Common use of Valuation of Ships Clause in Contracts

Valuation of Ships. The Market Value of a Ship: (a) for the purposes of the Initial Market Value, is that shown by taking the arithmetic mean of two valuations issued by 2 Approved Brokers, one of which shall be issued by an Approved Broker to be nominated by the Borrowers and appointed by the Agent and the other nominated and appointed by the Agent (unless the Borrowers have not nominated an Approved Broker by the date falling 14 days prior to the Drawdown Date in which case the Agent will be entitled to select and appoint a second Approved Broker and the Market Value of the relevant Ship shall be shown by taking the arithmetic means of the two valuations obtained); and (b) at any other date, is that shown in a valuation addressed to the Agent to be issued by an Approved Broker, nominated and appointed by the Borrowers and addressed to the Agent (the “First Valuation”) unless the Agent obtains a second valuation issued by an Approved Broker nominated and appointed by the Agent (the “Second Valuation”) in which case the Market Value of the relevant Ship at the relevant date is that shown: (i) if the difference between the First Valuation and the Second Valuation is less than 10 per cent., by the First Valuation; and (ii) if the difference between the First Valuation and the Second Valuation is greater than 10 per cent. but less than 15 per cent. or less, by taking the arithmetic average of such two valuations, (c) each valuation issued pursuant to paragraphs (a) and (b) of this Clause 15.3 to be prepared: (A) as at a date not more than 30 days previously; (B) with or without physical inspection of that Ship (as the Agent may require); and (C) 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; and (d) if the difference between 2 valuations in respect of a Ship obtained at any one time, in each case, pursuant to this Clause 15.3 is greater than 15 per cent. a valuation shall be commissioned from a third Approved Broker selected and appointed by the Agent. Such valuation to be conducted in accordance with this Clause 15.3 and the Market Value of that Ship in such circumstances shall be the arithmetic average of all three valuations.

Valuation of Ships. The Market Value of a Ship: (a) for the purposes of the Initial Market Value, is that shown by taking in one valuation addressed to the arithmetic mean of two valuations Agent issued by 2 Approved Brokers, one of which shall be issued by an Approved Broker to be nominated by the Borrowers and appointed by the Agent. If the Borrowers do not agree with such valuation, the Borrowers can nominate another Approved Broker to provide a second valuation addressed to the Agent and the other nominated and appointed by the Agent (unless the Borrowers have not nominated an Approved Broker by the date falling 14 days prior to the Drawdown Date Agent, in which case the Agent will be entitled to select and appoint a second Approved Broker and the Initial Market Value of the relevant Ship shall be is that shown by taking the arithmetic means average of such two valuations. If the difference between these two valuations obtained)is greater than 15 per cent. paragraph (d) of this Clause 15.3 shall be applicable; and (b) at any other date, is that shown in a one valuation addressed to the Agent to be issued by an Approved Broker, nominated and appointed by the Borrowers and addressed to the Agent (the “First Valuation”) unless the Agent obtains a second valuation issued by an Approved Broker nominated and appointed by the Agent (the “Second Valuation”) in which case the Market Value of the relevant Ship at the relevant date is that shown: (i) if the difference between the First Valuation and the Second Valuation is less than 10 per cent., by the First Valuation; and (ii) if the difference between the First Valuation and the Second Valuation is greater than 10 per cent. but less than 15 per cent. or less, by taking the arithmetic average of such two valuations, (c) each valuation issued pursuant to paragraphs (a) and (b) of this Clause 15.3 to be prepared: (A) as at a date not more than 30 days previously; (B) with or without physical inspection of that Ship (as the Agent may require); and (C) 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; and (d) if the difference between 2 valuations in respect of a Ship obtained at any one time, in each case, pursuant to this Clause 15.3 is greater than 15 per cent. a valuation shall be commissioned from a third Approved Broker selected and appointed by the Agent. Such valuation to be conducted in accordance with this Clause 15.3 and the Market Value of that Ship in such circumstances shall be the arithmetic average of all three valuations.

