Common use of Liability to Equal Prescribed Equity Clause in Contracts

Liability to Equal Prescribed Equity. Where for any reason any contract or agreement entered into for the purposes of the Joint Venture (whether in the name of the Manager), the Joint Venturers or any of them) or any act or omission of the Manager, the Joint Venturers or any of them involves the Joint Venturers in joint or joint and several liability, each Joint Venturer shall indemnify and keep indemnified the other Joint Venturer such that no Joint Venturer shall be responsible for more than its Prescribed Equity in relation to such joint or joint and several liability (“the Indemnity”). The Indemnity will not operate where any cost, loss or damage has been incurred as a result of a negligent act or omission or default by the Manager or the other Joint Venturer.