Document:

EXHIBIT 10.5

STOCKHOLDERS RIGHTS AGREEMENT

                    This Stockholders Rights Agreement (this “Rights Agreement”) is made and entered into as of May 14, 2008, by and between Safe
Bulkers, Inc., a Marshall Islands corporation (the “Company”), and American Stock Transfer & Trust Company, as Rights Agent (the “Rights
Agent”). 

                    WHEREAS, the Board of Directors of the Company (the “Board”) has (a) authorized and declared a grant of one right (the
“Right”) for each share of the Company’s common stock, par value U.S. $.001 per share (the “Common Stock”), held of record as of the Close of Business (as hereinafter defined) on the date specified by the Board as the Record Date (the “Record Date”) and (b) has
further authorized the issuance of one Right in respect of each share of Common Stock that shall become outstanding (i) at any time between the Record Date and the earliest of the Distribution Date, the Redemption Date or the Final Expiration Date
(as such terms are hereinafter defined) or (ii) upon the exercise or conversion, prior to the earlier of the Redemption Date or the Final Expiration Date, of any option or other security exercisable for or convertible into shares of Common Stock,
which option or other such security is outstanding on the Distribution Date; and 

                    WHEREAS,
each Right represents the right of the holder thereof to purchase one one-thousandth
of a share of Series A Participating Preferred Stock (as such number may hereafter
be adjusted pursuant to the provisions hereof), upon the terms and subject to
the conditions set forth herein, having the rights, preferences and privileges
set forth in the Statement of Designation of Series A Participating Preferred
Stock, attached hereto as Exhibit A.

                    NOW THEREFORE, in consideration of the premises and the mutual agreements set forth herein, the parties hereby agrees as follows:

                    Section 1. Certain Definitions.

                    “Acquiring Person” shall mean any Person who or which, together with all Affiliates and Associates of such Person, shall be the
Beneficial Owner of 15% or more of the shares of Common Stock then outstanding, but shall not include (i) the Company, (ii) any Subsidiary of the Company, (iii) any employee benefit plan of the Company or of any Subsidiary of the Company, or any
entity holding shares of Common Stock for or pursuant to the terms of any such plan or (iv) an Exempted Person. Notwithstanding the foregoing, no Person shall be deemed to be an Acquiring Person as the result of an acquisition of shares of Common
Stock by the Company which, by reducing the number of shares outstanding, increases the proportionate number of shares beneficially owned by such Person to 15% or more of the shares of Common Stock of the Company then outstanding; provided, however, that a Person who (i) becomes the Beneficial Owner of 15% or more of the shares of Common Stock of the Company then outstanding
by reason of share purchases by the Company and (ii) then after such share purchases by the Company, becomes the Beneficial Owner of any additional shares of Common Stock of the Company (other than pursuant to a dividend or distribution paid or made
by the Company on the outstanding shares of Common Stock in shares of Common Stock or pursuant to a split or subdivision of the outstanding shares of Common Stock) representing one percent or more of the Common Stock then outstanding, such Person
shall be deemed to be an Acquiring 

Person unless upon becoming the Beneficial Owner of such additional shares of Common Stock of the Company such Person does not beneficially own 15% or more of the shares of Common Stock of the Company then outstanding.
Notwithstanding the foregoing, (i) if the Company’s Board of Directors determines in good faith that a Person who would otherwise be an “Acquiring Person,” as defined herein, has become such inadvertently (including, without
limitation, because (A) such Person was unaware that it beneficially owned a percentage of the shares of Common Stock that would otherwise cause such Person to be an “Acquiring Person,” as defined herein, or (B) such Person was aware of
the extent of the shares of Common Stock it beneficially owned but had no actual knowledge of the consequences of such beneficial ownership under this Agreement) and without any intention of changing or influencing control of the Company, and if
such Person divested or divests as promptly as practicable a sufficient number of shares of Common Stock so that such Person would no longer be an “Acquiring Person,” as defined herein, then such Person shall not be deemed to be or to have
become an “Acquiring Person” for any purposes of this Agreement; and (ii) if, as of the date hereof, any Person is the Beneficial Owner of 15% or more of the shares of Common Stock outstanding, such Person shall not be or become an
“Acquiring Person,” as defined herein, unless and until such time as such Person shall become the Beneficial Owner of additional shares of Common Stock (other than pursuant to a dividend or distribution paid or made by the Company on the
outstanding shares of Common Stock in shares of Common Stock or pursuant to a split or subdivision of the outstanding shares of Common Stock), unless, upon becoming the Beneficial Owner of such additional shares of Common Stock, such Person is not
then the Beneficial Owner of 15% or more of the shares of Common Stock then outstanding.

                    “Adjustment Fraction” shall have the meaning set forth in Section 11(a)(i) hereof.

                    “Affiliate” and “Associate” shall
have the respective meanings ascribed to such terms in Rule 12b-2 of the General
Rules and Regulations under the Exchange Act, as in effect on the date of this
Agreement.

                    A Person shall be deemed the “Beneficial Owner” of and shall be deemed to “Beneficially Own” any securities: 

	          	          (i)     which
          such Person or any of such Person’s Affiliates or Associates beneficially
          owns, directly or indirectly, for purposes of Section 13(d) of the
          Exchange Act and Rule 13d-3 thereunder (or any comparable or successor
          law or regulation);

                 (ii)     which
          such Person or any of such Person’s Affiliates or Associates has
          (A) the right to acquire (whether such right is exercisable immediately
          or only after the passage of time) pursuant to any agreement, arrangement
          or understanding (other than customary agreements with and between
          underwriters and selling group members with respect to a bona fide
          public offering of securities), or upon the exercise of conversion
          rights, exchange rights, rights (other than the Rights), warrants or
          options, or otherwise; provided, however,
          that a Person shall not be deemed pursuant to this subsection (ii)(A)
          to be the Beneficial Owner of, or to beneficially own, (1) securities
          tendered pursuant to a tender or exchange offer made by or on behalf
          of such Person or any of such Person’s Affiliates or Associates
          until such tendered securities are accepted for purchase or exchange,
          or (2) securities which a Person or any of such Person’s Affiliates
    or

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	          	Associates may be deemed to have the
          right to acquire pursuant to any merger or other acquisition agreement
          between the Company and such Person (or one or more of its Affiliates
          or Associates) if such agreement has been approved by the Board of
          Directors of the Company prior to there being an Acquiring Person;
          or (B) the right to vote pursuant to any agreement, arrangement or
          understanding; provided, however,
          that a Person shall not be deemed the Beneficial Owner of, or to beneficially
          own, any security under this subsection (ii)(B) if the agreement, arrangement
          or understanding to vote such security (1) arises solely from a revocable
          proxy or consent given to such Person in response to a public proxy
          or consent solicitation made pursuant to, and in accordance with, the
          applicable rules and regulations of the Exchange Act and (2) is not
          also then reportable on Schedule 13D under the Exchange Act (or any
          comparable or successor report); or 

                 (iii)     which
          are beneficially owned, directly or indirectly, by any other Person
          (or any Affiliate or Associate thereof) with which such Person or any
          of such Person’s Affiliates or Associates has any agreement, arrangement
          or understanding, whether or not in writing (other than customary agreements
          with and between underwriters and selling group members with respect
          to a bona fide public offering of securities) for the purpose of acquiring,
          holding, voting (except to the extent contemplated by the proviso to
          subsection (ii)(B) above) or disposing of any securities of the Company; provided, however,
          that in no case shall an officer or director of the Company be deemed
          (x) the Beneficial Owner of any securities beneficially owned by another
          officer or director of the Company solely by reason of actions undertaken
          by such persons in their capacity as officers or directors of the Company
          or (y) the Beneficial Owner of securities held of record by the trustee
          of any employee benefit plan of the Company or any Subsidiary of the
          Company for the benefit of any employee of the Company or any Subsidiary
          of the Company, other than the officer or director, by reason of any
          influence that such officer or director may have over the voting of
    the securities held in the plan.