Valuation of Ships. The Market Value of a Ship: (a) to be determined for the purposes of the Initial Market ValueClause 9.1(d), is that shown by taking the arithmetic mean of two valuations issued by 2 Approved Brokers, one of which shall be issued by an Approved Broker to be nominated by the Borrowers Borrower and appointed by the Agent and the other nominated and appointed by the Agent (unless the Borrowers have Borrower has not nominated appoint an Approved Broker by the date falling 14 days prior to the Drawdown Date in which case the Agent will be entitled to select and appoint a second Approved Broker and the Market Value of the relevant Ship shall be shown by taking the arithmetic means of the two valuations obtained); and (b) at any other date, date is that shown in a valuation addressed to the Agent to be issued by an Approved Broker, nominated and appointed by the Borrowers Borrower and addressed to the Agent (the “First Valuation”) unless the Agent obtains a second valuation issued by an Approved Broker nominated and appointed by the Agent (the “Second Valuation”) in which case the Market Value of the relevant Ship at the relevant date is that shown: (i) if the difference between the First Valuation and the Second Valuation is less than 10 per cent., by the First Valuation; and (ii) if the difference between the First Valuation and the Second Valuation is greater than 10 per cent. but less than 15 per cent. or less, by taking the arithmetic average of such two valuations, (c) , each valuation issued pursuant to paragraphs (a) and (b) of this Clause 15.3 to be prepared: (A) as at a date not more than 30 days previously; (B) with or without physical inspection of that Ship (as the Agent may require); and (C) 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; and (dc) if the difference between 2 valuations in respect of a Ship obtained at any one time, in each case, pursuant to this Clause 15.3 is greater than 15 per cent. a valuation shall be commissioned from a third Approved Broker selected and appointed by the Agent. Such valuation to be conducted in accordance with this Clause 15.3 and the Market Value of that Ship in such circumstances shall be the arithmetic average of all three valuations.

Valuation of Ships. The Market Value of a Ship: (a) for the purposes of the Initial Market Value, is that shown by taking in one valuation addressed to the arithmetic mean of two valuations Agent issued by 2 Approved Brokers, one of which shall be issued by an Approved Broker to be nominated by the Borrowers and appointed by the Agent. If the Borrower does not agree with such valuation, the Borrower can nominate another Approved Broker to provide a second valuation addressed to the Agent and the other nominated and appointed by the Agent (unless the Borrowers have not nominated an Approved Broker by the date falling 14 days prior to the Drawdown Date Agent, in which case the Agent will be entitled to select and appoint a second Approved Broker and the Initial Market Value of the relevant Ship shall be is that shown by taking the arithmetic means average of such two valuations. If the difference between these two valuations obtained)is greater than 15 per cent. paragraph (d) of this Clause 15.3 (Valuation of Ships) shall be applicable; and (b) at any other date, is that shown in a one valuation addressed to the Agent to be issued by an Approved Broker, nominated and appointed by the Borrowers Borrower and addressed to the Agent (the “First Valuation”) unless the Agent obtains a second valuation issued by an Approved Broker nominated and appointed by the Agent (the “Second Valuation”) in which case the Market Value of the relevant Ship at the relevant date is that shown: (i) if the difference between the First Valuation and the Second Valuation is less than 10 per cent., by the First Valuation; and (ii) if the difference between the First Valuation and the Second Valuation is greater than 10 per cent. but less than 15 per cent. or less, by taking the arithmetic average of such two valuations, (c) each valuation issued pursuant to paragraphs (a) and (b) of this Clause 15.3 (Valuation of Ships) to be prepared: (Ai) as at a date not more than 30 days previously; (Bii) with or without physical inspection of that Ship (as the Agent may require); and (Ciii) 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; and (d) if the difference between 2 valuations in respect of a Ship obtained at any one time, in each case, pursuant to this Clause 15.3 (Valuation of Ships) is greater than 15 per cent. a valuation shall be commissioned from a third Approved Broker selected and appointed by the Agent. Such valuation to be conducted in accordance with this Clause 15.3 (Valuation of Ships) and the Market Value of that Ship in such circumstances shall be the arithmetic average of all three valuations.

