Common use of Asset Maintenance Clause in Contracts

Asset Maintenance. If at any time the Collateral Vessel Value (together with the value of any additional collateral theretofore provided under this Section) falls below one hundred fifty percent (150%) (the "Required Percentage") of an amount (the "Principal Exposure") equal to the aggregate of (a) the Term Loan Balance, (b) any Revolving Credit Facility Advances then outstanding, (c) any undrawn amounts then available under the Revolving Credit Facility, (d) the Related Indebtedness then outstanding and (e) any amounts then available to be drawn down pursuant to the Related Credit Agreement, the Borrower shall, within a period of thirty (30) days following receipt by the Borrower of written notice from the Agent notifying the Borrower of such shortfall and specifying the amount thereof (which amount shall, in the absence of manifest error, be deemed to be conclusive and binding on the Borrower), either (a) deliver to the Lenders, the Agent or the Westhampton Trustee as the case may be, such additional collateral, as may be satisfactory to the Agent in its sole discretion, of sufficient value to restore compliance with the Required Percentage or (b) prepay such part of the Term Loan (together with interest thereon and other moneys payable in respect of such prepayment pursuant to Section 5.6) as shall result in the restoration of compliance with the Required Percentages. Any such prepayment of the Term Loan shall be applied as provided in Section 5.6. For purposes of calculating the Collateral Vessels Value under this Section 9.3, the value of the OMI COLUMBIA shall be deemed to be equal to the product of (1) the lightweight tonnage of such Vessel multiplied by (2)(x) One Hundred Twenty-Five Dollars or (y) if such Vessel is hereafter subject to legal restrictions as to the geographic location where such Vessel may be scrapped, a scrap price, reasonably deemed by the Agent to reflect a conservative average market scrap price for those jurisdictions in which, in the Agent's reasonable opinion, such Vessel may be scrapped in a commercially reasonable manner.

Asset Maintenance. If at any time the Collateral Vessel Value (together with the value of any additional collateral theretofore provided under this Section) falls below one hundred fifty percent (150%) (the "Required Percentage") of an amount (the "Principal Exposure") equal to the aggregate of (a) the Term Loan Balance, (b) any Revolving Credit Facility Advances then outstanding, (c) any undrawn amounts then available under the Revolving Credit Facility, (d) the Related Indebtedness then outstanding and (e) any amounts then available to be drawn down pursuant to the Related Credit Agreement, the Borrower shall, within a period of thirty (30) days following receipt by the Borrower of written notice from the Agent notifying the Borrower of such shortfall and specifying the amount thereof (which amount shall, in the absence of manifest error, be deemed to be conclusive and binding on the Borrower), either (a) deliver to the Lenders, Lenders or the Agent or the Westhampton Trustee as the case may be, such additional collateral, as may be satisfactory to the Agent in its sole discretion, of sufficient value to restore compliance with the Required Percentage or (bb)(i) prepay such part of the Term Loan (together with interest thereon and other moneys 52 61 payable in respect of such prepayment pursuant to Section 5.6) or (ii) procure the prepayment of such part of the Related Term Loan in accordance with the terms of the Related Credit Agreement as shall result in the restoration of compliance with the Required Percentages. Any such prepayment of the Term Loan shall be applied as provided in Section 5.6. For purposes of calculating the Collateral Vessels Vessel Value under this Section 9.3, the value of the OMI COLUMBIA shall be deemed to be equal to the product of (1) the lightweight tonnage of such Vessel multiplied by (2)(x2) (x) One Hundred Twenty-Five Dollars ($125) or (y) if such Vessel is hereafter subject to legal restrictions as to the geographic location where such Vessel may be scrapped, a scrap price, reasonably deemed by the Agent to reflect a conservative average market scrap price for those jurisdictions in which, in the Agent's reasonable opinion, such Vessel may be scrapped in a commercially reasonable manner.

