Existing Burdens Clause Samples
The 'Existing Burdens' clause defines the obligations, restrictions, or encumbrances that already affect a property or asset at the time of an agreement. In practice, this clause typically lists items such as easements, liens, mortgages, or restrictive covenants that remain in place and are not removed by the transaction. Its core function is to ensure that all parties are aware of and accept these pre-existing conditions, thereby preventing future disputes or misunderstandings about the status of the property or asset being transferred.
Existing Burdens. Each Party's interest under this Agreement, in the Leases and Seismic Options covered hereby and the Leases acquired and to be acquired pursuant hereto, shall be subject to and burdened by its proportionate share of all existing operating agreements, existing and pending pooling and spacing orders and all Lease Burdens other than Subsequently Created Burdens. Each Party hereto hereby assumes and agrees to perform its proportionate share of the obligations under all Leases and Seismic Options and the Leases acquired pursuant to this Agreement and the other obligations described in this Article, but only to the extent that such obligations arise after the acquisition of such Leases and Seismic Options by such Party.
Existing Burdens. Each Party's interest under this agreement in the AMI Interests, and oil and gas leases which may be acquired thereunder, shall be subject to and burdened by its proportionate share of all existing operating agreements, existing and pending pooling and spacing orders and all Lease Burdens other than Subsequently Created Burdens. TAC represents that, except as hereinafter provided, it has not burdened the Existing AMI Interests acquired or to be acquired with any liens or Subsequently Created Burdens. Each Party agrees to perform its Proportionate Share of the obligations under the AMI Interests acquired pursuant to this Agreement and the other obligations described in this Article, but only to the extent that such obligations arise after the acquisition of such AMI Interests by such Party. Notwithstanding the foregoing, the Parties agree that they shall bear, their Proportionate Share of an overriding royalty interest to be owned by Bayou Black Royalty Company, Inc. on all oil and gas leases acquired pursuant to this Agreement (including leases acquired by exercising lease options in which the Parties own an interest, and in extensions and renewals thereof ) equal to two percent (2%) of eight-eighths (8/8ths), provided that such overriding royalty interest shall be reduced in the proportion that the undivided mineral interest covered by any such lease bears to the entire mineral interest in the lands covered by such lease.
Existing Burdens. Each Party's interest under this agreement in the AMI Interests, and oil and gas leases which may be acquired thereunder, shall be subject to and burdened by its proportionate share of all existing operating agreements, existing and pending pooling and spacing orders and all Lease Burdens other than Subsequently Created Burdens. Parallel, TAC and Allegro represent that they have not burdened the Existing AMI Interests acquired or to be acquired with any liens or Subsequently Created Burdens. Each Party agrees to perform its Proportionate Share of the obligations under the AMI Interests acquired pursuant to this Agreement and the other obligations described in this Article, but only to the extent that such obligations arise after the acquisition of such AMI Interests by such Party.
Existing Burdens. To the best of Seller’s knowledge, the lease burdens and other existing burdens on the Properties do not reduce the net revenue interest below the percentages set forth on Exhibit A. Seller does not warrant net revenue interest, except by, through and under Seller as to the interests specifically set forth on Exhibit A, but not otherwise.
Existing Burdens. AREC and CMS represent that to the Lease Burdens and other Existing Burdens on the ▇▇▇▇▇ do not reduce the Net Revenue Interest below the percentages set forth on Schedule 1.32. AREC and CMS do not warrant the represented Net Revenue Interest, except by, through and under AREC and CMS, but not otherwise. DRI represents that it is entitled to receive thirty percent (30%) of AREC's Net Profits from the Oil and Gas Properties and that it has not created or permitted any Existing Burden on or against its Net Profits Interest except that mortgage and first security interest granted to PNC Bank, National Association ("Mortgage"), which Mortgage shall be removed at Closing. DRI does not warrant its Net Profits Interest, except by, through and under it, but not otherwise.
Existing Burdens. To the best of the New Century Group's knowledge, the lease burdens on the ▇▇▇▇▇ Assets do not reduce the Net Revenue Interest below the percentages set forth on Exhibit A. The New Century Group do not warrant Net Revenue Interest, except by through and under the New Century Group as to the interests specifically set forth on Exhibit A, but not otherwise, such warranty to be several and not joint and several as to the New Century Group Net Revenue Interest.
Existing Burdens. Seller represents that the Lease Burdens and other Existing Burdens on the ▇▇▇▇▇ do not reduce the Net Revenue Interest below the percentages set forth on Schedule 1.44. Seller does warrant the represented Net Revenue Interest against all claims arising by, through and under Seller, but not otherwise.
Existing Burdens. Each Party’s interest in the Subsequently-Acquired Interests acquired pursuant to the terms of this Section, shall be subject to and burdened by its AMI Share of all Lease Burdens other than Subsequently- Created Burdens. Each Party hereby represents and warrants to the other Parties that (a) Exhibit “H” attached hereto sets forth immediately under the applicable section of such Exhibit “H” for such Party a list of all contracts and agreements existing as of the Closing that contain provisions that obligate or require such Party or any of its Affiliates to grant or impose Lease Burdens on any AMI Interests included in any Subsequently-Acquired Interests that would burden a Non-Acquiring Party’s AMI Share of such AMI Interests and (b) true and correct copies of all such contracts and agreements have been provided by such Party to the other Parties hereto.