indemnification provisions contemplated by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim Section 6.6(a) or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (ASection 6.6(b) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant unavailable to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented are insufficient to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, with respect to statements or omissions that that resulted in such Claims. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the such indemnifying party or by the such indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission. If, omission however, the allocation in the first sentence of this Section 6.6(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or violationpayable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties Parties agree that it would not be just and equitable if contribution contributions pursuant to this Agreement Section 6.6(c) were to be determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the preceding sentences of this Section 11(d6.6(c). In no event The amount paid or payable by an indemnified party as a result of the Claims referred to above shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal include (subject to the net proceeds (after deducting Selling Expenseslimitations set forth in Section 6.7) actually received any legal or other fees or expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise to connection with investigating or defending any such obligation to contributeaction, proceeding or claim. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. Notwithstanding the foregoing, the Demand Shareholders shall not be liable to contribute any amount in excess of the dollar amount of the net proceeds received by the Demand Shareholders from Shareholder Shares sold by the Demand Shareholders pursuant to such Registration Statement or Prospectus. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 1 contract

Sources: Merger Agreement (Salix Pharmaceuticals LTD)

Indemnification; Contribution. (a) The Company shallEach of the Issuers, jointly and severally, agrees to the fullest extent permitted by law, indemnify and hold harmless each Holder of Registrable SecuritiesNotes and each Participating Broker-Dealer selling Exchange Notes during the Applicable Period, the Affiliates, officers, directors, representatives, employees and agents of each such Person, and each Person, if any, who controls any such Person within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act (each, a "Participant"), from and against any and all losses, claims, damages, judgments, liabilities and reasonable expenses (including, without limitation, the reasonable legal fees and other expenses actually incurred in connection with any suit, action or proceeding or any claim asserted) caused by, arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement (or any amendment thereto) or Prospectus (as amended or supplemented if the Company shall have furnished any amendments or supplements thereto) or any preliminary prospectus, or caused by, arising out of or based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in the case of the Prospectus in light of the circumstances under which they were made, not misleading; provided, however, that the Issuers will not be liable (i) in any such case to the extent that any such loss, claim, damage, or liability arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity with information relating to any Participant furnished to the Company in writing by such Participant expressly for use therein or (ii) in any such case with respect to any preliminary prospectus, to the extent that any such loss, claim, damage or liability arises solely from the fact that the Participant sold Registrable Notes to a person to whom there was not sent or given a copy of the Prospectus contained in the Registration Statement at the time it became effective at or prior to the written confirmation of such sale if the Company shall have previously furnished copies thereof to the Participant and such Prospectus would have corrected any such untrue statement or omission. (b) Each Participant agrees, severally and not jointly, to indemnify and hold harmless the Issuers, their respective Affiliates, officers, directors, representatives, employees and agents of each Issuer and each Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries controls each Issuer within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent (each such Person, but on a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholdersseveral, and not joint, basis) as the foregoing indemnity from the Issuers to each other PersonParticipant, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any losses, claims, actions, damages, liabilities and expenses, joint or several, but only with reference to which such Covered Person may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to or any document incorporated by reference in the same, (ii) any omission or alleged omission of a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and information relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and Participant furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder participant expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to Prospectus, any amendment or supplement thereto, or any preliminary prospectus. The liability of any Participant under this paragraph shall in no event exceed the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock proceeds received by such Holder and its Affiliates, (b) the name and address Participant from sales of Registrable Notes or Exchange Notes giving rise to such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveobligations. (c) Any If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or asserted against any Person entitled to indemnification in respect of which indemnity may be sought pursuant to this Agreement either of the two preceding paragraphs, such Person (the "Indemnified Person") shall give prompt written notice promptly notify the Persons against whom such indemnity may be sought (the "Indemnifying Persons") in writing, and the Indemnifying Persons, upon request of the Indemnified Person, shall retain counsel reasonably satisfactory to the Indemnified Person to represent the Indemnified Person and any others the Indemnifying Persons may reasonably designate in such proceeding and shall pay the fees and expenses actually incurred by such counsel related to such proceeding; provided, however, that the failure to so notify the Indemnifying Persons (i) will not relieve it from any liability under paragraph (a) or (b) above unless and to the extent such failure results in the forfeiture by the indemnifying party of substantial rights and defenses of either the Indemnified or Indemnifying Person and (ii) will not, in any claim with respect to which it seeks indemnification. Notwithstanding the previous sentenceevent, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its from any obligations under this Agreement, except to any indemnified party other than the extent that the indemnifying party is actually indemnification obligation provided in paragraphs (a) and materially prejudiced by reason of such failure or delay(b) above. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partyany such proceeding, the indemnifying party shall be entitled to participate in and any Indemnified Person shall have the right, exercisable by giving written notice right to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of retain its own choicecounsel, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs fees and expenses subsequently incurred of such counsel shall be at the expense of such Indemnified Person unless (i) the Indemnifying Persons and the Indemnified Person shall have mutually agreed to the contrary, (ii) the Indemnifying Persons shall have failed within a reasonable period of time to retain counsel reasonably satisfactory to the Indemnified Person or (iii) the named parties in any such proceeding (including any impleaded parties) include both any Indemnifying Person and the Indemnified Person or any Affiliate thereof and representation of both parties by the indemnified party same counsel would be inappropriate due to actual or potential differing interests between them. It is understood that the Indemnifying Persons shall not, in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action proceeding or separate but substantially similar or related actions proceeding in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) for all indemnified partiesIndemnified Persons, and that all such fees and expenses shall be reimbursed promptly as they are incurred. Any such separate firm for the Participants shall be designated in writing by Participants who sold a majority in interest of Registrable Notes and Exchange Notes sold by all such Participants and shall be reasonably acceptable to the Company, and any such separate firm for the Issuers, their Affiliates, officers, directors, representatives, employees and agents, and such control Persons of such Issuer shall be designated in writing by such Issuer and shall be reasonably acceptable to the Holders. The indemnifying party Indemnifying Persons shall not have be liable for any settlement of any proceeding effected without its prior written consent (which consent shall not be unreasonably withheld or delayed), but if settled with such consent or if there be a final non-appealable judgment for the right to settle a claim or action plaintiff for which any indemnified party the Indemnified Person is entitled to indemnification pursuant to this Agreement Agreement, each of the Indemnifying Persons agrees to indemnify and hold harmless each Indemnified Person from and against any loss or liability by reason of such settlement or judgment. No Indemnifying Person shall, without the prior written consent of the indemnified Indemnified Persons (which consent shall not be unreasonably withheld or delayed), effect any settlement or compromise of any pending or threatened proceeding in respect of which any Indemnified Person is or could reasonably have been a party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to indemnify could have been sought hereunder by such claim or action Indemnified Person, unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and (A) includes as an unconditional term written release of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified partyIndemnified Person, in form and substance reasonably satisfactory to such indemnified partyIndemnified Person, of a full and final release from all liability in respect on claims that are the subject matter of such claim proceeding and (B) does not include any statement as to an admission of fault, culpability or action. The indemnifying party shall not be liable under this Agreement for any amount paid failure to act by or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent on behalf of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed)Indemnified Person. (d) If the indemnification provided for in clauses (a) and (b) of this Section 11 7 is held by a court of competent jurisdiction to be for any reason unavailable to, or unenforceable byinsufficient to hold harmless, an indemnified party Indemnified Person in respect of any losslosses, claimclaims, action, damage, liability damages or expense liabilities referred to in this Section 11therein, then the applicable indemnifying partyeach Indemnifying Person under such clauses, in lieu of indemnifying such indemnified party under this AgreementIndemnified Person thereunder and in order to provide for just and equitable contribution, shall contribute to the amount paid or payable by such indemnified party Indemnified Person as a result of such losslosses, claimclaims, action, damage, liability damages or expense liabilities in such proportion as is appropriate to reflect (i) the relative benefits received by the indemnified party Indemnifying Person or Persons on the one hand and the indemnifying party. If Indemnified Person or Persons on the other from the offering of the Notes or (ii) if the allocation provided by the preceding sentence foregoing clause (i) is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the such relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party Indemnifying Person or Persons on the one hand and the indemnifying partyIndemnified Person or Persons on the other in connection with the statements or omissions or alleged statements or omissions that resulted in such losses, claims, damages or liabilities (or actions in respect thereof) as well as any other relevant equitable considerations. The relative benefits received by the Issuers on the one hand and the Participants on the other shall be deemed to be in the same proportion as the total proceeds from the offering (net of discounts and commissions but before deducting expenses) of the Notes received by the Company bears to the total proceeds received by such Participant from the sale of Registrable Notes or Exchange Notes, as the case may be, in each case as set forth in the table on the cover page of the Offering Memorandum dated September 19, 1997 in respect of the sale of the Notes. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, parties shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party Issuers on the one hand or by such Participant or such other Indemnified Person, as the indemnified partycase may be, whether on the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Companyother, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission, omission or violation. and any other equitable consideration appropriate in the circumstances. (e) The parties agree that it would not be just and equitable if contribution pursuant to this Agreement Section 7 were determined by pro rata or per capita allocation (even if the Participants were treated as one entity for such purpose) or by any other method or of allocation that does not take into account of the equitable considerations referred to in the immediately preceding paragraph. The amount paid or payable by an Indemnified Person as a result of the losses, claims, damages, judgments, liabilities and expenses referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth above, any reasonable legal or other expenses actually incurred by such Indemnified Person in connection with investigation or defending any such action or claim. Notwithstanding the provisions of this Section 11(d). In 6, in no event shall a Participant be required to contribute any amount in excess of the amount by which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale Participant from sales of Registrable Securities Notes or Exchange Notes, as the case may be, exceeds the amount of any damages that gives rise such Participant has otherwise been required to pay or has paid by reason of such obligation to contributeuntrue or alleged untrue statement or omission or alleged omission. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (ef) The provisions of Any losses, claims, damages, liabilities or expenses for which an indemnified party is entitled to indemnification or contribution under this Section 11 7 shall be paid by the Indemnifying Party to the Indemnified Party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 6 and the representations and warranties of the Issuers set forth in this Agreement shall remain operative and in full force and effect effect, regardless of (i) any investigation made by or on behalf of any indemnified party Holder or any officerperson who controls a Holder, director the Issuer, its directors, officers, employees or agents or any person controlling person the Issuer, and (ii) any termination of such indemnified party this Agreement. (g) The indemnity and shall survive contribution agreements contained in this Section 7 will be in addition to any liability which the Transfer of any Registrable Securities by any HolderIndemnifying Persons may otherwise have to the Indemnified Persons referred to above.

Appears in 1 contract

Sources: Registration Rights Agreement (Huntsman Packaging Corp)

Indemnification; Contribution. (a) The Company shall, to To the fullest extent permitted by applicable law, the Company shall, and it hereby agrees to, indemnify and hold harmless Sponsor Stockholder, each Holder underwriter and the equityholders, controlling persons, directors, officers and employees of each of the foregoing in any offering or sale of the Registrable Securities, any Person who is or might be deemed including pursuant to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act 6.01, Section 6.02 or Section 20 of the Exchange Act (each such Person6.05, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any losses, claims, actionsdamages or liabilities, damagesactions or proceedings (whether commenced or threatened) in respect thereof and expenses (including actual and documented out-of-pocket fees of legal counsel reasonably incurred) (collectively, liabilities and expenses, joint or several, “Claims”) to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such lossesClaims (including any amounts paid in settlement effected with the consent of the Company as provided herein), claimsor actions or proceedings in respect thereof, actions, damages, liabilities or expenses arise out of of, relate to, are in connection with, or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final Prospectus contained therein, or any amendment or supplement to thereto, or any document incorporated by reference therein, or arise out of, relate to, are in the sameconnection with, (ii) or are based upon any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein, in light of the same circumstances in which they were made, not misleading or (iii) any violation or alleged violation by misleading, and the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under shall, and it hereby agrees to, reimburse periodically each such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered indemnified Person for any actual and documented out-of-pocket legal or other actual and documented out-of-pocket expenses reasonably incurred by such Covered Person it in connection with investigating, investigating or defending or settling any such lossClaims; provided, claimhowever, action, damage or liability. Notwithstanding the previous sentence, that the Company shall not be so liable to any such Person in any such case to the extent that any losssuch Claims arise out of, claimrelate to, actionare in connection with, damage, liability or expense arises out of or is are based upon any such an untrue statement or alleged untrue statement, statement or omission or alleged omission, omission made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, or preliminary or final Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be amendment or supplement thereto, in addition reliance upon written information furnished to any liability the Company may otherwise have(x) by Sponsor Stockholder or any Representative of Sponsor Stockholder, expressly for use therein, it being understood and agreed that the only such information furnished by Sponsor Stockholder or any Representative of Sponsor Stockholder consists of the information described as such in Section 6.13(b) or (y) by or on behalf of any underwriter expressly for use therein. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to To the fullest extent permitted by applicable law, Sponsor Stockholder shall, and hereby agrees to, (i) indemnify and hold harmless the Company, its directors and directors, officers, employeesemployees and its other equityholders and each underwriter, agents its partners, officers, directors, employees and controlling Persons, if any, in any Person who is offering or might be deemed to be a Controlling Person sale of Registrable Securities by it against any losses, claims, actions, damages, liabilities and expenses, joint or several, Claims to which they or any of them each such indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such lossesClaims (including any amounts paid in settlement as provided herein), claimsor actions or proceedings in respect thereof, actions, damages, liabilities or expenses arise out of of, relate to, are in connection with, or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in the any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final Prospectus contained therein, or any amendment of or supplement to the same thereto, or (ii) any document incorporated by reference therein, or arise out of, relate to, are in connection with, or are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, but, in the each case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, upon and in conformity with, with written information prepared and regarding Sponsor Stockholder furnished to the Company by such Holder Sponsor Stockholder or any Representative of Sponsor Stockholder expressly for use in therein, it being understood and agreed that the only such Registration Statementinformation furnished by Sponsor Stockholder or any Representative of Sponsor Stockholder consists of the number of shares of Common Stock owned by Sponsor Stockholder, Prospectusthe number of Registrable Securities proposed to be sold by Sponsor Stockholder, preliminary Prospectus or free writing prospectus. In additionthe name and address of Sponsor Stockholder and the method of distribution proposed by Sponsor Stockholder, such Holder shall and (ii) reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person Company for any actual and documented out-of-pocket legal or other out-of-pocket expenses reasonably incurred by them the Company in connection with investigating, investigating or defending or settling any such lossClaim; provided, claimhowever, action, damage that in no event shall any indemnity or liability. The obligation to indemnify pursuant to reimbursement by Sponsor Stockholder under this Section 11(b6.13(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder Sponsor Stockholder in respect of the sale of Registrable Securities giving rise to which such Registration Statement indemnification or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise havereimbursement obligation. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to Sponsor Stockholder and the indemnifying party of Company agree that if, for any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partyreason, the indemnifying party shall be entitled to participate in and shall have the right, exercisable indemnification provisions contemplated by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim Section 6.13(a) or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (ASection 6.13(b) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant unavailable to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented are insufficient to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein, then the applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, each Indemnifying Party (as defined below) shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying partyIndemnifying Party, on the one hand, and of the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such Indemnifying Party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party such Indemnifying Party or by the such indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission. If, omission however, the allocation in the first sentence of this Section 6.13(c) is not permitted by applicable law, then each Indemnifying Party shall contribute to the amount paid or violationpayable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the Indemnifying Party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Agreement Section 6.13(c) were to be determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the preceding sentences of this Section 11(d6.13(c). In no event The amount paid or payable by an indemnified party as a result of the Claims referred to above shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal include (subject to the net proceeds (after deducting Selling Expenseslimitations set forth in Section 6.14) actually received any actual and documented out-of-pocket legal or other out-of-pocket fees or expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise to connection with investigating or defending any such obligation to contributeaction, proceeding or claim. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 1 contract

Sources: Stockholders Agreement (Amentum Holdings, Inc.)

Indemnification; Contribution. (a) The Company shall, to the fullest extent permitted by lawand it hereby agrees to, indemnify and hold harmless each Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of Participating Investor and its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, officers, directors, officers, trustees, managers, members, employees, agents, Affiliates employees and shareholders, and each other Personcontrolling Persons, if any, who acts on behalf and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any offering or sale of or controls any such Holder or Controlling Person (each of the foregoingCommon Shares, a “Covered Person”) against any losses, claims, actions, damages, damages or liabilities and expenses, joint or several, to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such losses, claims, actionsdamages or liabilities, damagesor actions or proceedings in respect thereof, liabilities or expenses including any amounts paid in settlement as provided herein (collectively, “Claims”), arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statementregistration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement to thereto, or any document incorporated by reference in the sametherein, (ii) or arise out of or are based upon any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein, in light of the same circumstances in which they were made, not misleading or (iii) any violation or alleged violation by misleading, and the Company of the Securities Act shall, and it hereby agrees to, reimburse each Participating Investor or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person underwriter for any legal or other out-of-pocket expenses reasonably incurred by such Covered Person it in connection with investigating, investigating or defending or settling any such lossClaims; provided, claimhowever, action, damage or liability. Notwithstanding the previous sentence, that the Company shall not be so liable to any such Person in any such case to the extent that any loss, claim, action, damage, liability or expense arises such Claims arise out of or is are based upon any such an untrue statement or alleged untrue statement, statement or omission or alleged omissionomission made in such registration statement, made or incorporated by reference in any such Registration Statementpreliminary or final prospectus, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same thereto, in reliance upon, upon and in conformity with, written with information prepared and furnished in writing to the Company by such Covered Person Participating Investor or any underwriter expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise havetherein. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder Participating Investor shall, and hereby agrees to the fullest extent permitted by law, (1) indemnify and hold harmless the Company, its directors and directors, officers, employeesemployees and controlling Persons, agents if any, and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any Person who is offering or might be deemed to be a Controlling Person sale of Common Shares, against any losses, claims, actions, damages, liabilities and expenses, joint or several, Claims to which they or any of them each such indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in the Registration Statementsuch registration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or supplement to the same or (ii) are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, but, in the each case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by such Holder Participating Investor expressly for use in such Registration Statementtherein, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall and (2) reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person Company for any legal or other out-of-pocket expenses reasonably incurred by them the Company in connection with investigating, investigating or defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveClaim. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt Promptly after receipt by an indemnified party under Section 4.7(a) or Section 4.7(b) of written notice to of the commencement of any action or proceeding for which indemnification under Section 4.7(a) or Section 4.7(b) may be requested, such indemnified party shall notify the indemnifying party in writing of any claim with respect the commencement of such action or proceeding, but the omission so to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party in respect of such action or proceeding hereunder unless the indemnifying party was materially prejudiced by such failure of its obligations under this Agreementthe indemnified party to give such notice, except to the extent that and in no event shall such omission relieve the indemnifying party is actually and materially prejudiced by reason of from any other liability it may have to such failure or delayindemnified party. In case a claim any such action or an action that is subject or potentially subject to indemnification pursuant to this Agreement is proceeding shall be brought against any indemnified party and it shall notify an indemnified partyindemnifying party of the commencement thereof, the such indemnifying party shall be entitled to participate in and shall have the righttherein and, exercisable by giving written notice to the extent that it shall determine, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party as promptly as practicable party, and, after receipt of written notice from the indemnifying party to such indemnified party of such claim or action, its election so to assume, at the indemnifying party’s expense, assume the defense of any thereof, such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated liable to reimburse the such indemnified party for any fees, costs and legal or any other expenses subsequently incurred by the such indemnified party in connection with such the defense unless (A) thereof other than reasonable costs of investigation. If the indemnifying party has agreed in writing to pay such feesis not entitled to, costs and expensesor elects not to, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or actionclaim, (C) having assumed it will not be obligated to pay the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs fees and expenses of more than one firm of attorneys (in addition counsel for each indemnified party with respect to any local counsel) for all indemnified partiessuch claim. The indemnifying party will not be subject to any liability for any settlement made without its consent, which consent shall not have the right to settle a claim be unreasonably withheld or action for which any indemnified delayed. No indemnifying party is entitled to indemnification pursuant to this Agreement shall, without the prior written consent of the indemnified party, The indemnifying party shall not compromise or consent to the entry of any judgment or enter into or agree any settlement agreement with respect to any settlement relating to such claim action or action proceeding in respect of which indemnification is sought under Section 4.7(a) or Section 4.7(b) (whether or not the indemnified party is an actual or potential party thereto), unless such judgment compromise, consent or settlement does not impose any admission includes an unconditional release of wrongdoing or ongoing obligations on any the indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall litigation and does not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with subject the consent of an indemnified party unless the indemnifying party has also consented to such judgment any material injunctive relief or settlement (such consent not to be unreasonably withheld, conditioned or delayed)other material equitable remedy. (d) If Each Participating Investor and the Company agree that if, for any reason, the indemnification provided for in this Section 11 is held provisions contemplated by a court of competent jurisdiction Sections 4.7(a) or 4.7(b) hereof are unavailable to be unavailable to, or unenforceable by, are insufficient to hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein (other than as a result of the provisos thereto), then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of benefits derived by the indemnifying party, on the one hand, and of the indemnified party, on the other hand, as well as other equitable considerations. The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission deemed to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable include (subject to the Company, and, relating to limitations set forth in Section 4.7(c) hereof) any action legal or inaction required of the Company other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any registration of securitiessuch action, whether such action proceeding or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission or violation. The parties agree that it would not be just and equitable if contribution pursuant to this Agreement were determined by pro rata allocation or by any other method or allocation that does not take into account the equitable considerations referred to in this Section 11(d). In no event shall the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contributeclaim. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 1 contract

Sources: Shareholder Agreement (Arch Capital Group LTD)

Indemnification; Contribution. (a) The Company shall, agrees to the fullest extent permitted by law, indemnify and hold harmless harmless (i) each Holder of Registrable Securities, covered by any Registration Statement, (ii) each other Person who is participates as an underwriter in the offering or might be deemed to be a “controlling sale of such securities, (iii) each person” of the Company or any of its subsidiaries , if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls Act) any such Holder or Controlling Person underwriter (each any of the foregoingpersons referred to in this clause (iii) being hereinafter referred to as a ("Controlling person") and (iv) the respective officers, a “Covered directors, partners, employees, representatives and agents of any such Holder or underwriter or any controlling person (any person referred to in clause (i), (ii), (iii) or (iv) may hereinafter be referred to as an "indemnified Person”) "), to the fullest extent lawful from and against any and all losses, claims, actions, damages, liabilities and liabilities, judgments or expenses, joint or severalseveral (or actions or proceedings, whether commenced or threatened, in respect thereof) (collectively, "Claims"), to which such Covered indemnified Person may become subject under either Section 15 of the Securities Act, Act or Section 20 of the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise Claims wise out of or are based upon (i) upon, or are caused by any untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus Statement or Prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to thereto), or any document incorporated by reference in the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading misleading, or (iii) any violation or alleged a violation by the Company of the Securities Act or any other similar federal or state securities laws law, or any rule or regulation promulgated under such federal the Securities Act or any state securities laws law, or any other law applicable to the Company and relating to any action such registration or inaction required of the Company in connection with any registration of securities. In additionqualification, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, except insofar as such losses, claims, actions, damages, liabilities liabilities, judgments or expenses arise out of any such indemnified Person; (x) are caused by any such untrue statement or are based upon (i) any untrue omission or alleged untrue statement or omission that is based upon information relating to such indemnified Person furnished in writing to the Company by or on behalf of a material fact contained in any of such indemnified Person expressly for use therein; (y) with respect to the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under result from the fact that such Holder sold Securities Act to a person to whom there was not sent or any successor rule to Rule 405) given, at or any amendment of or supplement prior to the same or (ii) any omission or alleged omission written confirmation of such sale, a material fact required to be stated in such Registration Statement, copy of the Prospectus, preliminary Prospectus as amended or free writing prospectus supplemented, if the Company shall have previously furnished copies hereof to such Holder in accordance with this Agreement and said Prospectus, as amended or necessary to make the statements made in the same not misleadingsupplemented, but, in the case of each of clauses (i) and (ii), only to the extent that would have corrected such untrue statement or alleged untrue statementomission; or (z) as a result of the use by an indemnified Person of any Prospectus when, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to upon receipt of a notice from the Company of the existence of any fact of the kind described in Section 2.4(b)(iv), the indemnified Person or the related Holder was not permitted to do so. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified Person and shall survive the transfer of such securities by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectusH▇▇▇▇▇. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and case any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) action shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement brought or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of asserted against any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim indemnified Persons with respect to which it seeks indemnification. Notwithstanding indemnity may be sought against the previous sentenceCompany, any failure or delay to so such indemnified Person shall promptly notify the indemnifying party Company and the Company shall not relieve assume the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an defense thereof Such indemnified party, the indemnifying party shall be entitled to participate in and Person shall have the right, exercisable by giving written notice night to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of employ separate counsel in any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled action and to participate in the defense of such claim or action, with counsel of its own choicethereof, but the indemnifying party fees and expenses of such counsel shall not be obligated to reimburse at the expense of the indemnified party for any fees, costs and expenses subsequently incurred Person unless (i) the employment of such counsel shall have been specifically authorized in writing by the indemnified party in connection with such defense unless Company, (Aii) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has Company shall have failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to and employ counsel reasonably acceptable or (iii) the named parties to any such action (including any implied parties) include both the indemnified party or to pursue Person and the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent Company and the indemnified party would present such Person shall-have been advised in writing by its counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject Company (in which case the Company shall not have the right to assume the foregoing sentencedefense of such action on behalf of the indemnified Person), no indemnifying party shallit being understood, however, that the Company shall not, in connection with any one claim or such action or separate but substantially similar or related actions in the same jurisdiction or proceedings arising out of the same general circumstances allegations or allegationscircumstances, be liable for the fees, costs reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for all the indemnified partiesPersons, which firm shall be (x) designated by such indemnified Persons and (y) reasonably satisfactory to the Company. The indemnifying party Company shall not have be liable for any settlement of any such action or proceeding effected without the right Company's prior written consent, which consent shall not be withheld unreasonably, and the Company agrees to settle a claim or action for which indemnify and hold harmless any indemnified party is entitled to indemnification pursuant to this Agreement without Person from and against any loss, claim, damage, liability, judgment or expense by reason of any settlement of any action effected with the written consent of the Company. The Company shall not, without the prior written consent of each indemnified partyPerson, The indemnifying party shall not settle or compromise or consent to the entry of judgment on or otherwise seek to terminate any judgment pending or enter into threatened action claim, litigation or agree proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not any indemnified Person is a party thereto), unless such settlement, compromise, consent or termination includes an unconditional release of each indemnified Person from all liability arising out of such action, claim litigation or proceeding. (b) Each Holder of Restricted Securities covered by any Registration Statement agrees, severally and not jointly, to indemnify and hold harmless the Company and its directors, officers and any settlement person controlling (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Company, and the respective officers, directors, partners, employees, representatives and agents of each person, to the same extent as the foregoing indemnity from the Company to each of the indemnified Persons, but only (i) with respect to actions based on information relating to such claim Holder furnished in writing by or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term behalf of such judgment Holder expressly for use in any Registration Statement or settlement Prospectus, and (ii) to the giving extent of the gross proceeds, if any, received by such Purchaser from the claimant sale or plaintiff in other disposition of his or its Restricted Securities covered by such judgment Registration Statement. In case any action or settlement to proceeding shall be brought against the Company or its directors or officers or any such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability controlling person in respect of which indemnity may be sought against a Holder of Restricted Securities covered by any Registration Statement, such claim or action. The indemnifying party Holder shall have the rights and duties given the Company in Section 2.8(a) (except that the Holder may but shall not be liable under this Agreement for any amount paid required to assume the defense thereof), and the Company or payable its directors or incurred pursuant officers or such controlling person shall have the rights and duties given to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayedeach Holder by Section 2.8(a). (dc) If the indemnification provided for in this Section 11 2.8 is held by a court of competent jurisdiction unavailable to be unavailable to, or unenforceable by, an indemnified party under Section 2.7(a) or (b) (other than by reason of exceptions provided in those Sections) in respect of any losslosses, claimclaims, actiondamages, damageliabilities, liability judgments or expense expenses referred to in this Section 11therein, then the each applicable indemnifying partyparty (in the case of the Holders severally and not jointly), in lieu of indemnifying such indemnified party under this Agreementparty, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims damages, actionliabilities, damage, liability or expense judgments of expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company on the one hand and the indemnifying party. If Holder on the other hand from sale of Restricted Securities or (ii) if such allocation provided by the preceding sentence clause (i) above is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence clause (i) above but also the relative fault of the indemnified party Company and such Holder in connection with the indemnifying partystatements or omissions which resulted in such losses, claims, damages, liabilities, judgments or expenses, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, Company on the one hand, hand and of the indemnified party, such Holder on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party Company or by such H▇▇▇▇▇ and the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ parties relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties amount paid to a party as a result of the losses, claims, damages, liabilities judgments and expenses referred to above shall be deemed to include, subject to the limitations set forth in the second paragraph of Section 2.8(a), any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any action or claim. The Company and each Holder of Restricted Securities covered by any Registration Statement agree that it would not be just and equitable if contribution pursuant to this Agreement Section 2.8(c) were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method or of allocation that which does not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 11(d). In 2.8(c) no event Holder (and none of its related indemnified Persons) shall be required to contribute, in the aggregate, any amount in excess of the amount by which a Holder the dollar amount of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in upon the sale of Registrable the Restricted Securities that gives rise exceeds the amount of any damages which such Holder has otherwise been required to pay by reason of such obligation to contributeuntrue statement or omission or alleged omission. No indemnified party person guilty or liable of fraudulent misrepresentation misrepresentations (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. (e) . The indemnity and contribution provisions of contained in this Section 11 shall remain 2.8 are in full force and effect regardless of addition to any investigation made by or on behalf of any liability which the indemnifying person may otherwise have to the indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holderpersons referred to above.