                    “Business Day” shall
    mean any day other than a Saturday, Sunday or a day on which banking institutions
in New York are authorized or obligated by law or executive order to close. 

                    “Close of Business” on any given date shall mean 5:00 P.M., New York time, on such date; provided, however, that if such date is not a Business Day it shall mean 5:00 P.M., New York time, on the next succeeding Business Day.

                    “Common Stock” shall have the meaning set forth in the preamble. Common Stock when used with reference to any Person other than the
Company shall mean the capital stock (or equity interest) with the greatest voting power of such other Person or, if such other Person is a Subsidiary of another Person, the Person or Persons which ultimately control such first-mentioned Person.

                    “Common Stock Equivalents” shall have the meaning set forth in Section 11(a)(iii) hereof. 

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                    “Company” shall have the meaning set forth in the preamble, subject to the terms of Section 13(a)(iii)(c) hereof. 

                    “Current Per Share Market Price” of any security (a “Security”
for purposes of this definition), for all computations other than those made pursuant to Section 11(a)(iii) hereof, shall mean the average of the daily closing prices per share of such Security for the thirty (30) consecutive Trading Days
immediately prior to such date, and for purposes of computations made pursuant to Section 11(a)(iii) hereof, the Current Per Share Market Price of any Security on any date shall be deemed to be the average of the daily closing prices per share of
such Security for the ten (10) consecutive Trading Days immediately prior to such date; provided, however,
that in the event that the Current Per Share Market Price of the Security is
determined during a period following the announcement by the issuer of such Security
of (i) a dividend or distribution on such Security payable in shares of such
Security or securities convertible into such shares or (ii) any subdivision,
combination or reclassification of such Security, and prior to the expiration
of the applicable thirty (30) Trading Day or ten (10) Trading Day period, after
the ex dividend date for such dividend or distribution, or the record date for
such subdivision, combination or reclassification, then, and in each such case,
the Current Per Share Market Price shall be appropriately adjusted to reflect
the current market price per share equivalent of such Security. The closing price
for each day shall be the last sale price, regular way, or, in case no such sale
takes place on such day, the average of the closing bid and asked prices, regular
way, in either case as reported in the principal consolidated transaction reporting
system with respect to securities listed or admitted to trading on the New York
Stock Exchange or, if the Security is not listed or admitted to trading on the
New York Stock Exchange, as reported in the principal consolidated transaction
reporting system with respect to securities listed on the principal national
securities exchange on which the Security is listed or admitted to trading or,
if the Security is not listed or admitted to trading on any national securities
exchange, the last sale price or, if such last sale price is not reported, the
average of the high bid and low asked prices in the over-the-counter market,
as reported by Nasdaq or such other system then in use, or, if on any such date
the Security is not quoted by any such organization, the average of the closing
bid and asked prices as furnished by a professional market maker making a market
in the Security selected by the Board of Directors of the Company. If on any
such date no market maker is making a market in the Security, the fair value of such shares on such date as determined in good faith by the Board of Directors of the Company shall be used. If the Preferred Shares are not publicly traded, the Current
Per Share Market Price of the Preferred Shares shall be conclusively deemed to be the Current Per Share Market Price of the shares of Common Stock as determined pursuant to this definition, as appropriately adjusted to reflect any stock split, stock
dividend or similar transaction occurring after the date hereof, multiplied by 1000. If the Security is not publicly held or so listed or traded, Current Per Share Market Price shall mean the fair value per share as determined in good faith by the
Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent and shall be conclusive for all purposes. 

                    “Current Value” shall have the meaning set forth in Section 11(a)(iii) hereof.

                    “Distribution Date” shall mean the earlier of (i) the Close of Business on the tenth day after the Shares Acquisition Date (or, if
the tenth day after the Shares Acquisition Date occurs before the Record Date, the Close of Business on the Record Date) or (ii) the Close of

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Business on the tenth Business Day (or such later date as may be determined by action of the Company’s Board of Directors) after the date that a tender or exchange offer by any Person (other than the Company, any Subsidiary
of the Company, any employee benefit plan of the Company or of any Subsidiary of the Company, or any Person or entity organized, appointed or established by the Company for or pursuant to the terms of any such plan or an Exempted Person) is first
published or sent or given within the meaning of Rule 14d-2(a) of the General Rules and Regulations under the Exchange Act, if, assuming the successful consummation thereof, such Person would be an Acquiring Person. 

                    “Equivalent Shares” shall mean Preferred Shares and any other class or series of capital stock of the Company which is entitled to
the same rights, privileges and preferences as the Preferred Shares. 

                    “Exchange Act” shall mean the U.S. Securities Exchange Act of 1934, as amended. 

                    “Exchange Ratio” shall have the meaning set forth in Section 24(a) hereof.

                    “Exempted Person” shall mean each member of the Hajioannou Group and any Underwriter.

                    “Exercise Price” shall have the meaning set forth in Section 4(a) hereof.

                    “Expiration Date” shall mean the earliest to occur of: (i) the Close of Business on the Final Expiration Date, (ii) the Redemption
Date, or (iii) the time at which the Board of Directors orders the exchange of the Rights as provided in Section 24 hereof. 

                    “Final Expiration Date” shall mean May 14, 2018.

                    “Hajioannou Group” shall mean Vorini Holdings Inc., Machairiotissa Holdings Inc., Safety Management Overseas S.A., Mr. Polys
Hajioannou, Mr. Nicolaos Hadjioannou, any other trusts or entities established for the benefit of Mr. Polys Hajioannou or Mr. Nicolaos Hadjioannou or members of their respective families, any other entities wholly owned by Mr. Polys Hajioannou or
Mr. Nicolaos Hadjioannou and members of their respective families, and each of their respective Affiliates and Associates. 

                    “Nasdaq” shall mean the National Association of Securities Dealers, Inc. Automated Quotations System.

                    “Person” shall mean any individual, firm, corporation or other entity, and shall include any successor (by merger or otherwise) of
such entity.

                    “Post-event Transferee” shall have the meaning set forth in Section 7(e) hereof.

                    “Preferred Shares” shall mean shares of Series A Participating Preferred Stock, U.S. $0.01 par value, of the Company.

                    “Pre-event Transferee” shall have the meaning set forth in Section 7(e) hereof.

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                    “Principal Party” shall have the meaning set forth in Section 13(b) hereof.

                    “Record Date” shall have the meaning set forth in the recitals at the beginning of this Rights Agreement.

                    “Redemption Date” shall have the meaning set forth in Section 23(a) hereof.

                    “Redemption Price” shall have the meaning set forth in Section 23(a) hereof. 

                    “Rights Agent” shall mean American Stock Transfer & Trust Company, or its successor or replacement as provided in Sections 19
and 21 hereof.

                    “Rights Certificate” shall mean a certificate substantially in the form attached hereto as Exhibit B.

                    “Section 11(a)(ii) Trigger Date” shall have the meaning set forth in Section 11(a)(iii) hereof.

                    “Section 13 Event” shall mean any event described in clause (i), (ii) or (iii) of Section 13(a) hereof. 

                    “Securities Act” shall mean the U.S. Securities Act of 1933, as amended.

                    “Shares Acquisition Date” shall mean the first date of public announcement (which, for purposes of this definition, shall include,
without limitation, a report filed pursuant to Section 13(d) under the Exchange Act) by the Company or an Acquiring Person that an Acquiring Person has become such; provided that, if such Person is determined not to have become an Acquiring Person
as defined herein, then no Shares Acquisition Date shall be deemed to have occurred. 

