Common use of Valuation of Ship Clause in Contracts

Valuation of Ship. (a) The Market Value of a Ship for the purpose of determination of the Initial Market Value of that Ship, is that shown by taking the arithmetic mean of two valuations issued by two Approved Brokers, one selected and appointed by the Agent and one selected and appointed by the Borrower (unless the Borrower does not select and appoint an Approved Broker within 14 days after the Agent’s request, in which case the Agent shall select and appoint both Approved Brokers). (b) The Market Value of a Ship or other Fleet Vessel at any other date is that shown by taking the arithmetic means of two valuations requested by the Agent to be issued by two Approved Brokers, selected and appointed by the Borrower (unless the Borrower does not select or appoint two Approved Brokers within 14 days after the Agent’s request, in which case the Agent shall select and appoint one Approved Broker and the Market Value of that Ship or other Fleet Vessel shall be that shown by the single valuation issued by such Approved Broker). (c) Each valuation referred to in paragraphs (a) and (b) above shall be prepared: (i) as at a date not more than 30 days previously; (ii) with or without physical inspection of that Ship (as the Agent may require); and (iii) on the basis of a sale for prompt delivery for cash on normal arm’s length commercial terms as between a willing seller and a willing buyer, free of any existing charter or other contract of employment Provided that if the higher of the two valuations in respect of a Ship or other Fleet Vessel issued for the purpose of determination of its Initial Market Value or, as the case may be, Market Value pursuant to paragraphs (a) and (b) of this Clause 15.3 shows a value of more than 115 per cent. of that shown by the lower of the two valuations, a third valuation shall be requested from a third Approved Broker selected and appointed by the Agent to be prepared in accordance with this Clause 15.3 and the Initial Market Value or, as the case may be, Market Value of that Ship or other Fleet Vessel in such circumstances shall be the arithmetic mean of all three valuations.

Valuation of Ship. (a) The Market Value of a Ship for the purpose of determination of the Initial Market Value of that the Ship, is that shown by taking the arithmetic mean of two valuations issued by two Approved Brokers, one selected and appointed by the Agent and one selected and appointed by the Borrower (unless the Borrower does not select and appoint an Approved Broker within 14 days after the Agent’s request, in which case the Agent shall select and appoint both Approved Brokers). (b) The Market Value of a the Ship or other Fleet Vessel at any other date is that shown by taking the arithmetic means of two valuations requested by the Agent to be issued by two Approved Brokers, selected and appointed by the Borrower (unless the Borrower does not select or appoint two Approved Brokers within 14 days after the Agent’s request, in which case the Agent shall select and appoint one Approved Broker and the Market Value of that the Ship or other Fleet Vessel shall be that shown by the single valuation issued by such Approved Broker). (c) Each valuation referred to in paragraphs (a) and (b) above shall be prepared: (i) as at a date not more than 30 days previously; (ii) with or without physical inspection of that the Ship (as the Agent may require); and (iii) on the basis of a sale for prompt delivery for cash on normal arm’s length commercial terms as between a willing seller and a willing buyer, free of any existing charter or other contract of employment Provided that if the higher of the two valuations in respect of a the Ship or other Fleet Vessel issued for the purpose of determination of its Initial Market Value or, as the case may be, Market Value pursuant to paragraphs (a) and (b) of this Clause 15.3 shows a value of more than 115 15 per cent. of that shown by the lower of the two valuations, a third valuation shall be requested from a third Approved Broker selected and appointed by the Agent to be prepared in accordance with this Clause 15.3 and the Initial Market Value or, as the case may be, Market Value of that the Ship or other Fleet Vessel in such circumstances shall be the arithmetic mean of all three valuations.

