Common use of Rate of Hire Clause in Contracts

Rate of Hire. Charterer shall pay hire at the rate determined, on each Determination Date (as defined below), in accordance with the following formula: (A + B + C) / 365 where A, B and C are defined as follows: A = ((w * x) + y), where w, x, and y are defined follows: w = the estimated interest rate for the 365 day period subsequent to the Determination Date. x = the projected weighted average principal balance of the Notes outstanding during the 365 day period subsequent to the Determination Date. y = the principal repayment requirements during the 365 day period subsequent to the Determination Date. B = the budgeted operating expenses for the vessel (excluding depreciation and amortization) for the 365 day period subsequent to the Determination Date. C = the budgeted cost of the next drydocking of the vessel, divided by the number of years (and fractions thereof) between the completion of the most recent drydocking of the vessel and the commencement of that next drydocking. The Determination Dates shall occur on January 10, 1994 and annually thereafter. In addition, there shall be a Determination Date upon the occurrence of any of the following: a) Principal Repayment b) The Company's annual operating expense and/or drydock budgets as calculated above have been revised upwards.

Rate of Hire. Charterer shall pay hire at the rate determined, on each Determination Date (as defined below), in accordance with the following formula: (A + B + C) / 365 where A, B and C are defined as follows: A = ((w * x) + y), where w, x, and y are defined follows: w = the estimated interest rate for the 365 day period subsequent to the Determination Date. x = the projected weighted average principal balance of the Notes outstanding during the 365 day period subsequent to the Determination Date. y = the principal repayment requirements during the 365 day period subsequent to the Determination Date. B = the budgeted operating expenses for the vessel (excluding depreciation and amortization) for the 365 day period subsequent to the Determination Date. C = the budgeted cost of the next drydocking of the vessel, divided by the number of years (and fractions thereof) between the completion of the most recent drydocking of the vessel and the commencement of that next drydocking. 24 The Determination Dates shall occur on January 10, 1994 and annually thereafter. In addition, there shall be a Determination Date upon the occurrence of any of the following: a) Principal Repayment b) The Company's annual operating expense and/or drydock budgets as calculated above have been revised upwards.