                    “Spread” shall have the meaning set forth in Section 11(a)(iii) hereof. 

                    “Subsidiary” of any Person shall mean any corporation or other entity of which an amount of voting securities sufficient to elect a
majority of the directors or Persons having similar authority of such corporation or other entity is beneficially owned, directly or indirectly, by such Person, or any corporation or other entity otherwise controlled by such Person.

                    “Substitution Period” shall have the meaning set forth in Section 11(a)(iii) hereof. 

                    “Summary of Rights” shall mean a summary of this Agreement substantially in the form attached hereto as Exhibit C.

                    “Total Exercise Price” shall have the meaning set forth in Section 4(a) hereof.

                    “Trading Day” shall mean a day on which the principal national securities exchange on which a referenced security is listed or
admitted to trading is open for the transaction of business or, if a referenced security is not listed or admitted to trading on any national securities exchange, a Business Day. 

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                    A “Triggering Event” shall be deemed to have occurred upon any Person, becoming an Acquiring Person.

                    “Underwriter” shall mean any financial institution while acting as an underwriter in a public offering of the Common Stock of the
Company. 

                    Section 2. Appointment of Rights Agent. The Company hereby appoints the Rights Agent to act as agent for the Company and the holders of the
Rights (who, in accordance with Section 3 hereof, shall prior to the Distribution Date also be the holders of the shares of Common Stock) in accordance with the terms and conditions hereof, and the Rights Agent hereby accepts such appointment. The
Company may from time to time appoint such co Rights Agents as it may deem necessary or desirable.

                    Section 3. Issuance of Rights Certificates.

                    (a) Until the Distribution Date, (i) the Rights will be evidenced (subject to the provisions of Sections 3(b) and 3(c) hereof) by the certificates for shares of Common Stock registered in the names of
the holders thereof (which certificates shall also be deemed to be Rights Certificates) and not by separate Rights Certificates and (ii) the right to receive Rights Certificates will be transferable only in connection with the transfer of shares of
Common Stock. Until the earlier of the Distribution Date or the Expiration Date, the surrender for transfer of certificates for shares of Common Stock shall also constitute the surrender for transfer of the Rights associated with the shares of
Common Stock represented thereby. As soon as practicable after the Distribution Date, the Company will prepare and execute, the Rights Agent will countersign, and the Company will send or cause to be sent (and the Rights Agent will, if requested,
send) by first-class, postage prepaid mail, to each record holder of shares of Common Stock as of the Close of Business on the Distribution Date, at the address of such holder shown on the records of the Company, a Rights Certificate evidencing one
Right for each share of Common Stock so held, subject to adjustment as provided herein. In the event that an adjustment in the number of Rights per share of Common Stock has been made pursuant to Section 11 hereof, then at the time of distribution
of the Rights Certificates, the Company shall make the necessary and appropriate rounding adjustments (in accordance with Section 14(a) hereof) so that Rights Certificates representing only whole numbers of Rights are distributed and cash is paid in
lieu of any fractional Rights. As of the Distribution Date, the Rights will be evidenced solely by such Rights Certificates and may be transferred by the transfer of the Rights Certificates as permitted hereby, separately and apart from any transfer
of shares of Common Stock, and the holders of such Rights Certificates as listed in the records of the Company or any transfer agent or registrar for the Rights shall be the record holders thereof.

                    (b) On the Record Date or as soon as practicable thereafter, the Company will send a copy of the Summary of Rights by first-class, postage-prepaid mail, to each record holder of shares of Common Stock
as of the Close of Business on the Record Date that requests a Summary of the Rights, at the address of such holder shown on the records of the Company’s transfer agent and registrar. With respect to certificates for shares of Common Stock
outstanding as of the Record Date, until the Distribution Date, the Rights will be evidenced by such certificates registered in the names of the holders thereof together with the Summary of Rights. Until the Distribution Date (or, if earlier, the
Expiration Date), the surrender for transfer of any 

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certificate for shares of Common Stock outstanding on the Record Date, with or without a copy of the Summary of Rights, shall also constitute the transfer of the Rights associated with the shares of Common Stock represented
thereby.

                    (c) Unless the Board of Directors by resolution adopted at or before the time of the issuance of any shares of Common Stock specifies to the contrary, Rights shall be issued in respect of all shares
of Common Stock that are issued after the Record Date but prior to the earlier of the Distribution Date or the Expiration Date or, in certain circumstances provided in Section 22 hereof, after the Distribution Date. Certificates representing such
shares of Common Stock shall also be deemed to be certificates for Rights, and shall bear the following legend:

  
    THIS CERTIFICATE ALSO EVIDENCES AND ENTITLES THE HOLDER HEREOF TO CERTAIN RIGHTS AS SET FORTH IN A STOCKHOLDERS RIGHTS AGREEMENT BETWEEN SAFE BULKERS, INC. AND AMERICAN STOCK TRANSFER & TRUST COMPANY, AS THE RIGHTS AGENT
      (THE “RIGHTS AGREEMENT”), THE TERMS OF WHICH ARE HEREBY INCORPORATED HEREIN BY REFERENCE AND A COPY OF WHICH IS ON FILE AT THE PRINCIPAL EXECUTIVE OFFICES OF SAFE BULKERS, INC. UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS
      AGREEMENT, SUCH RIGHTS WILL BE EVIDENCED BY SEPARATE CERTIFICATES AND WILL NO LONGER BE EVIDENCED BY THIS CERTIFICATE. SAFE BULKERS, INC. WILL MAIL TO THE HOLDER OF THIS CERTIFICATE A COPY OF THE RIGHTS AGREEMENT WITHOUT CHARGE AFTER RECEIPT OF A
      WRITTEN REQUEST THEREFOR. UNDER CERTAIN CIRCUMSTANCES SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS ISSUED TO, OR HELD BY, ANY PERSON WHO IS, WAS OR BECOMES AN ACQUIRING PERSON OR ANY AFFILIATE OR ASSOCIATE THEREOF (AS SUCH TERMS ARE DEFINED IN THE
    RIGHTS AGREEMENT), WHETHER CURRENTLY HELD BY OR ON BEHALF OF SUCH PERSON OR BY ANY SUBSEQUENT HOLDER, MAY BECOME NULL AND VOID.

With respect to such certificates containing the foregoing legend, until the earlier of (i) the Distribution Date or (ii) the Expiration Date, the Rights associated with the shares of Common Stock represented by such certificates
shall be evidenced by such certificates alone, and the surrender for transfer of any such certificate shall also constitute the transfer of the Rights associated with the shares of Common Stock represented thereby.

                    (d) In the event that the Company purchases or acquires any shares of Common Stock after the Record Date but prior to the Distribution Date, any Rights associated with such shares of Common Stock
shall be deemed canceled and retired so that the Company shall not be entitled to exercise any Rights associated with the shares of Common Stock which are no longer outstanding.

                    Section 4. Form of Rights Certificates.

                    (a) The Rights Certificates (and the forms of election to purchase shares of Common Stock and of assignment to be printed on the reverse thereof) shall be substantially in

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the form of Exhibit B hereto and may have such marks of identification or designation and such legends, summaries or endorsements printed thereon as the Company may deem appropriate and as are not inconsistent with the provisions
of this Agreement, or as may be required to comply with any applicable law or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange or a national market system, on which the Rights may from time to
time be listed or included, or to conform to usage. Subject to the provisions of Section 11 and Section 22 hereof, the Rights Certificates, whenever distributed, shall be dated as of the Record Date (or in the case of Rights issued with respect to
shares of Common Stock issued by the Company after the Record Date, as of the date of issuance of such shares of Common Stock) and on their face shall entitle the holders thereof to purchase such number of one-thousandths of a Preferred Share as
shall be set forth therein at the price set forth therein (such exercise price per one one-thousandth of a Preferred Share being hereinafter referred to as the “Exercise Price” and the aggregate Exercise Price of all Preferred Shares
issuable upon exercise of one Right being hereinafter referred to as the “Total Exercise Price”), but the number and type of securities purchasable upon the exercise of each Right
and the Exercise Price shall be subject to adjustment as provided herein.