Valuation of Ship. (a) The Market Value of a Ship for the purpose of determination of the Initial Market Value of that the Ship, is that shown by taking the arithmetic mean of two valuations one valuation issued by two an Approved BrokersBroker, one selected and appointed by the Agent and one selected and appointed by the Borrower (unless the Borrower does not select and appoint an Approved Broker within 14 days after the Agent’s request, in which case the Agent shall select and appoint both Approved Brokers). (b) The Market Value of a the Ship or other Fleet Vessel at any other date is that shown by taking the arithmetic means mean of two valuations requested by the Agent to be issued by two Approved Brokers, selected and appointed by the Borrower (unless the Borrower does not select or appoint two Approved Brokers within 14 days after the Agent’s 's request, in which case the Agent shall select and appoint one Approved Broker and the Market Value of that the Ship or other Fleet Vessel shall be that shown by the single valuation issued by such Approved Broker). (c) Each valuation referred to in paragraphs (a) and (b) above shall be prepared: (i) as at a date not more than 30 days previously; (ii) with or without physical inspection of that the Ship (as the Agent may require); and (iii) on the basis of a sale for prompt delivery for cash on normal arm’s 's length commercial terms as between a willing seller and a willing buyer, free of any existing charter or other contract of employment Provided that if the higher of the two valuations in respect of a the Ship or other Fleet Vessel issued for the purpose of determination of its Initial Market Value or, as the case may be, Market Value pursuant to paragraphs (a) and paragraph (b) of this Clause 15.3 shows a value of more than 115 15 per cent. of that shown by the lower of the two valuations, a third valuation shall be requested from a third Approved Broker selected and appointed by the Agent to be prepared in accordance with this Clause 15.3 and the Initial Market Value or, as the case may be, Market Value of that the Ship or other Fleet Vessel in such circumstances shall be the arithmetic mean of all three valuations.. 66 EUROPE/71630549v6

Valuation of Ship. (a) The Market Value Ship shall, for the purposes of a Ship this Agreement, be valued in Dollars as and when the Agent (acting on the instructions of the Majority Banks) shall require (whether for the purpose of determination of the Initial Market Value of that Ship, is that shown testing compliance with clause 8.2.1 or at any other time) by taking the arithmetic mean of two valuations issued by two Approved Brokers, one selected and appointed Maritime Strategies unless otherwise advised by the Agent and one selected and appointed by the Borrower (unless the Borrower does not select and appoint an Approved Broker within 14 days after in its absolute discretion. Each such valuation shall be addressed to the Agent’s request, in which case the Agent shall select and appoint both Approved Brokers). (b) The Market Value of a Ship or other Fleet Vessel at any other date is that shown by taking the arithmetic means of two valuations requested by the Agent to be issued by two Approved Brokers, selected and appointed by the Borrower (unless the Borrower does not select or appoint two Approved Brokers within 14 days after the Agent’s request, in which case the Agent shall select and appoint one Approved Broker and the Market Value of that Ship or other Fleet Vessel shall be that shown by the single valuation issued by such Approved Broker). (c) Each valuation referred to in paragraphs (a) and (b) above shall be prepared: (i) as at a date dated not more than 30 days previously; (ii) with or without previously and shall be made without, unless required by the Agent, physical inspection of that Ship (as the Agent may require); and (iii) and on the basis of a sale for prompt delivery for cash on normal at arm’s length on normal commercial terms as between a willing seller buyer and a willing buyer, free seller without taking into account the benefit of any existing charter charterparty or other contract engagement concerning the Ship. Subject to paragraph (b) below, such valuation shall constitute the value of employment Provided that if the higher Ship for the purposes of this clause 8.2 and the other provisions of this Agreement and the other Security Documents. (b) If the Borrower requests a second valuation within 15 days after the first valuation obtained pursuant to paragraph (a) above, a second valuation of the Ship shall be obtained by the Agent from another Approved Shipbroker selected by the Borrower or, failing such selection, appointed by the Agent, and made on the same basis as the first valuation under paragraph (a) above. Where such a second valuation is obtained, subject to paragraph (c) below, the arithmetic mean of the two valuations in respect shall constitute the value of a the Ship or other Fleet Vessel issued for the purpose of determination of its Initial Market Value or, as the case may be, Market Value pursuant to paragraphs (a) and (b) purposes of this Clause 15.3 shows a value clause 8.2 and the other provisions of this Agreement and the other Security Documents. (c) In the event that the said two (2) valuations differ between them by more than 115 ten per cent. of that shown by cent (10%), then the lower of the two valuationsAgent may, in its sole discretion, obtain a third valuation shall be requested of the Ship from a third another Approved Broker Shipbroker selected and by the Borrower or, failing such selection, appointed by the Agent to be prepared Agent, and made on the same basis as the other two valuations for the Ship. The arithmetic mean of the three valuations for the Ship eventually obtained in accordance with this Clause 15.3 clause shall constitute the value of the Ship for the purposes of this clause 8.2 and the Initial Market Value or, as other provisions of this Agreement and the case may be, Market Value other Security Documents. (d) The value of that the Ship or other Fleet Vessel determined in such circumstances accordance with the provisions of this clause 8.2 shall be binding upon the arithmetic mean parties hereto until such time as any further such valuations shall be obtained in respect of all three valuationsthe Ship.

