Title Benefit Amount Clause Samples
The "Title Benefit Amount" clause defines the specific monetary value or coverage limit provided under a title insurance policy. It typically states the maximum amount the insurer will pay out in the event of a covered title defect or claim, and may outline how this amount is determined, such as being based on the purchase price of the property or the loan amount. This clause ensures both parties understand the extent of financial protection offered, thereby clarifying the insurer’s liability and helping to manage risk for the insured party.
Title Benefit Amount. The Title Benefit Amount resulting from a Title Benefit shall be determined in accordance with the following methodology, terms and conditions:
(i) if Buyer and SM Energy agree on the Title Benefit Amount, then that amount shall be the Title Benefit Amount;
(ii) if the Title Benefit represents an increase between (A) the Net Revenue Interest for any Title Benefit Property and (B) the Net Revenue Interest for such Title Benefit Property stated in Schedule 2.5, and the Working Interest has increased proportionately, then the Title Benefit Amount shall be the product of the Allocated Value of such Title Benefit Property multiplied by a fraction, the numerator of which is the positive difference between such Net Revenue Interest values, and the denominator of which is the Net Revenue Interest for such Title Benefit Property stated in Schedule 2.5, provided that if the Net Revenue increase does not affect the Title Benefit Property throughout its entire life, the Title Benefit Amount determined under this Section 6.2(g) shall be reduced to take into account the applicable time period only;
(iii) if the Title Benefit is of a type not described above, then the applicable Title Benefit Amount shall be determined by taking into account the Allocated Value of the Title Benefit Property, the portion of the Title Benefit Property affected by such Title Benefit, the legal effect of the Title Benefit, the potential economic effect of the Title Benefit over the life of such Title Benefit Property, the values placed upon the Title Benefit by Buyer and SM Energy and such other reasonable factors as are necessary to make a proper evaluation; and
(iv) the Title Benefit Amount with respect to a Title Benefit Property shall be determined without duplication of any items or amounts included in any other Title Benefit Amount hereunder.
Title Benefit Amount. The Title Benefit Amount resulting from a Title Benefit shall be determined in accordance with the following methodology, terms and conditions:
(a) if Buyer and Seller agree on the Title Benefit Amount, then that amount shall be the Title Benefit Amount;
(b) if the Title Benefit represents a discrepancy between (i) the actual Net Revenue Interest for any Well or Well Location with respect to the Target Formation and (ii) the Net Revenue Interest for such Well or Well Location shown herein with respect to the Target Formation, then the Title Benefit Amount shall be the product of (A) the Allocated Value of the affected Well or Well Location multiplied by (B) a fraction, the numerator of which is the actual Net Revenue Interest with respect to the Target Formation and the denominator of which is the Net Revenue Interest for such Well or Well Location with respect to the Target Formation shown herein, minus 1; and
(c) if the Title Benefit cannot be calculated pursuant to subsections (a) or (b) above, then the Title Benefit Amount shall be determined by taking into account the Allocated Value of the subject Asset, the legal effect of the Title Benefit, the potential economic effect of the Title Benefit over the life of the subject Asset, the values placed upon the Title Benefit by Buyer and Seller and such other reasonable factors as are necessary to make a proper evaluation.
Title Benefit Amount. The “Title Benefit Amount” resulting from a Title Benefit shall be determined in accordance with the same methodology, terms, and conditions for determining the Title Defect Amount, with any necessary conforming changes, including giving effect to the Title Threshold and the Aggregate Deductible.
Title Benefit Amount. The Title Benefit Amount resulting from a Title Benefit shall be determined in accordance with the following methodology, terms and conditions:
(i) if Buyer and Seller agree on the Title Benefit Amount, then that amount shall be the Title Benefit Amount; and
(ii) if the Title Benefit represents a discrepancy between (A) the Net Revenue Interest for any Lease or Well (or the specified zone(s) therein) and (B) the Net Revenue Interest stated in Exhibit A and Exhibit B, then the Title Benefit Amount shall be the product of the Allocated Value of such Lease or Well (or the specified zone(s) therein) multiplied by a fraction, the numerator of which is the Net Revenue Interest increase and the denominator of which is the Net Revenue Interest stated in Exhibit A and Exhibit B.
Title Benefit Amount. The Title Benefit Amount resulting from a Title Benefit shall be determined in accordance with the following methodology, terms and conditions:
(i) if Buyer and Seller agree on the Title Benefit Amount, then that amount shall be the Title Benefit Amount; and
(ii) if the Title Benefit represents a benefit in title of a type not described above, the Title Benefit Amount shall be determined by taking into account the Allocated Value of the affected property, the portion of the subject property affected by the Title Benefit, the legal effect of the Title Benefit, the potential economic effect of the Title Benefit over the life of the subject property, the values placed upon the Title Benefit by Buyer and Seller and such other reasonable factors as are necessary to make a proper evaluation.