                    (b) Any Rights Certificate issued pursuant to Section 3(a) or Section 22 hereof that represents Rights beneficially owned by: (i) an Acquiring Person or any Associate or Affiliate of an Acquiring
Person, (ii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee after the Acquiring Person becomes such or (iii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who
becomes a transferee prior to or concurrently with the Acquiring Person becoming such and receives such Rights pursuant to either (A) a transfer (whether or not for consideration) from the Acquiring Person to holders of equity interests in such
Acquiring Person or to any Person with whom such Acquiring Person has any continuing agreement, arrangement or understanding regarding the transferred Rights or (B) a transfer which the Company’s Board of Directors has determined is part of a
plan, arrangement or understanding which has as a primary purpose or effect avoidance of Section 7(e) hereof, and any Rights Certificate issued pursuant to Section 6 or Section 11 hereof upon transfer, exchange, replacement or adjustment of any
other Rights Certificate referred to in this sentence, shall contain (to the extent feasible) the following legend: 

  
    THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS
    AGREEMENT). ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e) OF THE RIGHTS AGREEMENT.

                    Section 5. Countersignature and Registration.

                    (a) The Rights Certificates shall be executed on behalf of the Company by its Chief Executive Officer, its Chief Operating Officer, its Chief Financial Officer, its President or any Vice President,
either manually or by facsimile signature, and by the Secretary or an Assistant Secretary of the Company, either manually or by facsimile signature, and shall have

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affixed thereto the Company’s seal (if any) or a facsimile thereof. The Rights Certificates shall be manually countersigned by the Rights Agent and shall not be valid for any purpose unless countersigned. In case any officer
of the Company who shall have signed any of the Rights Certificates shall cease to be such officer of the Company before countersignature by the Rights Agent and issuance and delivery by the Company, such Rights Certificates, nevertheless, may be
countersigned by the Rights Agent and issued and delivered by the Company with the same force and effect as though the person who signed such Rights Certificates on behalf of the Company had not ceased to be such officer of the Company; and any
Rights Certificate may be signed on behalf of the Company by any person who, at the actual date of the execution of such Rights Certificate, shall be a proper officer of the Company to sign such Rights Certificate, although at the date of the
execution of this Rights Agreement any such person was not such an officer. 

                    (b) Following the Distribution Date, the Rights Agent will keep or cause to be kept, at its office designated for such purposes, books for registration and transfer of the Rights Certificates issued
hereunder. Such books shall show the names and addresses of the respective holders of the Rights Certificates, the number of Rights evidenced on its face by each of the Rights Certificates and the date of each of the Rights Certificates. 

                    Section 6. Transfer, Split Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates.

                    (a) Subject to the provisions of Sections 7(e), 14 and 24 hereof, at any time after the Close of Business on the Distribution Date, and at or prior to the Close of Business on the Expiration Date, any
Rights Certificate or Rights Certificates may be transferred, split up, combined or exchanged for another Rights Certificate or Rights Certificates, entitling the registered holder to purchase a like number of one-thousandths of a Preferred Share
(or, following a Triggering Event, other securities, cash or other assets, as the case may be) as the Rights Certificate or Rights Certificates surrendered then entitled such holder to purchase. Any registered holder desiring to transfer, split up,
combine or exchange any Rights Certificate or Rights Certificates shall make such request in writing delivered to the Rights Agent, and shall surrender the Rights Certificate or Rights Certificates to be transferred, split up, combined or exchanged
at the office of the Rights Agent designated for such purpose. Neither the Rights Agent nor the Company shall be obligated to take any action whatsoever with respect to the transfer of any such surrendered Rights Certificate until the registered
holder shall have completed and signed the certificate contained in the form of assignment on the reverse side of such Rights Certificate and shall have provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial
Owner) or Affiliates or Associates thereof as the Company shall reasonably request. Thereupon the Rights Agent shall, subject to Sections 7(e), 14 and 24 hereof, countersign and deliver to the person entitled thereto a Rights Certificate or Rights
Certificates, as the case may be, as so requested. The Company may require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer, split up, combination or exchange of Rights
Certificates.

                    (b) Upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation of a Rights Certificate, and, in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to them, and, at the Company’s request, reimbursement to the Company and the Rights Agent of all reasonable

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expenses incidental thereto, and upon surrender to the Rights Agent and cancellation of the Rights Certificate if mutilated, the Company will make and deliver a new Rights Certificate of like tenor to the Rights Agent for delivery
to the registered holder in lieu of the Rights Certificate so lost, stolen, destroyed or mutilated. 

                    Section 7. Exercise of Rights; Exercise Price; Expiration Date of Rights.

                    (a)
Subject to Sections 7(e), 23(b) and 24(b) hereof, the registered holder of any
Rights Certificate may exercise the Rights evidenced thereby (except as otherwise
provided herein) in whole or in part at any time after the Distribution Date
and prior to the Close of Business on the Expiration Date by surrender of the
Rights Certificate, with the form of election to purchase on the reverse side
thereof duly executed, to the Rights Agent at the office of the Rights Agent
designated for such purpose, together with payment of the Exercise Price for
each one-thousandth of a Preferred Share (or, following a Triggering Event, other
securities, cash or other assets as the case may be) as to which the Rights are
exercised.

                    (b)
The Exercise Price for each one-thousandth of a Preferred Share issuable pursuant
to the exercise of a Right shall initially be twenty-five U.S. Dollars (U.S. $25.00), shall be subject to adjustment from time to time as provided in Sections 11 and 13 hereof and shall be payable in lawful money of the United States of America in accordance with paragraph (c) below.

                    (c) Upon receipt of a Rights Certificate representing exercisable Rights, with the form of election to purchase duly executed, accompanied by payment of the Exercise Price for the number of
one-thousandths of a Preferred Share (or, following a Triggering Event, other securities, cash or other assets as the case may be) to be purchased and an amount equal to any applicable transfer tax required to be paid by the holder of such Rights
Certificate in accordance with Section 9(e) hereof, the Rights Agent shall, subject to Section 20(k) hereof, thereupon promptly (i) (A) requisition from any transfer agent of the Preferred Shares (or make available, if the Rights Agent is the
transfer agent for the Preferred Shares) a certificate or certificates for the number of one-thousandths of a Preferred Share (or, following a Triggering Event, other securities, cash or other assets as the case may be) to be purchased and the
Company hereby irrevocably authorizes its transfer agent to comply with all such requests or (B) if the Company shall have elected to deposit the total number of one-thousandths of a Preferred Share (or, following a Triggering Event, other
securities, cash or other assets as the case may be) issuable upon exercise of the Rights hereunder with a depositary agent, requisition from the depositary agent depositary receipts representing such number of one-thousandths of a Preferred Share
(or, following a Triggering Event, other securities, cash or other assets as the case may be) as are to be purchased (in which case certificates for the Preferred Shares (or, following a Triggering Event, other securities, cash or other assets as
the case may be) represented by such receipts shall be deposited by the transfer agent with the depositary agent) and the Company hereby directs the depositary agent to comply with such request, (ii) when appropriate, requisition from the Company
the amount of cash to be paid in lieu of issuance of fractional shares in accordance with Section 14 hereof, (iii) after receipt of such certificates or depositary receipts, cause the same to be delivered to or upon the order of the registered
holder of such Rights Certificate, registered in such name or names as may be designated by such holder and (iv) when appropriate, after receipt thereof, deliver such cash to or upon the order of the registered holder

11

of such Rights Certificate. The payment of the Exercise Price (as such amount may be reduced (including to zero) pursuant to Section 11(a)(iii) hereof) and an amount equal to any applicable transfer tax required to be paid by the
holder of such Rights Certificate in accordance with Section 9(e) hereof, may be made in cash or by certified bank check, cashier’s check or bank draft payable to the order of the Company. In the event that the Company is obligated to issue
securities of the Company other than Preferred Shares, pay cash and/or distribute other property pursuant to Section 11(a) hereof, the Company will make all arrangements necessary so that such other securities, cash and/or other property are
available for distribution by the Rights Agent, if and when appropriate. 

