Common use of Valuation of Mortgaged Ships Clause in Contracts

Valuation of Mortgaged Ships. Each Mortgaged Ship shall, for the purposes of this Agreement, be valued in Dollars as and when the Agent (acting on the instructions of the Majority Banks) shall require (and at least twice per calendar year), save that in case of termination, cancellation, rescission or repudiation of the Charter or Qualifying Charter as the case may be for that Ship, no valuation of that Ship or Security Value testing shall be performed during the period commencing on such termination, cancellation, rescission or repudiation and ending 90 days thereafter, as long as that Ship is not employed under a Qualifying Charter or another Qualifying Charter as the case may be during such period. Each such valuation for a Mortgaged Ship shall be made by two (2) Approved Shipbrokers, each nominated by the Borrowers approved by, and addressed to, the Agent. Each valuation shall be made without, unless required by the Agent or the Borrowers, physical inspection, and on the basis of a sale for prompt delivery for cash at arm’s length, on normal commercial terms, as between a willing buyer and a willing seller, without taking into account the benefit of any charterparty or other engagement concerning the relevant Mortgaged Ship except that, if such Ship is employed under a Charter or a Qualifying Charter, such valuation shall be the aggregate of the Time Charter Income and Residual Value of such Ship with the two (2) Approved Shipbrokers providing in such case the Residual Value. The arithmetic mean of the two valuations shall constitute the value of such Mortgaged Ship for the purposes of this clause 8.2 Provided however that if such two (2) valuations in respect of a Ship vary by more than ten per cent (10%) (by reference to the higher figure), the Agent shall appoint a third Approved Shipbroker to value such Ship on the same basis as the other two (2) valuations and, in that case, the arithmetic mean of the three (3) valuations shall constitute the value of such Mortgaged Ship for the purposes of this clause 8.2 The value of each Mortgaged Ship determined in accordance with the provisions of this clause 8.2.2 shall be binding upon the parties hereto until such time as any further such valuation shall be obtained.

Valuation of Mortgaged Ships. (a) Each Mortgaged Ship (or in the case of the first Valuation Date, each Ship) shall, for the purposes of this Agreementclause 12.2 (Security value maintenance), be valued in Dollars as and when on each relevant Valuation Date by two (2) of the Approved Shipbrokers, each selected from the list of Approved Shipbrokers set out in Schedule 5 (Approved Shipbrokers) by the Borrowers, or, failing such selection by the Borrowers, selected by the Facility Agent (acting on the instructions of the Majority Banks) shall require (and at least twice per calendar yearLenders in their sole discretion), save that in case of termination, cancellation, rescission or repudiation of the Charter or Qualifying Charter as the case may be for that Ship, no valuation of that Ship or Security Value testing shall be performed during the period commencing on such termination, cancellation, rescission or repudiation and ending 90 days thereafter, as long as that Ship is not employed under a Qualifying Charter or another Qualifying Charter as the case may be during such period. Each such valuation for (other than the valuation made immediately before the giving of a Mortgaged Ship Drawdown Notice) shall not be dated more than thirty (30) days prior to the relevant Fleet Valuation Date, shall be made by two (2) Approved Shipbrokers, each nominated by addressed to the Borrowers approved byFacility Agent, and addressed to, the Agent. Each valuation shall be made without, unless required by the Facility Agent or (acting on the Borrowersreasonable instructions of the Majority Lenders), physical inspection, and on the basis of a sale for prompt delivery for cash at arm’s length, on normal commercial terms, terms as between a willing buyer and a willing seller, without taking into account the benefit of any charterparty or other engagement concerning the relevant Mortgaged Ship except that, if such Ship is employed under a Charter or a Qualifying Charter, such valuation shall be the aggregate of the Time Charter Income and Residual Value Ship. The lower of such Ship with the two (2) Approved Shipbrokers providing in such case the Residual Value. The arithmetic mean of the two valuations for a Mortgaged Ship shall constitute the value of such Mortgaged Ship for the purposes of this clause 8.2 Provided however that if such two (2) valuations in respect of a Ship vary by more than ten per cent (10%) (by reference to the higher figure), the Agent shall appoint a third Approved Shipbroker to value such Ship on the same basis as 12.2 and the other two (2) valuations and, in that case, the arithmetic mean of the three (3) valuations shall constitute the value of such Mortgaged Ship for the purposes provisions of this clause 8.2 Agreement and the other Finance Documents. (b) The value of each Mortgaged Ship determined in accordance with the provisions of this clause 8.2.2 12.2 (Security value maintenance) shall be binding upon the parties hereto until such time as any further such valuation valuations shall be obtained.