Valuation of Ships. The Market Value of a Ship: (a) for the purposes of the Initial Market Value, each Mortgaged Ship or any Fleet Vessel at any date is that shown by taking the arithmetic mean means of two valuations issued by 2 Approved Brokers: (a) in the case of each Mortgaged Ship, each appointed by the Agent, one of which shall is to be issued selected by the Agent and the other by the Borrowers (unless the Borrowers do not select an Approved Broker within 14 days after the Agent's request to evaluate the Market Value of a Mortgaged Ship, in which case the Agent shall also select the second Approved Broker); and (b) in the case of each of the other Fleet Vessels (which are not Mortgaged Ships), one of which is to be nominated by the Borrowers selected and appointed by the Agent and the other nominated to be selected and appointed by the Agent Borrowers (unless the Borrowers have do not nominated select an Approved Broker by the date falling within 14 days prior after the Agent's request to evaluate the Drawdown Date Market Value of a Fleet Vessel in which case the Agent will be entitled to shall select and appoint a the second Approved Broker and the Market Value of the relevant Ship shall Broker), each valuation to be shown by taking the arithmetic means of the two valuations obtained); and (b) at any other date, is that shown in a valuation addressed to the Agent to be issued by an Approved Broker, nominated and appointed by the Borrowers and addressed to the Agent (the “First Valuation”) unless the Agent obtains a second valuation issued by an Approved Broker nominated and appointed by the Agent (the “Second Valuation”) in which case the Market Value of the relevant Ship at the relevant date is that shownprepared: (i) if the difference between the First Valuation and the Second Valuation is less than 10 per cent., by the First Valuation; and (ii) if the difference between the First Valuation and the Second Valuation is greater than 10 per cent. but less than 15 per cent. or less, by taking the arithmetic average of such two valuations, (c) each valuation issued pursuant to paragraphs (a) and (b) of this Clause 15.3 to be prepared: (A) as at a date not more than 30 14 days previously; (Bii) with or without physical inspection of that the Ship or, as the case may be, Fleet Vessel (as the Agent may require); and; (Ciii) 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; and (div) if after deducting the estimated amount of the usual and reasonable expenses which would be incurred in connection with the sale, Provided that If the difference between the 2 valuations in respect of a Mortgaged Ship or a Fleet Vessel obtained at any one time, in each case, time pursuant to this Clause 15.3 is greater than 15 per cent. ., a valuation shall be commissioned from a third Approved Broker selected and appointed by the Agent. Such valuation to such be conducted in accordance with this Clause 15.3 and the Market Value of that Mortgaged Ship or Fleet Vessel (as the case may be) in such circumstances shall be the arithmetic average of all three valuations.

Valuation of Ships. The Fair Market Value of a ShipShip at any date is that shown by a valuation prepared: (a) for the purposes of the Initial Market Value, is that shown by taking the arithmetic mean of two valuations issued by 2 Approved Brokers, one of which shall be issued by an Approved Broker to be nominated by the Borrowers and appointed by the Agent and the other nominated and appointed by the Agent (unless the Borrowers have not nominated an Approved Broker by the date falling 14 days prior to the Drawdown Date in which case the Agent will be entitled to select and appoint a second Approved Broker and the Market Value of the relevant Ship shall be shown by taking the arithmetic means of the two valuations obtained); and (b) at any other date, is that shown in a valuation addressed to the Agent to be issued by an Approved Broker, nominated and appointed by the Borrowers and addressed to the Agent (the “First Valuation”) unless the Agent obtains a second valuation issued by an Approved Broker nominated and appointed by the Agent (the “Second Valuation”) in which case the Market Value of the relevant Ship at the relevant date is that shownfirstly: (i) if as at the difference between date of the First Valuation and the Second Valuation is less than 10 per cent.most recent quarterly valuation received on 31 March, by the First Valuation; and30 June, 30 August or 31 December; (ii) if by Clarksons Shipbrokers provided that such valuation is (i) provided on the difference between the First Valuation and the Second Valuation is greater than 10 per cent. but less than 15 per cent. or less, by taking the arithmetic average letter head of such two valuations, (c) each valuation issued pursuant to paragraphs (a) Clarksons Shipbrokers and (bii) of this Clause 15.3 addressed to be prepared: (A) as at a date not more than 30 days previouslythe Agent; (Biii) with or without physical inspection of that Ship (as the Agent may require); and; (Civ) 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; (v) after deducting the estimated amount of the usual and reasonable expenses which would be incurred in connection with the sale; and (db) if the difference between 2 secondly, where alternative valuations in respect of a Ship obtained at any one time, in each case, are required pursuant to this Agreement: (i) as at a date not more than 14 Business Days previously; (ii) by an Approved Shipbroker; (iii) with or without physical inspection of that Ship (as the Agent may require); (iv) 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; (v) after deducting the estimated amount of the usual and reasonable expenses which would be incurred in connection with the sale; In the event that the Majority Lenders or the Borrower do not agree with the valuation provided pursuant to Clause 15.3 is greater than 15 per cent. 15.3(a), the party disagreeing with such valuation shall appoint an Approved Shipbroker to conduct a valuation shall be commissioned from a third Approved Broker selected and appointed by the Agent. Such valuation to be conducted in accordance with this Clause 15.3 and the Market Value of that Ship in such circumstances market value shall be the arithmetic average of all three the two valuations. In the event that Clarksons Shipbrokers do not provide the valuation referred to in Clause 15.3(a), the Agent shall appoint an Approved Shipbroker to provide such valuation. In the event that the Borrower or Lenders do not agree with the valuation provided pursuant to this paragraph, the Agent shall appoint a second Approved Shipbroker to conduct a valuation in accordance with this Clause 15.3 and the market value shall be the average of the two valuations.