Appears in 1 contract

Sources: Registration Rights Agreement (Environmental Remediation Holding Corp)

Indemnification; Contribution. (a) Indemnification by Partnership (or Successor Company). The Company shallPartnership (or the Successor Company) agrees to indemnify, to the fullest extent permitted by law, indemnify each Participating Stockholder (and hold harmless any Affiliate thereof holding Registrable Shares), each Holder of Registrable Securities, any Person person who is controls such a Participating Stockholder or might be deemed to be a “controlling person” of the Company or any of its subsidiaries such Affiliate (within the meaning of Section 15 of either the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”Act), and their respective direct directors and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) officers against any and all losses, claims, actions, damages, liabilities and expenses, joint or several, to which such Covered Person may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (iincluding attorneys' fees) caused by any untrue or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, prospectus or preliminary Prospectus, free writing prospectus (each as defined in Rule 405 under amended and/or supplemented, if the Securities Act Partnership (or the Successor Company) shall have furnished any successor rule to Rule 405) amendments or any amendment supplements thereto), or supplement to or any document incorporated by reference in the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein (in the same not misleading or (iii) any violation or alleged violation by case of a prospectus, in the Company light of the Securities Act circumstances under which they were made) not misleading; provided that the Partnership (or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company Successor Company) shall not be so liable in any required to indemnify such case to the extent that any lossParticipating Stockholder or such Affiliate, claim, action, damage, liability such controlling persons or expense arises out of their respective officers or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly directors for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of resulting from any such untrue statement or are based upon omission if such untrue statement or omission is made in reliance on and conformity with any information with respect to such Participating Stockholder or its Affiliates or the underwriters furnished to the Partnership (ior the Successor Company) by such Participating Stockholder or its Affiliates expressly for use therein; and provided further, that with respect to any untrue statement or omission or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in any preliminary prospectus, the same not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) paragraph shall not apply inure to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent benefit of such Holder. The Company and Participating Stockholder or such Affiliate, if the Holders liability or expense results from the fact that a copy of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed prospectus was not sent or given to in writing by such Holders, the only information furnished person at or to be furnished prior to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership written confirmation of shares of Common Stock by such Holder and its Affiliates, (b) the name and address sale of such Holder Registrable Shares to such person as required by the Securities Act, and if the untrue statement or omission has been corrected in the prospectus unless such failure to deliver the prospectus was a result of noncompliance by the Partnership (c) any additional information about such Holder or the plan of distribution (other than for Successor Company) with its obligations under Section 11.3(a) hereof. In connection with an underwritten offering, the Partnership (or the Successor Company) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to will indemnify each underwriter thereof, the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually officers and materially prejudiced by reason directors of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, an indemnified party in respect of any loss, claim, action, damage, liability or expense referred to in this Section 11, then the applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one handunderwriter, and each person who controls such underwriter (within the meaning of the indemnified party, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of either the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable Exchange Act) to the Company, and, relating same extent as provided above with respect to any action or inaction required the indemnification of the Company in connection Participating Stockholder; provided that such underwriter agrees to indemnify the Partnership (or the Successor Company) to the same extent as provided below with any registration respect to the indemnification of securities, whether such action the Partnership (or inaction was perpetrated the Successor Company) by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission or violation. The parties agree that it would not be just and equitable if contribution pursuant to this Agreement were determined by pro rata allocation or by any other method or allocation that does not take into account the equitable considerations referred to in this Section 11(d). In no event shall the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party guilty or liable of fraudulent misrepresentation within the meaning of Section 11(f) of the Securities Act shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentationParticipating Stockholder. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 1 contract

Sources: Limited Partnership Agreement (Airtouch Communications)

Indemnification; Contribution. (a) Indemnification by the ----------------------------- ---------------------- Company. The Company shall, agrees to the fullest extent permitted by law, indemnify and hold harmless each Holder, each ------- Person, if any, who controls such Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such PersonAct, a “Controlling Person”)and the officers, their respective direct and indirect directors, agents, general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, employees of each Holder and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) controlling person from and against any and all losses, claims, actions, damages, liabilities liabilities, and expenses, joint reasonable expenses (including reasonable costs of investigation) directly or several, to which such Covered Person may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise indirectly arising out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any registration statement or incorporated by reference prospectus relating to the Registrable Securities or in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to thereto or in any document incorporated by reference in the samepreliminary prospectus, (ii) or arising out of or based upon any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In additionmisleading, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, except insofar as such losses, claims, actions, damages, liabilities or reasonable expenses arise out of of, or are based upon (i) upon, any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written allegation thereof based upon information prepared and furnished to the Company by such Holder or on such Holder's behalf expressly for use in therein; and the Company will reimburse such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person Indemnified Party for any legal or other expenses reasonably incurred by them in connection with investigatingenforcing their rights hereunder, defending provided, however, that with respect to any untrue statement -------- ------- or settling omission or alleged untrue statement or omission made in any such losspreliminary prospectus, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) paragraph shall not apply to amounts paid in settlement of the extent that any such loss, claim, damage, liability, action liability or proceeding if such settlement is effected without expense results from the consent of such Holder. The Company and the Holders fact that a current copy of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished prospectus was not sent or to be furnished given to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in Persons asserting any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, an indemnified party in respect of any loss, claim, action, damage, liability or expense referred to in this Section 11, then the applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute at or prior to the amount paid or payable by written confirmation of the sale of the Registrable Securities concerned to such indemnified party as Person if it is determined that (i)(A) it was the responsibility of such Holder to provide such person with a result current copy of the prospectus, (B) such Holder was provided with a current copy of the prospectus prior to the written confirmation of sale and (C) such current copy of the prospectus would have cured the defect giving rise to such loss, claim, action, damage, liability or expense or (ii) the Holder provided a prospectus to any Person in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission or violation. The parties agree that it would not be just and equitable if contribution pursuant to this Agreement were determined by pro rata allocation or by any other method or allocation that does not take into account the equitable considerations referred to in this Section 11(d). In no event shall the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party guilty or liable of fraudulent misrepresentation within the meaning last paragraph of Section 11(f) of the Securities Act shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation3 hereof. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 1 contract

Sources: Stockholders' Agreement (Elcotel Inc)

Indemnification; Contribution. (a) The Company shall, agrees to the fullest extent permitted by law, indemnify and hold harmless each Holder of Registrable Securitiesholder and each "person," if any, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries that controls such holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Personfor, a “Controlling Person”), their respective direct from and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any lossesand all loss, claimsliability, actionsclaim, damages, liabilities damage and expenses, joint or several, expense (including attorneys' fees) to which such Covered Person may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) extent resulting from any untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 registration statement pursuant to which Registrable Securities were registered under the Securities Act or any successor rule to Rule 405) (or any amendment thereto), including all documents incorporated therein by reference, or supplement to or any document incorporated by reference in from the same, (ii) any omission or alleged omission therefrom of a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same statement therein not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises arising out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference statement of a material fact contained in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (or any amendment or supplement thereto), including all documents incorporated therein by reference, or the omission or alleged omission therefrom of a material fact necessary in order to or any document incorporated by reference make the statements therein, in the same light of the circumstances under which they were made, not misleading, except insofar as any such misstatement or omission or alleged misstatement or omission is made therein in reliance upon, upon and in conformity with, written with information prepared and furnished to the Company by such Covered Person holder in writing expressly for use in such Registration Statementa registration statement (or any amendment thereto) or any prospectus (or any amendment or supplement thereto) relating to the Registrable Securities. As used in this Section 5.6(a), Prospectusthe term "holder" shall include its officers, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise havedirectors and agents. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish Each holder agrees to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officersofficers and each "person," if any, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any controls the Company within the meaning of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out Section 15 of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act to the same extent as the foregoing indemnity from the Company to such holder, but only with respect to information furnished in writing by such holder or on such holder's behalf expressly for use in any registration statement (or any successor rule to Rule 405amendment thereto) or any amendment of or supplement to the same or prospectus (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(bthereto) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities Securities, or in any amendment, amendment or supplement thereto; provided that the obligations or preliminary materials associated with any holder to indemnify the same are statements specifically relating Company and the other persons referred to (a) above shall be limited to the beneficial ownership of shares of Common Stock proceeds received by such Holder and its Affiliates, (b) holder from the name and address sale of such Holder and (c) any additional information about Registrable Securities pursuant to such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveregistration statement. (c) Any Person If any action or proceeding (including any governmental investigation) shall be brought or asserted against any person entitled to indemnification pursuant to this Agreement hereunder, the indemnified party shall give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentenceparty, any failure or delay to so notify and the indemnifying party shall not relieve assume the defense thereof, including the employment of counsel reasonably satisfactory to the indemnified party, and shall assume the payment of all expenses in connection with such defense. The indemnified party or any controlling person of such indemnified party shall have the right to employ separate counsel in any such action and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of the indemnified party or such controlling person unless (i) the indemnifying party of its obligations under this Agreement, except shall have agreed to the extent that pay such fees and expenses; or (ii) the indemnifying party is actually shall have failed to assume the defense for such action 16 or proceeding and materially prejudiced to employ counsel reasonably satisfactory to the indemnified party in any such action or proceeding; or (iii) the named parties to any such action or proceeding (including any impleaded parties) include both the indemnified party or such controlling person and the indemnifying party, and such indemnified party or such controlling person shall have been advised by reason counsel that counsel employed by the indemnifying party would, under applicable professional standards, have a conflict in representing both the indemnifying party and the indemnified party or such controlling person, in which case, if such indemnified person or such controlling person notifies the indemnifying party in writing that it elects to employ separate counsel at the expense of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified the indemnifying party, the indemnifying party shall be entitled to participate in and shall not have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed right to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or proceeding of separate but substantially similar or related actions or proceedings in the same jurisdiction arising out of the same general circumstances allegations or allegationscircumstances, and shall not be liable for the fees, costs reasonable fees and expenses of more than one separate firm of attorneys (in addition to any together with appropriate local counsel) at any time for all such indemnified party and such controlling persons, which firm shall be designated, if the holders (or their controlling persons) are the indemnified parties. The indemnifying party shall not have , in writing by the right to settle holders of a claim or action for which any indemnified party is majority of the outstanding Registrable Securities owned by holders who are then entitled to indemnification pursuant to this Agreement without such indemnity in connection with such action or proceeding and if the consent of Company is the indemnified party, The by the Company. No party shall be liable for any settlement of any such action or proceeding effected without its written consent (which consent shall not be unreasonably withheld), but if settled with its written consent, or if there is a final judgment for the plaintiff in any such action or proceeding, the indemnifying party shall not consent agrees to the entry of any judgment or enter into or agree to any settlement relating to indemnify and hold harmless such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term such controlling person from and against any loss or liability (to the extent stated above) by reason of such judgment settlement or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed)judgment. (di) If the indemnification provided for in this Section 11 5.6 is held by a court of competent jurisdiction unavailable to be unavailable to, or unenforceable by, an indemnified party hereunder in respect of any losslosses, claimclaims, actiondamages, damage, liability liabilities or expense referred to in this Section 11expenses, then the applicable each such indemnifying party, in lieu of indemnifying such indemnified party under this Agreementparty, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability or expense liabilities and expenses in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying partyparty in connection with the statements or omissions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative fault of the indemnified party and the indemnifying party, on the one hand, and of the indemnified party, on the other hand, party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified such party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violation. omission. (ii) The parties hereto agree that it would not be just and equitable if contribution pursuant to this Agreement Section 5.6(d) were determined by pro rata allocation or by any other method or of allocation that which does not take into account of the equitable considerations referred to in the immediately preceding paragraph. The amount paid or payable by an indemnified party 17 as a result of the losses, claims, damages, expenses, liabilities, or judgements referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 11(d5.6(d). In , no event holder shall be required to contribute any amount in excess of the amount by which a Holder of the total price at which the Registrable Securities may be obligated of such selling holder were offered to contribute the public pursuant to this Section 11(d) exceed an such registration statement exceeds the amount equal of any damages which such selling holder has otherwise been required to the net proceeds (after deducting Selling Expenses) actually received pay by reason of such Holder in the sale of Registrable Securities that gives rise to such obligation to contributeuntrue or alleged untrue statement or omission or alleged omission. No indemnified party person found guilty or liable by a court of competent jurisdiction of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not found guilty by a court of competent jurisdiction of such fraudulent misrepresentation. (e) The Neither the Company nor the holders shall have any obligation under this Agreement (other than as set forth in this Section 5.6) to provide the other with indemnification or contribution in respect of any losses, claims, damages, liabilities or expenses referred to in this Section 5.6; provided, however, that the provisions of this Section 11 5.6 shall remain in full force and effect regardless of any investigation made by or on behalf of any not relieve an indemnifying party from liability which it may have to an indemnified party or any officer, director or controlling person of such indemnified party and shall survive other than with respect to the Transfer of any Registrable Securities by any Holdermatters referred to in this Section 5.6.

Appears in 1 contract

Sources: Class B Warrant Agreement (Soy Environmental Products Inc)

Indemnification; Contribution. (a) The Company shall, agrees to the fullest extent permitted by law, indemnify and hold harmless harmless (i) each Holder of Registrable Securities, covered by any Registration Statement, (ii) each other Person who is participates as an underwriter in the offering or might be deemed to be a “controlling sale of such securities, (iii) each person” of the Company or any of its subsidiaries , if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls Act) any such Holder or Controlling Person underwriter (each any of the foregoingpersons referred to in this clause (iii) being hereinafter referred to as a ("controlling person") and (iv) the respective officers, a “Covered directors, partners, employees, representatives and agents of any such Holder or underwriter or any controlling person (any person referred to in clause (i), (ii), (iii) or (iv) may hereinafter be referred to as an "indemnified Person”) "), to the fullest extent lawful from and against any and all losses, claims, actions, damages, liabilities and liabilities, judgments or expenses, joint or severalseveral (or actions or proceedings, whether commenced or threatened, in respect thereof) (collectively, "Claims"), to which such Covered indemnified Person may become subject under either Section 15 of the Securities Act, Act or Section 20 of the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise Claims wise out of or are based upon (i) upon, or are caused by any untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus Statement or Prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to thereto), or any document incorporated by reference in the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading misleading, or (iii) any violation or alleged a violation by the Company of the Securities Act or any other similar federal or state securities laws law, or any rule or regulation promulgated under such federal the Securities Act or any state securities laws law, or any other law applicable to the Company and relating to any action such registration or inaction required of the Company in connection with any registration of securities. In additionqualification, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, except insofar as such losses, claims, actions, damages, liabilities liabilities, judgments or expenses arise out of any such indemnified Person; (x) are caused by any such untrue statement or are based upon (i) any untrue omission or alleged untrue statement or omission that is based upon information relating to such indemnified Person furnished in writing to the Company by or on behalf of a material fact contained in any of such indemnified Person expressly for use therein; (y) with respect to the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under result from the fact that such Holder sold Securities Act to a person to whom there was not sent or any successor rule to Rule 405) given, at or any amendment of or supplement prior to the same or (ii) any omission or alleged omission written confirmation of such sale, a material fact required to be stated in such Registration Statement, copy of the Prospectus, preliminary Prospectus as amended or free writing prospectus 17 supplemented, if the Company shall have previously furnished copies hereof to such Holder in accordance with this Agreement and said Prospectus, as amended or necessary to make the statements made in the same not misleadingsupplemented, but, in the case of each of clauses (i) and (ii), only to the extent that would have corrected such untrue statement or alleged untrue statementomission; or (z) as a result of the use by an indemnified Person of any Prospectus when, upon receipt of a Black Out Notice or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to a notice from the Company of the existence of any fact of the kind described in Section 2.4(b)(iv), the indemnified Person or the related Holder was not permitted to do so. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified Person and shall survive the transfer of such securities by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectusH▇▇▇▇▇. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and case any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) action shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement brought or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of asserted against any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim indemnified Persons with respect to which it seeks indemnification. Notwithstanding indemnity may be sought against the previous sentenceCompany, any failure or delay to so such indemnified Person shall promptly notify the indemnifying party Company and the Company shall not relieve assume the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an defense thereof Such indemnified party, the indemnifying party shall be entitled to participate in and Person shall have the right, exercisable by giving written notice night to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of employ separate counsel in any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled action and to participate in the defense of such claim or action, with counsel of its own choicethereof, but the indemnifying party fees and expenses of such counsel shall not be obligated to reimburse at the expense of the indemnified party for any fees, costs and expenses subsequently incurred Person unless (i) the employment of such counsel shall have been specifically authorized in writing by the indemnified party in connection with such defense unless Company, (Aii) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has Company shall have failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to and employ counsel reasonably acceptable or (iii) the named parties to any such action (including any implied parties) include both the indemnified party or to pursue Person and the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent Company and the indemnified party would present such Person shall-have been advised in writing by its counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject Company (in which case the Company shall not have the right to assume the foregoing sentencedefense of such action on behalf of the indemnified Person), no indemnifying party shallit being understood, however, that the Company shall not, in connection with any one claim or such action or separate but substantially similar or related actions in the same jurisdiction or proceedings arising out of the same general circumstances allegations or allegationscircumstances, be liable for the fees, costs reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for all the indemnified partiesPersons, which firm shall be (x) designated by such indemnified Persons and (y) reasonably satisfactory to the Company. The indemnifying party Company shall not have be liable for any settlement of any such action or proceeding effected without the right Company's prior written consent, which consent shall not be withheld unreasonably, and the Company agrees to settle a claim or action for which indemnify and hold harmless any indemnified party is entitled to indemnification pursuant to this Agreement without Person from and against any loss, claim, damage, liability, judgment or expense by reason of any settlement of any action effected with the written consent of the Company. The Company shall not, without the prior written consent of each indemnified partyPerson, The indemnifying party shall not settle or compromise or consent to the entry of judgment on or otherwise seek to terminate any judgment 18 pending or enter into threatened action claim, litigation or agree proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not any indemnified Person is a party thereto), unless such settlement, compromise, consent or termination includes an unconditional release of each indemnified Person from all liability arising out of such action, claim litigation or proceeding. (b) Each Holder of Restricted Securities covered by any Registration Statement agrees, severally and not jointly, to indemnify and hold harmless the Company and its directors, officers and any settlement person controlling (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Company, and the respective officers, directors, partners, employees, representatives and agents of each person, to the same extent as the foregoing indemnity from the Company to each of the indemnified Persons, but only (i) with respect to actions based on information relating to such claim Holder furnished in writing by or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term behalf of such judgment Holder expressly for use in any Registration Statement or settlement Prospectus, and (ii) to the giving extent of the gross proceeds, if any, received by such Purchaser from the claimant sale or plaintiff in other disposition of his or its Restricted Securities covered by such judgment Registration Statement. In case any action or settlement to proceeding shall be brought against the Company or its directors or officers or any such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability controlling person in respect of which indemnity may be sought against a Holder of Restricted Securities covered by any Registration Statement, such claim or action. The indemnifying party Holder shall have the rights and duties given the Company in Section 2.8(a) (except that the Holder may but shall not be liable under this Agreement for any amount paid required to assume the defense thereof), and the Company or payable its directors or incurred pursuant officers or such controlling person shall have the rights and duties given to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayedeach Holder by Section 2.8(a). (dc) If the indemnification provided for in this Section 11 2.8 is held by a court of competent jurisdiction unavailable to be unavailable to, or unenforceable by, an indemnified party under Section 2.7(a) or (b) (other than by reason of exceptions provided in those Sections) in respect of any losslosses, claimclaims, actiondamages, damageliabilities, liability judgments or expense expenses referred to in this Section 11therein, then the each applicable indemnifying partyparty (in the case of the Holders severally and not jointly), in lieu of indemnifying such indemnified party under this Agreementparty, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims damages, actionliabilities, damage, liability or expense judgments of expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company on the one hand and the indemnifying party. If Holder on the other hand from sale of Restricted Securities or (ii) if such allocation provided by the preceding sentence clause (i) above is not permitted by applicable law, the indemnifying party shall contribute to such amount in such 19 proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence clause (i) above but also the relative fault of the indemnified party Company and such Holder in connection with the indemnifying partystatements or omissions which resulted in such losses, claims, damages, liabilities, judgments or expenses, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, Company on the one hand, hand and of the indemnified party, such Holder on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party Company or by such H▇▇▇▇▇ and the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ parties relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties amount paid to a party as a result of the losses, claims, damages, liabilities judgments and expenses referred to above shall be deemed to include, subject to the limitations set forth in the second paragraph of Section 2.8(a), any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any action or claim. The Company and each Holder of Restricted Securities covered by any Registration Statement agree that it would not be just and equitable if contribution pursuant to this Agreement Section 2.8(c) were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method or of allocation that which does not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 11(d). In 2.8(c) no event Holder (and none of its related indemnified Persons) shall be required to contribute, in the aggregate, any amount in excess of the amount by which a Holder the dollar amount of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in upon the sale of Registrable the Restricted Securities that gives rise exceeds the amount of any damages which such Holder has otherwise been required to pay by reason of such obligation to contributeuntrue statement or omission or alleged omission. No indemnified party person guilty or liable of fraudulent misrepresentation misrepresentations (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. (e) . The indemnity and contribution provisions of contained in this Section 11 shall remain 2.8 are in full force and effect regardless of addition to any investigation made by or on behalf of any liability which the indemnifying person may otherwise have to the indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.persons referred to above. 20

Appears in 1 contract

Sources: Registration Rights Agreement (Environmental Remediation Holding Corp)

Indemnification; Contribution. (a) The Company In the event any Registrable Shares are included in a Shelf Registration Statement contemplated by this Agreement, Parent shall, to the fullest extent permitted by lawand it hereby agrees to, indemnify and hold harmless each Holder of Registrable Securitiesharmless, any Person who is or might be deemed cause to be a “controlling person” of the Company or any of indemnified and held harmless, Investor and its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board membersofficers, directors, officers, trustees, managers, memberspartners, employees, agents, Affiliates representatives, trustees and shareholders, and each other Personcontrolling Persons, if any, who acts on behalf of in any offering or controls any such Holder or Controlling Person (each sale of the foregoingRegistrable Shares, a “Covered Person”) against any losses, claims, actionsdamages or liabilities in respect thereof and expenses (including reasonable fees and expenses of counsel) or Actions in respect thereof (collectively, damages, liabilities and expenses, joint or several“Claims”), to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such losses, claims, actions, damages, liabilities or expenses Claims (including any amounts paid in settlement effected with the consent of Parent as provided herein) arise out of or are based upon (i) any untrue or alleged an untrue statement of a material fact contained in or incorporated by reference in any Shelf Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement to thereto, or any document incorporated by reference in the sametherein, (ii) or arise out of or are based upon any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein, in the same not misleading or (iii) any violation or alleged violation by the Company light of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company circumstances in connection with any registration of securities. In additionwhich they were made, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigatingnot misleading; provided, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company that Parent shall not be so liable to Investor (or its officers, directors, managers, partners, employees, agents, representatives, trustees and controlling Persons, if any) in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon an untrue statement or omission made in such Shelf Registration Statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Investor Information furnished to Parent in writing by Investor or on behalf of Investor by any Representative of Investor, expressly for use therein, that is the subject of the untrue statement or omission. 115787666v1 (ib) In the event any untrue Registrable Shares are included in a Shelf Registration Statement contemplated by this Agreement, Investor shall, and hereby agrees to indemnify and hold harmless Parent and its officers, directors, managers, employees, agents, representatives and controlling Persons, if any, in any offering or alleged sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or Actions in respect thereof, arise out of or are based upon an untrue statement of a material fact contained in the any Shelf Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or supplement to the same or (ii) are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, but, in the each case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is was made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, upon and in conformity with, written information prepared and with the Required Investor Information furnished to the Company Parent in writing by such Holder Investor or its Representative expressly for use in such Registration Statementtherein that is the subject of the untrue statement or omission; provided, Prospectushowever, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse that the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) liability of Investor hereunder shall be individual and several, not joint and several, for each participating Holder and shall be proportional limited to and shall not exceed an amount equal to the dollar amount of the net proceeds (after deducting Selling Expenses) actually received by such Holder in Investor from the sale of Registrable Securities Shares sold by Investor pursuant to which such Shelf Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haverelated prospectus. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of Investor and Parent agree that if, for any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partyreason, the indemnifying party shall be entitled to participate in and shall have the right, exercisable indemnification provisions contemplated by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim Section 2.7(a) or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (ASection 2.7(b) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant unavailable to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented are insufficient to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the such indemnifying party or by the such indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission. If, omission however, the allocation in the first sentence of this Section 2.7(c) is not permitted by applicable Law, then each indemnifying party shall contribute to the amount paid or violationpayable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Agreement Section 2.7(c) were to be determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the preceding sentences of this Section 11(d2.7(c). In no event The amount paid or payable by an indemnified party as a result of the Claims referred to above shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal include (subject to the net proceeds (after deducting Selling Expenseslimitations set forth in Section 2.8) actually received any legal or other out-of-pocket fees or expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise to connection with investigating or defending any such obligation to contributeAction. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. Notwithstanding the foregoing, Investor shall not be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by Investor from the sale of Registrable Shares sold by Investor pursuant to such Shelf 115787666v1 Registration Statement or related prospectus, minus (ii) any amounts paid or payable by Investor pursuant to Section 2.7(b) (except in the case of fraud or willful misconduct by Investor). (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 1 contract

Sources: Registration Rights Agreement (Repay Holdings Corp)

Indemnification; Contribution. (a) The Company Issuer of the securities to be registered in the relevant registration shall, to the fullest extent permitted by lawand it hereby agrees to, indemnify and hold harmless DoCoMo and its respective directors, officers, employees and controlling Persons, if any, and each Holder of Registrable Securitiesunderwriter, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates employees and shareholders, and each other Personcontrolling Persons, if any, who acts on behalf of in any offering or controls any such Holder or Controlling Person (each sale of the foregoingRegistrable Securities, a “Covered Person”) against any losses, claims, actionsdamages or liabilities, damagesactions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable fees of counsel) (collectively, liabilities and expenses, joint or several, "Claims") to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such lossesClaims (including any amounts paid in settlement effected with the consent of the Issuer as provided herein), claimsor actions or proceedings in respect thereof, actions, damages, liabilities or expenses arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statementregistration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement to thereto, or any document incorporated by reference in the sametherein, (ii) or arise out of or are based upon any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein, in the same not misleading or (iii) any violation or alleged violation by the Company light of the Securities Act circumstances in which they were made, not misleading, and the Issuer shall, and it hereby agrees to, reimburse periodically DoCoMo or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person underwriter for any legal or other out-of-pocket expenses reasonably incurred by such Covered Person them in connection with investigating, investigating or defending or settling any such lossClaims; provided, claimhowever, action, damage or liability. Notwithstanding that the previous sentence, the Company Issuer shall not be so liable to any such Person in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, (i) in reliance upon and in conformity with information furnished to the Issuer by DoCoMo or any underwriter or representative of DoCoMo expressly for use therein, or by DoCoMo's failure to furnish the Issuer, upon request, with the information with respect to DoCoMo, or any underwriter or representative of DoCoMo, or DoCoMo's intended method of distribution, that is the subject of the untrue statement or omission or (ii) if the Issuer shall sustain the burden of proving that DoCoMo or such underwriter sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable prospectus (excluding any documents incorporated by reference therein) or of the applicable prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Issuer had previously furnished copies thereof to DoCoMo or such underwriter, and such prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement. (b) DoCoMo shall, and hereby agrees to (i) indemnify and hold harmless AT&T, with respect to the registration of Current Wireless Tracking Stock, or AT&T Wireless, with respect to the registration of AT&T Wireless Common Stock, its directors, officers, employees and controlling Persons, if any, and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any offering or sale of Registrable Securities, against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of DoCoMo as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Registration Statementsuch registration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or supplement to the same or (ii) are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, but, in the each case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, upon and in conformity with, with written information prepared and furnished to AT&T or AT&T Wireless, as the Company case may be, by such Holder DoCoMo expressly for use in such Registration Statementtherein, Prospectusand (ii) periodically reimburse AT&T or AT&T Wireless, preliminary Prospectus or free writing prospectus. In additionas the case may be, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other out-of-pocket expenses reasonably incurred by them AT&T or AT&T Wireless, as the case may be, in connection with investigating, investigating or defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveClaim. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt Promptly after receipt by an indemnified party under Section 7.6(a) or Section 7.6(b) of written notice to of the commencement of any action or proceeding for which indemnification under Section 7.6(a) or Section 7.6(b) may be requested, such indemnified party shall notify such indemnifying party in writing of any claim with respect the commencement of such action or proceeding; but the omission so to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party in respect of such action or proceeding hereunder unless the indemnifying party was materially prejudiced by such failure of its obligations under this Agreementthe indemnified party to give such notice, except to the extent that and in no event shall such omission relieve the indemnifying party is actually and materially prejudiced by reason of from any other liability it may have to such failure or delayindemnified party. In case a claim any such action or an action that is subject or potentially subject to indemnification pursuant to this Agreement is proceeding shall be brought against any indemnified party and it shall notify an indemnified partyindemnifying party of the commencement thereof, the such indemnifying party shall be entitled to participate in and shall have the righttherein and, exercisable by giving written notice to the extent that it shall determine, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party as promptly as practicable of its election so to assume the defense thereof, such indemnifying party shall not be liable to such indemnified party for any legal or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, that (i) if the indemnifying party fails to take reasonable steps necessary to defend diligently the action or proceeding within 20 days after receipt of written receiving notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to that the indemnified party. Notwithstanding the previous sentence, any party believes it has failed to do so; (ii) if such indemnified party shall continue to be entitled to participate who is a defendant in the defense of such claim any action or action, with counsel of its own choice, but proceeding that is also brought against the indemnifying party reasonably shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably have concluded that there may be one or more legal or equitable defenses available to it and/or other any other such indemnified party which that are different from or additional to those not available to the indemnifying party. Subject ; or (iii) if representation of both parties by the same counsel is otherwise inappropriate under applicable standards of professional conduct, then, in any such case, the indemnified party shall have the right to assume or continue its own defense as set forth above (but with no more than one firm of counsel for all indemnified parties in each jurisdiction) and the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, shall be liable for any expenses therefor (including, without limitation, any such reasonable counsel's fees). If the feesindemnifying party is not entitled to, costs or elects not to, assume the defense of a claim, it will not be obligated to pay the fees and expenses of more than one firm of attorneys counsel (in addition to any and one local counselcounsel per jurisdiction) for all each indemnified partiesparty with respect to such claim. The indemnifying party will not be subject to any liability for any settlement made without its consent, which consent shall not have the right to settle a claim be unreasonably withheld or action for which any indemnified delayed. No indemnifying party is entitled to indemnification pursuant to this Agreement shall, without the prior written consent of the indemnified party, The indemnifying party shall not compromise or consent to the entry of any judgment or enter into or agree any settlement agreement with respect to any settlement relating to such claim action or action proceeding in respect of which indemnification is sought under Section 7.6(a) or Section 7.6(b) (whether or not the indemnified party is an actual or potential party thereto), unless such judgment compromise, consent or settlement does not impose any admission includes an unconditional release of wrongdoing or ongoing obligations on any the indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall litigation, does not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with subject the consent of an indemnified party unless to any material injunctive relief or other material equitable remedy and does not include a statement or admission of fault, culpability or a failure to act, by or on behalf of the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed)indemnified party. (d) If DoCoMo, AT&T and AT&T Wireless agree that if, for any reason, the indemnification provided for in this Section 11 is held provisions contemplated by a court of competent jurisdiction Sections 7.6(a) or 7.6(b) hereof are unavailable to be unavailable to, or unenforceable by, are insufficient to hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable lawfault of, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, with respect to such offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the such indemnifying party or by the such indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission. If, omission however, the allocation in the second preceding sentence is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or violationpayable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Agreement Section 7.6(d) were to be determined by pro rata allocation or by any other method or of allocation that does not take into account the equitable considerations referred to in the preceding sentences of this Section 11(d7.6(d). In no event The amount paid or payable by an indemnified party as a result of the Claims referred to above shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal include (subject to the net proceeds (after deducting Selling Expenseslimitations set forth in Section 7.6(c) actually received hereof) any legal or other fees or expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise to connection with investigating or defending any such obligation to contributeaction, proceeding or claim. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act or any successor provision thereof) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 1 contract

Sources: Investor Agreement (At&t Wireless Services Inc)

