Common use of Determination of Title Defects Clause in Contracts

Determination of Title Defects. A Well or Unit shall not be ------------------------------ deemed to have a "Title Defect" if the following statements are true in all material respects with respect to such Well or Unit as of the Closing Date: (a) The Company has Defensible Title thereto. (b) All rentals, ▇▇▇▇ clause payments, shut-in gas payments and other similar payments (other than royalties, overriding royalties and other similar payments on production) due with respect to such Well or Unit have been properly and timely paid. (c) Seller is not in default under the material terms of any leases, farmout agreements or other contracts or agreements respecting such Well or Unit which could (1) prevent the Company from receiving the proceeds of production attributable to the Company's interest therein, or (2) result in cancellation of the Company's interest therein.