Valuation of Ships. The Market Value of a Ship: (a) for the purposes of the Initial Market Value, is that shown by taking in one valuation addressed to the arithmetic mean of two valuations Agent issued by 2 Approved Brokers, one of which shall be issued by an Approved Broker to be nominated by the Borrowers and appointed by the Agent and addressed to the other nominated Agent. If the Borrowers do not agree with such valuation, the Borrowers can nominate another Approved Broker to provide a second valuation addressed to the Agent and appointed by the Agent (unless the Borrowers have not nominated an Approved Broker by the date falling 14 days prior to the Drawdown Date Agent, in which case the Agent will be entitled to select and appoint a second Approved Broker and the Initial Market Value of the relevant Ship shall be is that shown by taking the arithmetic means average of such two valuations. If the difference between these two valuations obtained)is greater than 15 per cent. paragraph (d) of this Clause 15.3 shall be applicable; and (b) at any other date, is that shown in a one valuation addressed to the Agent to be issued by an Approved Broker, nominated and appointed by the Borrowers and addressed to the Agent (the “First Valuation”) unless the Agent obtains a second valuation issued by an Approved Broker nominated and appointed by the Agent (the “Second Valuation”) in which case the Market Value of the relevant Ship at the relevant date is that shown: (i) if the difference between the First Valuation and the Second Valuation is less than 10 per cent., by the First Valuation; and (ii) if the difference between the First Valuation and the Second Valuation is greater than 10 per cent. but less than 15 per cent. or less, by taking the arithmetic average of such two valuations, (c) each valuation issued pursuant to paragraphs (a) and (b) of this Clause 15.3 to be prepared: (A) as at a date not more than 30 days previously; (B) with or without physical inspection of that Ship (as the Agent may require); and (C) 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; and (d) if the difference between 2 valuations in respect of a Ship obtained at any one time, in each case, pursuant to this Clause 15.3 is greater than 15 per cent. a valuation shall be commissioned from a third Approved Broker selected and appointed by the Agent. Such valuation to be conducted in accordance with this Clause 15.3 and the Market Value of that Ship in such circumstances shall be the arithmetic average of all three valuations.

Valuation of Ships. The Market Value of a Ship: (a) for the purposes of the Initial Market Value, is that shown by taking in one valuation addressed to the arithmetic mean of two valuations Agent issued by 2 Approved Brokers, one of which shall be issued by an Approved Broker to be nominated by the Borrowers and appointed by the Agent. If the Borrower does not agree with such valuation, the Borrower can nominate another Approved Broker to provide a second valuation addressed to the Agent and the other nominated and appointed by the Agent (unless the Borrowers have not nominated an Approved Broker by the date falling 14 days prior to the Drawdown Date Agent, in which case the Agent will be entitled to select and appoint a second Approved Broker and the Initial Market Value of the relevant Ship shall be is that shown by taking the arithmetic means average of such two valuations. If the difference between these two valuations obtained)is greater than 15 per cent. paragraph (d) of this Clause 15.3 (Valuation of Ships) shall be applicable; and (b) at any other date, is that shown in a one valuation addressed to the Agent to be issued by an Approved Broker, nominated and appointed by the Borrowers Borrower and addressed to the Agent (the “First Valuation”) unless the Agent obtains a second valuation issued by an Approved Broker nominated and appointed by the Agent (the “Second Valuation”) in which case the Market Value of the relevant Ship at the relevant date is that shown: (i) if the difference between the First Valuation and the Second Valuation is less than 10 per cent., by the First Valuation; and (ii) if the difference between the First Valuation and the Second Valuation is greater than 10 per cent. but less than 15 per cent. or less, by taking the arithmetic average of such two valuations, (c) each valuation issued pursuant to paragraphs (a) and (b) of this Clause 15.3 (Valuation of Ships) to be prepared: (A) as at a date not more than 30 days previously; (B) with or without physical inspection of that Ship (as the Agent may require); and (C) 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; and (d) if the difference between 2 valuations in respect of a Ship obtained at any one time, in each case, pursuant to this Clause 15.3 (Valuation of Ships) is greater than 15 per cent. a valuation shall be commissioned from a third Approved Broker selected and appointed by the Agent. Such valuation to be conducted in accordance with this Clause 15.3 (Valuation of Ships) and the Market Value of that Ship in such circumstances shall be the arithmetic average of all three valuations.