Common use of Title Defect Adjustments Clause in Contracts

Title Defect Adjustments. Title Defect Adjustments shall be determined as follows: iIf, because of a Title Defect, title to one or more Title Defect Properties fails completely with the effect that Seller has no ownership interest in the relevant Asset, the adjustment to the Purchase Price attributable to such Title Defect shall be the Allocated Value of the affected Assets. iiIf the Title Defect consists of a lien, encumbrance, or other charge upon the Title Defect Property which is undisputed and liquidated in amount, the adjustment to the Purchase Price attributable to such Title Defect shall be the amount necessary to pay the obligee to remove such Title Defect, not to exceed the Allocated Value of such Asset. iiiIf Seller’s actual net revenue interest in all or a portion of the Assets is less than eighty percent (80%) after giving effect to the Conveyance of ORRI, the adjustment to the Purchase Price attributable to such Title Defect shall be an amount equal to (A) the ratio of (x) the difference obtained by subtracting the actual net revenue interest for such Assets from eighty percent (80%), to (y) eighty percent (80%), (B) multiplied by the Allocated Value of such Asset.

Title Defect Adjustments. Title Defect Adjustments shall be determined as follows: iIf, because of a Title Defect, title to one or more Title Defect Properties fails completely with the effect that the applicable Seller has no ownership interest in the relevant Asset, the adjustment to the Purchase Price attributable to such Title Defect shall be the Allocated Value of the affected Assets. iiIf the Title Defect consists of a lien, encumbrance, or other charge upon the Title Defect Property which is undisputed and liquidated in amount, the adjustment to the Purchase Price attributable to such Title Defect shall be the amount necessary to pay the obligee to remove such Title Defect, not to exceed the Allocated Value of such Asset. iiiIf the applicable Seller’s actual net revenue interest in all or a portion of the Assets to be conveyed by such Seller is less than eighty percent (80%) after giving effect to the Conveyance of ORRI, the adjustment to the Purchase Price attributable to such Title Defect shall be an amount equal to (A) the ratio of (x) the difference obtained by subtracting the actual net revenue interest for such Assets Leases from eighty percent (80%), to (y) eighty percent (80%), (B) multiplied by the Allocated Value of such Asset.