Indemnification; Contribution. (a) The Company shall, to To the fullest extent permitted by law, the Company will indemnify the Investor, each of its officers, directors, members and hold harmless partners, and each Holder of Registrable Securitiesperson controlling such Investor, any Person who is with respect to which registration, qualification or might be deemed compliance has been effected pursuant to be a “this Agreement, each director and controlling person” person of the Company or any of its subsidiaries within the meaning of Section 15 and each officer of the Securities Act or Section 20 of Company who signed the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholdersregistration statement, and each other Personunderwriter, if any, and each person who acts on behalf of or controls any underwriter, against all claims, losses, damages and liabilities (or actions, proceedings or settlements, if such Holder or Controlling Person (each settlements are effected with the written consent of the foregoingCompany, a “Covered Person”in respect thereof) against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which such Covered Person may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise arising out of or are based upon (i) on any untrue statement (or alleged untrue statement statement) of a material fact contained in any prospectus, offering circular or incorporated by reference in other document (including any Registration Statementrelated registration statement, Prospectusnotification of the like) incident to any such registration, preliminary Prospectusqualification or compliance, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to or any document incorporated by reference in the same, omission (ii) any omission or alleged omission of omission) to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus sated therein or necessary to make the statements made in the same therein not misleading misleading, or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws the Exchange Act or any rule or regulation promulgated under such federal or state securities laws thereunder applicable to the Company and relating to any action or inaction required of the Company in connection with any registration such registration, qualification or compliance, and will reimburse the Investor, each of securities. In additionits officers, the Company shall reimburse directors, members and partners, and each Covered Person person controlling such Investor, each such director, controlling person and officer, each such underwriter and each person who controls any such underwriter, for any legal or and any other expenses reasonably incurred by such Covered Person in connection with investigating, investigating and defending or settling any such claim, loss, claimdamage, actionliability, damage action or liability. Notwithstanding the previous sentenceproceeding; provided, however, that the Company shall will not be so liable in any such case to the extent that any loss, such claim, actionloss, damage, liability or expense arises out of or is based upon on any such untrue statement or alleged untrue omission made in such registration statement, prospectus, offering circular or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any other document incorporated by reference in the same in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by such Covered Person expressly Investor or underwriter and stated to be specifically for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise havetherein. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to To the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, the Investor will indemnify and hold harmless the Company, its directors each director, officer and officerscontrolling person of the Company and each officer of the Company who signed the registration statement, employeesand each underwriter, agents if any, and each person who controls any Person who is or might be deemed to be a Controlling Person underwriter, against any all claims, losses, claims, damages and liabilities (or actions, damagesproceedings or settlements, liabilities and expensesif such settlements are effected with the written consent of the Investor, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise in respect thereof) arising out of or are based upon (i) on any untrue statement (or alleged untrue statement statement) of a material fact contained in any prospectus, offering circular or other document in which the Registration StatementInvestor's shares are included (including any related registration statement, Prospectusnotification of the like) incident to any such registration, preliminary Prospectusqualification or compliance, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or omission (ii) any omission or alleged omission of omission) to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein not misleading in the same not misleading, but, in the each case of each of clauses (i) and (ii), only to the extent that any such claim, loss, damage, liability or expense arises out of or is based on any untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statementregistration statement, Prospectusprospectus, preliminary Prospectus, free writing prospectus offering circular or any amendment or supplement to the same other document in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by such Holder expressly Investor and stated to be specifically for use therein, or any violation by the Investor of the Securities Act or the Exchange Act or any rule or regulation thereunder applicable to the Investor and relating to action or inaction required of the Investor in connection with any such Registration Statementregistration, Prospectusqualification or compliance, preliminary Prospectus or free writing prospectus. In addition, such Holder shall and will reimburse the Company, each of its directors and officers, employeesdirectors, agents and each person controlling the Company, each such underwriter and each person who controls any Person who is or might be deemed to be a Controlling Person such underwriter, for any legal or and any other expenses reasonably incurred by them in connection with investigating, investigating and defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveproceeding. (c) Any Person The party entitled to indemnification pursuant to under this Agreement Section 3 (the "Indemnified Party") shall give prompt written notice to the indemnifying party required to provide indemnification (the "Indemnifying Party") promptly after such Indemnified Party has actual knowledge of any claim with respect as to which it seeks indemnification. Notwithstanding indemnity may be sought, and shall permit the previous sentenceIndemnifying Party to assume the defense of any such claim or any litigation resulting therefrom, provided that counsel for the Indemnifying Party, who shall conduct the defense of such claim or any litigation resulting therefrom, shall be approved by the Indemnified Party (whose approval shall not unreasonably be withheld), and the Indemnified Party may participate in such defense at such party's expense, and provided further that the failure or delay of any Indemnified Party to so notify the indemnifying party give notice as provided herein shall not relieve the indemnifying party Indemnifying Party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of unless such failure or delayto notify materially adversely affects the Indemnifying Party's ability to defend such action. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partyNo Indemnifying Party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or actionlitigation, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection except with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified partyeach Indemnified Party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement which does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes include as an unconditional term of such judgment or settlement thereof the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, Indemnified Party of a full and final release from all liability in respect of such claim or actionlitigation. The indemnifying party Each Indemnified Party shall not furnish such information regarding itself or the claim in question as an Indemnifying Party may reasonably request in writing and as shall be liable under this Agreement for any amount paid or payable or incurred pursuant to or reasonably required in connection with any judgment entered or settlement effected with the consent defense of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed)claim and litigation resulting therefrom. (d) If the indemnification provided for in this Section 11 is held 3 shall for any reason be unenforceable by a court of competent jurisdiction to be unavailable toan Indemnified Party, or unenforceable by, an indemnified party although otherwise available in respect of any loss, claim, action, damage, liability or expense referred to in this Section 11accordance with its terms, then the applicable indemnifying partyeach Indemnifying Party shall, in lieu of indemnifying such indemnified party under this AgreementIndemnified Party, shall contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of the losses, claims, damages, liabilities or expenses with respect to which such lossIndemnified Party has claimed indemnification, claim, action, damage, liability or expense in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party Indemnified Party on the one hand and the indemnifying partyIndemnifying Party on the other in connection with the statement or omissions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative fault fault, in the case of the indemnifying partyan untrue statement, on the one handalleged untrue statement, and of the indemnified party, on the other handomission or alleged omission, shall be determined by reference toby, among other things, whether the untrue or such statement, alleged untrue statement of a material fact or the statement, omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party Indemnifying Party or the indemnified party. The relative fault shall also be determined by reference to the Indemnified Party, and such parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement, alleged statement, omission or violationalleged omission. The parties Company and Investor agree that it would not be just and equitable if contribution pursuant hereto were to this Agreement were be determined by pro rata allocation or by any other method or of allocation that which does not take into account such equitable consideration. The amount paid or payable by an Indemnified Party as a result of the equitable considerations losses, claims, damages, liabilities or expenses referred to herein shall be deemed to include any legal or other expense reasonably incurred by such Indemnified Party in this Section 11(d)connection with investigating or defending against any action or claim which is the subject hereof. In no event case, however, shall Investor be responsible for a portion of the amount which a Holder contribution obligation in excess of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contributeInvestor of securities sold as contemplated herein. No indemnified party person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(fSection11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was is not guilty of such fraudulent misrepresentation. (e) The provisions of Anything to the contrary contained in this Section 11 3 notwithstanding, no Investor shall remain be liable for any indemnification or contribution in full force and effect regardless excess of the net proceeds received by it from any investigation made by or on behalf sale of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any HolderStock which has been registered hereunder.

Appears in 1 contract

Sources: Preferred Stock Purchase Agreement (Medi Ject Corp /Mn/)

Indemnification; Contribution. (a) The In the case of each offering of Registrable Shares made pursuant to this Article III, the Company shall, to the fullest extent permitted by applicable law, indemnify and hold harmless each Selling Holder of Registrable Securitiesand its directors and officers and each Person, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries if any, that controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each Act) such Person, a “Controlling Person”), their respective direct Selling Holder from and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any and all losses, claims, actionsdamages or liabilities, damagesactions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable and documented fees of counsel) (collectively, liabilities and expenses, joint or several, “Claims”) to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such losses, claims, actions, damages, liabilities or expenses Claims (including any amounts paid in settlement reached in accordance with the requirements for consent as provided herein) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement to thereto, or any document incorporated by reference in the sametherein, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein (in the same case of any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), in the light of the circumstances under which they were made) not misleading or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company law in connection with any registration of securities. In additionsuch offering; provided, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigatinghowever, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, that the Company shall not be so liable to any such indemnified party in any such case to the extent that any loss, claim, action, damage, liability or expense arises such Claims arise out of or is are based upon any such an untrue statement or alleged untrue statement, statement contained in or omission or alleged omission, made or incorporated by reference in any omission from such Registration Statement, Prospectusor preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same thereto, in reliance upon, upon and in conformity with, written with information prepared and furnished in writing to the Company by such Covered Person Selling Holder or any Representative of such Selling Holder expressly for use in such Registration Statementtherein; provided, further, that that the foregoing indemnity agreement, with respect to any Prospectus or Free Writing Prospectus, shall not inure to the benefit of any such indemnified party if the Person asserting any Claims against such indemnified party purchased Shareholder Shares and (x) prior to the time of sale of the Shareholder Shares to such Person (the “Time of Sale”), the Company shall have notified such Selling Holder that the Prospectus or Free Writing Prospectus (as it existed prior to the Time of Sale) contains an untrue statement of material fact or omits to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, (y) such untrue statement or omission of a material fact was corrected in a Prospectus or Free Writing Prospectus, and such corrected Prospectus or Free Writing Prospectus was provided to such Selling Holder in advance of the Time of Sale, and (z) such corrected preliminary Prospectus or free writing prospectusFree Writing Prospectus was not conveyed to such Person at or prior to the Time of Sale. This indemnity shall be in addition In connection with any underwritten offering of Registrable Shares made pursuant to any liability this Article III, the Company may otherwise haveshall indemnify and hold harmless each underwriter, the officers and directors of such underwriter and each Person, if any, that controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) such underwriter to substantially the same extent as provided above with respect to the indemnification of each Selling Holder by the Company. (b) In connection with any registration in which a Holder the case of each offering of Registrable Securities is participatingShares made pursuant to this Article III, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Selling Holder shall, to the fullest extent permitted by applicable law, indemnify and hold harmless the Company, Company and its directors and officersofficers and each Person, employeesif any, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any that controls (within the meaning of them may become subject under Section 15 of the Securities Act, Act or Section 20 of the Exchange Act, ) the Company from and against any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwiseClaims to which each such indemnified party may become subject, insofar as such losses, claims, actions, damages, liabilities or expenses Claims (including any amounts paid in settlement reached in accordance with the requirements for consent as provided herein) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in the any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or supplement to the same or (ii) are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same not misleading, but, therein (in the case of each of clauses any preliminary or final Prospectus (i) and (iiincluding any Free Writing Prospectus incorporated into such Registration Statement), in the light of the circumstances under which they were made) not misleading, in each case only to the extent that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, upon and in conformity with, written with information prepared and furnished in writing to the Company by such Selling Holder or any Representative of such Selling Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liabilitytherein. The obligation to indemnify pursuant to liability of any Selling Holder under the foregoing provisions of this Section 11(b3.8(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional limited to and shall not exceed an amount equal to the dollar amount of the net proceeds (after deducting Selling Expenses) actually received by such Selling Holder in the sale of Registrable Securities from Shareholder Shares sold by such Selling Holder pursuant to which such Registration Statement or Prospectus relatesProspectus. The indemnity agreement contained in In connection with any underwritten offering of Registrable Shares made pursuant to this Section 11(b) Article III, the Company shall not apply to amounts paid in settlement of any such lossindemnify and hold harmless each underwriter, claim, damage, liability, action or proceeding if such settlement is effected without the consent officers and directors of such Holder. The Company underwriter and each Person, if any, that controls (within the Holders meaning of Section 15 of the Registrable Securities hereby acknowledge Act or Section 20 of the Exchange Act) such underwriter and agree thatany other selling securityholder in such offering (and, unless otherwise expressly agreed in the case of each such other selling securityholder, such selling securityholder’s officers and directors and each Person, if any, that controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) such selling securityholder), to in writing by such Holders, substantially the only information furnished or to be furnished same extent as provided above with respect to the indemnification of the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveeach Selling Holder. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of If, for any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partyreason, the indemnifying party shall be entitled to participate in and shall have the right, exercisable indemnification provisions contemplated by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim Section 3.8(a) or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (ASection 3.8(b) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant unavailable to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented are insufficient to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in therein other than by the terms of this Section 113.8, then the applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, each Indemnifying Party shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying partyIndemnifying Party, on the one hand, and of the indemnified party, on the other hand, with respect to statements or omissions that that resulted in such Claims. The relative fault of such Indemnifying Party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party such Indemnifying Party or by the such indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission. If, omission however, the allocation in the first sentence of this Section 3.8(c) is not permitted by applicable law, then each Indemnifying Party shall contribute to the amount paid or violationpayable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the Indemnifying Party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Agreement Section 3.8(c) were to be determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the preceding sentences of this Section 11(d3.8(c). In no event The amount paid or payable by an indemnified party as a result of the Claims referred to above shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal include (subject to the net proceeds (after deducting Selling Expenseslimitations set forth in Section 3.9) actually received any reasonable and documented legal or other fees or out-of-pocket expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise to connection with investigating or defending any such obligation to contributeaction, proceeding or claim. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. Notwithstanding the foregoing, the Shareholder shall not be liable to contribute any amount in excess of the dollar amount of the net proceeds received by the Shareholder from Shareholder Shares sold by the Shareholder pursuant to such Registration Statement or Prospectus. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 1 contract

Sources: Combination Agreement (CF Industries Holdings, Inc.)

Indemnification; Contribution. (a) The Company shallwill indemnify, to the fullest extent permitted by lawLaw, indemnify and hold harmless each Holder of Registrable SecuritiesHolder, any Person who is or might be deemed to be a “controlling person” of the Company or any each of its subsidiaries officers, directors, employees, partners (and the partners thereof, collectively, "Partners"), agents, affiliates and advisors and each person controlling such Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholdersAct, and each other Personunderwriter, if any, and each person who acts on behalf of or controls any such Holder or Controlling Person (each underwriter within the meaning of the foregoing, a “Covered Person”) against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which such Covered Person may become subject under Section 15 of the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such lossesagainst all expenses, claims, actionslosses, damagesdamages or liabilities (or actions in respect thereof), liabilities including any of the foregoing incurred in settlement of any Litigation, commenced or expenses arise threatened, arising out of or are based upon on (i) any untrue statement (or alleged untrue statement statement) of a material fact contained in or incorporated by reference in any Registration Statementregistration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act including any summary prospectus or any successor rule to Rule 405) preliminary prospectus), offering circular or other document, or any amendment or supplement thereto, incident to or any document incorporated by reference in the samesuch registration, (ii) any omission (or alleged omission of omission) to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein, in light of the same circumstances in which they were made, not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws Law applicable to the Company and or relating to any action required of or inaction required of by the Company in connection with any registration of securities. In additionsuch registration, and the Company shall will reimburse each Covered Person such Holder and each other person entitled to be indemnified under this Section 8(a) for any legal or and any other expenses reasonably incurred by such Covered Person in connection with investigating, preparing or defending or settling any such claim, loss, claimdamage, liability or action, damage or liability. Notwithstanding the previous sentence, ; provided that the Company shall will not be so liable in any such case to the extent that any loss, such claim, actionloss, damage, liability or expense arises out of or is based upon on any such untrue statement or alleged untrue statement, or omission or alleged untrue statement or omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by an instrument duly executed by such Covered Person expressly Holder, controlling person or underwriter and stated to be specifically for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise havetherein. (b) In connection with any registration in which a Each Holder of will, if Registrable Securities is participating, each held by such Holder shall furnish are included in the securities as to the Company in writing which such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by lawregistration is being effected, indemnify and hold harmless the Company, each of its directors and officers, employeeseach underwriter, agents and any Person if any, of the Company's securities covered by such a registration statement, each person who is controls the Company or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any such underwriter within the meaning of them may become subject under Section 15 of the Securities Act, and each other Holder, each of its officers, directors, employees, Partners, agents, affiliates and advisors and each person controlling such Holder within the Exchange meaning of Section 15 of the Securities Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such lossesagainst all expenses, claims, actionslosses, damages, damages and liabilities (or expenses arise actions in respect thereof) arising out of or are based upon (i) on any untrue statement (or alleged untrue statement statement) of a material fact contained in the Registration Statementany such registration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act including any summary prospectus or any successor rule to Rule 405) preliminary prospectus), offering circular or other document, or any amendment of or supplement to the same thereto, or (ii) any omission (or alleged omission of omission) to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein, in light of the same circumstances in which they were made, not misleading, but, in and will reimburse the case of Company and each of clauses (i) and (iiother person entitled to be indemnified under this Section 8(b), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or any other expenses reasonably incurred by them in connection with investigating, investigating or defending or settling any such claim, loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have., (c) Any Person Each party entitled to indemnification pursuant to under this Agreement Section 8 (the "Indemnified Party") (i) shall give prompt written notice to the indemnifying party required to provide indemnification (the "Indemnifying Party") promptly after such Indemnified Party has actual knowledge of any claim with respect as to which it seeks indemnification. Notwithstanding indemnity may be sought and (ii) shall permit the previous sentence, any failure or delay Indemnifying Party to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, assume the defense of any such claim or action, with any Litigation resulting therefrom; provided that counsel reasonably acceptable to for the indemnified party. Notwithstanding the previous sentence, any indemnified party Indemnifying Party who shall continue to be entitled to participate in conduct the defense of such claim or actionLitigation shall be approved by the Indemnified Party (whose approval shall not unreasonably be withheld), with counsel and the Indemnified Party may participate in such defense at such party's expense; provided, further, that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its own choiceobligations under this Section 8 unless the failure to give such notice is materially prejudicial to an Indemnifying Party's ability to defend such action; and provided, but further, that the indemnifying party Indemnifying Party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed for matters as to which the defense of such claim or action, the indemnifying party fails to employ counsel Indemnified Party reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with believes there may be a conflict of interest or (E) separate and different defenses. No Indemnifying Party, in the indemnified party has reasonably concluded that there may be one defense of any such claim or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentenceLitigation, no indemnifying party shall, in connection except with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified partyeach Indemnified Party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement which does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes include as an unconditional term of such judgment or settlement thereof the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, Indemnified Party of a full and final release from all liability in respect of to such claim or actionLitigation or as to which the Indemnified Party has to admit to any fault or culpability. The indemnifying party shall not be liable under this Agreement for No Indemnified Party, in the defense of any amount paid such claim or payable or incurred pursuant to or in connection with any judgment entered or settlement effected Litigation, shall, except with the consent of an indemnified party each Indemnifying Party, consent to entry of any judgment or enter into any settlement unless the indemnifying party has also consented such Indemnified Party does not intend to seek indemnification with respect to such judgment claim or settlement (Litigation against such consent not to be unreasonably withheld, conditioned or delayed)Indemnifying Party hereunder. (d) If the The indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, an indemnified party in respect of any loss, claim, action, damage, liability or expense referred to in this Section 11, then the applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission or violation. The parties agree that it would not be just and equitable if contribution pursuant to this Agreement were determined by pro rata allocation or by any other method or allocation that does not take into account the equitable considerations referred to in this Section 11(d). In no event shall the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party guilty or liable of fraudulent misrepresentation within the meaning of Section 11(f) of the Securities Act shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party the Indemnified Party and shall survive the Transfer of securities. (e) If the indemnification provided for in this Section 8 from the Indemnifying Party is unavailable to an Indemnified Party hereunder in respect of any Registrable Securities losses, claims, damages, liabilities or expenses referred to therein, then the Indemnifying The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 8(e) were determined by pro rata allocation or by any Holderother method of allocation which does not take account of the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 8(e), a Holder shall not be required to contribute any amount in excess of the amount by which the net proceeds received by such Holder in the offering to which such registration statement relates exceeds the amount of any damages that such Holder has otherwise been required to pay. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person. No person shall be obligated to contribute hereunder any amounts in payment for any settlement of any action or claim effected without such person's consent, which consent shall not be unreasonably withheld or delayed.

Appears in 1 contract

Sources: Registration Rights Agreement (Inrange Technologies Corp)

Indemnification; Contribution. (a) The Company shallagrees to indemnify and hold harmless each Holder, the Affiliates, directors, officers, employees, members, managers and agents of each such Holder and each Person who controls any such Holder within the meaning of either the Securities Act or the Exchange Act, to the fullest extent permitted by applicable law, indemnify from and hold harmless each Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any and all losses, claims, actions, damages, liabilities and expenses, joint or several, expenses to which such Covered Person they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities and expenses (or expenses actions in respect thereof) arise out of or are based upon (i) any violation of the Securities Act, Exchange Act or state securities laws, or upon any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement as originally filed or incorporated by reference in any amendment thereof, or the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined or in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment thereof or supplement to thereto, or any document incorporated by reference in arise out of or are based upon the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading or (iii) any violation or alleged violation by the Company light of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated circumstances under such federal or state securities laws applicable which they were made) not misleading, and agrees to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person such indemnified party, as incurred, for any legal or other expenses reasonably incurred by such Covered Person them in connection with investigating, investigating or defending or settling any such loss, claim, actiondamage, damage liability or liability. Notwithstanding action (whether or not the previous sentenceindemnified party is a party to any proceeding); provided, however, that the Company shall will not be so liable in any such case to the extent that any such loss, claim, action, damage, liability or expense arises (i) out of or is based upon any such untrue statement or alleged untrue statement, statement or omission or alleged omission, omission made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same therein in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by or on behalf of any such Covered Person expressly Holder specifically for use in such Registration Statementinclusion therein including, Prospectuswithout limitation, preliminary Prospectus any notice and questionnaire, or free writing prospectus(ii) out of sales of Registrable Securities made during a Blackout Period after notice is given pursuant to the definition thereof. This indemnity shall agreement will be in addition to any liability which the Company may otherwise have. (b) In connection with any registration in which a Each Holder of Registrable Securities is participating, each such Holder shall furnish severally (and not jointly) agrees to indemnify and hold harmless the Company in writing such information as and each of its Affiliates, directors, employees, members, managers and agents and each Person who controls the Company reasonably requests for use in connection with any such Registration Statement within the meaning of either the Securities Act or Prospectus. Each Holder shallthe Exchange Act, to the fullest extent permitted by applicable law, indemnify from and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any and all losses, claims, actions, damages, damages or liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, damages or liabilities or expenses arise out of or are based upon (i) any violation of the Securities Act, Exchange Act or state securities laws, upon any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement as originally filed or in any amendment thereof, or in the Disclosure Package or any Holder Free Writing Prospectus, preliminary, final or summary Prospectus included in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined or in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment thereof or supplement thereto, or arise out of or supplement to are based upon the same or (ii) any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same not misleading, but, therein (in the case of each the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration Statement, in light of clauses (ithe circumstances under which they were made) and (ii)not misleading, to the extent, but only to the extent extent, that any such untrue statement or alleged untrue statement, statement or omission or alleged omission, omission is made contained in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and relating to such Holder furnished to the Company by or on behalf of such Holder expressly specifically for use in such Registration Statementinclusion therein; provided, Prospectushowever, preliminary Prospectus or free writing prospectus. In addition, that the total amount to be indemnified by such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b7(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal limited to the net proceeds (after deducting Selling Expensesunderwriters’ discounts and commissions) actually received by such Holder in the sale of Registrable Securities offering to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled Promptly after receipt by an indemnified party under this Section 7 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to indemnification pursuant be made against the indemnifying party under this Section 7, notify the indemnifying party in writing of the commencement thereof; but the failure so to this Agreement shall give prompt written notice notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent such action and such failure results in material prejudice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify and forfeiture by the indemnifying party shall not of substantial rights and defenses; and (ii) will not, in any event, relieve the indemnifying party of its from any obligations under this Agreement, except to any indemnified party other than the extent that the indemnifying party is actually and materially prejudiced by reason of such failure indemnification obligation provided in paragraph (a) or delay(b) above. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the The indemnifying party shall be entitled to participate in and shall have the righttherein and, exercisable by giving written notice to the extent that it shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and, except as promptly as practicable provided in the next sentence, after receipt of written notice from the indemnifying party to such indemnified party of such claim or action, its election to assume, at the indemnifying party’s expense, so assume the defense of any such claim or actionthereof, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated liable to reimburse the such indemnified party for any legal expenses of other counsel or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. Notwithstanding the indemnifying party’s rights in the prior sentence, the indemnified party shall have the right to employ its own counsel (and one local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, separate counsel if (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (Di) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest interest; (ii) the actual or (E) potential defendants in, or targets of, any such action include both the indemnified party has and the indemnifying party and the indemnified party shall have reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party parties which are different from or additional to those available to the indemnifying party. Subject ; (iii) the indemnifying party shall not have employed counsel satisfactory to the foregoing sentence, no indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of the indemnifying party. No indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The An indemnifying party shall not be liable under this Agreement for Section 7 to any amount paid indemnified party regarding any settlement or payable compromise or incurred pursuant consent to or in connection with the entry of any judgment entered with respect to any pending or settlement effected threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent is consented to by such indemnifying party. No indemnifying party, in the defense of any such claim or litigation, shall, except with the consent of each indemnified party, consent to entry of any judgment or enter into any settlement or compromise unless such settlement or compromise (i) includes an unconditional release of such indemnified party unless from all liability on claims that are the indemnifying party has also consented subject matter of such proceeding and (ii) does not include any statement as to such judgment or settlement (such consent not any admission of fault, culpability or a failure to be unreasonably withheld, conditioned act by or delayed)on behalf of any indemnified party. (d) If In the indemnification event that the indemnity provided for in this Section 11 7(a) or Section 7(b) above is held by a court of competent jurisdiction unavailable to be unavailable to, or unenforceable by, insufficient to hold harmless an indemnified party in respect of for any loss, claim, action, damage, liability or expense referred to in this Section 11reason, then the each applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall agrees to contribute to the amount paid aggregate losses, claims, damages and liabilities (including, without limitation, legal or payable by other expenses reasonably incurred in connection with investigating or defending same) (collectively, “Losses”) to which such indemnified indemnifying party as a result of such loss, claim, action, damage, liability or expense may be subject in such proportion as is appropriate to reflect the relative benefits received by fault of the indemnifying party on the one hand and the indemnified party and on the indemnifying party. If other in connection with the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount statements or omissions which resulted in such proportion as is appropriate to reflect not only the relative benefits referred to losses, claims, damages or liabilities (or actions in the preceding sentence but also the relative fault of the indemnified party and the indemnifying partyrespect thereof), as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by on the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party one hand or the indemnified party. The relative fault shall also be determined by reference to party on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties agree that it would not be just and equitable if contribution pursuant to this Agreement Section 7(d) were determined by pro rata allocation (even if the Holders or any agents or underwriters or all of them were treated as one entity for such purpose) or by any other method or of allocation that does not take into account of the equitable considerations referred to above in this Section 11(d7(d). In no event shall The amount paid or payable by an indemnified party as a result of the amount which a Holder of Registrable Securities may be obligated losses, claims, damages or liabilities (or actions in respect thereof) referred to contribute pursuant to above in this Section 11(d7(d) exceed an amount equal shall be deemed to the net proceeds (after deducting Selling Expenses) actually received include any legal or other expenses reasonably incurred by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 7(d), no Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.such

Appears in 1 contract

Sources: Registration Rights Agreement (Red Lion Hotels CORP)

Indemnification; Contribution. (a) The Company shall, to the fullest extent permitted by lawand it hereby agrees to, indemnify and hold harmless each Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of Participating Investor and its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board membersofficers, directors, officers, trustees, managers, members, employees, agents, Affiliates employees and shareholders, and each other Personcontrolling Persons, if any, who acts on behalf and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any offering or sale of or controls any such Holder or Controlling Person (each of the foregoingRegistrable Shares, a “Covered Person”) against any losses, claims, actions, damages, damages or liabilities and expenses, joint or several, to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such losses, claims, actionsdamages or liabilities, damagesor actions or proceedings in respect thereof, liabilities or expenses including any amounts paid in settlement as provided in this Agreement (collectively, Claims), arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statementregistration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement to thereto, or any document incorporated by reference in the sametherein, (ii) or arise out of or are based upon any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein, in light of the same circumstances in which they were made, not misleading or (iii) any violation or alleged violation by misleading, and the Company of the Securities Act shall, and it hereby agrees to, reimburse each Participating Investor or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person underwriter for any legal or other out-of-pocket expenses reasonably incurred by such Covered Person it in connection with investigating, investigating or defending or settling any such lossClaims; provided, claimhowever, action, damage or liability. Notwithstanding the previous sentence, that the Company shall not be so liable to any such Person in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with written information furnished to the Company by or on behalf of any Participating Investor or any underwriter expressly for use therein; and provided, further, that the Company will not be liable to any Person who participates as an underwriter in the offering or sale of Registrable Securities or any other Person, if any, who controls such underwriter with respect to any preliminary or final prospectus contained therein, or any amendment or supplement thereto, to the extent that any Claim of such underwriter or controlling Person results from the fact that such underwriter sold Registrable Securities to a Person to whom there was not sent or given (ito the extent legally required), at or prior to the written confirmation of such sale, a copy of the final prospectus or of the final prospectus as then amended or supplemented, whichever is most recent, if the Company has previously furnished copies thereof to such underwriter. (b) Each Participating Investor shall, and hereby agrees to (1) indemnify and hold harmless each of the Company, each other Participating Investor and their respective directors, officers, employees and controlling Persons, if any, and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any offering or sale of Registrable Shares, against any Claims to which each such indemnified party may become subject, insofar as such Claims arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Registration Statementsuch registration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or supplement to the same or (ii) are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, but, in the each case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by or on behalf of such Holder Participating Investor expressly for use in such Registration Statementtherein, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall and (2) reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person Company for any legal or other out-of-pocket expenses reasonably incurred by them the Company in connection with investigating, investigating or defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveClaim. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt Promptly after receipt by an indemnified party under Section 6.5(a) or Section 6.5(b) of written notice to of the commencement of any action or proceeding for which indemnification under Section 6.5(a) or Section 6.5(b) may be requested, such indemnified party shall notify the indemnifying party in writing of any claim with respect the commencement of such action or proceeding, but the omission so to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party in respect of such action or proceeding hereunder unless the indemnifying party was materially prejudiced by such failure of its obligations under this Agreementthe indemnified party to give such notice, except to the extent that and in no event shall such omission relieve the indemnifying party is actually and materially prejudiced by reason of from any other 1iability it may have to such failure or delayindemnified party. In case a claim any such action or an action that is subject or potentially subject to indemnification pursuant to this Agreement is proceeding shall be brought against any indemnified party and it shall notify an indemnified partyindemnifying party of the commencement thereof, the such indemnifying party shall be entitled to participate in and shall have the righttherein and, exercisable by giving written notice to the extent that it shall determine, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party as promptly as practicable party, and, after receipt of written notice from the indemnifying party to such indemnified party of such claim or action, its election so to assume, at the indemnifying party’s expense, assume the defense of any thereof, such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated liable to reimburse the such indemnified party for any fees, costs and legal or any other expenses subsequently incurred by the such indemnified party in connection with such the defense unless (A) thereof other than reasonable costs of investigation. If there exists or is reasonably likely to exist a conflict of interest that would make it inappropriate under applicable standards of professional conduct in the reasonable judgment of the indemnified party for the same counsel to represent both the indemnified party and the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) or if the indemnifying party has failed elects not to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or actionclaim, (C) having assumed it will not be obligated to pay the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs fees and expenses of more than one firm of attorneys (counsel for each indemnified party with respect to such claim in addition to any local counsel) each jurisdiction for all which the indemnified partiesparty reasonably determines counsel is necessary. The indemnifying party will not be subject to any liability for any settlement made without its consent, which consent shall not have the right to settle a claim or action for which any indemnified be unreasonably withheld. No indemnifying party is entitled to indemnification pursuant to this Agreement shall, without the prior written consent of the indemnified party, The indemnifying party shall not compromise or consent to the entry of any judgment or enter into or agree any settlement agreement with respect to any settlement relating to such claim action or action proceeding in respect of which indemnification is sought under Section 6.5(a) or Section 6.5(b) (whether or not the indemnified party is an actual or potential party thereto), unless such judgment compromise, consent or settlement does not impose any admission includes an unconditional release of wrongdoing or ongoing obligations on any the indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall litigation and does not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with subject the consent of an indemnified party unless the indemnifying party has also consented to such judgment any injunctive relief or settlement (such consent not to be unreasonably withheld, conditioned or delayed)other equitable remedy. (d) If Each Participating Investor and the Company agree that if, for any reason, the indemnification provided for in this provisions contemplated by Sections 6.5(a) or Section 11 is held by a court of competent jurisdiction 6.5(b) are unavailable to be unavailable to, or unenforceable by, are insufficient to hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein (other than as a result of the provisos thereto), then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such lossClaims in such proportion as is appropriate to reflect the relative fault of and benefits derived by the indemnifying party, claimon the one hand, actionand the indemnified party, damageon the other hand, liability as well as other equitable considerations, or expense if that allocation is not permitted under applicable law then in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission or violationParticipating Investors. The parties agree that it would not be just and equitable if contribution pursuant to this Agreement were determined by pro rata allocation or by any other method or allocation that which does not take into account the equitable considerations referred to in this Section 11(d)paragraph. In no event The amount paid or payable by an indemnified party as a result of the Claims referred to above shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal include (subject to the net proceeds (after deducting Selling Expenseslimitations set forth in Section 6.5(c)) actually received any legal or other fees or expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise to connection with investigating or defending any such obligation to contributeaction, proceeding or claim. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f11 (f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 1 contract

