Common use of Calculation of Speed Compensation (P/S) Clause in Contracts

Calculation of Speed Compensation (P/S). If the AAS for the Performance Period is less than the guaranteed speed specified in Schedule I (“GS”), Owner shall pay Charterer compensation (P/S) calculated as follows: P/S = (GS - AAS) x HS x DVC where DVC (the daily value constant per knot ) is calculated as follows: DVC = Average Hire Rate during the Specified Passage GS SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH FIVE ASTERISKS (*****).