Common use of Defensible Title Clause in Contracts

Defensible Title. (a) As used herein, the term “Defensible Title” shall mean, as to the Interests, such title held by Seller under documents recorded in Xxxxxxx County, Texas that, subject to and except for the Permitted Encumbrances (as hereinafter defined): (i) entitles Seller to receive, and will entitle Buyer after Closing, to receive, own and retain without suspension, reduction or termination, payment of revenues for not less than the “Net Revenue Interest” set forth in Exhibit “B” of all oil, gas and associated liquid and gaseous hydrocarbons produced, saved and marketed from all xxxxx located on the Land; (ii) obligates Seller, and will obligate Buyer after Closing, to bear costs and expenses relating to the maintenance, development and operation of xxxxx located on the Interests in an amount not greater than the “Working Interest” set forth in Exhibit “B”; (iii) is free and clear of encumbrances and liens; and (iv) allows Seller to receive payment for production attributable to the Interests from the purchaser(s) thereof without any bond or indemnity being required.