Sources: Transaction Agreement (Sothebys Holdings Inc)

Indemnification; Contribution. If any Registrable Securities are included in a registration statement under this Agreement: (a) The Company shall, to To the fullest extent permitted by applicable law, the Company shall indemnify and hold harmless each Holder of Registrable SecuritiesHolder, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each within the meaning of the foregoingSecurities Act, a “Covered and each officer, director, partner and employee of such Holder and such controlling Person”) , against any and all losses, claims, actions, damages, liabilities and expenses, expenses (joint or several), including reasonable attorney’s fees and disbursements and reasonable expenses of investigation (collectively, “Losses”), incurred by such Person pursuant to any actual or threatened action, suit, proceeding or investigation, or to which such Covered Person any of the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act, any Act or other federal or state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, but only insofar as such losses, claims, actions, damages, liabilities or expenses Losses arise out of or are based upon any of the following statements or omissions (collectively, a “Violation”): (i) any untrue or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to or any document incorporated by reference in the same, (ii) any omission or alleged omission of a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statementregistration statement, Prospectusincluding any preliminary prospectus, preliminary Prospectus, any issuer free writing prospectus, the general disclosure package or the final prospectus (as defined in Rule 405 under the Securities Act contained therein, or any successor rule to Rule 405) amendments or any amendment of or supplement to the same or supplements thereto; or (ii) any the omission or alleged omission of to state therein a material fact required to be stated in either such Registration Statementpreliminary prospectus, Prospectus, preliminary Prospectus or issuer free writing prospectus prospectus, general disclosure package or final prospectus, or necessary to make the statements made therein, in light of the same circumstances under which they were made, not misleading; provided, buthowever, in that the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company indemnification required by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b7(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding Loss if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such Holdercase for any such Loss to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with information furnished in writing to the Company by or on behalf of a Holder or any underwriter expressly for use in connection with such registration; and provided, further, that this indemnity shall not be available to any Person who offers or Transfers any Registrable Securities (whether pursuant to a prospectus or not) during any period which the Company has notified the Holder that such offers and Transfers must cease under the Agreement, including Sections 2.3(a), 4(b), 5(b) and 5(c). The Subject to Section 7(c), in connection with the foregoing indemnification obligations, the Company shall not be liable for reasonable fees and expenses of more than one separate firm for all the Holders. (b) To the extent permitted by applicable law, the Holders (jointly and severally) shall indemnify and hold harmless the Company, each of the Registrable directors of the Company, each of the officers of the Company who shall have signed the registration statement, each Person, if any, who controls the Company within the meaning of the Securities hereby acknowledge Act, and agree thateach officer, unless director, partner, and employee of such controlling Person, against any and all Losses incurred by such Person pursuant to any actual or threatened action, suit, proceeding or investigation, or to which any of the foregoing Persons may otherwise expressly agreed become subject under the Securities Act, the Exchange Act or other federal or state laws, but only insofar as such Losses arise out of or are based upon any Violation, in each case to the extent that such Violation arises out of or is based upon information furnished in writing by such Holders, the only information furnished or to be furnished to the Company on behalf of a Holder expressly for use in connection with such registration; provided, however, that (x) any Registration Statement or Prospectus relating indemnification required by this Section 7(b) shall not apply to amounts paid in settlement of any such Loss if such settlement is effected without the Registrable Securities or in any amendment, supplement or preliminary materials associated with consent of the same are statements specifically relating to Holders (awhich consent shall not be unreasonably withheld) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (cy) in no event shall the amount of any additional information about such Holder or indemnity obligation under this Section 7(b) exceed the plan of distribution (other than for an underwritten offering) required gross proceeds from the applicable offering received by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise havethe Holders. (c) Any Person entitled Promptly after receipt by an indemnified party under this Section 7 of notice of the commencement of any action, suit, proceeding, investigation or threat thereof made in writing for which such indemnified party may make a claim under this Section 7, such indemnified party shall deliver to indemnification pursuant the indemnifying party a written notice thereof and the indemnifying party shall have the right to this Agreement participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall give prompt have the right to retain its own counsel, with the fees and disbursements and expenses (in each case, to the extent reasonable) to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time following the commencement of any claim with respect such action, if prejudicial to which it seeks indemnification. Notwithstanding the previous sentenceits ability to defend such action, any failure or delay to so notify the shall relieve such indemnifying party of any liability to the indemnified party under this Section 7 to the extent of such prejudice but shall not relieve the indemnifying party of its obligations under this Agreement, except any liability that it may have to the extent that the indemnifying any indemnified party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification otherwise than pursuant to this Agreement is brought against an Section 7. Any such indemnified party, the indemnifying party shall be entitled to participate in and shall have the rightright to employ separate counsel in any such action, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled proceeding and to participate in the defense of such claim or action, with counsel of its own choicethereof, but the indemnifying party fees and expenses of such counsel shall not be obligated to reimburse the expenses of such indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (Ai) the indemnifying party has agreed in writing to pay such fees, costs fees and expenses, expenses or (Bii) the indemnifying party has shall have failed to promptly assume the defense of such action, claim or action within a reasonable time after receipt of notice of proceeding or (iii) the named parties to any such action, claim or action, proceeding (Cincluding any impleaded parties) having assumed the defense of include both such claim or action, indemnified party and the indemnifying party fails to employ counsel reasonably acceptable to the party, and such indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of shall have been advised by counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which that are different from or additional in addition to those available to the indemnifying party. Subject to party and that the foregoing sentence, no assertion of such defenses would create a conflict of interest such that counsel employed by the indemnifying party shallcould not faithfully represent the indemnified party (in which case, if such indemnified party notifies the indemnifying party in writing that it elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense of such action, claim or proceeding on behalf of such indemnified party, it being understood, however, that the indemnifying party shall not, in connection with any one such action, claim or action proceeding or separate but substantially similar or related actions actions, claims or proceedings in the same jurisdiction arising out of the same general circumstances allegations or allegationscircumstances, be liable for the fees, costs reasonable fees and expenses of more than one separate firm of attorneys (in addition to any together with appropriate local counsel) at any time for all such indemnified parties. The , unless in the reasonable judgment of such indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such action, claim or proceeding, in which event the indemnifying party shall not have be obligated to pay the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party reasonable fees and includes as an unconditional term expenses of such judgment additional counsel or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayedcounsels). (d) If the indemnification provided for in required by this Section 11 7 from the indemnifying party is held by a court of competent jurisdiction unavailable to be unavailable to, or unenforceable by, an indemnified party hereunder in respect of any loss, claim, action, damage, liability or expense Losses referred to in this Section 11, then 7: (i) the applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreementparty, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Losses in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, fault of the indemnifying party shall contribute to such amount and indemnified parties in connection with the actions that resulted in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying partyLosses, as well as any other relevant equitable considerations. The relative fault of the such indemnifying party, on the one hand, party and of the indemnified party, on the other hand, parties shall be determined by reference to, among other things, whether the untrue any Violation has been committed by, or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the by, such indemnifying party or by the indemnified partyparties, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission or violationViolation. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Sections 7(a), 7(b) and 7(c), any legal or other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding; (ii) the parties hereto agree that it would not be just and equitable if contribution pursuant to this Agreement Section 7(d) were determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in this Section 11(d7(d)(i). In no event shall the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions obligations of the Company and the Holders under this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and 7 shall survive the Transfer completion of any offering of Registrable Securities by any Holderpursuant to the registration statement under this Agreement, and otherwise.

Appears in 1 contract

Sources: Registration Rights Agreement (Oscient Pharmaceuticals Corp)

Indemnification; Contribution. (a) The Company shall, agrees to the fullest extent permitted by law, indemnify and hold harmless (i) each Holder of Registrable Securitiescovered by any Registration Statement, any (ii) each other Person who is participates as an underwriter in the offering or might be deemed to be a “controlling sale of such securities, (iii) each person” of the Company or any of its subsidiaries , if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls Act) any such Holder or Controlling Person underwriter (each any of the foregoingpersons referred to in this clause (iii) being hereinafter referred to as a "controlling person") and (iv) the respective officers, a “Covered directors, partners, employees, representatives and agents of any such Holder or underwriter or any controlling person (any person referred to in clause (i), (ii), (iii) or (iv) may hereinafter be referred to as an "indemnified Person”) "), to the fullest extent lawful, from and against any and all losses, claims, actions, damages, liabilities and liabilities, judgments or expenses, joint or severalseveral (or actions or proceedings, whether commenced or threatened, in respect thereof) (collectively, "Claims"), to which such Covered indemnified Person may become subject under either Section 15 of the Securities Act, Act or Section 20 of the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon (i) upon, or are caused by any untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus Statement or Prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to thereto), or any document incorporated by reference in the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading misleading, or (iii) any violation or alleged a violation by the Company of the Securities Act or any other similar federal or state securities laws law, or any rule or regulation promulgated under such federal the Securities Act or any state securities laws law, or any other law applicable to the Company and relating to any action such registration or inaction required of the Company in connection with any registration of securities. In additionqualification, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, except insofar as such losses, claims, actions, damages, liabilities liabilities, judgments or expenses arise out of any such indemnified Person: (x) are caused by any such untrue statement or are based upon (i) any untrue omission or alleged untrue statement or omission that is based upon information relating to such indemnified Person furnished in writing to the Company by or on behalf of a material fact contained in any of such indemnified Person expressly for use therein; or (y) with respect to the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under result from the fact that such Holder sold Securities Act to a person to whom there was not sent or any successor rule to Rule 405) given, at or any amendment of or supplement prior to the same or (ii) any omission or alleged omission written confirmation of such sale, a material fact required to be stated in such Registration Statement, copy of the Prospectus, preliminary Prospectus as amended or free writing prospectus supplemented, if the Company shall have previously furnished copies thereof to such Holder in accordance with this Agreement and said Prospectus, as amended or necessary to make the statements made in the same not misleadingsupplemented, but, in the case of each of clauses (i) and (ii), only to the extent that would have corrected such untrue statement or alleged untrue statement, omission. Such indemnity shall remain in full force and effect regardless of any investigation made by or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or on behalf of any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any indemnified Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to survive the net proceeds (after deducting Selling Expenses) actually received transfer of such securities by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders In case any action shall be brought or asserted against any of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim indemnified Persons with respect to which it seeks indemnification. Notwithstanding indemnity may be sought against the previous sentenceCompany, any failure or delay to so such indemnified Person shall promptly notify the indemnifying party Company and the Company shall not relieve assume the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delaydefense thereof. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an Such indemnified party, the indemnifying party shall be entitled to participate in and Person shall have the right, exercisable by giving written notice right to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of employ separate counsel in any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled action and to participate in the defense of such claim or action, with counsel of its own choicethereof, but the indemnifying party fees and expenses of such counsel shall not be obligated to reimburse at the expense of the indemnified party for any fees, costs and expenses subsequently incurred Person unless (i) the employment of such counsel shall have been specifically authorized in writing by the indemnified party in connection with such defense unless Company, (Aii) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has Company shall have failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to and employ counsel reasonably acceptable or (iii) the named parties to any such action (including any implied parties) include both the indemnified party or to pursue Person and the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent Company and the indemnified party would present such Person shall have been advised in writing by its counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject Company (in which case the Company shall not have the right to assume the foregoing sentencedefense of such action on behalf of the indemnified Person), no indemnifying party shallit being understood, however, that the Company shall not, in connection with any one claim or such action or separate but substantially similar or related actions in the same jurisdiction or proceedings arising out of the same general circumstances allegations or allegationscircumstances, be liable for the fees, costs reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for all the indemnified partiesPersons, which firm shall be (x) designated by such indemnified Persons and (y) reasonably satisfactory to the Company. The indemnifying party Company shall not have be liable for any settlement of any such action or proceeding effected without the right Company's prior written consent, which consent shall not be withheld unreasonably, and the Company agrees to settle a claim or action for which indemnify and hold harmless any indemnified party is entitled to indemnification pursuant to this Agreement without Person from and against any loss, claim, damage, liability, judgment or expense by reason of any settlement of any action effected with the written consent of the Company. The Company shall not, without the prior written consent of each indemnified partyPerson, The indemnifying party shall not settle or compromise or consent to the entry of judgment on or otherwise seek to terminate any judgment pending or enter into threatened action, claim, litigation or agree proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not any indemnified Person is a party thereto), unless such settlement, compromise, consent or termination includes an unconditional release of each indemnified Person from all liability arising out of such action, claim litigation or proceeding. (b) Each Holder of Restricted Securities covered by any Registration Statement agrees, severally and jointly, to indemnify and hold harmless the Company and its directors, officers and any settlement person controlling (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Company, and the respective officers, directors, partners, employees, representatives and agents of each person, to the same extent as the foregoing indemnity from the Company to each of the indemnified Persons, but only with respect to actions based on information relating to such claim Holder furnished in writing by or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term behalf of such judgment Holder expressly for use in any Registration Statement or settlement Prospectus. In case any action or proceeding shall be brought against the giving by the claimant Company or plaintiff in its directors or officers or any such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability controlling person in respect of which indemnity may be sought against a Holder of Restricted Securities covered by any Registration Statement, such claim or action. The indemnifying party Holder shall have the rights and duties given the Company in Section 2.8(a) (except that the Holder may but shall not be liable under this Agreement for any amount paid required to assume the defense thereof), and the Company or payable its directors or incurred pursuant officers or such controlling person shall have the rights and duties given to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayedeach Holder by Section 2.8(a). (dc) If the indemnification provided for in this Section 11 2.8 is held by a court of competent jurisdiction unavailable to be unavailable to, or unenforceable by, an indemnified party under Section 2.7(a) or (b) (other than by reason of exceptions provided in those Sections) in respect of any losslosses, claimclaims, actiondamages, damageliabilities, liability judgments or expense expenses referred to in this Section 11therein, then the each applicable indemnifying partyparty (in the case of the Holders severally and not jointly), in lieu of indemnifying such indemnified party under this Agreementparty, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims damages, actionliabilities, damage, liability judgments or expense expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company on the one hand and the indemnifying party. If Holder on the other hand from sale of Restricted Securities or (ii) if such allocation provided by the preceding sentence clause (i) above is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence clause (i) above but also the relative fault of the indemnified party Company and such Holder in connection with the indemnifying partystatements or omissions which resulted in such losses, claims, damages, liabilities, judgments or expenses, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, Company on the one hand, hand and of the indemnified party, such Holder on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party Company or by such Holder and the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ parties relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties amount paid to a party as a result of the losses, claims, damages, liabilities judgments and expenses referred to above shall be deemed to include, subject to the limitations set forth in the second paragraph of Section 2.8(a), any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any action or claim. The Company and each Holder of Restricted Securities covered by any Registration Statement agree that it would not be just and equitable if contribution pursuant to this Agreement Section 2.8(c) were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method or of allocation that which does not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 11(d). In 2.8(c) no event Holder (and none of its related indemnified Persons) shall be required to contribute, in the aggregate, any amount in excess of the amount by which a Holder the dollar amount of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in upon the sale of Registrable the Restricted Securities that gives rise exceeds the amount of any damages which such Holder has otherwise been required to pay by reason of such obligation to contributeuntrue statement or omission or alleged omission. No indemnified party person guilty or liable of fraudulent misrepresentation misrepresentations (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. (e) . The indemnity, and contribution provisions of contained in this Section 11 shall remain 2.8 are in full force and effect regardless of addition to any investigation made by or on behalf of any liability which the indemnifying person may otherwise have to the indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holderpersons referred to above.

Appears in 1 contract

Sources: Registration Rights Agreement (Florida Gaming Corp)

Indemnification; Contribution. (a) The Incident to any registration of any Registrable Securities under the Securities Act pursuant to this Agreement, the Company shall, to the fullest extent permitted by law, will indemnify and hold harmless each underwriter, each Holder or Other Holder who offers or sells any such Registrable Securities in connection with such registration statement (including its partners (including partners of Registrable Securitiespartners and stockholders of any such partners), any Person who is or might be deemed to be a “controlling person” and directors, officers, employees and agents of the Company or any of its subsidiaries them (a "Selling Holder"), and each person who controls any of them within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a "Controlling Person")), their respective direct from and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any and all losses, claims, actions, damages, liabilities expenses and expensesliabilities, joint or severalseveral (including any investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, as the same are incurred), to which such Covered Person they, or any of them, may become subject under the Securities Act, the Exchange ActAct or other federal or state statutory law or regulation, any state blue sky securities laws, any equivalent non-U.S. securities laws at common law or otherwise, insofar as such losses, claims, actions, damages, damages or liabilities or expenses arise out of or are based upon on (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement (including any related preliminary or incorporated by reference in any Registration Statementdefinitive prospectus, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to such registration statement or any document incorporated by reference in the sameprospectus), (ii) any omission or alleged omission of to state in such document a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus it or necessary to make the statements made in the same it not misleading misleading, or (iii) any violation or alleged violation by the Company of the Securities Act or Act, any other similar federal or state securities or "blue sky" laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company thereunder in connection with any registration of securities. In additionsuch registration; provided, however, that the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any will not be liable to the -------- ------- extent that such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, expense or liability or expense arises out of or from and is based upon any such on an untrue statement or alleged untrue statement, or omission or alleged omission, untrue statement or omission made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, on and in conformity with, written with information prepared and furnished in writing to the Company by such Covered underwriter, Selling Holder or Controlling Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus registration statement. With respect to such untrue statement or free omission or alleged untrue statement or omission in the information furnished in writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing by such information as the Company reasonably requests Selling Holder expressly for use in connection with any such Registration Statement or Prospectus. Each registration statement, such Selling Holder shall, to the fullest extent permitted by law, will indemnify and hold harmless each underwriter, the CompanyCompany (including its directors, its directors and officers, employeesemployees and agents), each other Holder (including its partners (including partners of partners and stockholders of such partners) and directors, officers, employees and agents of any of them, and each person who controls any Person who is of them within the meaning of Section 15 of the Securities Act or might be deemed to be a Controlling Person Section 20 of the Exchange Act), from and against any and all losses, claims, actions, damages, liabilities expenses and expensesliabilities, joint or several, to which they they, or any of them them, may become subject under the Securities Act, the Exchange Act or other federal or state statutory law or regulation, at common law or otherwise to the same extent provided in the immediately preceding sentence; provided, however, that no Selling Holder shall -------- ------- be required to indemnify any Person against any liability arising from any untrue or misleading statement or omission contained in any preliminary prospectus if such deficiency is corrected in the final prospectus or for any liability which arises out of the failure of any Person to deliver a prospectus as required by the Securities Act. In no event, any state blue sky securities lawshowever, any equivalent non-U.S. securities laws or otherwise, insofar as shall the liability of a Selling Holder for indemnification under this Section 4.4(a) exceed the lesser of (i) such Selling Holder's pro rata share of the total of such losses, claims, actions, damages, damages or liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Selling Holder in the from its sale of Registrable Securities to which under such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveregistration statement. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (db) If the indemnification provided for in this Section 11 4.4(a) above for any reason is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, to an indemnified party in respect of any losslosses, claimclaims, actiondamages, damage, liability expenses or expense liabilities referred to in therein, then each indemnifying party under this Section 11, then the applicable indemnifying party4.4, in lieu of indemnifying such indemnified party under this Agreementthereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability expenses or expense liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company, the other Selling Holders and the indemnifying party. If underwriters from the offering of the Registrable Securities or (ii) if the allocation provided by the preceding sentence clause (i) above is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence clause (i) above but also the relative fault of the indemnified party Company, the other Selling Holders and the indemnifying partyunderwriters in connection with the statements or omissions which resulted in such losses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations; provided, however, that in the event of a registration statement filed in response to a demand under Section 4.2 and in which the Company does not register any shares of capital stock, the proportion of contribution by the Company, the other Selling Holders and the underwriters shall in all cases be governed by clause (ii) above. The relative benefits received by the Company, the Selling Holders and the underwriters shall be deemed to be in the same respective proportions that the net proceeds from the offering (before deducting expenses) received by the Company and the Selling Holders and the underwriting discount received by the underwriters, in each case as set forth in the table on the cover page of the applicable prospectus, bear to the aggregate public offering price of the Registrable Securities. The relative fault of the indemnifying partyCompany, on the one hand, Selling Holders and of the indemnified party, on the other hand, underwriters shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party Selling Holders or the indemnified party. The relative fault shall also be determined by reference to underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties Company, the Selling Holders, and the underwriters agree that it would not be just and equitable if contribution pursuant to this Agreement Section 4.4(b) were determined by pro rata or per capita allocation or by any other method or of allocation that which does not take into account of the equitable considerations referred to in this Section 11(d)the immediately preceding paragraph. In no event event, however, shall the amount which a Selling Holder of Registrable Securities may be obligated required to contribute pursuant to any amount under this Section 11(d4.4(b) exceed an amount equal to in excess of the net lesser of (i) such Selling Holder's pro rata share of the total of such losses, claims, damages or liabilities or (ii) the proceeds (after deducting Selling Expenses) actually received by such Selling Holder in the from its sale of Registrable Securities that gives rise to under such obligation to contributeregistration statement. No indemnified party person found guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not found guilty of such fraudulent misrepresentation. (ec) The provisions amount paid by an indemnifying party), or payable to an indemnified party as a result of the losses, claims, damages and liabilities referred to in this Section 11 4.4 shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim, payable as the same are incurred. The indemnification and contribution provided for in this Section 4.4 will remain in full force and effect regardless of any investigation made by or on behalf of any the indemnified party parties or any officer, director director, employee, agent or controlling person of such the indemnified party and shall survive parties. No indemnifying party, in the Transfer defense of any Registrable Securities by such claim or litigation, shall enter into a consent of entry of any Holderjudgment or enter into a settlement without the consent of the indemnified party, which consent will not be unreasonably withheld.

Appears in 1 contract

Sources: Stockholders and Rights Agreement (Click Commerce Inc)

