Common use of VALUATION OF Clause in Contracts

VALUATION OF. a Ship subject to long-term charter. The Market Value of a Ship subject to a Mortgage which at the relevant time is subject to a charter or other contract of employment having an unexpired term of at least 12 months with a first class charterer acceptable to the Lenders (in their absolute discretion) shall be the aggregate of the present values (as may be conclusively determined by the Agent) of: (a) the Bareboat-equivalent Time Charter Income of the Ship in respect of the remaining unexpired term of the relevant charter or other contract of employment excluding any periods for which the relevant charter or contract of employment may be renewed at the option of any party (for the purposes of this Clause 15.4, an “option period”); and (b) the current charter-free market value (determined in accordance with Clause 15.3 but subject to the adjustments referred to in this Clause 15.4) of a vessel with identical characteristics to the Ship other than its age which shall, for the purposes of this Clause 15.4, be considered to be the age of the Ship at the expiration of the charter or other contract of employment to which the Ship is subject at the relevant time (excluding any option periods), as such value may be adjusted to take into account the terms of any commitments undertaken by the Owner of the Ship which may affect its value. For the purposes of this Clause 15.4, the discount rate which will apply in calculating the present value of the amounts referred to in paragraphs (a) and (b) will be the aggregate of (i) the Margin and (ii) the applicable Interest Rate Swap Rate for a period equal to the unexpired term of the Ship’s charter or other contract of employment (excluding any option periods (rounded up to the nearest integral year)) unless the unexpired term of the Ship’s charter or other contract of employment (excluding any option periods) is less than 12 months in which the Interest Rate Swap Rate for a period of 12 months will apply.

VALUATION OF. a Ship Fleet subject to long-term charter. The Market Value of a Ship subject to a Mortgage Fleet Vessel which at the relevant time is subject to a charter or other contract of employment having an unexpired term of at least 12 months with a first class charterer acceptable to the Lenders (in their absolute discretion) shall be the aggregate of the present values (as may be conclusively determined by the Agent) of: (a) the Bareboat-equivalent Time Charter Income of the Ship Fleet Vessel in respect of the remaining unexpired term of the relevant charter or other contract of employment excluding any periods for which the relevant charter or contract of employment may be renewed at the option of any party (for the purposes of this Clause 15.415.5, an “option period”); and (b) the current charter-free market value (determined in accordance with Clause 15.3 15.4 but subject to the adjustments referred to in this Clause 15.415.5) of a vessel with identical characteristics to the Ship Fleet Vessel other than its age which shall, for the purposes of this Clause 15.415.5, be considered to be the age of the Ship Fleet Vessel at the expiration of the charter or other contract of employment to which the Ship Fleet Vessel is subject at the relevant time (excluding any option periods), as such value may be adjusted to take into account the terms of any commitments undertaken by the Owner of the Ship Fleet Vessel which may affect its value. For the purposes of this Clause 15.415.5, the discount rate which will apply in calculating the present value of the amounts referred to in paragraphs (a) and (b) will be the aggregate of (i) the Margin and (ii) the applicable Interest Rate Swap Rate for a period equal to the unexpired term of the ShipFleet Vessel’s charter or other contract of employment (excluding any option periods (rounded up to the nearest integral year)) unless the unexpired term of the Ship’s charter or other contract of employment (excluding any option periods) is less than 12 months in which the Interest Rate Swap Rate for a period of 12 months will apply).