Valuation of Mortgaged Ships. Each of the Mortgaged Ship Ships shall, for the purposes of this Agreement, be valued in Dollars as and when the Agent (acting on the instructions of the Majority Banks) shall require and in any event not less frequently than at three (3) monthly intervals and at least twice per calendar year)immediately prior to the sale of a Mortgaged Ship, save that in case of termination, cancellation, rescission or repudiation by any two (2) of the Charter or Qualifying Charter as Approved Shipbrokers, one nominated by the case may be for that ShipAgent in its sole discretion and the other nominated by the Borrowers or, no valuation of that Ship or Security Value testing shall be performed during failing such nomination, by the period commencing on such termination, cancellation, rescission or repudiation and ending 90 days thereafter, as long as that Ship is not employed under a Qualifying Charter or another Qualifying Charter as the case may be during such periodAgent in its sole discretion. Each such valuation for a Mortgaged Ship shall be made by two (2) Approved Shipbrokers, each nominated by the Borrowers approved by, and addressed to, to the Agent. Each valuation , shall be dated not more than 14 days previously and shall be made without, unless required by the Agent or the BorrowersAgent, physical inspection, and on the basis of a sale for prompt delivery for cash at arm’s 's length, on normal commercial terms, terms as between a willing buyer and a willing seller, without taking into account the benefit of any charterparty or other engagement concerning the relevant Mortgaged Ship except that, if such Ship is employed under a Charter or a Qualifying Charter, such valuation shall be the aggregate of the Time Charter Income and Residual Value of such Ship with the two (2) Approved Shipbrokers providing in such case the Residual ValueShip. The arithmetic mean of the two valuations shall constitute the value of such Mortgaged Ship for the purposes of this clause 8.2 Provided provided however that if such the two (2) valuations obtained in respect of relation to a Mortgaged Ship vary by more than ten per cent (10%) (by reference to the higher figure), the Agent and the Borrowers shall jointly appoint a third Approved Shipbroker to value such Mortgaged Ship on the same basis as the other two (2) valuations and, in that case, the arithmetic mean of the all three (3) such valuations shall then constitute the value of such Mortgaged Ship for the purposes of this clause 8.2 8.2. The value of each any Mortgaged Ship determined in accordance with the provisions of this clause 8.2.2 shall be binding upon the parties hereto until such time as any further such valuation valuations shall be obtained.

Valuation of Mortgaged Ships. (a) Each Mortgaged Ship (or in the case of the first Valuation Date, each Ship) shall, for the purposes of this Agreementclause 13.2 (Security value maintenance), be valued in Dollars as and when on each relevant Valuation Date by two (2) of the Approved Shipbrokers, each selected by the Borrowers or, failing such selection by the Borrowers, selected by the Facility Agent (acting on the instructions of the Majority Banks) shall require (and at least twice per calendar yearLenders in their sole discretion), save that in case of termination, cancellation, rescission or repudiation of the Charter or Qualifying Charter as the case may be for that Ship, no valuation of that Ship or Security Value testing shall be performed during the period commencing on such termination, cancellation, rescission or repudiation and ending 90 days thereafter, as long as that Ship is not employed under a Qualifying Charter or another Qualifying Charter as the case may be during such period. Each such valuation for (other than the valuation made immediately before the giving of a Mortgaged Ship Drawdown Notice) shall not be dated more than thirty (30) days prior to the relevant Fleet Valuation Date, shall be made by two (2) Approved Shipbrokers, each nominated by addressed to the Borrowers approved byFacility Agent, and addressed to, the Agent. Each valuation shall be made without, unless required by the Facility Agent or (acting on the Borrowersreasonable instructions of the Majority Lenders), physical inspection, and on the basis of a sale for prompt delivery for cash at arm’s length, on normal commercial terms, terms as between a willing buyer and a willing seller, without taking into account the benefit of any charterparty or other engagement concerning the relevant Mortgaged Ship except that, if such Ship is employed under a Charter or a Qualifying Charter, such valuation shall be the aggregate of the Time Charter Income and Residual Value of such Ship with the two (2) Approved Shipbrokers providing in such case the Residual ValueShip. The arithmetic mean of the such two (2) valuations for a Mortgaged Ship shall constitute the value of such Mortgaged Ship for the purposes of this clause 8.2 Provided however that if such two (2) valuations in respect of a Ship vary by more than ten per cent (10%) (by reference to the higher figure), the Agent shall appoint a third Approved Shipbroker to value such Ship on the same basis as 13.2 and the other two (2) valuations and, in that case, the arithmetic mean of the three (3) valuations shall constitute the value of such Mortgaged Ship for the purposes provisions of this clause 8.2 Agreement and the other Finance Documents. (b) The value of each Mortgaged Ship determined in accordance with the provisions of this clause 8.2.2 13.2 (Security value maintenance) shall be binding upon the parties hereto until such time as any further such valuation valuations shall be obtained.