                    (d) In case the registered holder of any Rights Certificate shall exercise less than all the Rights evidenced thereby, a new Rights Certificate evidencing Rights equivalent to the Rights remaining
unexercised shall be issued by the Rights Agent to the registered holder of such Rights Certificate or to his or her duly authorized assigns, subject to the provisions of Section 14 hereof. 

                    (e) Notwithstanding anything in this Agreement to the contrary, from and after the first occurrence of a Triggering Event, any Rights beneficially owned by (i) an Acquiring Person or an Associate or
Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee after the Acquiring Person becomes such (a “Post-Event
Transferee”), (iii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior to or concurrently with the Acquiring Person becoming such and receives such Rights
pursuant to either (A) a transfer (whether or not for consideration) from the Acquiring Person to holders of equity interests in such Acquiring Person or to any Person with whom the Acquiring Person has any continuing agreement, arrangement or
understanding regarding the transferred Rights or (B) a transfer which the Company’s Board of Directors has determined is part of a plan, arrangement or understanding which has as a primary purpose or effect the avoidance of this Section 7(e)
(a “Pre-Event Transferee”) or (iv) any subsequent transferee
receiving transferred Rights from a Post-Event Transferee or a Pre-Event Transferee,
either directly or through one or more intermediate transferees, shall become
null and void without any further action and no holder of such Rights shall have
any rights whatsoever with respect to such Rights, whether under any provision
of this Agreement or otherwise. The Company shall use all reasonable efforts
to ensure that the provisions of this Section 7(e) and Section 4(b) hereof are
complied with, but shall have no liability to any holder of Rights Certificates
or to any other Person as a result of its failure to make any determinations
with respect to an Acquiring Person or any of such Acquiring Person’s Affiliates, Associates or transferees hereunder.

                    (f) Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor the Company shall be obligated to undertake any action with respect to a registered holder upon the
occurrence of any purported exercise as set forth in this Section 7 unless such registered holder shall, in addition to having complied with the requirements of Section 7(a), have (i) completed and signed the certificate contained in the form of
election to purchase set forth on the reverse side of the Rights Certificate surrendered for such exercise and (ii) provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates
thereof as the Company shall reasonably request.

12

                    Section 8. Cancellation and Destruction of Rights Certificates. All Rights Certificates surrendered for the purpose of exercise, transfer,
split up, combination or exchange shall, if surrendered to the Company or to any of its agents, be delivered to the Rights Agent for cancellation or in canceled form, or, if surrendered to the Rights Agent, shall be canceled by it, and no Rights
Certificates shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Agreement. The Company shall deliver to the Rights Agent for cancellation and retirement, and the Rights Agent shall so cancel and retire,
any Rights Certificate purchased or acquired by the Company otherwise than upon the exercise thereof. The Rights Agent shall deliver all canceled Rights Certificates to the Company, or shall, at the written request of the Company, destroy such
canceled Rights Certificates, and in such case shall deliver a certificate of destruction thereof to the Company.

                    Section 9. Reservation and Availability of Preferred Shares.

                    (a) The Company covenants and agrees that it will use its best efforts to cause to be reserved and kept available out of its authorized and unissued Preferred Shares not reserved for another purpose
(and, following the occurrence of a Triggering Event, out of its authorized and unissued shares of Common Stock and/or other securities), the number of Preferred Shares (and, following the occurrence of the Triggering Event, Common Stock and/or
other securities) that will be sufficient to permit the exercise in full of all outstanding Rights.

                    (b) If the Company shall hereafter list any of its Preferred Shares on a national securities exchange, then so long as the Preferred Shares (and, following the occurrence of a Triggering Event, shares
of Common Stock and/or other securities) issuable and deliverable upon exercise of the Rights may be listed on such exchange, the Company shall use its best efforts to cause, from and after such time as the Rights become exercisable (but only to the
extent that it is reasonably likely that the Rights will be exercised), all shares reserved for such issuance to be listed on such exchange upon official notice of issuance upon such exercise. 

                    (c) The Company shall use its best efforts to (i) file, as soon as practicable following the earliest date after the first occurrence of a Triggering Event in which the consideration to be delivered
by the Company upon exercise of the Rights is described in Section 11(a)(ii) or Section 11(a)(iii) hereof, or as soon as is required by law following the Distribution Date, as the case may be, a registration statement under the Securities Act with
respect to the securities purchasable upon exercise of the Rights on an appropriate form, (ii) cause such registration statement to become effective as soon as practicable after such filing and (iii) cause such registration statement to remain
effective (with a prospectus at all times meeting the requirements of the Securities Act) until the earlier of (A) the date as of which the Rights are no longer exercisable for such securities and (B) the date of expiration of the Rights. The
Company may temporarily suspend, for a period not to exceed ninety (90) days after the date set forth in clause (i) of the first sentence of this Section 9(c), the exercisability of the Rights in order to prepare and file such registration statement
and permit it to become effective. Upon any such suspension, the Company shall issue a public announcement and notify the Rights Agent that the exercisability of the Rights has been temporarily suspended, as well as a public announcement and
notification to the Rights Agent at such time as the suspension is no longer in effect. The Company will also take such action as may be appropriate under, or to ensure compliance with, the securities or “blue sky” laws of the various
states in connection with the exercisability of the 

13

Rights. Notwithstanding any provision of this Agreement to the contrary, the Rights shall not be exercisable in any jurisdiction, unless the requisite qualification in such jurisdiction shall have been obtained, or an exemption
therefrom shall be available, and until a registration statement has been declared effective.

                    (d) The Company covenants and agrees that it will take all such action as may be necessary to ensure that all Preferred Shares (or other securities of the Company) delivered upon exercise of Rights
shall, at the time of delivery of the certificates for such securities (subject to payment of the Exercise Price), be duly and validly authorized and issued and fully paid and nonassessable shares. 

                    (e) The Company further covenants and agrees that it will pay when due and payable any and all federal and state transfer taxes and charges which may be payable in respect of the original issuance or
delivery of the Rights Certificates or of any Preferred Shares (or other securities of the Company) upon the exercise of Rights. The Company shall not, however, be required to pay any transfer tax which may be payable in respect of any transfer or
delivery of Rights Certificates to a person other than, or the issuance or delivery of certificates or depositary receipts for the Preferred Shares (or other securities of the Company) in a name other than that of, the registered holder of the
Rights Certificate evidencing Rights surrendered for exercise or to issue or to deliver any certificates or depositary receipts for Preferred Shares (or other securities of the Company) upon the exercise of any Rights until any such tax shall have
been paid (any such tax being payable by the holder of such Rights Certificate at the time of surrender) or until it has been established to the Company’s satisfaction that no such tax is due.

