Valuation Definitions

FORCED LIQUIDATION VALUE (FLV):

Forced Liquidation (or Auction) Value is defined as the gross dollars that could be realized at a properly promoted, conducted and attended Public Auction Sale managed exclusively by M.E.I. Corporation and/or our affiliates under forced sale conditions. This takes into consideration such inflationary or depreciable conditions which affect such sale, as physical location, difficulty of removal, adaptability or specialization, marketability, physical appearance and total psychological appeal. It further states that all equipment must be sold on a piecemeal basis “As Is – Where Is” for cash with the buyer being responsible for the removal at their own risk and expense. Any deletions or additions to the total package could change the psychological and/or monetary appeal necessary to gain the value indicated.

ORDERLY LIQUIDATION VALUE (OLV):

Orderly Liquidation Value is defined as the gross dollars that could be realized from a properly promoted and conducted sale managed exclusively by M.E.I. Corporation and/or our affiliates of the assets over a specified period of time. It takes into consideration inflationary or depreciable conditions which affect sales such as, physical location, difficulty of removal, adaptability or specialization, marketability, physical appearance and total psychological appeal. It states that all of the assets must be sold on a piecemeal basis “As Is – Where Is” for cash, with the buyer being responsible for the removal at their own risk and expense. Further, all sales are by a seller being forced to sell to a buyer willing but not forced to buy, both having knowledge of the full use and worth of the assets. Any deletions or additions to the total package could change the psychological and/or monetary appeal necessary to gain the value indicated.

FAIR MARKET VALUE (FMV):

Fair Market Value is defined as the amount expressed in terms of dollars that may reasonably be expected to exchange between a willing seller to a willing buyer with equity to both, neither being compelled to sell or buy, each having knowledge of the full use and worth of the assets appraised, in addition the buyer is financially capable of ownership and use and both buyer and seller are fully aware of all relevant facts that would affect the sale including the contribution of the assets in the ongoing operation. Intangibles such as trade names, customer lists, patents, products lines, good will, etc., are not considered.

FAIR MARKET IN PLACE:

Fair Market in Place is defined as the amount expressed in terms of dollars that may reasonably be expected to exchange between a willing seller to a willing buyer with equity to both, neither being compelled to sell or buy, each having knowledge of the full use and worth of the assets appraised, including installation, foundation and the contribution of the assets in the ongoing operation. Intangibles such as trade names, customer lists, patents, products lines, good will, etc., are not considered.

REPLACEMENT VALUE:

Replacement Value is defined as the cost that could be anticipated to replace machinery and/or equipment with similar items being of the same age and descriptions, having the same or equivalent function, capacity and useful life. It may or may not take into account such intangibles as transportation, rigging, mechanical and electrical installation in the existing facility.

NEW REPLACEMENT COST VALUE:

New Replacement Cost is our opinion of the cost, to purchase a new item of like quality and specifications in the open marketplace, having the nearest equivalent utility as the item being appraised. If such an item is unavailable in the marketplace, the appraiser has used his or her best judgment in estimating a value as of the date of the appraisal. It may or may not take into account such intangibles as transportation, rigging, mechanical and electrical installation in the existing facility.