Indemnification; Contribution. (a) The Company shallDealer Manager will indemnify, defend (subject to Section 7.6 of the fullest extent permitted by law, indemnify Dealer Manager Agreement) and hold harmless each Holder of Registrable Securitiesthe Wholesaler, any Person who is or might be deemed to be a its affiliates and their respective officers, directors, shareholders, members, partners, other equity-holders and control persons (collectively, the controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling PersonOther Indemnified Parties”), their respective direct from and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any losses, claimsclaims (including the reasonable costs of investigation and legal fees), actions, damages, damages or liabilities and expenses, joint (or severalactions in respect thereof), to which such Covered Person the Wholesaler, its affiliates or their respective Other Indemnified Parties may become subject under the Securities Act, Act or the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, damages or liabilities (or expenses actions in respect thereof) arise out of or are based upon upon: (i) any inaccuracy in or breach of a representation or warranty contained herein by the Dealer Manager, any breach of a covenant or agreement contained herein of the Dealer Manager, or any failure by the Dealer Manager to comply with state or federal securities law applicable to the Offering; (ii) any untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any (A) Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act Statement or any successor rule to Rule 405) post-effective amendment thereto or any Prospectus or any amendment of or supplement to or any document incorporated by reference in the sameProspectus, (iiB) Authorized Sales Materials, or (C) blue sky application or other document executed by the Company or the Operating Partnership (or on behalf of the Company or the Operating Partnership) specifically for the purpose of qualifying any of or all the Offered Shares for sale under the securities laws of any jurisdiction or based upon written information furnished by the Dealer Manager under the securities laws thereof (any such application, document or information being hereinafter called a “Blue Sky Application”), but only to the extent based upon written information furnished by the Dealer Manager; or (iii) any omission or alleged omission of the Dealer Manager to state a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Statement or any post-effective amendment thereof or in any Prospectus or free writing prospectus any amendment thereof or supplement thereto or necessary to make the statements made therein, in the same light of the circumstances under which they were made, not misleading or misleading; provided, however, that that the indemnity provided for in clauses (ii) and (iii) any violation above strictly is limited in each case to the extent and only to the extent, that such untrue statement or alleged violation by the Company of the Securities Act untrue statement or omission or alleged omission was made in any Registration Statement or any other similar federal post-effective amendment thereof or state securities laws in any Prospectus or any rule amendment thereof or regulation promulgated under such federal or state securities laws applicable supplement thereto, in reliance upon and in conformity with written information relating to the Dealer Manager that was furnished to the Company by the Dealer Manager expressly for use in the preparation of any Registration Statement or any post-effective amendment thereof or any Prospectus or any amendment thereof or supplement thereto. The Dealer Manager will reimburse the Wholesaler and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person its Other Indemnified Parties for any legal or other expenses reasonably incurred by such Covered Person Wholesaler, its affiliates and their respective Other Indemnified Parties in connection with investigating, investigating or defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectusaction. This indemnity shall agreement will be in addition to any liability which the Company Dealer Manager otherwise may otherwise have. (b) In connection with any registration in which a Holder Each of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as and the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shallOperating Partnership, jointly and severally, will indemnify, defend (subject to Section 7.6 of the fullest extent permitted by law, indemnify Dealer Manager Agreement) and hold harmless the CompanyWholesaler, its directors affiliates and officerstheir respective Other Indemnified Parties, employees, agents from and any Person who is or might be deemed to be a Controlling Person against from and against any losses, claimsclaims (including the reasonable costs of investigation and legal fees), actions, damages, damages or liabilities and expenses, joint (or severalactions in respect thereof), to which they the Wholesaler, its affiliates or any of them their respective Other Indemnified Parties may become subject under the Securities Act, Act or the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, damages or liabilities (or expenses actions in respect thereof) arise out of or are based upon upon: (i) any inaccuracy in or breach of a representation or warranty contained herein by the Company or the Operating Partnership, any breach of a covenant or agreement contained herein of the Company or the Operating Partnership, or any failure by the Company or the Operating Partnership to comply with state or federal securities laws applicable to the Offering; (ii) any untrue statement or alleged untrue statement of a material fact contained in the any (A) Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act Statement or any successor rule to Rule 405) post-effective amendment thereto or any Prospectus or any amendment of or supplement to the same Prospectus, (B) Authorized Sales Materials, or (iiC) Blue Sky Application but only to the extent based on information provided by the Company or the Operating Partnership; or (iii) any omission or alleged omission of to state a material fact required to be stated in such any Registration Statement, Prospectus, preliminary Statement or any post-effective amendment thereof or in any Prospectus or free writing prospectus any amendment thereof or supplement thereto or necessary to make the statements made in the same not misleading, buttherein, in the light of the circumstances under which they were made, not misleading; provided, however, that the Company or the Operating Partnership will not be liable in any such case of each of clauses (i) and (ii)to the extent, but only to the extent extent, that any such loss, claim, damage or liability (or action in respect thereof) arises out of, or is based upon an untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission that was made in such any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus Statement or any post-effective amendment thereof or in any Prospectus or any amendment thereof or supplement to the same thereto in reliance upon, upon and in conformity with, with written information prepared and furnished relating to the Company Wholesaler or the Dealer Manager that was furnished by such Holder the Wholesaler or the Dealer Manager expressly for use in such the preparation of the Registration Statement, Prospectus, preliminary Statement or any post-effective amendment thereof or the Prospectus or free writing prospectusany amendment thereof or supplement thereto. In addition, such Holder shall The Company and the Operating Partnership will reimburse the CompanyWholesaler, its directors affiliates and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person their respective Other Indemnified Parties for any legal or other expenses reasonably incurred by them such Wholesaler and its Other Indemnified Parties in connection with investigating, investigating or defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action liability or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such documentaction. This indemnity shall agreement will be in addition to any liability which the Company or the Operating Partnership otherwise may have. (c) The Wholesaler will indemnify, defend and hold harmless the Dealer Manager, the Company, the Operating Partnership and their respective Other Indemnified Parties, from and against any losses, claims (including the reasonable costs of investigation and legal fees), damages or liabilities (or actions in respect thereof), to which the Dealer Manager, the Company, the Operating Partnership and any of their respective Other Indemnified Parties may become subject under the Securities Act or the Exchange Act, or otherwise, insofar as such Holder losses, claims (including the reasonable costs of investigation and legal fees), damages or liabilities (or actions in respect thereof) arise out of or are based upon: (i) any inaccuracy in or breach of a representation or warranty contained herein by the Wholesaler, any breach of a covenant or agreement contained herein of the Wholesaler, or any failure by the Wholesaler to comply with state or federal securities laws applicable to the Offering; (ii) any untrue statement or any alleged untrue statement of a material fact contained in any Registration Statement or any post-effective amendment thereof or any Prospectus or any amendment thereof or supplement thereto; or (iii) any omission or alleged omission to state a material fact required to be stated in any Registration Statement or any post-effective amendment thereof or any Prospectus or any amendment thereof or supplement thereto or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, provided, however, that the indemnity provided for in clauses (ii) and (iii) above strictly is limited in each case to the extent, and only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in any Registration Statement or any post-effective amendment thereof or in any Prospectus or any amendment thereof or supplement thereto, in reliance upon and in conformity with written information relating to the Wholesaler that was furnished to the Company by the Wholesaler expressly for use in the preparation of any Registration Statement or any post-effective amendment thereof or any Prospectus or any amendment thereof or supplement thereto. The Wholesaler will reimburse the Dealer Manager, the Company, the Operating Partnership and their respective Other Indemnified Parties for legal or other expenses reasonably incurred in connection with investigating or defending such loss, claim, damage, liability or action. This indemnity agreement will be in addition to any liability which the Wholesaler may otherwise have. (cd) Any Person entitled party which proposes to indemnification pursuant assert the right to be indemnified under this Agreement shall give prompt written Section 9 will, promptly after receipt of notice of commencement of any action, suit or proceeding against such party in respect of which a claim of a third party (a “Third Party Claim”) is made or is to be made against an indemnified party under this Section 9, notify each indemnifying party of the commencement of such action, suit or proceeding, enclosing a copy of all papers served, and the failure so to notify such indemnifying party of any claim with respect to such action, suit or proceeding shall relieve it from any liability which it seeks indemnificationmay have to any indemnified party under this Section 9 to the extent, and only to the extent, that such failure was prejudicial to the indemnifying party. Notwithstanding the previous sentenceIn no event shall any such failure relieve an indemnifying party of any liability which it may have to an indemnified party otherwise than under this Section 9. In case any such action, suit or proceeding shall be brought against any failure or delay to so indemnified party, and such indemnified party shall notify the indemnifying party shall not relieve part of the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partycommencement thereof, the indemnifying party shall be entitled to participate in and therein, and, if it shall have wish to assume the rightdefense thereof, exercisable by giving written with counsel reasonably satisfactory to such indemnified party. After notice from the indemnifying party to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party the election of such claim or action, to assume, at the indemnifying party’s expense, party so to assume the defense of any such claim or actionthereof, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated liable to reimburse the indemnified party for any feeslegal or other expenses, other than reasonable costs and expenses of investigation requested by the indemnifying party subsequently incurred by the indemnified party in connection with the defense thereof. The indemnified party shall have the right to employ its counsel in any such defense action, but the reasonable fees and expenses of such counsel shall be at the expense of such indemnified party unless (Ai) the indemnifying employment by counsel by such indemnified party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen been authorized by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or party, (Eii) the indemnified party has reasonably shall have reasonable concluded that there may be one or more legal or equitable defenses available to it and/or other any other a conflict of interest between the indemnifying party and the indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out conduct of the same general circumstances or allegations, be liable for the fees, costs and expenses defense of more than one firm of attorneys such action (in addition to any local counsel) for all indemnified parties. The which case the indemnifying party shall not have the right to settle a claim or direct the defense of such action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent on behalf of the indemnified party), The or (iii) the indemnifying party shall not in fact have employed counsel to assume the defense of such action, suit or proceeding in each of which cases the reasonable fees and expenses of counsel shall be at the expense of the indemnifying party. If the indemnifying party shall so assume the defense of any Third Party Claim, then the indemnifying party shall keep the indemnified party reasonably apprised of the status thereof and shall furnish the indemnified party with such documents and information filed or delivered in connection with the Third Party Claim. Notwithstanding the foregoing, the indemnifying party will not consent to the entry of any judgment or enter into any compromise or agree settlement with respect to any settlement relating to such claim or action the Third Party Claim without the prior written consent of the indemnified party unless such judgment judgment, compromise or settlement does not impose any admission (A) provides for the payment of wrongdoing or ongoing obligations on any indemnified money by the indemnifying party and includes as an unconditional term sole relief for the claimant, (B) subject to the making of such judgment or settlement payment, results in the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final general release of all indemnified parties from all liability losses, claims, damages, costs, expenses, liabilities (including any investigatory, legal and other expenses incurred in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for connection with, and any amount paid in settlement of, any action, suit or payable proceeding or incurred pursuant any claim asserted) arising from or relating to or in connection with any judgment entered or settlement effected with the consent of Third Party Claim, and (C) does not require an indemnified party unless to admit criminal or similar liability or other culpable conduct. If the indemnifying party has also consented does not assume the defense of any Third Party Claim, the indemnified party may defend the Third Party Claim, but the indemnified party will not consent to such the entry of any judgment or enter into any compromise or settlement (such with respect to the Third Party Claim without the prior written consent of the indemnifying party, which consent shall not to be unreasonably withheld, conditioned or delayed). (de) To the extent Section II.G. of the NASAA REIT Guidelines would apply to this Agreement and as required thereby, the indemnification and agreement to hold harmless provided in this Section 9 is further limited to the extent that no such indemnification by the Dealer Manager, the Company or the Operating Partnership of the Wholesaler, its affiliates and their respective Other Indemnified Parties, shall be permitted under this Agreement for, or arising out of, an alleged violation of federal or state securities laws, unless one or more of the following conditions are met: (i) there has been a successful adjudication on the merits of each count involving alleged securities law violations as to the particular indemnitee; (ii) such claims have been dismissed with prejudice on the merits by a court of competent jurisdiction as to the particular indemnitee; or (iii) a court of competent jurisdiction approves a settlement of the claims against the particular indemnitee and finds that indemnification of the settlement and the related costs should be made, and the court considering the request for indemnification has been advised of the position of the SEC and of the published position of any state securities regulatory authority in which the securities were offered or sold as to indemnification for violations of securities laws. (f) If the indemnification provided for in this Section 11 9 is held by a court of competent jurisdiction unavailable or insufficient to be unavailable to, or unenforceable by, hold harmless an indemnified party in respect of any lossunder Section 9(a), claim, action, damage, liability 9(b) or expense referred to in this Section 119(c), then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such lossthe losses, claimclaims, actiondamages or liabilities (or actions in respect thereof) referred to in Section 9(a), damage, liability 9(b) or expense 9(c) (i) in such proportion as is appropriate to reflect the relative benefits received by fault of a particular party, on the indemnified party one hand, and the indemnifying party. If other parties hereto, on the allocation provided by other hand, in connection with the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount statements or omissions which resulted in such proportion as is appropriate to reflect not only the relative benefits referred to losses, claims, damages or liabilities (or actions in the preceding sentence but also the relative fault of the indemnified party and the indemnifying partyrespect thereof), as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified a particular party, whether on the violation of one hand, and the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to parties hereto, on the Companyother hand, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission untrue statement or violationomission. The parties agree that it would not be just and equitable if contribution pursuant to this Agreement were determined amount paid by pro rata allocation an indemnified party as a result of the losses, claims, damages or by any other method liabilities (or allocation that does not take into account the equitable considerations actions in respect thereof) referred to in the first sentence of this Section 11(d9(f) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any action or claim which is the subject of this Section 9(f). In no event shall the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.of

Appears in 1 contract

Sources: Wholesaling Agreement (RREEF Property Trust, Inc.)

Indemnification; Contribution. (a) The Incident to any registration statement referred to in this Section 7, the Company shall, to the fullest extent permitted by law, will indemnify and hold harmless each underwriter, each Holder who offers or sells any such Registrable Securities in connection with such registration statement (including its partners (including partners of Registrable Securitiespartners and stockholders of any such partners), and directors, officers, employees and agents of any of them (a "Selling Holder"), and each person who controls any of them within the meaning of Section 15 of the Securities Act or Section 20 of the Securities Exchange Act of 1934 (the "Exchange Act") (a "Controlling Person")), from and against any and all losses, claims, damages, expenses and liabilities, joint or several (including any investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any Person who is action, suit or might be deemed proceeding or any claim asserted, as the same are incurred), to be a “controlling person” of the Company which they, or any of them, may become subject under the Securities Act, the Exchange Act or other federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities arise out of or are based on (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement (including any related preliminary or definitive prospectus, or any amendment or supplement to such registration statement or prospectus), (ii) any omission or alleged omission to state in such document a material fact required to be stated in it or necessary to make the statements in it not misleading, or (iii) any violation by the Company of the Securities Act, any state securities or "blue sky" laws or any rule or regulation thereunder in connection with such registration; PROVIDED, HOWEVER, that the Company will not be liable to the extent that such loss, claim, damage, expense or liability arises from and is based on an untrue statement or omission or alleged untrue statement or omission made in reliance on and in conformity with information furnished in writing to the Company by such underwriter, Selling Holder or Controlling Person expressly for use in such registration statement. With respect to such untrue statement or omission or alleged untrue statement or omission in the information furnished in writing to the Company by such Selling Holder expressly for use in such registration statement, such Selling Holder will indemnify and hold harmless each underwriter, the Company (including its subsidiaries directors, officers, employees and agents), each other Holder (including its partners (including partners of partners and stockholders of such partners) and directors, officers, employees and agents of any of them, and each person who controls any of them within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”Act), their respective direct from and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any and all losses, claims, actions, damages, liabilities expenses and expensesliabilities, joint or several, to which such Covered Person they, or any of them, may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to or any document incorporated by reference in the same, (ii) any omission or alleged omission of a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws statutory law or any rule regulation, at common law or regulation promulgated under such federal or state securities laws applicable otherwise to the Company and relating to any action or inaction required of same extent provided in the Company in connection with any registration of securitiesimmediately preceding sentence. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the The Company shall not be so liable in obligated hereunder to indemnify any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, liability or action or proceeding if such settlement is effected without the consent of such Holderthe Company (which consent shall not be unreasonably withheld). The Company and In no event, however, shall the Holders liability of a Selling Holder for indemnification under this Section 7.5(a) exceed the lesser of (i) that proportion of the total of such losses, claims, damages or liabilities indemnified against equal to the proportion of the total securities sold under such registration statement which is being sold by such Selling Holder or (ii) the proceeds received by such Selling Holder from its sale of Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by under such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveregistration statement. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (db) If the indemnification provided for in this Section 11 7.5(a) above for any reason is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, to an indemnified party in respect of any losslosses, claimclaims, actiondamages, damage, liability expenses or expense liabilities referred to in therein, then each indemnifying party under this Section 11, then the applicable indemnifying party7.5, in lieu of indemnifying such indemnified party under this Agreementthereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability expenses or expense liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company, the other Selling Holders and the indemnifying party. If underwriters from the offering of the Registrable Securities or (ii) if the allocation provided by the preceding sentence clause (i) above is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence clause (i) above but also the relative fault of the indemnified party Company, the other Selling Holders and the indemnifying partyunderwriters in connection with the statements or omissions which resulted in such losses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company, the Selling Holders and the underwriters shall be deemed to be in the same respective proportions that the net proceeds from the offering (before deducting expenses) received by the Company and the Selling Holders and the underwriting discount received by the underwriters, in each case as set forth in the table on the cover page of the applicable prospectus, bear to the aggregate public offering price of the Registrable Securities. The relative fault of the indemnifying partyCompany, on the one hand, Selling Holders and of the indemnified party, on the other hand, underwriters shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party Selling Holders or the indemnified party. The relative fault shall also be determined by reference to underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties Company, the Selling Holders, and the underwriters agree that it would not be just and equitable if contribution pursuant to this Agreement Section 7.5(b) were determined by pro rata or per capita allocation or by any other method or of allocation that which does not take into account of the equitable considerations referred to in this Section 11(d)the immediately preceding paragraph. In no event event, however, shall the amount which a Selling Holder of Registrable Securities may be obligated required to contribute pursuant to any amount under this Section 11(d7.5(b) exceed an amount in excess of the lesser of (i) that proportion of the total of such losses, claims, damages or liabilities indemnified against equal to the net proportion of the total Registrable Securities sold under such registration statement which are being sold by such Selling Holder or (ii) the proceeds (after deducting Selling Expenses) actually received by such Selling Holder in the from its sale of Registrable Securities that gives rise to under such obligation to contributeregistration statement. No indemnified party person found guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not found guilty of such fraudulent misrepresentation. (ec) The provisions amount paid by an indemnifying party or payable to an indemnified party as a result of the losses, claims, damages and liabilities referred to in this Section 11 7.5 shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim, payable as the same are incurred. The indemnification and contribution provided for in this Section 7.5 will remain in full force and effect regardless of any investigation made by or on behalf of any the indemnified party parties or any officer, director director, employee, agent or controlling person of such the indemnified party and shall survive the Transfer of any Registrable Securities by any Holderparties.

Appears in 1 contract

Sources: Stock Purchase and Stockholders Agreement (Invitrogen Corp)

Indemnification; Contribution. (a) The Company shall, agrees to the fullest extent permitted by law, indemnify and hold harmless (i) the Holder, (ii) each Holder of Registrable Securities, any other Person who is participates as an underwriter in the offering or might be deemed to be a “controlling sale of such securities, (iii) each person” of the Company or any of its subsidiaries , if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act Act) the Holder or underwriter (each such Person, any of the persons referred to in this clause (iii) being hereinafter referred to as a “Controlling Person”), their "controlling person") and (iv) the respective direct and indirect general and limited partners, advisory board membersofficers, directors, officers, trustees, managers, memberspartners, employees, agents, Affiliates representatives and shareholders, and each other Person, if any, who acts on behalf agents of or controls any such the Holder or Controlling Person underwriter or any controlling person (each of any person referred to in clause (i), (ii), (iii) or (iv) may hereinafter be referred to as an "indemnified Person"), to the foregoingfullest extent lawful, a “Covered Person”) from and against any and all losses, claims, actions, damages, liabilities and liabilities, judgments or expenses, joint or severalseveral (or actions or proceedings, whether commenced or threatened, in respect thereof) (collectively, "Claims"), to which such Covered indemnified Person may become subject under either Section 15 of the Securities Act, Act or Section 20 of the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon (i) upon, or are caused by any untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus Statement or Prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to thereto), or any document incorporated by reference in the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading misleading, or (iii) any violation or alleged a violation by the Company of the Securities Act or any other similar federal or state securities laws law, or any rule or regulation promulgated under such federal the Securities Act or any state securities laws law, or any other law applicable to the Company and relating to any action such registration or inaction required of the Company in connection with any registration of securities. In additionqualification, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, except insofar as such losses, claims, actions, damages, liabilities liabilities, judgments or expenses arise out of any such indemnified Person; (x) are caused by any such untrue statement or are based upon (i) any untrue omission or alleged untrue statement or omission that is based upon information relating to such indemnified Person furnished in writing to the Company by or on behalf of a material fact contained in any of such indemnified Person expressly for use therein; (y) with respect to the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under result from the fact that the Holder sold Securities Act to a person to whom there was not sent or any successor rule to Rule 405) given, at or any amendment of or supplement prior to the same or (ii) any omission or alleged omission written confirmation of such sale, a material fact required to be stated in such Registration Statement, copy of the Prospectus, preliminary Prospectus as amended or free writing prospectus or necessary to make supplemented, if the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only Company shall have previously furnished copies thereof to the extent that Holder in accordance with this Agreement and said Prospectus, as amended or supplemented, would have corrected such untrue statement or alleged untrue statementomission; or (z) as a result of the use by an indemnified Person of any Prospectus when, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to upon receipt of a notice from the Company of the existence of any fact of the kind described in Section 2.2(b)(iv), the indemnified Person or the Holder was not permitted to do so. Such indemnity shall remain in full force and effect regardless of any investigation made by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and on behalf of any indemnified Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to survive the net proceeds (after deducting Selling Expenses) actually received transfer of such securities by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders In case any action shall be brought or asserted against any of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim indemnified Persons with respect to which it seeks indemnification. Notwithstanding indemnity may be sought against the previous sentenceCompany, any failure or delay to so such indemnified Person shall promptly notify the indemnifying party Company and the Company shall not relieve assume the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delaydefense thereof. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an Such indemnified party, the indemnifying party shall be entitled to participate in and Person shall have the right, exercisable by giving written notice right to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of employ separate counsel in any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled action and to participate in the defense of such claim or action, with counsel of its own choicethereof, but the indemnifying party fees and expenses of such counsel shall not be obligated to reimburse at the expense of the indemnified party for any fees, costs and expenses subsequently incurred Person unless (i) the employment of such counsel shall have been specifically authorized in writing by the indemnified party in connection with such defense unless Company, (Aii) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has Company shall have failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to and employ counsel reasonably acceptable or (iii) the named parties to any such action (including any implied parties) include both the indemnified party or to pursue Person and the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent Company and the indemnified party would present such Person shall have been advised in writing by its counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject Company (in which case the Company shall not have the right to assume the foregoing sentencedefense of such action on behalf of the indemnified Person), no indemnifying party shallit being understood, however, that the Company shall not, in connection with any one claim or such action or separate but substantially similar or related actions in the same jurisdiction or proceedings arising out of the same general circumstances allegations or allegationscircumstances, be liable for the fees, costs reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for all the indemnified partiesPersons, which firm shall be (x) designated by such indemnified Persons and (y) reasonably satisfactory to the Company. The indemnifying party Company shall not have be liable for any settlement of any such action or proceeding effected without the right Company's prior written consent, which consent shall not be withheld unreasonably, and the Company agrees to settle a claim or action for which indemnify and hold harmless any indemnified party is entitled to indemnification pursuant to this Agreement without Person from and against any loss, claim, damage, liability, judgment or expense by reason of any settlement of any action effected with the written consent of the Company. The Company shall not, without the prior written consent of each indemnified partyPerson, The indemnifying party shall not settle or compromise or consent to the entry of judgment on or otherwise seek to terminate any judgment pending or enter into threatened action, claim, litigation or agree to proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not any settlement relating to such claim or action indemnified Person is a party thereto), unless such judgment settlement, compromise, consent or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and termination includes as an unconditional term release of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such each indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release Person from all liability arising out of such action, claim litigation or proceeding. (b) The Holder agrees to indemnify and hold harmless the Company and its directors, officers and any person controlling (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Company, and the respective officers, directors, partners, employees, representatives and agents of each person, to the same extent as the foregoing indemnity from the Company to each of the indemnified Persons, but only (i) with respect to actions based on information relating to the Holder furnished in writing by or on behalf of such Holder expressly for use in any Registration Statement or Prospectus, and (ii) to the extent of the gross proceeds, if any, received by such Holder from the sale or other disposition of its Restricted Securities covered by such Registration Statement. In case any action or proceeding shall be brought against the Company or its directors or officers or any such controlling person in respect of which indemnity may be sought against the Holder, such claim or action. The indemnifying party Holder shall have the rights and duties given the Company in Section 2.6(a) (except that the Holder may but shall not be liable under this Agreement for any amount paid required to assume the defense thereof), and the Company or payable its directors or incurred pursuant officers or such controlling person shall have the rights and duties given to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayedHolder by Section 2.6(a). (dc) If the indemnification provided for in this Section 11 2.6 is held by a court of competent jurisdiction unavailable to be unavailable to, or unenforceable by, an indemnified party under Section 2.5(a) or (b) (other than by reason of exceptions provided in those Sections) in respect of any losslosses, claimclaims, actiondamages, damageliabilities, liability judgments or expense expenses referred to in this Section 11therein, then the each applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreementparty, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims damages, actionliabilities, damage, liability judgments or expense expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company on the one hand and the indemnifying party. If Holder on the other hand from sale of Restricted Securities or (ii) if such allocation provided by the preceding sentence clause (i) above is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence clause (i) above but also the relative fault of the indemnified party Company and the indemnifying partyHolder in connection with the statements or omissions which resulted in such losses, claims, damages, liabilities, judgments or expenses, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, Company on the one hand, hand and of the indemnified party, Holder on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party Company or by the indemnified party, whether Holder and the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ parties relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties amount paid to a party as a result of the losses, claims, damages, liabilities judgments and expenses referred to above shall be deemed to include, subject to the limitations set forth in the second paragraph of Section 2.6(a), any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any action or claim. The Company and the Holder agree that it would not be just and equitable if contribution pursuant to this Agreement Section 2.6(c) were determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 11(d). In no event 2.6(c) the Holder (and its related indemnified Persons) shall not be required to contribute, in the aggregate, any amount in excess of the amount by which a Holder the dollar amount of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in upon the sale of Registrable the Restricted Securities that gives rise exceeds the amount of any damages which such Holder has otherwise been required to pay by reason of such obligation to contributeuntrue statement or omission or alleged omission. No indemnified party person guilty or liable of fraudulent misrepresentation misrepresentations (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. (e) . The indemnity, and contribution provisions of contained in this Section 11 shall remain 2.6 are in full force and effect regardless of addition to any investigation made by or on behalf of any liability which the indemnifying person may otherwise have to the indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holderpersons referred to above.

Appears in 1 contract

Sources: Registration Rights Agreement (Compost America Holding Co Inc)

Indemnification; Contribution. (a) The Company shall, agrees to the fullest extent permitted by law, indemnify and hold harmless the Initial Purchasers, each Holder of Registrable Securitiesand each Participating Broker-Dealer, and their respective partners, directors and officers, and each Person, if any, who controls any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any losses, claims, actions, damages, liabilities and expensesdamages or liabilities, joint or several, to which such Covered Person Holder may become subject subject, under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws 1933 Act or otherwise, insofar as such losses, claims, actions, damages, damages or liabilities (or expenses actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration StatementStatement pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, any Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment amendments or supplement to thereto, or any document incorporated by reference in arise out of or are based upon the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company misleading, and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall will reimburse each Covered Person Holder for any legal or other expenses reasonably incurred by such Covered Person Holder in connection with investigating, investigating or defending or settling any such losslosses, claimclaims, actiondamages, damage liabilities or liability. Notwithstanding the previous sentenceaction as such expenses are incurred; provided, however, that the Company shall not be so liable in any such case to the extent that any such loss, claim, action, damage, damage or liability or expense arises out of or is based upon any such an untrue statement or alleged untrue statement, statement or omission or alleged omission, made or incorporated by reference in omission from any of such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same documents in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by such Covered Person expressly any Holder specifically for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise havetherein. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, an indemnified party in respect of any loss, claim, action, damage, liability or expense referred to in this Section 11, then the applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission or violation. The parties agree that it would not be just and equitable if contribution pursuant to this Agreement were determined by pro rata allocation or by any other method or allocation that does not take into account the equitable considerations referred to in this Section 11(d). In no event shall the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party guilty or liable of fraudulent misrepresentation within the meaning of Section 11(f) of the Securities Act shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 1 contract

Sources: Registration Rights Agreement (Hartford Financial Services Group Inc/De)

Indemnification; Contribution. (a) The Company shall, agrees to the fullest extent permitted by law, indemnify and hold harmless each Holder of Registrable Securities, any its officers, directors, members, partners, agents and employees and each Person who is or might be deemed to be a “controlling person” of the Company or controls any of its subsidiaries such Holder within the meaning of Section 15 of either the Securities Act or Section 20 of the Exchange Act (each such Personparty other than each Holder, a the Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered PersonParties”) , to the fullest extent permitted by applicable law, from and against any and all losses, claims, actions, damages, liabilities liabilities, expenses and expenses, joint or several, actions to which such Covered Person they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities and expenses (or expenses actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any a Registration Statement, Prospectusthe Disclosure Package, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration Statement, or in any amendment thereof or supplement to thereto, or any document incorporated by reference in arise out of or are based upon the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable misleading, and agrees to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person such indemnified party, as incurred, for any legal or other expenses reasonably incurred by such Covered Person them in connection with investigating, investigating or defending or settling any such loss, claim, actiondamage, damage liability, expense or liability. Notwithstanding action (whether or not the previous sentenceindemnified party is a party to any proceeding); provided, however, that the Company shall will not be so liable in any such case to the extent that any such loss, claim, action, damage, liability or expense arises (i) out of or is based upon any such untrue statement or alleged untrue statement, statement or omission or alleged omission, omission made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same therein in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by such Covered Person expressly or on behalf of any Holder specifically for use in such Registration Statementinclusion therein including, Prospectuswithout limitation, preliminary Prospectus any notice and questionnaire (including, for the avoidance of doubt, Exhibit A hereto), or free writing prospectus. This indemnity shall be in addition (ii) out of sales of Registrable Securities made during a Suspension Period after notice is given pursuant to any liability the Company may otherwise haveSection 1(c) hereof. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, severally (and not jointly) agrees to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors affiliates and each of their respective officers, employeesdirectors, members, partners, agents and any Person who is or might be deemed employees (each such party other than the Company, the “Company Parties”) to be a Controlling Person the fullest extent permitted by applicable law, from and against any and all losses, claims, actions, damages, damages or liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, damages or liabilities or expenses arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the a Registration Statement, in the Disclosure Package or any Free Writing Prospectus, preliminary Prospectuspreliminary, free writing prospectus (as defined final or summary Prospectus included in Rule 405 under the Securities Act any such Registration Statement, or any successor rule to Rule 405) or in any amendment thereof or supplement thereto (collectively, “Disclosure Documents”), or arise out of or supplement to are based upon the same or (ii) any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, butto the extent, in the case of each of clauses (i) and (ii), but only to the extent extent, that any such untrue statement or alleged untrue statement, statement or omission or alleged omissionomission (if the losses, claims, damages or liabilities arise in connection with Disclosure Documents first disseminated by the Company) is made contained in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by or on behalf of such Holder expressly specifically for use in such Registration Statementinclusion therein; provided, Prospectushowever, preliminary Prospectus or free writing prospectus. In addition, that the total amount to be indemnified by such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b4(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal limited to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities offering to which such Registration Statement Statement, Disclosure Package, Prospectus or Free Writing Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled Promptly after receipt by an indemnified party under this Section 4 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to indemnification pursuant be made against the indemnifying party under this Section 4, notify the indemnifying party in writing of the commencement thereof; but the failure so to this Agreement shall give prompt written notice notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent such action and such failure results in material prejudice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify and forfeiture by the indemnifying party shall not of substantial rights and defenses; and (ii) will not, in any event, relieve the indemnifying party of its from any obligations under this Agreement, except to any indemnified party other than the extent that the indemnifying party is actually and materially prejudiced by reason of such failure indemnification obligation provided in paragraph (a) or delay(b) above. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the The indemnifying party shall be entitled to participate in and shall have the righttherein and, exercisable by giving written notice to the extent that it shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party as promptly as practicable party, and after receipt of written notice from the indemnifying party to such indemnified party of such claim or action, its election to assume, at the indemnifying party’s expense, so assume the defense of any such claim or actionthereof, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated liable to reimburse the such indemnified party for any fees, costs and legal expenses of other counsel or any other expenses subsequently incurred by the such indemnified party in connection with such the defense unless (A) thereof. Notwithstanding the indemnifying party has agreed party’s rights in writing to pay such feesthe prior sentence, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or shall have the right to pursue the defense of such claim or action in a reasonably vigorous manneremploy its own single counsel (and one local counsel), (D) the use of counsel chosen by the indemnifying party to represent but the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for shall bear the fees, costs and expenses of more than such separate counsel unless the use of only one firm of attorneys (in addition would be inappropriate due to any local counsel) for all indemnified partiesa conflict of interest. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The An indemnifying party shall not be liable under this Agreement for Section 4 to any amount paid indemnified party regarding any settlement or payable compromise or incurred pursuant consent to or in connection with the entry of any judgment entered with respect to any pending or settlement effected threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent is consented to in writing by such indemnifying party. No indemnifying party, in the defense of any claim or litigation, shall, except with the consent of an each indemnified party, consent to entry of any judgment or enter into any settlement or compromise of any pending or threatened proceeding in respect of which any indemnified party is a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement or compromise includes an unconditional release of such indemnified party from all liability on claims that are the indemnifying party has also consented to subject matter of such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed)proceeding. (d) If In the indemnification event that the indemnity provided for in this Section 11 4(a) or Section 4(b) above is held by a court of competent jurisdiction to be unavailable to, to or unenforceable by, insufficient to hold harmless an indemnified party in with respect of to any loss, claim, action, damage, liability liability, expense or expense action referred to in this Section 11herein, then the each applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall agrees to contribute to the amount paid aggregate losses, claims, damages and liabilities (including, without limitation, legal or payable by other expenses reasonably incurred in connection with investigating or defending same) (collectively, “Losses”) to which such indemnified indemnifying party as a result of such loss, claim, action, damage, liability or expense may be subject in such proportion as is appropriate to reflect the relative benefits received by from the indemnified party offering of the Preferred Shares and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable lawCommon Shares, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the applicable, and relative fault of the indemnifying party on the one hand and the indemnified party and on the indemnifying partyother in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by on the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party one hand or the indemnified party. The relative fault shall also be determined by reference to party on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties agree that it would not be just and equitable if contribution pursuant to this Agreement Section 4(d) were determined by pro rata allocation (even if the Holders of Registrable Securities or any agents or all of them were treated as one entity for such purpose) or by any other method or of allocation that which does not take into account of the equitable considerations referred to above in this Section 11(d4(d). In no event shall The amount paid or payable by an indemnified party as a result of the amount which a Holder of Registrable Securities may be obligated losses, claims, damages or liabilities (or actions in respect thereof) referred to contribute pursuant to above in this Section 11(d4(d) exceed an amount equal shall be deemed to the net proceeds (after deducting Selling Expenses) actually received include any legal or other expenses reasonably incurred by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 4(d), no Person guilty of fraud or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraud or fraudulent misrepresentation. For purposes of this Section 4, each Holder Party shall have the same rights to contribution as the Holder to which it relates, and each Company Party shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this Section 4(d). (e) The provisions of this Section 11 shall 4 will remain in full force and effect effect, regardless of any investigation made by or on behalf of any indemnified party Holder of Registrable Securities or the Company or any officerof the officers, director directors, members, partners, agents and employees or controlling person of such indemnified party affiliates referred to in this Section 4, and shall will survive the Transfer transfer of any Registrable Securities by any HolderSecurities.

Appears in 1 contract

Sources: Registration Rights Agreement (Quinpario Acquisition Corp.)