Title Benefit Amount. “Title Benefit Amount” means the amount determined in accordance with the following methodology, terms and conditions:
Title Benefit Amount. The Title Benefit Amount resulting from a Title Benefit shall be determined in accordance with the same methodology, terms and conditions for determining the Title Defect Amount. Any Title Benefit Amount shall be offset against any Title Defect Amount. In the event the Title Benefit Amounts exceeds the Title Defect Amounts then in no event shall there be any adjustments to the Purchase Price or other remedies provided by Buyer for any Title Benefit that exceeds the Individual Title Deductible unless the Title Benefit amounts of all such Title Benefits, in the aggregate, exceed the Aggregate Title Deductible, after which point Seller shall be entitled to an adjustment to the Purchase Price only with respect to Title Benefits in excess of such Aggregate Title Benefit Deductible.
Title Benefit Amount. The Title Benefit Amount resulting from a Title Benefit shall be determined in accordance with the following methodology, terms and conditions:
(A) if Buyer and the Sellers agree on the Title Benefit Amount, then that amount shall be the Title Benefit Amount;
(B) if the Title Benefit does not affect the ratio of the Net Revenue Interest to the Working Interest for any Title Benefit Property stated in Schedule B, then the Title Benefit Amount shall be the product of the Allocated Value of such Title Benefit Property multiplied by a fraction, the numerator of which is the decimal amount of the Net Revenue Interest increase and the denominator of which is the Net Revenue Interest stated in Schedule B; and
(C) if the Title Benefit represents a benefit in title of a type not described above, the Title Benefit Amount shall be determined by taking into account the Allocated Value of the affected property, the portion of the subject property affected by the Title Benefit, the legal effect of the Title Benefit, the potential economic effect of the Title Benefit over the life of the subject property, the values placed upon the Title Benefit by Buyer and the Sellers and such other reasonable factors as are necessary to make a proper evaluation.
Title Benefit Amount. The Title Benefit Amount resulting from a Title Benefit shall be determined in accordance with the following methodology, terms and conditions:
(i) if Buyer and Seller agree on the Title Benefit Amount, then that amount shall be the Title Benefit Amount; and
(ii) if the Title Benefit represents a discrepancy between (A) the Net Revenue Interest for any Lease (or the specified zone(s) therein) and (B) the Net Revenue Interest stated in Exhibit A, then the Title Benefit Amount shall be the product of the Allocated Value of the affected Lease (or the specified zone(s) therein) multiplied by a fraction, the numerator of which is the Net Revenue Interest increase and the denominator of which is the Net Revenue Interest stated in Exhibit A.
Title Benefit Amount. The Title Benefit Amount resulting from a Title Benefit shall be determined in accordance with the following methodology, terms and conditions:
(i) if Buyer and Seller’s Representative agree on the Title Benefit Amount, then that amount shall be the Title Benefit Amount;
(ii) if (A) the Title Benefit represents a discrepancy between (1) any Seller’s Net Revenue Interest with respect to any Target Formation for any Tract or with respect to any Well and (2) such Seller’s Net Revenue Interest with respect to such Target Formation for such Tract or with respect to such Well as set forth in Exhibits A-2 or A-1, as applicable, and (B) such Seller’s Working Interest with respect to such Target Formation for such Tract or with respect to such Well is greater than such Seller’s Working Interest with respect to such Target Formation for such Tract or with respect to such Well as set forth in Exhibits A-2 or A-1, as applicable, in the same proportion to such Net Revenue Interest increase, then the Title Benefit Amount shall be the product of (1) the Allocated Value of such Title Benefit Property, multiplied by (2) a fraction, the (x) numerator of which is the Net Revenue Interest increase with respect to such Target Formation for such Tract or Well, and (y) denominator of which is the Net Revenue Interest with respect to such Target Formation for such Tract or Well as set forth in Exhibits A-2 or A-1, as applicable;
(iii) if the Title Benefit represents an increase in the Net Acres with respect to any Target Formation for any Tract owned by a Seller compared to the represented Net Acres with respect to such Target Formation for such Tract as shown under the column titled “Seller Net Acres” on Exhibit A-2 throughout the duration of the productive life of such Tract, then the Title Benefit Amount will be the product of (x) the Allocated Value of such Title Defect Property, multiplied by (y) a fraction, the (A) numerator of which is the positive difference between the (I) actual Net Acres held by such Seller with respect to such Target Formation for such Tract, and (II) Net Acres with respect to such Target Formation for such Tract as shown under the column titled “Seller Net Acres” on Exhibit A-2, and (B) denominator of which is the Net Acres with respect to such Target Formation for such Tract as shown under the column titled “Seller Net Acres” on Exhibit A-2;
(iv) for purposes of Section 13.2(i) only, all Title Benefits with respect to any Well or Tract that are attr...