Asset Maintenance. (a) If at any time after the Collateral Vessel Issuance Date but prior to December 31, 2001, the aggregate Fair Market Value of the Facility A Vessels then mortgaged to the Security Agent (based upon the valuations obtained pursuant to Section 10.4) (together with the value of any additional collateral theretofore provided under this Section) falls below is less than one hundred fifty fifteen percent (150115%) of the aggregate of the Facility A Loan and the Loan, or (b) if at any time after December 31, 2001 but prior to December 31, 2002 such aggregate Fair Market Value is less than one hundred twenty percent (120%) of the aggregate of the Facility A Loan and the Loan, or (c) if at any time thereafter the aggregate Fair Market Value of the Facility Vessels is less than one hundred thirty percent (130%) of the aggregate of the Facility A Loan and the Loan, (in each case as applicable, such percentage being the "Required Percentage") of an amount (the "Principal Exposure") equal to the aggregate of (a) the Term Loan Balance, (b) any Revolving Credit Facility Advances then outstanding, (c) any undrawn amounts then available under the Revolving Credit Facility, (d) the Related Indebtedness then outstanding and (e) any amounts then available to be drawn down pursuant to the Related Credit Agreement, the Borrower shall, within a period of thirty (30) days following receipt by the Borrower of written notice from the Administrative Agent notifying the Borrower of such shortfall and specifying the amount thereof (which amount shall, in the absence of manifest error, be deemed to be conclusive and binding on the Borrower), either (ai) deliver to the LendersSecurity Agent, upon the Agent or the Westhampton Trustee as the case may beAdministrative Agent's request, such additional collateral, collateral as may be satisfactory to the Agent Lenders in its their sole discretion, discretion of sufficient value to restore compliance with the Required Percentage or (bii) the Borrower shall prepay such part amount of the Term Loan (together with interest thereon and any other moneys monies payable in respect of such prepayment pursuant to Section 5.65.4) as shall result in the restoration Fair Market Value of the Facility A Vessels then mortgaged to the Security Agent being not less than the Required Percentage. The Borrower shall provide the Agents with its calculation as to its compliance with the Required Percentages. Any such prepayment of the Term Loan shall be applied as provided in Section 5.6. For purposes of calculating the Collateral Vessels Value under this Section 9.3, the value of the OMI COLUMBIA shall be deemed to be equal to the product of (1) the lightweight tonnage of such Vessel multiplied by (2)(x) One Hundred Twenty-Five Dollars or (y) if such Vessel is hereafter subject to legal restrictions as to the geographic location where such Vessel may be scrapped, a scrap price, reasonably deemed by the Agent to reflect a conservative average market scrap price for those jurisdictions in which, in the Agent's reasonable opinion, such Vessel may be scrapped in a commercially reasonable mannerthese provisions with each Interest Notice and each Compliance Certificate.

Asset Maintenance. If at any time during the Collateral term of this Agreement (i) the Charter Guarantor's Rating is below BBB- for S&Por Baa3 for Moody's, or (ii) the Guarantor's Rating is below BB- for S&Por Ba3 for Moody's, or (iii) no Rating is available for the Guarantor, each of the Borrowers shall ensure that the Fair Market Value of its Vessel Value (together with the value of any additional collateral theretofore provided under this Section) falls below is more than one hundred fifty thirty percent (150130%) (the "Required Percentage") of the outstanding principal amount of the Tranche attributable to such Vessel. If at any time an amount (event described in the "Principal Exposure") equal to first sentence of this Section 9.4 shall occur and the aggregate Fair Market Value of (a) any Vessel is less than the Term Loan Balance, (b) any Revolving Credit Facility Advances then outstanding, (c) any undrawn amounts then available under Required Percentage of the Revolving Credit Facility, (d) the Related Indebtedness then outstanding and (e) any amounts then available to be drawn down pursuant to the Related Credit Agreementrelevant Tranche, the Borrower shall, Borrowers shall within a period of thirty (30) days following receipt by the Borrower Borrowers of written notice from the Facility Agent notifying the Borrower Borrowers of such shortfall and specifying the amount thereof (which amount shall, in the absence of manifest error, be deemed to be conclusive and binding on the BorrowerBorrowers), either (ax) deliver to the LendersSecurity Agent, upon the Agent or the Westhampton Trustee as the case may beFacility Agent's request, such additional collateral, collateral as may be satisfactory to the Agent Lenders in its their sole discretion, discretion of sufficient value to restore compliance with the Required Percentage or (by) the Borrowers shall prepay such part amount of the Term Loan Facility (together with interest thereon and any other moneys monies payable in respect of such prepayment pursuant to Section 5.65.4) as shall result in the restoration Fair Market Value of compliance with the Vessels then mortgaged to the Security Agent being not less than the Required PercentagesPercentage. Any such prepayment The Borrowers jointly and severally agree to reimburse the Agent for the costs of any appraisals obtained thereby in order to determine the Fair Market Value of the Term Loan shall be applied as provided in Section 5.6. For Vessels for purposes of calculating the Collateral Vessels Value under this Section 9.39.4; provided, however, that the value of the OMI COLUMBIA Borrowers shall not be deemed required to be equal to the product of (1) the lightweight tonnage of such Vessel multiplied by (2)(x) One Hundred Twenty-Five Dollars or (y) if such Vessel is hereafter subject to legal restrictions as to the geographic location where such Vessel may be scrapped, a scrap price, reasonably deemed by reimburse the Agent to reflect a conservative average market scrap price for those jurisdictions in which, in the Agent's reasonable opinion, more than two such Vessel may be scrapped in a commercially reasonable mannerappraisals per annum if no Event of Default has occurred.