Title Benefit Amounts Sample Clauses
The "Title Benefit Amounts" clause defines the specific monetary limits or coverage amounts provided under a title insurance policy. It typically outlines the maximum sum the insurer will pay in the event of a covered title defect or loss, and may specify different benefit amounts for various types of claims or endorsements. This clause ensures both parties understand the extent of financial protection offered, thereby clarifying the insurer’s liability and helping to manage expectations regarding potential compensation.
Title Benefit Amounts. The “Title Benefit Amount” for any Title Benefit shall be determined as follows:
Title Benefit Amounts. The Title Benefit Amount resulting from a Title Benefit will 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 will be the Title Benefit Amount;
(ii) if, with respect to any Title Benefit affecting a Well, the Title Benefit represents an increase in Seller’s Net Revenue Interest for, or a decrease in the Burdens for, such Title Benefit Property as to a Subject Depth (for the productive life of such Title Benefit Property) and the Working Interest set forth on Exhibit B for such Subject Depth of such Title Benefit Property is increased (for the productive life of such Title Benefit Property) in the same proportion as the increase in Net Revenue Interest for such Subject Depth of such Title Benefit Property or decrease in Burdens, as applicable, then the Title Benefit Amount will be the product of: (A) the Allocated Value of such Subject Depth for such Title Benefit Property multiplied by (B) a fraction, (1) the numerator of which is the Net Revenue Interest increase for such Subject Depth of such Title Benefit Property or the Burden decrease, as applicable, and (2) the denominator of which is (x) in the case of an increase in Net Revenue Interest, the Net Revenue Interest set forth for such Subject Depth for such Title Benefit Property on Exhibit B and (y) in the case of a decrease in Burdens, one (1) minus the Burdens set forth for such Title Benefit Property on Exhibit A;
(iii) if, with respect to any Title Benefit affecting a Lease, the Title Benefit represents an increase in Seller’s Net Acres in and to a Subject Depth of such Lease over the Net Acres represented by Seller on Exhibit A for such Subject Depth of such Lease, then the Title Benefit Amount will be the product of: (A) the Allocated Value of such Subject Depth for such Lease multiplied by (B) a fraction, the numerator of which is such Net Acre increase and the denominator of which is Net Acres set forth for such Subject Depth of such Lease on Exhibit A; and
(iv) if the Title Benefit is of a type not described above, then the Title Benefit Amount will be determined by taking into account the Allocated Value of the Title Benefit Property and the affected Subject Depths, the portion (including Subject Depths) of such Title Benefit Property affected by such Title Benefits, the legal effect of the Title Benefit, the potential economic effect of the Title Benefit over the life of such Title B...