Indemnification; Contribution. (a) The Company shall, to the fullest extent permitted by lawand hereby agrees to, indemnify and hold harmless each the Participating Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of and its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates employees and shareholders, and each other Personcontrolling Persons, if any, who acts on behalf of in any offering or controls any such Holder or Controlling Person (each sale of the foregoingParticipating Shares pursuant to a registration statement hereunder, a “Covered Person”) against any losses, claims, actionsdamages (including reasonable attorney’s fees) or liabilities, damagesactions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable fees of counsel) (collectively, liabilities and expenses, joint or several, “Claims”) to which each such Covered Person indemnified party may become subject under (and the Securities Act, Company will pay to the Exchange Act, Participating Holder or other aforementioned person any state blue sky securities laws, legal or other expenses reasonably incurred thereby in connection with investigating or defending any equivalent non-U.S. securities laws or otherwiseClaim as such expenses are incurred), insofar as such lossesClaims (including any amounts paid in settlement effected with the consent of the Company as provided herein), claimsor actions or proceedings in respect thereof, actions, damages, liabilities or expenses arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statementregistration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement to thereto, or any document incorporated by reference in the sametherein, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein, in each case in light of the same circumstances in which they were made, not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. indemnifying party (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under its agents or Affiliates) of the Securities Act, the Exchange Act, any state blue sky securities lawslaw, or any equivalent non-U.S. rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities laws or otherwiselaw; provided, insofar as that the Company shall not be liable to the Participating Holder in any such losses, claims, actions, damages, liabilities or expenses case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with written information furnished to the Company by the Participating Holder with respect to such Participating Holder expressly for use therein, by such Participating Holder’s failure to furnish the Company, upon request, with the information with respect to such Participating Holder, or such Participating Holder’s intended method of distribution, that is the subject of the untrue statement or omission, or if such Participating Holder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable prospectus (iexcluding any documents incorporated by reference therein) or of the applicable prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Company had previously furnished copies thereof to the Participating Holder, and such prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement. (b) The Participating Holder shall, and hereby agrees to, indemnify and hold harmless the Company, its directors, officers, employees and controlling Persons, if any, in any offering or sale of Participating Shares pursuant to a registration statement hereunder, against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Registration Statementany registration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or supplement to the same or (ii) are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, but, in each case only with respect to any written information furnished to the Company by the Participating Holder expressly for use in the case preparation of each of clauses (i) and (ii), only to the extent that such untrue registration statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same thereto; provided, that in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder no event shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to indemnity under this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not 2.05 exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually from the offering received by such Participating Holder in the sale unless such liability arises out of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action is based on fraud or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing willful misconduct by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership Participating Holder as finally determined by a court of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise havecompetent jurisdiction. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt Promptly after receipt by an indemnified party under Section 2.05(a) or Section 2.05(b) of written notice to of the commencement of any action or proceeding for which indemnification under Section 2.05(a) or Section 2.05(b) may be requested, such indemnified party shall notify such indemnifying party in writing of the commencement of such action or proceeding. In case any such action or proceeding shall be brought against any indemnified party and it shall notify an indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentencecommencement thereof, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the righttherein and, exercisable by giving written notice to the extent that it shall determine, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party as promptly as practicable of its election so to assume the defense thereof, such indemnifying party shall not be liable to such indemnified party for any legal or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, that (i) if the indemnifying party fails to take reasonable steps necessary to defend diligently the action or proceeding within twenty (20) days after receipt of written receiving notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to that the indemnified party. Notwithstanding the previous sentence, any party believes it has failed to do so; (ii) if such indemnified party shall continue to be entitled to participate who is a defendant in the defense of such claim any action or action, with counsel of its own choice, but proceeding which is also brought against the indemnifying party reasonably shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably have concluded that there may be one or more legal or equitable defenses available to it and/or other any other such indemnified party which are different from or additional to those not available to the indemnifying party. Subject ; or (iii) if representation of both parties by the same counsel is otherwise inappropriate under applicable standards of professional conduct, then, in any such case, the indemnified party shall have the right to assume or continue its own defense as set forth above (but with no more than one firm of counsel for all indemnified parties) and the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, shall be liable for any expenses therefor (including, without limitation, any such reasonable counsel’s fees). If the feesindemnifying party is not entitled to, costs or elects not to, assume the defense of a claim, it will not be obligated to pay the fees and expenses of more than one firm of attorneys (in addition counsel for each indemnified party with respect to any local counsel) for all indemnified partiessuch claim. The indemnifying party will not be subject to any liability for any settlement made without its consent, which shall not have the right to settle a claim be unreasonably withheld, conditioned or action for which any indemnified delayed. No indemnifying party is entitled to indemnification pursuant to this Agreement shall, without the prior written consent of the indemnified party, The indemnifying party (which shall not be unreasonably withheld, conditioned or delayed), compromise or consent to the entry of any judgment or enter into or agree any settlement agreement with respect to any settlement relating to such claim action or action proceeding in respect of which indemnification is sought under Section 2.05(a) or Section 2.05(b) (whether or not the indemnified party is an actual or potential party thereto), unless such judgment compromise, consent or settlement does not impose any admission is solely for monetary damages and includes an unconditional release of wrongdoing or ongoing obligations on any the indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall litigation, and does not be liable under this Agreement for any amount paid include a statement or payable admission of fault, culpability or incurred pursuant a failure to act, by or in connection with any judgment entered or settlement effected with on behalf of the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed)party. (d) If The Participating Holder and the Company agree that if, for any reason, the indemnification provided for in this provisions contemplated by Section 11 is held by a court of competent jurisdiction 2.05(a) or Section 2.05(b) hereof are unavailable to be unavailable to, or unenforceable by, are insufficient to hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the such indemnifying party or by the such indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission. If, omission however, the allocation in the first sentence of this Section 2.05(d) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or violationpayable by such indemnified party in such proportion as is appropriate to reflect not only such relative fault, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Agreement Section 2.05(d) were to be determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the preceding sentences of this Section 11(d2.05(d). In Notwithstanding any of the foregoing, in no event shall the amount which a any contribution by any Participating Holder of Registrable Securities may be obligated to contribute pursuant to under this Section 11(d) 2.05(d), when combined with any amounts payable or paid by such Participating Holder under Section 2.05(b), exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually from the offering received by such Holder in the sale Participating Holder, unless such liability arises out of Registrable Securities that gives rise to or is based on fraud or willful misconduct by such obligation to contributeParticipating Holder. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 1 contract

Sources: Registration Rights Agreement (Albany Molecular Research Inc)

Indemnification; Contribution. If any Consideration Shares are included in a registration statement under this Article IV: (a) The Company shall, to To the fullest extent permitted by applicable law, Corn Products shall indemnify and hold harmless each Holder of Registrable SecuritiesSelling Entity, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each Selling Entity within the meaning of the foregoingSecurities Act, a “Covered and each officer, director, partner, and employee of such Selling Entity and such controlling Person”) , against any and all losses, claims, actions, damages, liabilities and expenses, joint including reasonable attorneys' fees and disbursements and expenses of investigation, incurred by such party pursuant to any actual or severalthreatened action, suit, proceeding or investigation, or to which such Covered Person any of the foregoing Persons may become subject under the Securities Act, the Exchange Act, any Act or other federal or state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or and expenses arise out of or are based upon (i) or caused by any untrue statement or alleged untrue statement of a material fact contained in such registration statement, any prospectus or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) contained therein or any amendment or supplement to thereto, or any document incorporated arising out of, based upon or caused by reference in the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading misleading, except insofar as such losses, claims, damages, liabilities or (iii) expenses are caused by any violation such untrue statement or omission or alleged violation by the Company of the Securities Act untrue statement or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and omission (collectively, a "Violation") based upon information relating to Corn Products or its Affiliates; provided, however, that Corn Products shall not be liable in any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person such case for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with information furnished in writing to Corn Products by the indemnified party or any of its Affiliates expressly for use in connection with such registration; provided, further, that the indemnity agreement contained in this Section 4.6 shall not apply to the extent that any such loss is based on or arises out of an untrue statement or alleged untrue statement of a material fact, or an omission or alleged omission to state a material fact, contained in or omitted from any preliminary prospectus if the final prospectus shall correct such untrue statement or alleged untrue statement, or such omission or alleged omission, made and a copy of the final prospectus has not been sent or incorporated by reference in any given to such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus person at or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished prior to the Company confirmation of sale to such person if the co-managing underwriter selected by the Arancia Representative was under an obligation to deliver such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition final prospectus and failed to any liability the Company may otherwise havedo so. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to To the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by applicable law, each Selling Entity shall indemnify and hold harmless Corn Products, each of its directors, each of its officers who shall have signed the Companyregistration statement, its directors each Person, if any, who controls Corn Products within the meaning of the Securities Act, any other Selling Entity, any controlling Person of any such other Selling Entity and officerseach officer, employeesdirector, agents partner, and any Person who is or might be deemed to be a Controlling Person employee of such other Selling Entity and such controlling Person, against any and all losses, claims, actions, damages, liabilities and expenses, joint including reasonable attorneys' fees and disbursements and expenses of investigation, incurred by such party pursuant to any actual or severalthreatened action, suit, proceeding or investigation, or to which they or any of them the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act, any Act or other federal or state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or and expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading, butViolation, in the each case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same Violation occurs in reliance upon, upon and in conformity with, written with information prepared and furnished to the Company in writing by such Holder Selling Entity expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveregistration. (c) Any Person entitled Promptly after receipt by an indemnified party under this Section 4.6 of notice of the commencement of any action, suit, proceeding, investigation or threat thereof made in writing for which such indemnified party may make a claim under this Section 4.6, such indemnified party shall deliver to indemnification pursuant the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to this Agreement shall give prompt participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof. The failure to deliver written notice to the indemnifying party within a reasonable time following the commencement of any claim with respect such action, if prejudicial to which it seeks indemnification. Notwithstanding the previous sentenceits ability to defend such action, any failure or delay to so notify the shall relieve such indemnifying party of any liability to the indemnified party under this Section 4.6 but shall not relieve the indemnifying party of its obligations under this Agreement, except any liability that it may have to the extent that the indemnifying any indemnified party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification otherwise than pursuant to this Agreement is brought against an Section 4.6. Any such indemnified party, the indemnifying party shall be entitled to participate in and shall have the rightright to employ separate counsel in any such action, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled proceeding and to participate in the defense of such claim or action, with counsel of its own choicethereof, but the indemnifying party fees and expenses of such counsel shall not be obligated to reimburse the expenses of such indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (Ai) the indemnifying party has agreed in writing to pay such fees, costs fees and expenses, expenses or (Bii) the indemnifying party has shall have failed to promptly assume the defense of such action, claim or action within a reasonable time after receipt of notice of proceeding or (iii) the named parties to any such action, claim or actionproceeding (including any impleaded parties) include both such indemnified party and the indemnifying party, (C) having assumed the defense of in which case, if such claim or action, indemnified party notifies the indemnifying party fails in writing that it elects to employ separate counsel reasonably acceptable to at the indemnified party or to pursue the defense expense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to , the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a assume the defense of such action, claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent proceeding on behalf of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified partyit being understood, of a full and final release from all liability in respect of such claim or action. The however, that the indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or not, in connection with any judgment entered one such action, claim or settlement effected with proceeding or separate but substantially similar or related actions, claims or proceedings arising out of the consent same general allegations or circumstances, be liable for the reasonable fees and expenses of more than one separate firm of attorneys and one firm of local counsel at any time for all such indemnified parties). No indemnifying party shall be liable to an indemnified party unless for any settlement of any action, proceeding or claim without the written consent of the indemnifying party has also consented to such judgment or settlement (party, such consent not to be unreasonably withheld, conditioned or delayed)denied. (d) If the indemnification provided for in required by this Section 11 4.6 from the indemnifying party is held by a court of competent jurisdiction unavailable to be unavailable to, or unenforceable by, an indemnified party hereunder in respect of any losslosses, claimclaims, actiondamages, damage, liability liabilities or expense expenses referred to in this Section 11, then the applicable 4.6: (i) The indemnifying party, in lieu of indemnifying such indemnified party under this Agreementparty, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability liabilities or expense expenses in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, fault of the indemnifying party shall contribute to such amount and indemnified parties in connection with the actions which resulted in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying partylosses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative fault of the such indemnifying party, on the one hand, party and of the indemnified party, on the other hand, parties shall be determined by reference to, among other things, whether the untrue any Violation has been committed by, or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the by, such indemnifying party or by the indemnified partyparties, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission or violationViolation. The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 4.6(a) and Section 4.6(b), any legal or other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding. (ii) The parties hereto agree that it would not be just and equitable if contribution pursuant to this Agreement Section 4.6 were determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in this Section 11(d4.6(d)(i). In no event shall the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party guilty or liable of fraudulent misrepresentation within the meaning of Section 11(f) of the Securities Act shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of If indemnification is available under this Section 11 4.6, the indemnifying parties shall remain indemnify each indemnified party to the full extent provided in full force and effect regardless this Section 4.6 without regard to the relative fault of any investigation made by such indemnifying party or on behalf of any indemnified party or any officer, director or controlling person other equitable consideration referred to in Section 4.6(d). (f) The obligations of such indemnified party Corn Products and the Selling Entities under this Section 4.6 shall survive the Transfer completion of any Registrable Securities by any Holderoffering of Consideration Shares pursuant to a registration statement pursuant to this Agreement.

Appears in 1 contract

Sources: Stockholder Agreement (Corn Products International Inc)

Indemnification; Contribution. (a) The Company shall, to the fullest extent permitted by law, will indemnify and hold harmless each Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, holder and each other Personaffiliate thereof of Common Stock registered pursuant to this Agreement with the Commission, if any, who acts on behalf of or controls under any such Holder Blue Sky Law or Controlling Person (each of the foregoing, a “Covered Person”) regulation against any losses, claims, actions, damages, liabilities and expensesor liabilities, joint or several, to which such Covered Person holder may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, or liabilities (or expenses actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statementpreliminary prospectus, Prospectusregistration statement, preliminary Prospectusprospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to thereto, or any document incorporated by reference in arise out of or are based upon the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company misleading, and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall will reimburse each Covered Person such holder and affiliate for any legal or other expenses reasonably incurred by such Covered Person holder in connection with investigating, investigating or defending or settling any such lossaction or claim regardless of the negligence of any such holder or affiliate; provided, claimhowever, action, damage or liability. Notwithstanding the previous sentence, that the Company shall not be so liable in any such case to the extent that any such loss, claim, action, damage, or liability or expense arises out of or is based upon any such an untrue statement or alleged untrue statement, statement or omission or alleged omission, omission made or incorporated by reference in any such Registration Statementpreliminary prospectus, Prospectusregistration statement or prospectus, preliminary Prospectus, free writing prospectus or any such amendment or supplement to or any document incorporated by reference in the same thereto, in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by any such Covered Person holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise havetherein. (b) In connection with any registration in which a Holder Each holder of Registrable Securities is participating, each such Holder shall furnish Common Stock registered pursuant to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, this Agreement will indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person Company against any losses, claims, actions, damages, or liabilities and expenses, joint or several, to which they or any of them the Company may become subject subject, under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, or liabilities (or expenses actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in the Registration Statementany preliminary prospectus, Prospectusregistration statement or prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement thereto, or arise out of or supplement to are based upon the same or (ii) any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, butin each case to the extent, in the case of each of clauses (i) and (ii), but only to the extent extent, that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statementany preliminary prospectus, Prospectusregistration statement or prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same thereto, in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by such Holder holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise havetherein. (c) Any Person entitled Promptly after receipt by an indemnified party under Sections 8(a) or (b) above of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to indemnification pursuant to this Agreement shall give prompt written notice to be made against the indemnifying party under either such subsection, notify the indemnifying party in writing of any claim with respect the commencement thereof; but the omission so to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve it from any liability that it may otherwise have to any indemnified party. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, commencement thereof the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, assume the defense of any such claim or action, with counsel reasonably acceptable thereof by notice in writing to the indemnified party. Notwithstanding After notice from the previous sentence, any indemnifying party to such indemnified party shall continue of its election to be entitled to participate in assume the defense of such claim or actionthereof, with counsel of its own choice, but the indemnifying party shall not be obligated liable to reimburse the such indemnified party under either of such subsections for any feeslegal expenses of other counsel or any other expense, costs and expenses in each case subsequently incurred by the such indemnified party party, in connection with such the defense unless (A) thereof other than reasonable costs of investigation incurred prior to the assumption by the indemnifying party has agreed party, unless such expenses have been specifically authorized in writing to pay such feesby the indemnifying party, costs and expenses, (B) the indemnifying party has failed to assume the defense and employ counsel, or the named parties to any such action include both the indemnified party and the indemnifying party, as appropriate, and such indemnified party has been advised by counsel that the representation of such claim or action within a reasonable time after receipt of notice indemnified party has been advised by counsel that the representation of such claim or action, (C) having assumed the defense of such claim or action, indemnified party and the indemnifying party fails by the same counsel would be inappropriate due to employ actual or potential differing interests between them, in each of which cases the fees of counsel reasonably acceptable to for the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen will be paid by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 8 is held by a court of competent jurisdiction unavailable or insufficient to be unavailable to, or unenforceable by, hold harmless an indemnified party under Section 8(a) or 8(b) in respect of any losslosses, claimclaims, actiondamages, damage, liability or expense liabilities (or action in respect thereof) referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability or expense liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company and the indemnifying partyholder or holders from this Agreement and from the offering of the shares of Common Stock. If If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, the then each indemnifying party shall contribute to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only the such relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party Company and the indemnifying partyholders in connection with the statement or omissions that resulted in such losses, claims, damages, or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to holder and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties Company and the holders agree that it would not be just and equitable if contribution pursuant to this Agreement Section 8(d) were determined by pro rata allocation (even if the holders were treated as one entity for such purpose) or by any other method or of allocation that does not take into account the equitable considerations referred to above in this Section 11(dsubsection (e). In no event shall Except as provided in Section 8(c), the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed paid or payable by an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party guilty or liable of fraudulent misrepresentation within the meaning of Section 11(f) as a result of the Securities Act shall be entitled losses, claims, damages, or liabilities (or actions in respect thereof) referred to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of above in this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.Section

Appears in 1 contract

Sources: Warrant Agreement (Cd Warehouse Inc)

Indemnification; Contribution. (a) The Company shall, to If any Registrable Securities are included in a registration statement under this Agreement: 6.1. To the fullest extent permitted by applicable law, the Company shall indemnify and hold harmless each Holder of Registrable SecuritiesSelling Holder, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Selling Holder or Controlling Person (each within the meaning of the foregoingSecurities Act, a “Covered and each officer, director, partner, and employee of such Selling Holder and such controlling Person”) , against any and all losses, claims, actions, damages, liabilities and expenses, expenses (joint or several), including attorneys’ fees and disbursements and expenses of investigation, incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation, or to which such Covered Person any of the foregoing Persons may become subject under the Securities Act, the Exchange Act, any Act or other federal or state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or and expenses arise out of or are based upon any of the following statements, omissions or violations (collectively a “Violation”): (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any preliminary prospectus or incorporated by reference in any Registration Statementfinal prospectus contained therein, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) amendments or any amendment or supplement to or any document incorporated by reference in the same, supplements thereto; or (ii) any the omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statementtherein, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same therein not misleading; provided, buthowever, in that the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company indemnification required by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) 6.1 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action liability or proceeding expense if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such Holder. The Company case for any such loss, claim, damage, liability or expense to the extent that it arises out of or is based upon (x) a Violation which occurs in reliance upon and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only conformity with written information furnished or to be furnished to the Company by the indemnified party expressly for use in any Registration Statement connection with such registration or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (ay) the beneficial ownership failure of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person person entitled to indemnification hereunder to deliver or make available to a purchaser of Registrable Securities (to the extent required by law), a copy of any registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto (if the same was required by applicable law to be delivered or made available), provided that the Company shall have delivered to the applicable Selling Holder such registration statement, including such preliminary prospectus or final prospectus contained therein and any amendments or supplements thereto. The Company shall also indemnify underwriters, selling brokers, dealer managers and similar securities industry professionals participating in the distribution, their officers, directors, agents and employees and each person who controls such persons (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) to the same extent as provided above with respect to the indemnification of the Selling Holders. 6.2. To the extent permitted by applicable law, each Selling Holder shall indemnify and hold harmless the Company, each of its directors, each of its officers who shall have signed the registration statement, each Person, if any, who controls the Company within the meaning of the Securities Act, any other Selling Holder, any controlling Person of any such other Selling Holder and each officer, director, partner, and employee of such other Selling Holder and such controlling Person, against any and all losses, claims, damages, liabilities and expenses (joint and several), including attorneys’ fees and disbursements and expenses of investigation, incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation, or to which any of the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or other federal or state laws, insofar as such losses, claims, damages, liabilities and expenses arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such Selling Holder expressly for use in connection with such registration; provided, however, that (x) the indemnification required by this Agreement Section 6.2 shall give prompt not apply to amounts paid in settlement of any such loss, claim, damage, liability or expense if settlement is effected without the consent of the relevant Selling Holder of Registrable Securities, which consent shall not be unreasonably withheld, and (y) in no event shall the amount of any indemnity under this Section 6.2 exceed the gross proceeds from the applicable offering received by such Selling Holder. 6.3. Promptly after receipt by an indemnified party under this Section 6 of notice of the commencement of any action, suit, proceeding, investigation or threat thereof made in writing for which such indemnified party may make a claim under this Section 6, such indemnified party shall deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall have the right to retain its own counsel, with the fees and disbursements and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time following the commencement of any claim with respect such action, if prejudicial to which it seeks indemnification. Notwithstanding the previous sentenceits ability to defend such action, any failure or delay to so notify the shall relieve such indemnifying party of any liability to the indemnified party under this Section 6 to the extent of such prejudice but shall not relieve the indemnifying party of its obligations under this Agreement, except any liability that it may have to the extent that the indemnifying any indemnified party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification otherwise than pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in Section 6. Any fees and shall have the right, exercisable expenses incurred by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from (including any fees and expenses incurred in connection with investigating or preparing to defend such indemnified party of such claim action or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable proceeding) shall be paid to the indemnified party, as incurred, within thirty (30) days of written notice thereof to the indemnifying party (regardless of whether it is ultimately determined that an indemnified party is not entitled to indemnification hereunder). Notwithstanding the previous sentence, any Any such indemnified party shall continue have the right to be entitled employ separate counsel in any such action, claim or proceeding and to participate in the defense of such claim or action, with counsel of its own choicethereof, but the indemnifying party fees and expenses of such counsel shall not be obligated to reimburse the expenses of such indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (Ai) the indemnifying party has agreed in writing to pay such fees, costs fees and expenses, expenses or (Bii) the indemnifying party has shall have failed to promptly assume the defense of such action, claim or action within a reasonable time after receipt of notice of proceeding or (iii) the named parties to any such action, claim or action, proceeding (Cincluding any impleaded parties) having assumed the defense of include both such claim or action, indemnified party and the indemnifying party fails to employ counsel reasonably acceptable to the party, and such indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of shall have been advised by counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional in addition to those available to the indemnifying party. Subject to party and that the foregoing sentence, no assertion of such defenses would create a conflict of interest such that counsel employed by the indemnifying party shallcould not faithfully represent the indemnified party (in which case, if such indemnified party notifies the indemnifying party in writing that it elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense of such action, claim or proceeding on behalf of such indemnified party, it being understood, however, that the indemnifying party shall not, in connection with any one such action, claim or action proceeding or separate but substantially similar or related actions actions, claims or proceedings in the same jurisdiction arising out of the same general circumstances allegations or allegationscircumstances, be liable for the fees, costs reasonable fees and expenses of more than one separate firm of attorneys (in addition to any together with appropriate local counsel) at any time for all such indemnified parties. The , unless in the reasonable judgment of such indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such action, claim or proceeding, in which event the indemnifying party shall not have be obligated to pay the right fees and expenses of such additional counsel or counsels). No indemnifying party shall be liable to settle a claim or action for which any an indemnified party is entitled to indemnification pursuant to this Agreement for any settlement of any action, proceeding or claim without the written consent of the indemnified indemnifying party, The indemnifying party shall not which consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under unreasonably withheld. 6.4. If the indemnification required by this Agreement for any amount paid or payable or incurred pursuant Section 6 from the indemnifying party is unavailable to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, an indemnified party hereunder in respect of any losslosses, claimclaims, actiondamages, damage, liability liabilities or expense expenses referred to in this Section 11, then the applicable 6: (i) The indemnifying party, in lieu of indemnifying such indemnified party under this Agreementparty, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability liabilities or expense expenses in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, fault of the indemnifying party shall contribute to such amount and indemnified parties in connection with the actions which resulted in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying partylosses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative fault of the such indemnifying party, on the one hand, party and of the indemnified party, on the other hand, parties shall be determined by reference to, among other things, whether the untrue any Violation has been committed by, or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the by, such indemnifying party or by the indemnified partyparties, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission or violationViolation. The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 6.1 and Section 6.2, any legal or other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding. (ii) The parties hereto agree that it would not be just and equitable if contribution pursuant to this Agreement Section 6.4 were determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in this Section 11(d6.4(i). In no event shall the amount which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. (e) The provisions of 6.5. If indemnification is available under this Section 11 6, the indemnifying parties shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnify each indemnified party or any officer, director or controlling person of such indemnified party and shall survive to the Transfer of any Registrable Securities by any Holder.full extent provided in this

Appears in 1 contract

Sources: Registration Rights Agreement (Broadpoint Gleacher Securities Group, Inc.)

Indemnification; Contribution. (a) The In connection with any registration of Registrable Securities pursuant to this Article II, the Company shallagrees to indemnify and hold harmless, to the fullest extent permitted by lawapplicable Law, indemnify each Investor and hold harmless its respective Affiliates and each Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries controls such Investor within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act (each such PersonAct, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, the directors, officers, trusteesemployees, partners, affiliates, members, managers, members, employees, agents, Affiliates and shareholders, assignees and each other Person, if any, who acts on behalf representatives of or controls any such Holder or Controlling Person (each of the foregoingforegoing (collectively, a the Covered PersonIndemnified Persons”) from and against any and all losses, claims, actions, damages, liabilities liabilities, judgments, actions and expenses, expenses (including documented and reasonable attorneys’ fees) (“Losses”) joint or several, to which such Covered Person may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise several arising out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in or incorporated by reference in any part of any Registration Statement, Prospectusany preliminary or final prospectus or other disclosure document used in connection with the Registrable Securities, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) Issuer FWP or any amendment or supplement to any of the foregoing, or any document incorporated by reference in the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein (in the same case of any prospectus, in the light of the circumstances under which they were made) not misleading or (iiiii) any violation or alleged violation by the Company of the Securities Act or any other similar federal of its Subsidiaries of any federal, state, foreign or state securities laws or any common law rule or regulation promulgated under such federal or state securities laws applicable to the Company or any of its Subsidiaries and relating to any action or inaction required of the Company in connection with any registration of securities. In additionsuch registration, Registration Statement, other disclosure document or Issuer FWP; provided, however, that the Company shall reimburse each Covered will not be required to indemnify any Indemnified Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon Losses resulting from any such untrue statement or alleged omission to the extent such untrue statement, statement or omission or alleged omission, was made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, on and in conformity with, written with information prepared and with respect to any Indemnified Person furnished to the Company in writing by such Covered Person Investor expressly for use in the Registration Statement or prospectus in which such Registration Statement, Prospectus, preliminary Prospectus untrue statement or free writing prospectus. This indemnity shall be in addition omission is purported to any liability the Company may otherwise havehave occurred. (b) In connection with any registration in which a Holder of Registrable Securities is participatingRegistration Statement, preliminary or final prospectus, or Issuer FWP, each Investor agrees to indemnify, severally and not jointly, the Company, its Directors, its officers who sign such Holder shall furnish Registration Statement and each Person, if any, who controls the Company (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act) to the same extent as the foregoing indemnity from the Company to the Investor, but only with respect to information with respect to the Investor furnished to the Company in writing such information as by the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder Investor expressly for use in such Registration Statement, Prospectuspreliminary or final prospectus, preliminary Prospectus or free writing prospectus. In additionIssuer FWP to the extent such information is included in the Registration Statement or prospectus in which such untrue statement or omission is purported to have occurred in reliance upon and in conformity with the information furnished to the Company by the Investor expressly for use therein; provided, such Holder however, that in no event shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify Investor’s liability pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional 2.08 in respect of the offering to and shall not which such Losses relate exceed an amount equal to the net proceeds to the Investor (after deducting Selling Expensesdeduction of all Underwriters’ discounts and commissions) actually received by from such Holder in offering less the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement amount of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without damages which the consent Investor has otherwise been required to pay by reason of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveinformation. (c) Any In case any claim, action or proceeding (including any governmental investigation) is instituted involving any Person entitled to indemnification in respect of which indemnity may be sought pursuant to this Agreement shall give prompt written notice to Section 2.08(a) or (b), such Person (hereinafter called the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so “indemnified party”) will (i) promptly notify the Person against whom such indemnity may be sought (hereinafter called the “indemnifying party party”) in writing; provided, however, that the failure to give such notice shall not relieve the indemnifying party of its obligations under pursuant to this Agreement, Agreement except to the extent that such indemnifying party has been prejudiced in any material respect by such failure; (ii) permit the indemnifying party is actually and materially prejudiced by reason to assume the defense of such failure claim, action or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice proceeding with counsel reasonably satisfactory to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to represent the indemnified party; and (iii) pay the fees and disbursements of such counsel related to such claim, action or proceeding. Notwithstanding the previous sentenceIn any such claim, action or proceeding, any indemnified party shall continue will have the right to be entitled to participate in the defense of such claim or action, with counsel of retain its own choicecounsel, but the indemnifying party shall not fees and expenses of such counsel will be obligated to reimburse at the expense of such indemnified party for any fees(without prejudice to such indemnified party’s indemnity and other rights under the Charter, costs Bylaws and expenses subsequently incurred by the indemnified party in connection with such defense applicable Law, if any) unless (A) the indemnifying party has and the indemnified party have mutually agreed in writing to pay the retention of such fees, costs and expensescounsel, (B) the named parties to any such claim, action or proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and the indemnified party has been advised in writing by counsel that representation of both parties by the same counsel would be inappropriate due to actual or potential conflicting interests between them, (C) the indemnifying party has failed to assume the defense of such claim and employ counsel reasonably satisfactory to the indemnified party, or (D) any such, claim, action within or proceeding is a reasonable time after receipt of notice of such claim criminal or regulatory enforcement action, (C) having assumed the defense of such claim or action, . It is understood that the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shallwill not, in connection with any one claim or claim, action or separate but substantially similar proceeding or related claims, actions or proceedings in the same jurisdiction arising out of the same general circumstances or allegationsjurisdiction, be liable for the fees, costs reasonable fees and expenses of more than one separate firm of attorneys for the indemnified parties (in addition to any local counsel) counsel at any time for all such indemnified parties) and that all such reasonable fees and expenses will be reimbursed reasonably promptly following a written request by an indemnified party stating under which clause of (A) through (C) above reimbursement is sought and delivery of documentation of such fees and expenses. In the case of the retention of any such separate firm for the indemnified parties, such firm will be designated in writing by the indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall will not be liable under this Agreement for any amount paid settlement of any claim, action or payable or incurred pursuant to or in connection with any judgment entered or settlement proceeding effected with the without its written consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such which consent shall not to be unreasonably withheld, conditioned or delayed), but if such claim, action or proceeding is settled with such consent or if there has been a final non-appealable judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party will have requested an indemnifying party to reimburse the indemnified party for reasonable fees and expenses of counsel as contemplated by the third sentence of this Section 2.08(c), the indemnifying party agrees that it will be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party has not reimbursed the indemnified party in accordance with such request or reasonably objected in writing, on the basis of the standards set forth herein, to the propriety of such reimbursement prior to the date of such settlement. No indemnifying party will, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened proceeding (i) in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding, (ii) that involves the imposition of equitable remedies on the indemnified party or the imposition of any obligation on the indemnified party, other than as a result of the imposition of financial obligations for which the indemnified person will be indemnified hereunder, or (iii) that includes a statement as to or admission of fault, culpability, or a failure to act, by or on behalf of any indemnified person. (d) If the indemnification provided for in this Section 11 2.08 from the indemnifying party is held by a court of competent jurisdiction unavailable to be unavailable to, or unenforceable by, an indemnified party hereunder in respect of any loss, claim, action, damage, liability or expense Losses referred to in this Section 112.08, then the applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreementparty, shall will contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Losses (i) in such proportion as is appropriate to reflect the relative benefits received by fault of the indemnifying party and indemnified party and in connection with the indemnifying party. If actions that resulted in such Losses, as well as any other relevant equitable considerations, or (ii) if the allocation provided by the preceding sentence clause (i) is not permitted by applicable lawLaw, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits fault referred to in the preceding sentence clause (i) but also the relative fault benefit of the indemnified party Company, on the one hand, and the indemnifying partyapplicable Investor, on the other hand, in connection with the statements or omissions that resulted in such Losses, as well as any other relevant equitable considerations. The relative fault of the such indemnifying party, on the one hand, party and of the indemnified party, on the other hand, shall party will be determined by reference to, among other things, whether the any action in question, including any untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact fact, has been taken by, or relates to information supplied by the by, such indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementaction. The amount paid or payable by a party as a result of the Losses referred to above will be deemed to include, omission subject to the limitations set forth in Section 2.08(c), any legal or violation. other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding. (e) The parties agree that it would not be just and equitable if contribution pursuant to this Agreement Section 2.08(d) were determined by pro rata allocation or by any other method or of allocation that does not take into account the equitable considerations referred to in this Section 11(d2.08(d). In no event shall the amount which a Holder No Person guilty of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds “fraudulent misrepresentation” (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party guilty or liable of fraudulent misrepresentation within the meaning of Section 11(f) of the Securities Act shall Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. Notwithstanding the provisions of Section 2.08(d) and this Section 2.08(e), each Investor’s liability pursuant to Section 2.08(d) in respect of the offering to which such Losses relate shall not exceed an amount equal to the proceeds to such Investor (after deduction of all Underwriters’ discounts and commissions) from such offering less the amount of any damages which the Investor has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. Each Investor’s obligation to contribute pursuant to this Section 2.08 is several in proportion to the number of Registrable Securities held by the Investors hereunder and not joint. (ef) The provisions For purposes of this Section 11 2.08, each Indemnified Person shall remain have the same rights to contribution as the applicable Investor, and each officer, Director and Person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act shall have the same rights to contribution as the Company, subject in full force and effect regardless each case to the limitations set forth in the immediately preceding paragraph. Any party entitled to contribution will, promptly after receipt of notice of commencement of any investigation action, suit or proceeding against such party in respect of which a claim for contribution may be made against another party or parties under this Section 2.08, notify such party or parties from whom contribution may be sought, but the omission to so notify such party or parties shall not relieve the party or parties from whom contribution may be sought from any obligation it or they may have under this Section 2.08 or otherwise except to the extent that it has been prejudiced in any material respect by such failure. No party shall be liable for contribution with respect to any action or on behalf claim settled without its written consent; provided, however, that such written consent was not unreasonably withheld. (g) If indemnification is available under this Section 2.08, the indemnifying party will indemnify each indemnified party to the full extent provided in Sections 2.08(a) and (b) without regard to the relative fault of any said indemnifying party or indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holderother equitable consideration provided for in Section 2.08(d).

