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# What are implications of the Indemnification clause in the Startup Terms of Use?

Generally, indemnification provisions in contracts are typical and provide that if one party breaches the agreement or engages in negligent or willful misconduct related to the relationship, that breaching party will compensate the non-breaching party for the damages caused. For example, if a company raising money on Propel(x). misappropriated a 3rd party’s trademark and posted it on Propel(x). and that 3rd party sued Propel(x), the company would have to defend Propel(x). and pay any damages as a result.