Valuation of Mortgaged Ships. Each of the Mortgaged Ship Ships shall, for the purposes of this Agreement, be valued in Dollars as and Dollars: (a) at any time when the Agent (acting on the instructions of the Majority Banks) shall require for the purposes of calculating the amount required to be prepaid pursuant to clause 4.3 Provided that: (and at least twice per calendar yeari) the Agent shall not require valuations of the Mortgaged Ships in accordance with this clause 8.2.2(a), save that in case of termination, cancellation, rescission or repudiation if the Agent has already received valuations of the Charter or Qualifying Charter as Mortgaged Ships in accordance with this clause 6.2.2 and such valuations are dated not more than one (1) month prior to the case may date when the Agent has to calculate the relevant amount required to be for that Ship, no valuation of that Ship or Security Value testing prepaid pursuant to clause 4.3; and (ii) the Agent shall be performed during obliged to require valuations of the period commencing on such terminationMortgaged Ships in accordance with this clause 8.2.2(a), cancellation, rescission if the Agent has never received valuations of the Mortgaged Ships in accordance with this clause 8.2.2 or repudiation if the Agent’s most recent valuations of the Mortgaged Ships in accordance with this clause 8.2.2 are dated more than one (1) month prior to the date when the Agent has to calculate the relevant amount required to be prepaid pursuant to clause 4.3; and (b) at any other time as and ending 90 days thereafter, as long as that Ship is not employed under a Qualifying Charter or another Qualifying Charter as when the Agent shall require. in each case may be during such period. Each such valuation for a Mortgaged Ship shall be made by two (2) Approved Shipbrokers, each Brokers. One such Approved Broker shall be nominated by the Borrowers approved byor, failing that, by the Agent and addressed to, the other such Approved Broker shall be nominated by the Agent. Each such valuation shall be addressed to the Agent and made without, unless required by the Agent or (acting on the Borrowersinstructions of the Majority Banks), physical inspection, and on the basis of a sale for prompt delivery for cash at arm’s length, length on normal commercial terms, terms as between a willing buyer and a willing seller, seller without taking into account the benefit of any charterparty or other engagement concerning the relevant Mortgaged Ship except that, if such Ship is employed under a Charter or a Qualifying Charter, such valuation shall be the aggregate of the Time Charter Income and Residual Value of such Ship with the two (2) Approved Shipbrokers providing in such case the Residual ValueShip. The arithmetic mean of the two such valuations shall constitute the value of such Mortgaged Ship for the purposes of this clause 8.2 Provided however that if such 8.2. If the two (2) valuations in respect of a Ship vary between them by more than ten fifteen per cent (1015%) (by reference to the higher figure), the Agent shall appoint in its sole discretion a third Approved Shipbroker Broker to value such the Mortgaged Ship on the same basis as the other two (2) valuations and, in that case, the arithmetic mean of the all three (3) such valuations shall then constitute the value of such Mortgaged Ship for the purposes of this clause 8.2 8.2. The value of each any Mortgaged Ship determined in accordance with the provisions of this clause 8.2.2 8.2 shall be binding upon the parties hereto (save in the case of manifest error) until such time as any further such valuation valuations shall be obtained.