Appears in 1 contract

Sources: Registration Rights Agreement (Radius Global Infrastructure, Inc.)

Indemnification; Contribution. (a) The Company shall, agrees to the fullest extent permitted by law, indemnify and hold harmless (i) each Holder of Registrable Securitiescovered by any Registration Statement, any (ii) each other Person who is participates as an underwriter in the offering or might be deemed to be a “controlling sale of such securities, (iii) each person” of the Company or any of its subsidiaries , if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls Act) any such Holder or Controlling Person underwriter (each any of the foregoingpersons referred to in this clause (iii) being hereinafter referred to as a "controlling person") and (iv) the respective officers, a “Covered directors, partners, employees, representatives and agents of any such Holder or underwriter or any controlling person (any person referred to in clause (i), (ii), (iii) or (iv) may hereinafter be referred to as an "indemnified Person”) "), to the fullest extent lawful, from and against any and all losses, claims, actions, damages, liabilities and liabilities, judgments or expenses, joint or severalseveral (or actions or proceedings, whether commenced or threatened, in respect thereof) (collectively, "Claims"), to which such Covered indemnified Person may become subject under either Section 15 of the Securities Act, Act or Section 20 of the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon (i) upon, or are caused by any untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus Statement or Prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to thereto), or any document incorporated by reference in the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading misleading, or (iii) any violation or alleged a violation by the Company of the Securities Act or any other similar federal or state securities laws law, or any rule or regulation promulgated under such federal the Securities Act or any state securities laws law, or any other law applicable to the Company and relating to any action such registration or inaction required of the Company in connection with any registration of securities. In additionqualification, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, except insofar as such losses, claims, actions, damages, liabilities liabilities, judgments or expenses arise out of any such indemnified Person; (x) are caused by any such untrue statement or are based upon (i) any untrue omission or alleged untrue statement or omission that is based upon information relating to such indemnified Person furnished in writing to the Company by or on behalf of a material fact contained in any of such indemnified Person expressly for use therein; (y) with respect to the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under result from the fact that such Holder sold Securities Act to a person to whom there was not sent or any successor rule to Rule 405) given, at or any amendment of or supplement prior to the same or (ii) any omission or alleged omission written confirmation of such sale, a material fact required to be stated in such Registration Statement, copy of the Prospectus, preliminary Prospectus as amended or free writing prospectus supplemented, if the Company shall have previously furnished copies thereof to such Holder in accordance with this Agreement and said Prospectus, as amended or necessary to make the statements made in the same not misleadingsupplemented, but, in the case of each of clauses (i) and (ii), only to the extent that would have corrected such untrue statement or alleged untrue statementomission; or (z) as a result of the use by an indemnified Person of any Prospectus when, upon receipt of a Black-Out Notice or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to a notice from the Company of the existence of any fact of the kind described in Section 2.4(b)(iv), the indemnified Person or the related Holder was not permitted to do so. Such indemnity shall remain in full force and effect regardless of any investigation made by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and on behalf of any indemnified Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to survive the net proceeds (after deducting Selling Expenses) actually received transfer of such securities by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders In case any action shall be brought or asserted against any of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim indemnified Persons with respect to which it seeks indemnification. Notwithstanding indemnity may be sought against the previous sentenceCompany, any failure or delay to so such indemnified Person shall promptly notify the indemnifying party Company and the Company shall not relieve assume the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delaydefence thereof. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an Such indemnified party, the indemnifying party shall be entitled to participate in and Person shall have the right, exercisable by giving written notice right to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of employ separate counsel in any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled action and to participate in the defense of such claim or action, with counsel of its own choicethereof, but the indemnifying party fees and expenses of such counsel shall not be obligated to reimburse at the expense of the indemnified party for any fees, costs and expenses subsequently incurred Person unless (i) the employment of such counsel shall have been specifically authorized in writing by the indemnified party in connection with such defense unless Company, (Aii) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has Company shall have failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to and employ counsel reasonably acceptable or (iii) the named parties to any such action (including any implied parties) include both the indemnified party or to pursue Person and the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent Company and the indemnified party would present such Person shall have been advised in writing by its counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject Company (in which case the Company shall not have the right to assume the foregoing sentencedefense of such action on behalf of the indemnified Person), no indemnifying party shallit being understood, however, that the Company shall not, in connection with any one claim or such action or separate but substantially similar or related actions in the same jurisdiction or proceedings arising out of the same general circumstances allegations or allegationscircumstances, be liable for the fees, costs reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for all the indemnified partiesPersons, which firm shall be (x) designated by such indemnified Persons and (y) reasonably satisfactory to the Company. The indemnifying party Company shall not have be liable for any settlement of any such action or proceeding effected without the right Company's prior written consent, which consent shall not be withheld unreasonably, and the Company agrees to settle a claim or action for which indemnify and hold harmless any indemnified party is entitled to indemnification pursuant to this Agreement without Person from and against any loss, claim, damage, liability, judgment or expense by reason of any settlement of any action effected with the written consent of the Company. The Company shall not, without the prior written consent of each indemnified partyPerson, The indemnifying party shall not settle or compromise or consent to the entry of judgment on or otherwise seek to terminate any judgment pending or enter into threatened action, claim, litigation or agree proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not any indemnified Person is a party thereto), unless such settlement, compromise, consent or termination includes an unconditional release of each indemnified Person from all liability arising out of such action, claim litigation or proceeding. (b) Each Holder of Restricted Securities covered by any Registration Statement agrees, severally and not jointly, to indemnify and hold harmless the Company and its directors, officers and any settlement person controlling (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Company, and the respective officers, directors, partners, employees, representatives and agents of each person, to the same extent as the foregoing indemnity from the Company to each of the indemnified Persons, but only (i) with respect to actions based on information relating to such claim Holder furnished in writing by or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term behalf of such judgment Holder expressly for use in any Registration Statement or settlement Prospectus, and (ii) to the giving extent of the gross proceeds, if any, received by such Holder from the claimant sale or plaintiff in other disposition of his or its Restricted Securities covered by such judgment Registration Statement. In case any action or settlement to proceeding shall be brought against the Company or its directors or officers or any such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability controlling person in respect of which indemnity may be sought against a Holder of Restricted Securities covered by any Registration Statement, such claim or action. The indemnifying party Holder shall have the rights and duties given the Company in Section 2.8(a) (except that the Holder may but shall not be liable under this Agreement for any amount paid required to assume the defense thereof), and the Company or payable its directors or incurred pursuant officers or such controlling person shall have the rights and duties given to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayedeach Holder by Section 2.8(a). (dc) If the indemnification provided for in this Section 11 2.8 is held by a court of competent jurisdiction unavailable to be unavailable to, or unenforceable by, an indemnified party under Section 2.7(a) (other than by reason of exceptions provided in those Sections) in respect of any losslosses, claimclaims, actiondamages, damageliabilities, liability judgments or expense expenses referred to in this Section 11therein, then the each applicable indemnifying partyparty (in the case of the Holders severally and not jointly), in lieu of indemnifying such indemnified party under this Agreementparty, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims damages, actionliabilities, damage, liability judgments or expense expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company on the one hand and the indemnifying party. If Holder on the other hand from sale of Restricted Securities or (ii) if such allocation provided by the preceding sentence clause (i) above is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence clause (i) above but also the relative fault of the indemnified party Company and such Holder in connection with the indemnifying partystatements or omissions which resulted in such losses, claims, damages, liabilities, judgments or expenses, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, Company on the one hand, hand and of the indemnified party, such Holder on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party Company or by such Holder and the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ parties relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties amount paid to a party as a result of the losses, claims, damages, liabilities judgments and expenses referred to above shall be deemed to include, subject to the limitations set forth in the second paragraph of Section 2.8(a), any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any action or claim. The Company and each Holder of Restricted Securities covered by any Registration Statement agree that it would not be just and equitable if contribution pursuant to this Agreement Section 2.8(c) were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method or of allocation that which does not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 11(d). In 2.8(c) no event Holder (and none of its related indemnified Persons) shall be required to contribute, in the aggregate, any amount in excess of the amount by which a Holder the dollar amount of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in upon the sale of Registrable the Restricted Securities that gives rise exceeds the amount of any damages which such Holder has otherwise been required to pay by reason of such obligation to contributeuntrue statement or omission or alleged omission. No indemnified party person guilty or liable of fraudulent misrepresentation misrepresentations (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. (e) . The indemnity, and contribution provisions of contained in this Section 11 shall remain 2.8 are in full force and effect regardless of addition to any investigation made by or on behalf of any liability which the indemnifying person may otherwise have to the indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holderpersons referred to above.

Appears in 1 contract

Sources: Registration Rights Agreement (Interiors Inc)

Indemnification; Contribution. (a) The Company shall, to the fullest extent permitted by lawand it hereby agrees to, (i) indemnify and hold harmless Subscriber, Elan and each Holder underwriter in any offering or sale of Registrable Elan Controlled Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of and its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), and their respective direct Representatives and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Personcontrolling Persons, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) from and against any and all losses, claims, actionsdamages or liabilities, damagesactions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable fees of counsel) (collectively, liabilities and expenses, joint or several, “Claims”) to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such lossesClaims (including any amounts paid in settlement reached in accordance with the requirements for consent as provided herein), claimsor actions or proceedings in respect thereof, actions, damages, liabilities or expenses arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement to thereto, or any document incorporated by reference in the sametherein, (ii) or arise out of or are based upon any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein (in the same not misleading case of any preliminary or (iii) final Prospectus, including any violation or alleged violation by the Company Free Writing Prospectus incorporated into such Registration Statement, in light of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under circumstances in which they were made), not misleading; and (ii) reimburse periodically upon demand such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person indemnified party for any legal or other out-of-pocket expenses reasonably incurred by such Covered Person indemnified party in connection with investigating, investigating or defending or settling any such lossClaims; provided, claimhowever, action, damage or liability. Notwithstanding the previous sentence, that the Company shall not be so liable to any such indemnified party in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such Registration Statement, or preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), or amendment or supplement thereto, in reliance upon and in conformity with information furnished in writing to the Company by Subscriber or any Representative of Subscriber expressly for use therein, or if Subscriber sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable Prospectus (excluding any documents incorporated by reference therein) or of the applicable Prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Company had previously furnished copies thereof to Subscriber and such Prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such Registration Statement. (b) Elan and Subscriber shall, and hereby agrees to, on a joint and several basis (i) indemnify and hold harmless the Company in any offering or sale of Elan Controlled Securities, and its and their respective Representatives and controlling Persons, if any, from and against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement reached in accordance with the requirements for consent as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or supplement to the same or (ii) are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same not misleading, but, therein (in the case of each any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), in light of clauses (i) the circumstances in which they were made), not misleading; and (ii)) reimburse periodically upon demand such indemnified party for any legal or other out-of-pocket expenses reasonably incurred by such indemnified party in connection with investigating or defending any such Claims, in each case only to the extent that such untrue statement or alleged untrue statement, statement or omission or alleged omissionomission was made in reliance upon and in conformity with information furnished in writing to the Company by Elan, is Subscriber or any of their respective Representatives, expressly for use therein, or if Subscriber sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable Prospectus (excluding any documents incorporated by reference therein) or of the applicable Prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Company had previously furnished copies thereof to Subscriber and such Prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such Registration Statement; provided, Prospectushowever, preliminary Prospectus, free writing prospectus or any amendment or supplement to that the same in reliance upon, liability of Elan and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) Subscriber hereunder shall be individual and several, not joint and several, for each participating Holder and shall be proportional limited to and shall not exceed an amount equal to the dollar amount of the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Subscriber from Elan Controlled Securities sold by Subscriber pursuant to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveProspectus. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to Elan, Subscriber and the indemnifying party of Company agree that if, for any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partyreason, the indemnifying party shall be entitled to participate in and shall have the right, exercisable indemnification provisions contemplated by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim Section 5.6(a) or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (ASection 5.6(b) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant unavailable to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented are insufficient to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, with respect to statements or omissions that that resulted in such Claims. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the such indemnifying party or by the such indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission. If, omission however, the allocation in the first sentence of this Section 5.6(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or violationpayable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Agreement Section 5.6(c) were to be determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the preceding sentences of this Section 11(d5.6(c). In no event The amount paid or payable by an indemnified party as a result of the Claims referred to above shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal include (subject to the net proceeds (after deducting Selling Expenseslimitations set forth in Section 5.7) actually received any legal or other fees or expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise to connection with investigating or defending any such obligation to contributeaction, proceeding or claim. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. Notwithstanding the foregoing, Subscriber shall not be liable to contribute any amount in excess of the dollar amount of the net proceeds received by Subscriber from Elan Controlled Securities sold by Subscriber pursuant to such Registration Statement or Prospectus. (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 1 contract

Sources: Subscription and Registration Rights Agreement (Prothena Corp PLC)

Indemnification; Contribution. (a) The In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the Company shall, to the fullest extent permitted by lawand it hereby agrees to, indemnify and hold harmless each Holder of Registrable Securitiesharmless, any Person who is or might be deemed cause to be a “controlling person” of the Company or any of indemnified and held harmless, each Amneal Group Member and its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board membersofficers, directors, officers, trustees, managers, members, employees, agents, Affiliates employees and shareholders, and each other Personcontrolling Persons, if any, who acts on behalf of in any offering or controls any such Holder or Controlling Person (each sale of the foregoingRegistrable Shares, a “Covered Person”) against any losses, claims, actionsdamages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, damages, liabilities and expenses, joint or several“Claims”), to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such lossesClaims (including any amounts paid in settlement effected with the consent of the Company as provided herein), claimsor actions or proceedings in respect thereof, actions, damages, liabilities or expenses arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statementregistration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement to thereto, or any document incorporated by reference in the sametherein, (ii) or arise out of or are based upon any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein, in light of the same circumstances in which they were made, not misleading or (iii) any violation or alleged violation by misleading, and the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under shall, and it hereby agrees to, reimburse, upon request, each such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by such Covered Person them in connection with investigating, investigating or defending or settling any such lossClaims; provided, claimhowever, action, damage or liability. Notwithstanding the previous sentence, that the Company shall not be so liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission. (ib) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Registration Statementany registration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or supplement to the same or (ii) are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, butand each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in the each case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, upon and in conformity with, written information prepared and with the Required Amneal Group Member Information furnished to the Company in writing by such Holder the Amneal Group Member or its Representative expressly for use in such Registration Statementtherein that is the subject of the untrue statement or omission; provided, Prospectushowever, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse that the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) liability of each Amneal Group Member hereunder shall be individual and several, not joint and several, for each participating Holder and shall be proportional limited to and shall not exceed an amount equal to the dollar amount of the net proceeds (after deducting Selling Expenses) actually received by such Holder in Amneal Group Member from the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing Shares sold by such Holders, the only information furnished Amneal Group Member pursuant to such registration statement or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveprospectus. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to Amneal Group and the indemnifying party of Company agree that if, for any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partyreason, the indemnifying party shall be entitled to participate in and shall have the right, exercisable indemnification provisions contemplated by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim Section 5.8(a) or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (ASection 5.8(b) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant unavailable to or in connection with any judgment entered or settlement effected with the consent are insufficient to hold harmless an Table of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, an Contents indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the such indemnifying party or by the such indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission. If, omission however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or violationpayable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Agreement Section 5.8(c) were to be determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the preceding sentences of this Section 11(d5.8(c). In no event The amount paid or payable by an indemnified party as a result of the Claims referred to above shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal include (subject to the net proceeds (after deducting Selling Expenseslimitations set forth in Section 5.9) actually received any legal or other fees or expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise to connection with investigating or defending any such obligation to contributeaction, proceeding or claim. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct). (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 1 contract

Sources: Stockholders Agreement (Atlas Holdings, Inc.)

Indemnification; Contribution. (a) The Company shallshall indemnify, to the fullest extent permitted by law, indemnify and hold harmless each Holder holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board membersofficers, directors, officerspartners, trustees, managers, members, employees, employees and agents, Affiliates and shareholdersif any, and each other Person, if any, who acts on behalf controls such holder within the meaning of or controls any such Holder or Controlling Person (each section 15 of the foregoingSecurities Act, a “Covered Person”) against any all losses, claims, actions, damages, liabilities (or proceedings in respect thereof) and expensesexpenses (under the Securities Act or common law or otherwise), joint or several, to which such Covered Person may become subject under resulting from any violation by the Company of the provisions of the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any registration statement or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (and as defined amended or supplemented if amended or supplemented) or any preliminary prospectus or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in Rule 405 the case of any prospectus, in light of the circumstances under which they were made) not misleading, except to the extent that such losses, claims, damages, liabilities (or proceedings in respect thereof) or expenses are caused by any untrue statement or alleged untrue statement contained in or by any omission or alleged omission from information concerning any holder furnished in writing to the Company by such holder expressly for use therein. If the Public Offering pursuant to any registration statement provided for under this Article III is made through underwriters, no action or failure to act on the part of such underwriters (whether or not such underwriter is an Affiliate of any holder of Registrable Securities) shall affect the obligations of the Company to indemnify any holder of Registrable Securities or any other Person pursuant to the preceding sentence. If the Public Offering pursuant to any registration statement provided for under this Article III is made through underwriters, the Company agrees to enter into an underwriting agreement in customary form with such underwriters and the Company agrees to indemnify such underwriters, their officers, directors, employees and agents, if any, and each Person, if any, who controls such underwriters within the meaning of section 15 of the Securities Act to the same extent as herein before provided with respect to the indemnification of the holders of Registrable Securities; provided that the Company shall not be required to indemnify any such underwriter, or any successor rule officer, director or employee of such underwriter or any Person who controls such underwriter within the meaning of section 15 of the Securities Act, to Rule 405the extent that the loss, claim, damage, liability (or proceedings in respect thereof) or expense for which indemnification is claimed results from such underwriter's failure to send or give a copy of an amended or supplemented final prospectus to the Person asserting an untrue statement or alleged untrue statement or omission or alleged omission at or prior to the written confirmation of the sale of Registrable Securities to such Person if such statement or omission was corrected in such amended or supplemented final prospectus prior to such written confirmation and the underwriter was provided with such amended or supplemented final prospectus. (b) In connection with any amendment registration statement in which a holder of Registrable Securities is participating, each such holder, severally and not jointly, shall indemnify, to the fullest extent permitted by law, the Company, each underwriter and their respective officers, directors, employees and agents, if any, and each Person, if any, who controls the Company or supplement to such underwriter within the meaning of section 15 of the Securities Act, against any losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses resulting from any document incorporated by reference in the sameuntrue statement or alleged untrue statement of a material fact, (ii) or any omission or alleged omission of a material fact required to be stated in the registration statement or prospectus or preliminary prospectus or any such Registration Statement, Prospectus, preliminary Prospectus amendment thereof or free writing prospectus supplement thereto or necessary to make the statements made in the same not misleading or therein (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading, but, in the case of each any prospectus, in light of clauses (ithe circumstances under which they were made) and (ii)not misleading, but only to the extent that such untrue statement is contained in or alleged untrue statement, or such omission or alleged omission, is made from information so concerning a holder furnished in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder holder expressly for use in therein; provided that such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) holder's obligations hereunder shall be individual and several, not joint and several, for each participating Holder and shall be proportional limited to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by to such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders holder of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed sold pursuant to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveregistration statement. (c) Any Person entitled to indemnification pursuant to under the provisions of this Agreement Section 3.7 shall (i) give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding indemnification and (ii) unless in such indemnified party's reasonable judgment a conflict -21- of interest between such indemnified and indemnifying parties may exist in respect of such claim, permit such indemnifying party to assume the previous sentencedefense of such claim, any failure or delay with counsel reasonably satisfactory to the indemnified party; and if such defense is so notify the assumed, such indemnifying party shall not relieve enter into any settlement without the indemnifying consent of the indemnified party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of if such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice settlement attributes liability to the indemnified party as promptly as practicable after receipt of written notice from and such indemnified indemnifying party of such claim shall not be subject to any liability for any settlement made without its consent (which shall not be unreasonably withheld); and any underwriting agreement entered into with respect to any registration statement provided for under this Article III shall so provide. In the event an indemnifying party shall not be entitled, or actionelects not, to assume, at the indemnifying party’s expense, assume the defense of any a claim, such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse pay the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs fees and expenses of more than one counsel or firm of attorneys (in addition to any local counsel) counsel for all parties indemnified parties. The by such indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for claim, unless in the reasonable judgment of any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an such indemnified party unless the indemnifying a conflict of interest may exist between such indemnified party has also consented and any other of such indemnified parties in respect to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed)claim. (d) If for any reason the indemnification provided for in this Section 11 foregoing indemnity is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, an indemnified party in respect of any loss, claim, action, damage, liability or expense referred to in this Section 11unavailable, then the applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such the indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability liabilities or expense expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party on the one hand and the indemnified party and on the indemnifying party. If other or (ii) if the allocation provided by the preceding sentence clause (i) above is not permitted by applicable lawApplicable Law or provides a lesser sum to the indemnified party than the amount hereinafter calculated, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in received by the preceding sentence indemnifying party on the one hand and the indemnified party on the other but also the relative fault of the indemnified indemnifying party and the indemnifying party, indemnified party as well as any other relevant equitable considerations. The relative fault of Notwithstanding the indemnifying partyforegoing, on the one hand, and of the indemnified party, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission or violation. The parties agree that it would not be just and equitable if contribution pursuant to this Agreement were determined by pro rata allocation or by any other method or allocation that does not take into account the equitable considerations referred to in this Section 11(d). In no event shall the amount which a Holder holder of Registrable Securities may shall be obligated required to contribute pursuant any amount in excess of the amount such holder would have been required to this pay to an indemnified party if the indemnity under Section 11(d3.7(b) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contributewas available. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The obligation of any Person to contribute pursuant to this Section 3.7 shall be several and not joint. (e) The An indemnifying party shall make payments of all amounts required to be made pursuant to the foregoing provisions of this Section 11 3.7 to or for the account of the indemnified party from time to time promptly upon receipt of bills or invoices relating thereto or when otherwise due or payable. (f) The indemnity and contribution agreements contained in this Section 3.7 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party a participating holder of Registrable Securities, its officers, directors, agents or any officerPerson, director or controlling person of if any, who controls such indemnified party holder as aforesaid, and shall survive the Transfer of any Registrable Equity Securities by such holder and the termination of this Agreement for any Holderreason.

Appears in 1 contract

Sources: Stockholders Agreement (AMH Holdings, Inc.)

Indemnification; Contribution. (a) The Incident to any registration statement referred to in this Article V, the Company shall, to the fullest extent permitted by law, will indemnify and hold harmless each Holder underwriter and each Mezzanine Investor who offers or sells any such Registrable Interests in connection with such registration statement (including their respective partners (including partners of Registrable Securitiespartners and stockholders and members of any such partners), and directors, officers, managers, members, employees and agents of any Person who is or might be deemed to be of them (a “controlling person” of the Company or Selling Holder”), and each person who controls any of its subsidiaries them within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct from and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any and all losses, claims, actions, damages, liabilities expenses and expensesliabilities, joint or severalseveral (including any investigation, reasonable legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted), as the same are incurred to which such Covered Person they, or any of them, may become subject under the Securities Act, the Exchange Act, any or other federal or state blue sky securities lawsstatutory law or regulation, any equivalent non-U.S. securities laws at common law or otherwise, insofar as such losses, claims, actions, damages, damages or liabilities or expenses arise out of or are based upon on (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement (including any related preliminary or incorporated by reference in any Registration Statementdefinitive prospectus, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to such registration statement or any document incorporated by reference in the sameprospectus), (ii) any omission or alleged omission of to state in such document a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus it or necessary to make the statements made in the same it not misleading misleading, or (iii) any violation or alleged violation by the Company of the Securities Act or Act, any other similar federal or state securities or “blue sky” laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company thereunder in connection with any registration of securities. In additionsuch registration; provided, however, that the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any will not be liable to the extent that such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, expense or liability or expense arises out of or from and is based upon any such on an untrue statement or alleged untrue statement, or omission or alleged omission, untrue statement or omission made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, on and in conformity with, written with information prepared and furnished in writing to the Company by such Covered Selling Holder or Controlling Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus registration statement or free writing prospectus. This indemnity shall be in addition is due to the failure of such Selling Holder or Controlling Person to deliver a copy of the prospectus or any liability supplements thereto a reasonable period of time after the Company may otherwise have. has furnished such Selling Holder or Controlling Person with a sufficient number of copies of the same or by the delivery of prospectuses by such Selling Holder or Controlling Person after the Company notified such Selling Holder or Controlling Person in writing to discontinue delivery of prospectuses. With respect (bi) In connection with any registration to such untrue statement or omission or alleged untrue statement or omission in which a Holder of Registrable Securities is participating, each such Holder shall furnish the information furnished in writing to the Company in writing by such information as the Company reasonably requests Selling Holder or Controlling Person expressly for use in connection with any such Registration Statement registration statement or Prospectus. Each Holder shall, (ii) to the fullest extent permitted by lawfailure of any Selling Holder of Controlling Person to refrain from delivering any prospectus or supplements thereto a reasonable period of time following notice from the Company to discontinue delivery such prospectus or supplements, such Selling Holder will indemnify and hold harmless each underwriter, the CompanyCompany (including its directors, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Persons), and each other Selling Holder (including its partners (including partners of partners and stockholders of such partners) and directors, officers, employees, agents and Controlling Person of any of them), from and against any and all losses, claims, actions, damages, liabilities expenses and expensesliabilities, joint or several, to which they they, or any of them them, may become subject under the Securities Act, the Exchange Act, any or other federal or state blue sky securities lawsstatutory law or regulation, any equivalent non-U.S. securities laws at common law or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement otherwise to the same or (ii) any omission or alleged omission extent provided in the immediately preceding sentence. In no event, however, shall the liability of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus Selling Holder or free writing prospectus or necessary to make the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to indemnification under this Section 11(b5.6(a) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not in its capacity as such exceed an amount equal to the net proceeds (after before deducting Selling Expensesexpenses) actually received by such Selling Holder in the from its sale of Registrable Securities to which Interests under such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveregistration statement. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (db) If the indemnification provided for in this Section 11 5.6(a) above for any reason is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, to an indemnified party Indemnified Party in respect of any losslosses, claimclaims, actiondamages, damage, liability expenses or expense liabilities referred to in therein, then each Indemnifying Party under this Section 11, then the applicable indemnifying party5.6, in lieu of indemnifying such indemnified party under this Agreementthereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability expenses or expense liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company, the other Selling Holders and the indemnifying party. If underwriters, if any, from the offering of the Registrable Interests or (ii) if the allocation provided by the preceding sentence clause (i) above is not permitted by applicable lawApplicable Law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence clause (i) above but also the relative fault of the indemnified party Company, the other Selling Holders and the indemnifying partyunderwriters, if any, in connection with the statements or omissions which resulted in such losses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company, the Selling Holders and the underwriters, if any, shall be deemed to be in the same respective proportions that the net proceeds from the offering (before deducting expenses) received by the Company and the Selling Holders and the underwriting discount received by the underwriters, if any, in each case as set forth in the table on the cover page of the applicable prospectus, bear to the aggregate public offering price of the Registrable Interests. The relative fault of the indemnifying partyCompany, on the one handSelling Holders and the underwriters, and of the indemnified party, on the other handif any, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party Selling Holders or the indemnified party. The relative fault shall also be determined by reference to underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties Company and the Selling Holders agree that it would not be just and equitable if contribution pursuant to this Agreement Section 5.6(b) were determined by pro rata or per capita allocation or by any other method or of allocation that which does not take into account of the equitable considerations referred to in this Section 11(d)the immediately preceding paragraph. In no event event, however, shall the amount which a Selling Holder of Registrable Securities may be obligated required to contribute pursuant to any amount under this Section 11(d5.6(b) exceed an amount equal to in excess of the net proceeds (after before deducting Selling Expensesexpenses) actually received by such Selling Holder in the from its sale of Registrable Securities that gives rise to Interests under such obligation to contributeregistration statement. No indemnified party person found guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not found guilty of such fraudulent misrepresentation. (ec) As promptly as is reasonably practicable after receipt by a party seeking indemnification pursuant to this Section 5.6 (an “Indemnified Party”) of written notice of any investigation, claim, proceeding or other action in respect of which indemnification is being sought (each, a “Claim”), the Indemnified Party promptly shall notify the party against whom indemnification pursuant to this Section 5.6 is being sought (the “Indemnifying Party”) of the commencement thereof; but the omission to so notify the Indemnifying Party shall not relieve it from any liability hereunder, except to the extent that the Indemnifying Party is materially prejudiced by reason of such failure. In connection with any Claim, the Indemnifying Party shall be entitled to assume the defense thereof. Notwithstanding the assumption of the defense of any Claim by the Indemnifying Party, the Indemnified Party shall have the right to employ separate legal counsel and to participate in the defense of such Claim, and the Indemnifying Party shall bear the reasonable fees, out-of-pocket costs and expenses of such separate legal counsel to the Indemnified Party if (and only if): (x) the Indemnifying Party shall have agreed to pay such fees, costs and expenses, (y) the Indemnified Party shall reasonably have concluded that representation by the same legal counsel would not be appropriate due to (i) actual or potentially differing interests between such parties in the conduct of the defense of such Claim, or (ii) legal defenses that may be available to the Indemnified Party that are in addition to or disparate from those available to the Indemnifying Party, or (z) the Indemnifying Party shall have failed to employ legal counsel reasonably satisfactory to the Indemnified Party and take action to defend such claim within 30 days after notice of the commencement of such Claim or the Indemnifying Party shall, in the reasonable judgment of the Indemnified Party, have ceased to conduct a diligent defense of such claim. If the Indemnified Party employs separate legal counsel in circumstances other than as described in clauses (x), (y) or (z) above, the fees, costs and expenses of such legal counsel shall be borne exclusively by the Indemnified Party. Except as provided above, the Indemnifying Party shall not, in connection with any Claim in the same jurisdiction, be liable for the fees and expenses of more than one firm of counsel for the Indemnified Party (together with appropriate local counsel). No Indemnifying Party shall, without the prior written consent of the Indemnified Party, settle or compromise any Claim or consent to the entry of any judgment with respect thereto, unless such settlement, compromise or consent (i) includes an unconditional release of each Indemnifying Party from all liabilities with respect to such Claim or judgment and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any Indemnified Party. (d) The provisions of indemnification and contribution provided for in this Section 11 shall 5.6 will remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party the Indemnified Parties or any officer, director director, employee, agent or controlling person Controlling Person of such indemnified party and shall survive the Transfer of any Registrable Securities by any HolderIndemnified Parties.

