Offset Obligation Clause Samples
An Offset Obligation clause allows one party to reduce or eliminate amounts it owes to the other party by deducting sums that the other party owes to it under the same or related agreements. In practice, if both parties have outstanding payments due to each other, the clause enables them to net these amounts so that only the balance is paid. This mechanism streamlines payment processes, minimizes the risk of default on mutual obligations, and ensures that parties are only required to pay the net amount owed, thereby simplifying financial settlements and reducing administrative burden.
Offset Obligation. In the event one or more ▇▇▇▇▇ producing oil or gas should be brought in on land outside the Leased Premises but within 330 feet from any boundary of the Leased Premises (the “Lease Boundary”), or are brought in elsewhere and are draining the Leased Premises, or a portion thereof (said ▇▇▇▇▇ located within 330 feet of the Lease Boundary, or which are draining the Leased Premises or portion thereof being hereinafter referred to singularly as the “Draining Well”) and there is then no well with a bottom hole location on the Leased Premises or lands pooled therewith producing oil or gas, as the case may be, in commercial quantities from the same geological formation as the Draining Well, then Lessee agrees to drill such well as a reasonably prudent operator would drill under the same or similar circumstances.
Offset Obligation. If any Purchaser Indemnified Party is entitled to receive any amount from Seller under this ARTICLE 9, the Purchaser Indemnified Party shall be entitled to offset any such amounts against the Holdback Amount payable to Seller in accordance with Section 3.2(b). The amount that Purchaser can offset pursuant to this Section 9.10 shall not exceed an amount equal to the Holdback Amount.
Offset Obligation. With respect to any indemnification payment which a Buyer Indemnified Party shall be entitled under Article 7 of the Purchase Agreement, such Buyer Indemnified Party shall, before seeking any other available payment remedy, offset from any amounts outstanding under the Notes that would otherwise be due and payable in accordance with the Notes an amount equal to any such indemnification payment; provided, that if such amounts outstanding under the Notes are not sufficient to provide a full recovery for such indemnification payment, then Sellers shall pay the amount of such indemnification payment that remains outstanding after such Buyer Indemnified Party exercises its offset obligation with respect to such indemnification payment.