                    Section 10. Record Date. Each Person in whose name any certificate for a number of one-thousandths of a Preferred Share (or other securities
of the Company) is issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of record of Preferred Shares (or other securities of the Company) represented thereon, and such certificate shall be dated the date
upon which the Rights Certificate evidencing such Rights was duly surrendered and payment of the Total Exercise Price with respect to which the Rights have been exercised (and any applicable transfer taxes) was made; provided, however, that if the date of such surrender and payment is a date upon which the transfer books of the Company are closed, such Person
shall be deemed to have become the record holder of such shares on, and such certificate shall be dated, the next succeeding Business Day on which the transfer books of the Company are open. Prior to the exercise of the Rights evidenced thereby, the
holder of a Rights Certificate shall not be entitled to any rights of a holder of Preferred Shares (or other securities of the Company) for which the Rights shall be exercisable, including, without limitation, the right to vote, to receive dividends
or other distributions or to exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings of the Company, except as provided herein. 

                    Section 11. Adjustment of Exercise Price, Number of Shares or Number of Rights. The Exercise Price, the number and kind of shares or other
property covered by each Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this Section 11.

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                    (a) (i) Notwithstanding anything in this Agreement to the contrary, in the event the Company shall at any time after the date of this Agreement (A) declare a dividend on the Preferred Shares payable
in Preferred Shares, (B) subdivide the outstanding Preferred Shares, (C) combine the outstanding Preferred Shares (by reverse stock split or otherwise) into a smaller number of Preferred Shares, or (D) issue any shares of its capital stock in a
reclassification of the Preferred Shares (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing or surviving corporation), then, in each such event, except as otherwise provided in
this Section 11 and Section 7(e) hereof: (1) the Exercise Price in effect at the time of the record date for such dividend or of the effective date of such subdivision, combination or reclassification shall be adjusted so that the Exercise Price
thereafter shall equal the result obtained by dividing the Exercise Price in effect immediately prior to such time by a fraction (the “Adjustment Fraction”), the numerator of which
shall be the total number of Preferred Shares (or shares of capital stock issued in such reclassification of the Preferred Shares) outstanding immediately following such time and the denominator of which shall be the total number of Preferred Shares
outstanding immediately prior to such time; provided, however,
that in no event shall the consideration to be paid upon the exercise of one
Right be less than the aggregate par value of the shares of capital stock of
the Company issuable upon exercise of such Right; and (2) the number of one-thousandths
of a Preferred Share (or share of such other capital stock) issuable upon the
exercise of each Right shall equal the number of one-thousandths of a Preferred
Share (or share of such other capital stock) as was issuable upon exercise of
a Right immediately prior to the occurrence of the event described in clauses
(A) (D) of this Section 11(a)(i), multiplied by the Adjustment Fraction; provided, however,
that, no such adjustment shall be made pursuant to this Section 11(a)(i) to the
extent that there shall have simultaneously occurred an event described in clause
(A), (B), (C) or (D) of Section 11(n) with a proportionate adjustment being made
thereunder. Each share of Common Stock that shall become outstanding after an
adjustment has been made pursuant to this Section 11(a)(i) shall have associated
with it the number of Rights, exercisable at the Exercise Price and for the number
of one-thousandths of a Preferred Share (or shares of such other capital stock)
as one share of Common Stock has associated with it immediately following the
adjustment made pursuant to this Section 11(a)(i). 

                          (ii)
Subject to Section 24 of this Agreement, in the event a Triggering Event shall
have occurred, then promptly following such Triggering Event each holder of a
Right, except as provided in Section 7(e) hereof, shall thereafter have the right
to receive for each Right, upon exercise thereof in accordance with the terms
of this Agreement and payment of the Exercise Price in effect immediately prior
to the occurrence of the Triggering Event, in lieu of a number of one-thousandths
of a Preferred Share, such number of shares of Common Stock of the Company as
shall equal the result obtained by multiplying the Exercise Price in effect immediately
prior to the occurrence of the Triggering Event by the number of one-thousandths
of a Preferred Share for which a Right was exercisable (or would have been exercisable
if the Distribution Date had occurred) immediately prior to the first occurrence
of a Triggering Event, and dividing that product by 50% of the Current Per Share
Market Price for shares of Common Stock on the date of occurrence of the Triggering
Event; provided, however, that the Exercise Price and the number of shares of Common Stock of the Company so receivable upon exercise of a Right shall be subject to further adjustment as appropriate in accordance with Section 11(e) hereof to reflect any events
occurring in respect of the shares of Common Stock of the Company after the occurrence of the Triggering Event. 

15

                          (iii) In lieu of issuing shares of Common Stock in accordance with Section 11(a)(ii) hereof, the Company may, if the Company’s Board of Directors determines that such action is necessary or
appropriate and not contrary to the interest of holders of Rights and, in the event that the number of shares of Common Stock which are authorized by the Company’s Certificate of Incorporation but not outstanding or reserved for issuance for
purposes other than upon exercise of the Rights are not sufficient to permit the exercise in full of the Rights, or if any necessary regulatory approval for such issuance has not been obtained by the Company, the Company shall: (A) determine the
excess of (1) the value of the shares of Common Stock issuable upon the exercise of a Right (the “Current Value”) over (2) the Exercise Price (such excess, the
“Spread”) and (B) with respect to each Right, make adequate provision to substitute for such shares of Common Stock, upon exercise of the Rights, (1) cash, (2) a reduction in the
Exercise Price, (3) other equity securities of the Company (including, without limitation, shares or units of shares of any series of preferred stock which the Company’s Board of Directors has deemed to have the same value as Common Stock (such
shares or units of shares of preferred stock are herein called “Common Stock Equivalents”)), except to the extent that the Company has not obtained any necessary stockholder or
regulatory approval for such issuance, (4) debt securities of the Company, except to the extent that the Company has not obtained any necessary stockholder or regulatory approval for such issuance, (5) other assets or (6) any combination of the
foregoing, having an aggregate value equal to the Current Value, where such aggregate value has been determined by the Company’s Board of Directors based upon the advice of a nationally recognized investment banking firm selected by the
Company’s Board of Directors; provided, however, if the Company shall not have made adequate provision to deliver value
pursuant to clause (B) above within thirty (30) days following the later of (x) the first occurrence of a Triggering Event and (y) the date on which the Company’s right of redemption pursuant to Section 23(a) expires (the later of (x) and (y)
being referred to herein as the “Section 11(a)(ii) Trigger Date”), then the Company shall be obligated to deliver, upon
the surrender for exercise of a Right and without requiring payment of the Exercise Price, Common Stock (to the extent available), except to the extent that the Company has not obtained any necessary stockholder or regulatory approval for such
issuance, and then, if necessary, cash, which shares and/or cash have an aggregate value equal to the Spread. If the Company’s Board of Directors shall determine in good faith that it is likely that sufficient additional Common Stock could be
authorized for issuance upon exercise in full of the Rights or that any necessary regulatory approval for such issuance will be obtained, the thirty (30) day period set forth above may be extended to the extent necessary, but not more than ninety
(90) days after the Section 11(a)(ii) Trigger Date, in order that the Company may seek stockholder approval for the authorization of such additional shares or take action to obtain such regulatory approval (such period, as it may be extended, the
“Substitution Period”). To the extent that the Company determines that some action need be taken pursuant to the first and/or second sentences of this Section 11(a)(iii), the
Company (x) shall provide, subject to Section 7(e) hereof, that such action shall apply uniformly to all outstanding Rights and (y) may suspend the exercisability of the Rights until the expiration of the Substitution Period in order to seek any
authorization of additional shares, to take any action to obtain any required regulatory approval and/or to decide the appropriate form of distribution to be made pursuant to such first sentence and to determine the value thereof. In the event of
any such suspension, the Company shall issue a public announcement stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement at such time as the suspension is no longer in effect. For purposes of
this Section 11(a)(iii), the

16

value of the Common Stock shall be the Current Per Share Market Price of the Common Stock on the Section 11(a)(ii) Trigger Date and the value of any Common Stock Equivalent shall be deemed to have the same value as the Common
Stock on such date. 