Appears in 1 contract

Sources: Investor Rights Agreement (Bh Re LLC)

Indemnification; Contribution. (ai) The Company shall, to the fullest extent permitted by law, will indemnify and hold harmless each Holder of Registrable Securities, any Person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, holder and each other Personaffiliate thereof of Common Stock registered pursuant to this Agreement with the Commission, if any, who acts on behalf of or controls under any such Holder Blue Sky Law or Controlling Person (each of the foregoing, a “Covered Person”) regulation against any losses, claims, actions, damages, liabilities and expensesor liabilities, joint or several, to which such Covered Person holder may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, or liabilities (or expenses actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statementpreliminary prospectus, Prospectusregistration statement, preliminary Prospectusprospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to thereto, or any document incorporated by reference in arise out of or are based upon the same, (ii) any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company misleading, and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall will reimburse each Covered Person such holder and affiliate for any legal or other expenses reasonably incurred by such Covered Person holder in connection with investigating, investigating or defending or settling any such lossaction or claim regardless of the negligence of any such holder or affiliate; provided, claimhowever, action, damage or liability. Notwithstanding the previous sentence, that the Company shall not be so liable in any such case to the extent that any such loss, claim, action, damage, or liability or expense arises out of or is based upon any such an untrue statement or alleged untrue statement, statement or omission or alleged omission, omission made or incorporated by reference in any such Registration Statementpreliminary prospectus, Prospectusregistration statement or prospectus, preliminary Prospectus, free writing prospectus or any such amendment or supplement to or any document incorporated by reference in the same thereto, in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by any such Covered Person holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise havetherein. (bii) In connection with any registration in which a Holder Each holder of Registrable Securities is participating, each such Holder shall furnish Common Stock registered pursuant to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, this Agreement will indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person Company against any losses, claims, actions, damages, or liabilities and expenses, joint or several, to which they or any of them the Company may become subject subject, under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws Act or otherwise, insofar as such losses, claims, actions, damages, or liabilities (or expenses actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in the Registration Statementany preliminary prospectus, Prospectusregistration statement or prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement thereto, or arise out of or supplement to are based upon the same or (ii) any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, butin each case to the extent, in the case of each of clauses (i) and (ii), but only to the extent extent, that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statementany preliminary prospectus, Prospectusregistration statement or prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same thereto, in reliance upon, upon and in conformity with, with written information prepared and furnished to the Company by such Holder holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise havetherein. (ciii) Any Person entitled Promptly after receipt by an indemnified party under Sections 4(d)(i) or (ii) above of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to indemnification pursuant to this Agreement shall give prompt written notice to be made against the indemnifying party under either such subsection, notify the indemnifying party in writing of any claim with respect the commencement thereof; but the omission so to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve it from any liability that it may otherwise have to any indemnified party. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, commencement thereof the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, assume the defense of any such claim or action, with counsel reasonably acceptable thereof by notice in writing to the indemnified party. Notwithstanding After notice from the previous sentence, any indemnifying party to such indemnified party shall continue of its election to be entitled to participate in assume the defense of such claim or actionthereof, with counsel of its own choice, but the indemnifying party shall not be obligated liable to reimburse the such indemnified party under either of such subsections for any feeslegal expenses of other counsel or any other expense, costs and expenses in each case subsequently incurred by the such indemnified party party, in connection with such the defense unless (A) thereof other than reasonable costs of investigation incurred prior to the assumption by the indemnifying party has agreed party, unless such expenses have been specifically authorized in writing to pay such feesby the indemnifying party, costs and expenses, (B) the indemnifying party has failed to assume the defense and employ counsel, or the named parties to any such action include both the indemnified party and the indemnifying party, as appropriate, and such indemnified party has been advised by counsel that the representation of such claim or action within a reasonable time after receipt of notice indemnified party has been advised by counsel that the representation of such claim or action, (C) having assumed the defense of such claim or action, indemnified party and the indemnifying party fails by the same counsel would be inappropriate due to employ actual or potential differing interests between them, in each of which cases the fees of counsel reasonably acceptable to for the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen will be paid by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (div) If the indemnification provided for in this Section 11 4(d) is held by a court of competent jurisdiction unavailable or insufficient to be unavailable to, or unenforceable by, hold harmless an indemnified party under Section 4(d)(i) or (ii) in respect of any losslosses, claimclaims, actiondamages, damage, liability or expense liabilities (or action in respect thereof) referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims, actiondamages, damage, liability or expense liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company and the indemnifying partyholder or holders from this Agreement and from the offering of the shares of Common Stock. If If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, the then each indemnifying party shall contribute to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only the such relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party Company and the indemnifying partyholders in connection with the statement or omissions that resulted in such losses, claims, damages, or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to holder and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties Company and the holders agree that it would not be just and equitable if contribution pursuant to this Agreement Section 4(d)(iv) were determined by pro rata allocation (even if the holders were treated as one entity for such purpose) or by any other method or of allocation that does not take into account the equitable considerations referred to above in this subsection 4(d)(iv). Except as provided in Section 4(d)(iii), the amount paid or payable by an indemnified party as a result of the losses, claims, damages, or liabilities (or actions in respect thereof) referred to above in this Section 11(d). In no event 4(d)(iv) shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received include any legal or other expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise to connection with investigation or defending any such obligation to contributeaction or claim. No indemnified party person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. Notwithstanding any provision in this Section 4(d)(iv) to the contrary, no holder shall be liable for any amount, in the aggregate, in excess of the net proceeds to such holder from the sale of such holder's shares (obtained upon exercise of Warrants) giving rise to such losses, claims, damages, or liabilities. (ev) The provisions obligations of the Company under this Section 11 4(d) shall remain be in full force and effect regardless of addition to any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party liability that the Company may otherwise have and shall survive extend, upon the Transfer same terms and conditions, to each person, if any, who controls any holder of Warrants within the meaning of the Securities Act. The obligations of the holders of Common Stock under this Section 4(d) shall be in addition to any Registrable liability that such holders may otherwise have and shall extend, upon the same terms and conditions to each person, if any, who controls the Company within the meaning of the Securities by any HolderAct.

Appears in 1 contract

Sources: Domain Registrar Project Completion Agreement (Fullnet Communications Inc)

Indemnification; Contribution. (a) The Company shallagrees to indemnify and hold harmless (i) each Holder covered by any Registration Statement, (ii) each other Person who participates as an underwriter in the offering or sale of such securities, (iii) each person, if any, who controls (within themeaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) any such Holder or underwriter (any of the persons referred to in this clause (iii) being hereinafter referred to as a “controlling person”) and (iv) the respective officers, directors, partners, employees, representatives and agents of any such Holder or underwriter or any controlling person (any person referred to in clause (i), (ii), (iii) or (iv) may hereinafter be referred to as an “indemnified Person”), to the fullest extent permitted lawful, from and against any and all losses, claims, damages, liabilities, judgments or expenses, joint or several (or actions or proceedings, whether commenced or threatened, in respect thereof) (collectively, “Claims”), to which such indemnified Person may become subject under either Section 15 of the Securities Act or Section 20 of the Exchange Act or otherwise, insofar as such Claims arise out of or are based upon, or are caused by any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement or Prospectus (or any amendment or supplement thereto), or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or a violation by the Company of the Securities Act or any state securities law, or any rule or regulation promulgated under the Securities Act or any state securities law, or any other law applicable to the Company relating to any such registration or qualification, except insofar as such losses, claims, damages, liabilities, judgments or expenses of any such indemnified Person; (x) are caused by any such untrue statement or omission or alleged untrue statement or omission that is based upon information relating to such indemnified Person furnished in writing to the Company by or on behalf of any of such indemnified Person expressly for use therein; (y) with respect to the preliminary Prospectus, result from the fact that such Holder sold Securities to a person to whom there was not sent or given, at or prior to the written confirmation of such sale, a copy of the Prospectus, as amended or supplemented, if the Company shall have previously furnished copies thereof to such Holder in accordance with this Agreement and said Prospectus, as amended or supplemented, would have corrected such untrue statement or omission; or (z) as a result of the use by an indemnified Person of any Prospectus when, upon receipt of a Black-Out Notice or a notice from the Company of the existence of any fact of the kind described in Section 2.5(b)(iv), the indemnified Person or the related Holder was not permitted to do so. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified Person and shall survive the transfer of such securities by such Holder. In case any action shall be brought or asserted against any of the indemnified Persons with respect to which indemnity may be sought against the Company, such indemnified Person shall promptly notify the Company and the Company shall assume the defense thereof with counsel reasonably satisfactory to the indemnified Persons, it being understood and agreed that the Company’s regular outside counsel is acceptable for such purpose. Such indemnified Person shall have the right to employ separate counsel in any such action and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of the indemnified Person unless (i) the employment of such counsel shall have been specifically authorized in writing by the Company, (ii) the Company shall have failed to assume the defense and employ counsel or (iii) the named parties to any such action (including any implied parties) include both the indemnified Person and the Company and the indemnified Person shall have been advised in writing by its counsel that there may be one or more legal defenses available to it which are materially different from or additional to those available to the Company, it being understood, however, that the Company shall not, in connection with such action or similar or related actions or proceedings arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for all the indemnified Persons, which firm shall be (x) designated by such indemnified Persons and (y) reasonably satisfactory to the Company. The Company shall not be liable for any settlement of any such action or proceeding effected without the Company’s prior written consent, which consent shall not be withheld unreasonably, and the Company agrees to indemnify and hold harmless any indemnified Person from and against any loss, claim, damage, liability, judgment or expense by reason of any settlement of any action effected with the written consent of the Company. The Company shall not, without the prior written consent of each indemnified Person, which shall not be unreasonably withheld, settle or compromise or consent to the entry of judgment on or otherwise seek to terminate any pending or threatened action, claim, litigation or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not any indemnified Person is a party thereto), unless such settlement, compromise, consent or termination includes an unconditional release of each indemnified Person from all liability arising out of such action, claim litigation or proceeding. (b) Each Holder of Registrable SecuritiesSecurities covered by any Registration Statement agrees, any Person who is or might be deemed severally and not jointly, to be a “controlling person” of indemnify and hold harmless the Company or and its directors, officers and any of its subsidiaries person controlling (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such PersonAct) the Company, a “Controlling Person”), their and the respective direct and indirect general and limited partners, advisory board membersofficers, directors, officers, trustees, managers, memberspartners, employees, agentsrepresentatives and agents of each person, Affiliates and shareholdersto the same extent as the foregoing indemnity from the Company to each of the indemnified Persons, and each other Person, if any, who acts but only (i) (x) with respect to actions based on information relating to such Holder furnished in writing by or on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered Person”) against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which such Covered Person may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment or supplement to or any document incorporated by reference in the same, (ii) any omission or alleged omission of a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating Prospectus, (y) with respect to the preliminary Prospectus, any matters which result from the fact that such Holder sold Securities to a person to whom there was not sent or given, at or prior to the written confirmation of such sale, a copy of the Prospectus, as amended or supplemented, if the Company shall have previously furnished copies thereof to such Holder in accordance with this Agreement and said Prospectus, as amended or supplemented, would have corrected such untrue statement or omission; or (z) such matters which result from the use by an indemnified Person of any Prospectus when, upon receipt of a Black-Out Notice or a notice from the Company of the existence of any fact of the kind described in Section 2.5(b)(iv), the indemnified Person or the related Holder was not permitted to do so, and (ii) to the extent of the gross proceeds, if any, received by such Purchaser from the sale or other disposition of his or its Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock covered by such Registration Statement. In case any action or proceeding shall be brought against the Company or its directors or officers or any such controlling person in respect of which indemnity may be sought against a Holder and its Affiliatesof Registrable Securities covered by any Registration Statement, (b) the name and address of such Holder shall have the rights and duties given the Company in Section 2.8(a) (c) any additional information about except that the Holder may but shall not be required to assume the defense thereof), and the Company or its directors or officers or such controlling person shall have the rights and duties given to each Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such documentSection 2.9(a). This Such indemnity shall be remain in addition to full force and effect regardless of any liability which such Holder may otherwise haveinvestigation made by or on behalf of any the Company or any other indemnified Person and shall survive the transfer of securities by any applicable Holder. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the indemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 2.9 is held by a court of competent jurisdiction unavailable to be unavailable to, or unenforceable by, an indemnified party under Section 2.9(a) or (b) (other than by reason of exceptions provided in those Sections) in respect of any losslosses, claimclaims, actiondamages, damageliabilities, liability judgments or expense expenses referred to in this Section 11therein, then the each applicable indemnifying partyparty (in the case of the Holders severally and not jointly), in lieu of indemnifying such indemnified party under this Agreementparty, shall contribute to the amount paid or payable by such indemnified party as a result of such losslosses, claimclaims damages, actionliabilities, damage, liability judgments or expense expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnified party Company on the one hand and the indemnifying party. If Holder on the other hand from sale of Registrable Securities or (ii) if such allocation provided by the preceding sentence clause (i) above is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence clause (i) above but also the relative fault of the indemnified party Company and such Holder in connection with the indemnifying partystatements or omissions which resulted in such losses, claims, damages, liabilities, judgments or expenses, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, Company on the one hand, hand and of the indemnified party, such Holder on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party Company or by such Holder and the indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ parties relative intent, knowledge, access to information and opportunity to correct or prevent such statement, omission statement or violationomission. The parties amount paid to a party as a result of the losses, claims, damages, liabilities judgments and expenses referred to above shall be deemed to include, subject to the limitations set forth in the second paragraph of Section 2.9(a) and Section 2.9(b), any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any action or claim. The Company and each Holder of Registrable Securities covered by any Registration Statement agree that it would not be just and equitable if contribution pursuant to this Agreement Section 2.9(c) were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method or of allocation that which does not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 11(d). In 2.9(c) no event Holder (and none of its related indemnified Persons) shall be required to contribute, in the aggregate, any amount in excess of the amount by which a Holder the dollar amount of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in upon the sale of the Registrable Securities that gives rise exceeds the amount of any damages which such Holder has otherwise been required to pay by reason of such obligation to contributeuntrue statement or omission or alleged omission. No indemnified party person guilty or liable of fraudulent misrepresentation misrepresentations (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. (e) . The indemnity, and contribution provisions of contained in this Section 11 shall remain 2.9 are in full force and effect regardless of addition to any investigation made by or on behalf of any liability which the indemnifying person may otherwise have to the indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holderpersons referred to above.

Appears in 1 contract

Sources: Registration Rights Agreement (GFI Group Inc.)

Indemnification; Contribution. (a) The In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the Company shall, to the fullest extent permitted by lawand it hereby agrees to, indemnify and hold harmless each Holder of Registrable Securitiesharmless, any Person who is or might be deemed cause to be a “controlling person” of indemnified and held harmless, the Company or any of Investor and its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and indirect general and limited partners, advisory board membersofficers, directors, officers, trustees, managers, memberspartners, employees, agents, Affiliates representatives, trustees and shareholders, and each other Personcontrolling Persons, if any, who acts on behalf of in any offering or controls any such Holder or Controlling Person (each sale of the foregoingRegistrable Shares, a “Covered Person”) against any losses, claims, actionsdamages or liabilities in respect thereof and expenses (including reasonable fees and expenses of counsel) or Actions in respect thereof (collectively, damages, liabilities and expenses, joint or several“Claims”), to which each such Covered Person indemnified party may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwisesubject, insofar as such losses, claims, actions, damages, liabilities or expenses Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any Registration Statementregistration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement to thereto, or any document incorporated by reference in the sametherein, (ii) or arise out of or are based upon any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein, in light of the same circumstances in which they were made, not misleading or (iii) any violation or alleged violation by misleading, and the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company shall, and relating to any action or inaction required of the Company in connection with any registration of securities. In additionit hereby agrees to, reimburse, upon request, the Company shall reimburse each Covered Person Investor for any legal or other out-of-pocket fees and expenses reasonably incurred and documented by such Covered Person it in connection with investigating, investigating or defending or settling any such lossClaims; provided, claim, action, damage or liability. Notwithstanding the previous sentence, that the Company shall not be so liable to the Investor (or its officers, directors, managers, partners, employees, agents, representatives, trustees and controlling Persons, if any) in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have. (b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Investor Information furnished to the Company in writing by the Investor or on behalf of the Investor by any Representative of the Investor, expressly for use therein, that is the subject of the untrue statement or omission. (ib) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the Investor shall, and hereby agrees to indemnify and hold harmless the Company and its officers, directors, managers, employees, agents, representatives and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or Actions in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Registration Statementany registration statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or supplement to the same or (ii) are based upon any omission or alleged omission of to state therein a material fact required to be stated in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made in the same therein not misleading, butand the Investor shall, and it hereby agrees to reimburse the Company for any legal or other out-of-pocket fees and expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in the each case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, statement or omission or alleged omission, is omission was made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, upon and in conformity with, written information prepared and with the Required Investor Information furnished to the Company in writing by such Holder the Investor or its Representative expressly for use in such Registration Statementtherein that is the subject of the untrue statement or omission; provided, Prospectushowever, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse that the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) liability of the Investor hereunder shall be individual and several, not joint and several, for each participating Holder and shall be proportional limited to and shall not exceed an amount equal to the dollar amount of the net proceeds (after deducting Selling Expenses) actually received by such Holder in the Investor from the sale of Registrable Securities Shares sold by the Investor pursuant to which such Registration Statement registration statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveprospectus. (c) Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to The Investor and the indemnifying party of Company agree that if, for any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partyreason, the indemnifying party shall be entitled to participate in and shall have the right, exercisable indemnification provisions contemplated by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim Section 2.7(a) or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (ASection 2.7(b) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant unavailable to or in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented are insufficient to such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed). (d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, hold harmless an indemnified party in respect of any loss, claim, action, damage, liability or expense Claims referred to in this Section 11therein, then the applicable each indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, action, damage, liability or expense Claims in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the such indemnifying party or by the such indemnified party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementstatement or omission. If, omission however, the allocation in the first sentence of this Section 2.7(c) is not permitted by applicable Law, then each indemnifying party shall contribute to the amount paid or violationpayable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contribution contributions pursuant to this Agreement Section 2.7(c) were to be determined by pro rata allocation or by any other method or of allocation that which does not take into account the equitable considerations referred to in the preceding sentences of this Section 11(d2.7(c). In no event The amount paid or payable by an indemnified party as a result of the Claims referred to above shall the amount which a Holder of Registrable Securities may be obligated deemed to contribute pursuant to this Section 11(d) exceed an amount equal include (subject to the net proceeds (after deducting Selling Expenseslimitations set forth in Section 2.8) actually received any legal or other out-of-pocket fees or expenses reasonably incurred by such Holder indemnified party in the sale of Registrable Securities that gives rise to connection with investigating or defending any such obligation to contributeAction. No indemnified party Person guilty or liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. Notwithstanding the foregoing, the Investor shall not be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by the Investor from the sale of Registrable Shares sold by the Investor pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by the Investor pursuant to Section 2.7(b) (except in the case of fraud or willful misconduct by the Investor). (e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the Transfer of any Registrable Securities by any Holder.

Appears in 1 contract

Sources: Registration Rights Agreement (Franchise Group, Inc.)

Indemnification; Contribution. (a) The In connection with any registration of Registrable Securities or Takedown Offering pursuant to Section 3.01 or Section 3.02, the Company shallwill indemnify, to the fullest extent permitted by law, indemnify defend and hold harmless Shareholder, its Affiliates, directors, officers and shareholders and each Holder of Registrable Securities, any Person person who is or might be deemed to be a “controlling person” of the Company or any of its subsidiaries controls Shareholder within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Personcollectively, a the Controlling Person”), their respective direct and indirect general and limited partners, advisory board members, directors, officers, trustees, managers, members, employees, agents, Affiliates and shareholders, and each other Person, if any, who acts on behalf of or controls any such Holder or Controlling Person (each of the foregoing, a “Covered PersonIndemnified Persons”) from and against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which such Covered Person may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) all Losses caused by any untrue or alleged untrue statement of a material fact contained in or incorporated by reference in any part of any Registration Statement, Statement or any Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405) or including any amendment or supplement to thereto, used in connection with the Registrable Securities or any document incorporated by reference in the sameIssuer FWP, (ii) or any omission or alleged omission of to state therein a material fact required to be stated in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus therein or necessary to make the statements made therein (in the same case of a prospectus, in the light of the circumstances under which they were made) not misleading or (iii) any violation or alleged violation by misleading; provided, however, that the Company of the Securities Act or will not be required to indemnify any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company and relating to any action or inaction required of the Company in connection with any registration of securities. In addition, the Company shall reimburse each Covered Indemnified Person for any legal or other expenses reasonably incurred by such Covered Person in connection with investigating, defending or settling any such loss, claim, action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon Losses resulting from any such untrue statement or alleged omission if such untrue statement, statement or omission or alleged omission, was made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, on and in conformity with, written with information prepared and with respect to any Indemnified Person furnished to the Company by such Covered in writing by, or at direction of, Shareholder or any Indemnified Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise havetherein. (b) In connection with any registration in which a Holder of Registrable Securities is participatingRegistration Statement, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement Prospectus or Prospectus. Each Holder shallIssuer FWP, to the fullest extent permitted by lawShareholder will indemnify, indemnify defend and hold harmless the Company, its directors directors, its officers and officerseach person, employeesif any, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any controls the Company (within the meaning of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out either Section 15 of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule to Rule 405Section 20 of the Exchange Act) or any amendment of or supplement to the same or (ii) any omission or alleged omission of a material fact required extent as the foregoing indemnity from the Company to be stated in such Registration StatementShareholder, Prospectus, preliminary Prospectus or free writing prospectus or necessary but only with respect to make the statements made in the same not misleading, but, in the case of each of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement, or omission or alleged omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Holder in writing by, or at direction of, any Shareholder or any Indemnified Persons expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise haveIssuer FWP. (c) Any Person In case any claim, action or proceeding (including any governmental investigation) is instituted involving any person in respect of which indemnity may be sought pursuant to Section 3.08(a) or Section 3.08(b), such person (the “Indemnified Party”) will promptly notify the person against whom such indemnity may be sought (the “Indemnifying Party”) in writing and the Indemnifying Party shall be entitled to indemnification participate therein and, to the extent it shall wish, to assume the defense thereof with counsel reasonably satisfactory to the Indemnified Party and will pay the fees and disbursements of such counsel related to such proceeding; provided, however, that the failure or delay to give such notice shall not relieve the Indemnifying Party of its obligations pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially such Indemnifying Party has been prejudiced by reason of such failure or delay. In case a claim any such claim, action or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified partyproceeding, the indemnifying party shall be entitled to participate in and Indemnified Party shall have the right, exercisable by giving written notice to but not the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or actionobligation, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the any such defense of such claim or action, with counsel of and to retain its own choicecounsel, but the indemnifying party shall not be obligated to reimburse the indemnified party for any fees, costs fees and expenses subsequently incurred by of such counsel will be at the indemnified party in connection with expense of such defense Indemnified Party unless (Ai) the indemnifying party has Indemnifying Party and the Indemnified Party have mutually agreed in writing to pay the retention of such fees, costs and expensescounsel, (Bii) the indemnifying party has failed Indemnifying Party fails to assume the defense of such claim the claim, action or action proceeding within a reasonable time after 15 Business Days following receipt of notice of such claim from the Indemnified Party, or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (Diii) the use Indemnified Party and the Indemnifying Party are both actual or potential defendants in, or targets of, any such action and the Indemnified Party has been advised by counsel that representation of counsel chosen both parties by the indemnifying party same counsel would be inappropriate due to represent actual or potential conflicting interests between them. It is understood that the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shallIndemnifying Party will not, in connection with any one claim or claim, action or separate but substantially similar proceeding or related claims, actions or proceedings in the same jurisdiction arising out of the same general circumstances or allegationsjurisdiction, be liable for the fees, costs reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for all indemnified partiessuch Indemnified Parties and that all such reasonable fees and expenses will be reimbursed as they are incurred. In the case of the retention of any such separate firm for the Indemnified Parties, such firm will be designated in writing by the Indemnified Parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by the claimant or plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall Indemnifying Party will not be liable under this Agreement for any amount paid settlement of any claim, action or payable or incurred pursuant to or in connection with any judgment entered or settlement proceeding effected with the without its written consent of an indemnified party unless the indemnifying party has also consented to such judgment or settlement (such which consent shall not to be unreasonably withheld, conditioned or delayed), but if such claim, action or proceeding is settled with such consent or if there has been a final judgment for the plaintiff, the Indemnifying Party agrees to indemnify the Indemnified Party from and against any Loss by reason of such settlement or judgment. No Indemnifying Party will, without the prior written consent of the Indemnified Party, settle, compromise or offer to settle or compromise any pending or threatened proceeding in respect of which any Indemnified Party is seeking indemnity hereunder, unless such settlement includes (i) an unconditional release of such Indemnified Party from all liability in connection with such proceeding, (ii) no finding or admission of any violation of Law or any violation of the rights of any person by the Indemnified Party or any of its Affiliates can be made as the result of such action, and (iii) the sole relief (if any) provided is monetary damages that are reimbursed in full by the Indemnifying Party. No Indemnified Party will, without the prior written consent of the Indemnifying Party, settle, compromise or offer to settle or compromise any pending or threatened proceeding in respect of which any Indemnified Party is seeking indemnity hereunder. (d) If the indemnification provided for in this Section 11 3.08 from the Indemnifying Party is held by a court of competent jurisdiction unavailable to be unavailable to, an Indemnified Party hereunder or unenforceable by, an indemnified party is insufficient in respect of any loss, claim, action, damage, liability or expense Losses referred to in this Section 113.08, then the applicable indemnifying partyIndemnifying Party, in lieu of indemnifying such indemnified party under this AgreementIndemnified Party, shall will contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such loss, claim, action, damage, liability or expense Losses (i) in such proportion as is appropriate to reflect the relative benefits received by fault of the indemnified party Indemnifying Party and Indemnified Party in connection with the indemnifying party. If actions that resulted in such Losses, as well as any other relevant equitable considerations, or (ii) if the allocation provided by the preceding sentence clause (i) is not permitted by applicable lawLaw, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits fault referred to in the preceding sentence clause (i) but also the relative fault benefit of the indemnified party Company, on the one hand, and Shareholder, on the indemnifying partyother, in connection with the statements or omissions that resulted in such Losses, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, such Indemnifying Party and of the indemnified party, on the other hand, shall Indemnified Party will be determined by reference to, among other things, whether the any action in question, including any untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact fact, has been taken by, or relates to information supplied by the indemnifying party by, such Indemnifying Party or by the indemnified partyIndemnified Party, whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statementaction. The amount paid or payable by a party as a result of the Losses referred to above will be deemed to include, omission subject to the limitations set forth in Section 3.08(c), any reasonable legal or violation. other out of pocket fees or expenses reasonably incurred by such party in connection with any investigation or proceeding. (e) The parties agree that it would not be just and equitable if contribution pursuant to this Agreement Section 3.08(d) were determined by pro rata allocation or by any other method or of allocation that does not take into account the equitable considerations referred to in this Section 11(d3.08(d). In no event shall the amount which a Holder No person guilty of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds “fraudulent misrepresentation” (after deducting Selling Expenses) actually received by such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party guilty or liable of fraudulent misrepresentation within the meaning of Section 11(f) of the Securities Act shall Act) will be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. (e) The . Notwithstanding the provisions of this Section 11 3.08(e), Shareholder shall remain not be required to contribute, in full force and effect regardless the aggregate, any amount in excess of the amount by which the net proceeds received by Shareholder from the sale of the Registrable Securities exceeds the amount of any investigation made damages which Shareholder has otherwise been required to pay by reason of such untrue or on behalf alleged untrue statement or omission or alleged omission. (f) If indemnification is available under this Section 3.08, the Indemnifying Party will indemnify each Indemnified Party to the fullest extent permissible under applicable Law provided in Sections 3.08(a) and 3.08(b) without regard to the relative fault of any indemnified party said Indemnifying Party or Indemnified Party or any officer, director other equitable consideration provided for in Section 3.08(d) or controlling person 3.08(e). The obligations of such indemnified party and the Company under this Section 3.08 shall survive be in addition to any liability that the Transfer of Company may otherwise have to any Registrable Securities by any HolderIndemnified Person.

Appears in 1 contract

Sources: Purchase and Sale Agreement (Capital One Financial Corp)