Valuation of Ship. (a) The Market Value market value of a Ship for the purpose of determination of the Initial Market Value of that Ship, or other Fleet Vessel at any date is that shown by taking the arithmetic mean of two valuations issued by two Approved Brokers, one selected and appointed by the Agent and one selected and appointed by the Borrower (unless the Borrower does not select and appoint an Approved Broker within 14 days after the Agent’s request, in which case the Agent shall select and appoint both Approved Brokers). (b) The Market Value of a Ship or other Fleet Vessel at any other date is that shown by taking the arithmetic means of two valuations requested by the Agent to be issued by two Approved Brokers, selected and appointed by the Borrower (unless the Borrower does not select or appoint two Approved Brokers within 14 days after the Agent’s request, in which case the Agent shall select and appoint one Approved Broker and the Market Value of that Ship or other Fleet Vessel shall be that shown by the single valuation issued by such Approved Broker). (c) Each valuation referred to in paragraphs (a) and (b) above shall be each prepared: (ia) as at a date not more than 30 days previously; (iib) in the case of the first valuation, by an Approved Broker appointed by the Borrower and, in the case of the second valuation, by an Approved Broker appointed by the Agent; (c) with or without physical inspection of that the Ship or other Fleet Vessel (as the Agent may require); and; (iiid) on the basis of a sale for prompt delivery for cash on normal arm’s 's length commercial terms as between a willing seller and a willing buyerbuyer and, subject to paragraph (e) below, free of any existing charter or other contract of employment; (e) notwithstanding paragraph (d) above, the valuation of a Ship or Substitute Vessel for the purposes only of Clause 15.1 and Clause 8.10 (and the definitions of "Market Value" and "Security Cover Percentage" only where they are used (whether directly or by incorporation by reference) in such clauses) and for no other purpose or clause whatsoever, shall be made by taking into account the benefit or detriment of any existing charter or other contract of employment in respect of the relevant Ship or Substitute Vessel with a charterer which is not a member of the Group or an affiliate of any shareholder of the Borrower or of the Approved Manager, and having a remaining tenor of at least 12 months Provided however that, in the case of a Ship or a Substitute Vessel only, such charterer is also approved by the Agent in its sole discretion and the relevant charter or contract of employment is assigned to the Security Agent under a Charterparty Assignment; and (f) after deducting the estimated amount of the usual and reasonable expenses which would be incurred in connection with the sale, Provided that if the higher of the two valuations in respect of a Ship or other Fleet Vessel issued for the purpose of determination of its Initial Market Value or, as the case may be, Market Value provided pursuant to paragraphs (a) and (b) of this Clause 15.3 shows a value of 15.4 differ by more than 115 15 per cent. of that shown by the lower of the two valuations., a third valuation shall be requested obtained from a third Approved Broker selected and appointed by the Agent to be and prepared on the basis described in accordance with paragraphs (a), (c), (d), (e) and (f) of this Clause 15.3 15.4 and the Initial Market Value or, as the case may be, Market Value of that the relevant Ship or other Fleet Vessel in such circumstances which is the subject of the third valuation shall be the arithmetic mean of all the three valuationsvaluations obtained pursuant to this Clause 15.4.