                    (b) In case the Company shall, at any time after the date of this Agreement, fix a record date for the issuance of rights, options or warrants to all holders of Preferred Shares entitling such holders
(for a period expiring within forty five (45) calendar days after such record date) to subscribe for or purchase Preferred Shares or Equivalent Shares or securities convertible into Preferred Shares or Equivalent Shares at a price per share (or
having a conversion price per share, if a security convertible into Preferred Shares or Equivalent Shares) less than the then Current Per Share Market Price of the Preferred Shares or Equivalent Shares on such record date, then, in each such case,
the Exercise Price to be in effect after such record date shall be determined by multiplying the Exercise Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the number of Preferred Shares and
Equivalent Shares (if any) outstanding on such record date, plus the number of Preferred Shares or Equivalent Shares, as the case may be, which the aggregate offering price of the total number of Preferred Shares or Equivalent Shares, as the case
may be, to be offered or issued (and/or the aggregate initial conversion price of the convertible securities to be offered or issued) would purchase at such current market price, and the denominator of which shall be the number of Preferred Shares
and Equivalent Shares (if any) outstanding on such record date, plus the number of additional Preferred Shares or Equivalent Shares, as the case may be, to be offered for subscription or purchase (or into which the convertible securities so to be
offered are initially convertible); provided, however, that in no event shall the consideration to be paid upon the exercise of one
Right be less than the aggregate par value of the shares of capital stock of the Company issuable upon exercise of one Right. In case such subscription price may be paid in a consideration part or all of which shall be in a form other than cash, the
value of such consideration shall be as determined in good faith by the Company’s Board of Directors, whose determination shall be described in a statement filed with the Rights Agent and shall be binding on the Rights Agent and the holders of
the Rights. Preferred Shares and Equivalent Shares owned by or held for the account of the Company shall not be deemed outstanding for the purpose of any such computation. Such adjustment shall be made successively whenever such a record date is
fixed, and in the event that such rights, options or warrants are not so issued, the Exercise Price shall be adjusted to be the Exercise Price which would then be in effect if such record date had not been fixed. 

                    (c) In case the Company shall, at any time after the date of this Agreement, fix a record date for the making of a distribution to all holders of the Preferred Shares or of any class or series of
Equivalent Shares (including any such distribution made in connection with a consolidation or merger in which the Company is the continuing or surviving corporation) of evidences of indebtedness or assets (other than a regular quarterly cash
dividend, if any, or a dividend payable in Preferred Shares) or subscription rights, options or warrants (excluding those referred to in Section 11(b)), then, in each such case, the Exercise Price to be in effect after such record date shall be
determined by multiplying the Exercise Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the Current Per Share Market Price of a Preferred Share or an Equivalent Share on such record date, less the
fair market value per Preferred Share or Equivalent Share (as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights

17

Agent) of the portion of the cash, assets or evidences of indebtedness so to be distributed or of such subscription rights or warrants applicable to a Preferred Share or Equivalent Share, as the case may be, and the denominator of
which shall be such Current Per Share Market Price of a Preferred Share or Equivalent Share on such record date; provided, however,
that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company issuable upon exercise of one Right. Such adjustments shall be made successively
whenever such a record date is fixed, and in the event that such distribution is not so made, the Exercise Price shall be adjusted to be the Exercise Price which would have been in effect if such record date had not been fixed.

                    (d) Notwithstanding anything to the contrary, no adjustment in the Exercise Price shall be required unless such adjustment would require an increase or decrease of at least 1% in the Exercise Price;
provided, however, that any adjustments which by reason of this
Section 11(d) are not required to be made shall be carried forward and taken
into account in any subsequent adjustment. All calculations under this Section
11 shall be made to the nearest cent or to the nearest ten-thousandth of a share
of Common Stock or other share or one hundred-thousandth of a Preferred Share,
as the case may be. Notwithstanding the first sentence of this Section 11(d),
any adjustment required by this Section 11 shall be made no later than the earlier
of (i) three (3) years from the date of the transaction which requires such adjustment
or (ii) the Expiration Date.

                    (e) If as a result of an adjustment made pursuant to Section 11(a) or 13(a) hereof, the holder of any Right thereafter exercised shall become entitled to receive any shares of capital stock other than
Preferred Shares, thereafter the number of such other shares so receivable upon exercise of any Right and, if required, the Exercise Price thereof, shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to the Preferred Shares contained in Sections 11(a), 11(b), 11(c), 11(d), 11(g), 11(h), 11(i), 11(j), 11(k) and 11(l), and the provisions of Sections 7, 9, 10, 13 and 14 with respect to the Preferred Shares
shall apply on like terms to any such other shares.

                    (f)
All Rights originally issued by the Company subsequent to any adjustment made
to the Exercise Price hereunder shall evidence the right to purchase, at the
adjusted Exercise Price, the number of one-thousandths of a Preferred Share purchasable
from time to time hereunder upon exercise of the Rights, all subject to further
adjustment as provided herein.

                    (g)
Unless the Company shall have exercised its election as provided in Section 11(h),
upon each adjustment of the Exercise Price as a result of the calculations made
in Section 11(b) and (c), each Right outstanding immediately prior to the making
of such adjustment shall thereafter evidence the right to purchase, at the adjusted
Exercise Price, that number of Preferred Shares (calculated to the nearest one
hundred-thousandth of a share) obtained by (i) multiplying (x) the number of
Preferred Shares covered by a Right immediately prior to this adjustment, by
(y) the Exercise Price in effect immediately prior to such adjustment of the
Exercise Price, and (ii) dividing the product so obtained by the Exercise Price
in effect immediately after such adjustment of the Exercise Price. 

                    (h) The Company may elect on or after the date of any adjustment of the Exercise Price as a result of the calculations made in Section 11(b) or (c) to adjust the number of Rights,

18

in substitution for any adjustment in the number of Preferred
Shares purchasable upon the exercise of a Right. Each of the Rights outstanding
after such adjustment of the number of Rights shall be exercisable for the number
of one-thousandths of a Preferred Share for which a Right was exercisable immediately
prior to such adjustment. Each Right held of record prior to such adjustment
of the number of Rights shall become that number of Rights (calculated to the
nearest one hundred-thousandth) obtained by dividing the Exercise Price in effect
immediately prior to adjustment of the Exercise Price by the Exercise Price in
effect immediately after adjustment of the Exercise Price. The Company shall
make a public announcement of its election to adjust the number of Rights, indicating
the record date for the adjustment, and, if known at the time, the amount of
the adjustment to be made. This record date may be the date on which the Exercise
Price is adjusted or any day thereafter, but, if the Rights Certificates have
been issued, shall be at least ten (10) days later than the date of the public
announcement. If Rights Certificates have been issued, upon each adjustment of
the number of Rights pursuant to this Section 11(h), the Company shall, as promptly
as practicable, cause to be distributed to holders of record of Rights Certificates
on such record date Rights Certificates evidencing, subject to Section 14 hereof,
the additional Rights to which such holders shall be entitled as a result of
such adjustment, or, at the option of the Company, shall cause to be distributed
to such holders of record in substitution and replacement for the Rights Certificates
held by such holders prior to the date of adjustment, and upon surrender thereof,
if required by the Company, new Rights Certificates evidencing all the Rights
to which such holders shall be entitled after such adjustment. Rights Certificates
so to be distributed shall be issued, executed and countersigned in the manner
provided for herein (and may bear, at the option of the Company, the adjusted
Exercise Price) and shall be registered in the names of the holders of record
of Rights Certificates on the record date  specified in the public announcement.

