Common use of Early Termination Compensation Clause in Contracts

Early Termination Compensation. With reference to Section II, Clause 9.2.5 the early termination compensation shall be as per the amounts shown in the following paragraphs. The amounts shall be linearly prorated if this CHARTERPARTY is terminated at periods other than the anniversary dates shown in the paragraphs: 5.1. On EFFECTIVE DATE 78% of the value of the FPSO with profit 5.2. Beginning of 2nd year 64% of the value of the FPSO with profit 5.3. Beginning of 3rd year 51% of the value of the FPSO with profit 5.4. Beginning of 4th year 37% of the value of the FPSO with profit