                    (i)
Irrespective of any adjustment or change in the Exercise Price or the number
of Preferred Shares issuable upon the exercise of the Rights, the Rights Certificates
theretofore and thereafter issued may continue to express the Exercise Price
per one one-thousandth of a Preferred Share and the number of one-thousandths
of a Preferred Share which were expressed in the initial Rights Certificates
issued hereunder.

                    (j)
Before taking any action that would cause an adjustment reducing the Exercise
Price below the par or stated value, if any, of the number of one-thousandths
of a Preferred Share issuable upon exercise of the Rights, the Company shall
take any corporate action which may, in the opinion of its counsel, be necessary
in order that the Company may validly and legally issue as fully paid and nonassessable
shares such number of one-thousandths of a Preferred Share at such adjusted Exercise
Price. 

                    (k)
In any case in which this Section 11 shall require that an adjustment in the
Exercise Price be made effective as of a record date for a specified event, the
Company may elect to defer until the occurrence of such event the issuing to
the holder of any Right exercised after such record date of the number of one-thousandths
of a Preferred Share and other capital stock or securities of the Company, if
any, issuable upon such exercise over and above the number of one-thousandths
of a Preferred Share and other capital stock or securities of the Company, if
any, issuable upon such exercise on the basis of the Exercise Price in effect
prior to such adjustment; provided, however, that the Company shall deliver to such holder a due bill or

19

other appropriate instrument evidencing such holder’s right to receive such additional shares (fractional or otherwise) upon the occurrence of the event requiring such adjustment. 

                    (l) Notwithstanding anything in this Section 11 to the contrary, prior to the Distribution Date, the Company shall be entitled to make such reductions in the Exercise Price, in addition to those
adjustments expressly required by this Section 11, as and to the extent that it in its sole discretion shall determine to be advisable in order that any (i) consolidation or subdivision of the Preferred Shares or Common Stock, (ii) issuance wholly
for cash of any Preferred Shares or Common Stock at less than the current market price, (iii) issuance wholly for cash of Preferred Shares or Common Stock or securities which by their terms are convertible into or exchangeable for Preferred or
Common Stock, (iv) stock dividends or (v) issuance of rights, options or warrants referred to in this Section 11, hereafter made by the Company to holders of its Preferred Shares or Common Stock shall not be taxable to such stockholders.

                    (m) The Company covenants and agrees that, after the Distribution Date, it will not, except as permitted by Sections 23, 24 or 27 hereof, take (or permit to be taken) any action if at the time such
action is taken it is reasonably foreseeable that such action will diminish substantially or otherwise eliminate the benefits intended to be afforded by the Rights.

                    (n)
In the event the Company shall at any time after the date of this Agreement (A)
declare a dividend on the Common Stock payable in shares of Common Stock, (B)
subdivide the outstanding shares of Common Stock, (C) combine the outstanding
Common Stock (by reverse stock split or otherwise) into a smaller number of shares
of Common Stock, or (D) issue any shares of its capital stock in a reclassification
of the shares of Common Stock (including any such reclassification in connection
with a consolidation or merger in which the Company is the continuing or surviving
corporation), then, in each such event, except as otherwise provided in Section
11(a) and Section 7(e) hereof: (1) each share of Common Stock (or shares of capital
stock issued in such reclassification of the Common Stock) outstanding immediately
following such time shall have associated with it the number of Rights as were
associated with one share of Common Stock immediately prior to the occurrence
of the event described in clauses (A)-(D) above; (2) the Exercise Price in effect
at the time of the record date for such dividend or of the effective date of
such subdivision, combination or reclassification shall be adjusted so that the
Exercise Price thereafter shall equal the result obtained by multiplying the
Exercise Price in effect immediately prior to such time by a fraction, the numerator
of which shall be the total number of shares of Common Stock outstanding immediately
prior to the event described in clauses (A)-(D) above, and the denominator of
which shall be the total number of shares of Common Stock outstanding immediately
after such event; provided, however, that in no event shall the
consideration to be paid upon the exercise of one Right be less than the aggregate
par value of the  shares of capital stock of the Company issuable upon exercise
of such Right; and (3) the number of one-thousandths of a Preferred Share (or
shares of such other capital stock) issuable upon the exercise of each Right
outstanding after such event  shall equal the number of one-thousandths of a
Preferred Share (or shares of such other capital stock) as were issuable with
respect to one Right immediately prior to such event. Each share of Common Stock
that shall become outstanding after an  adjustment has been made pursuant to
this Section 11(n) shall have associated with it the number of Rights, exercisable
at the Exercise Price and for the number of one-thousandths of a Preferred Share
(or shares of such other capital stock) as one  share of Common Stock has associated
with it immediately following the adjustment made

20

pursuant to this Section 11(n). If an event occurs which would require an adjustment under both this Section 11(n) and Section 11(a)(ii) hereof, the adjustment provided for in this Section 11(n) shall be in addition to, and shall
be made prior to, any adjustment required pursuant to Section 11(a)(ii) hereof. 

                    Section 12. Certificate of Adjusted Exercise Price or Number of Shares. Whenever an adjustment is made as provided in Sections 11 and 13
hereof, the Company shall promptly (a) prepare a certificate setting forth such adjustment and a brief statement of the facts accounting for such adjustment, (b) file with the Rights Agent and with each transfer agent for the Preferred Shares a copy
of such certificate and (c) if a Distribution Date has occurred, mail a brief summary thereof to each holder of a Rights Certificate in accordance with Section 26 hereof. Notwithstanding the foregoing sentence, the failure of the Company to make
such certification or give such notice shall not affect the validity of such adjustment or the force or effect of the requirement for such adjustment. The Rights Agent shall be fully protected in relying on any such certificate and on any adjustment
contained therein and shall not be deemed to have knowledge of such adjustment unless and until it shall have received such certificate.

                    Section 13. Consolidation, Merger or Sale or Transfer of Assets or Earning Power. 

	          	          (a)
          In the event that, following a Triggering Event, directly or indirectly: 

                 (i)     the
          Company shall consolidate with, or merge with and into, any other Person
          (other than a wholly-owned Subsidiary of the Company in a transaction
          the principal purpose of which is to change the state of incorporation
          of the Company and which complies with Section 11(m) hereof); 

                 (ii)     any
          Person shall consolidate with the Company, or merge with and into the
          Company and the Company shall be the continuing or surviving corporation
          of such consolidation or merger and, in connection with such merger,
          all or part of the shares of Common Stock shall be changed into or
          exchanged for stock or other securities of any other person (or the
          Company); or 

                 (iii)     the
          Company shall sell or otherwise transfer (or one or more of its Subsidiaries
          shall sell or otherwise transfer), in one or more transactions, assets
          or earning power aggregating 50% or more of the assets or earning power
          of the Company and its Subsidiaries (taken as a whole) to any other
          Person or Persons (other than the Company or one or more of its wholly
          owned Subsidiaries in one or more transactions, each of which individually
          (and together) complies with Section 11(m) hereof), 

                 then,
          concurrently with and in each such case: 

                 (a)
          each holder of a Right (except as provided in Section 7(e) hereof)
          shall thereafter have the right to receive, upon the exercise thereof,
          at a price equal to the Total Exercise Price applicable immediately
          prior to the occurrence of the Section 13 Event in accordance with
          the terms of this Agreement, such number of validly authorized and
          issued, fully paid, nonassessable and freely tradeable shares of Common
          Stock of the Principal Party (as hereinafter defined), free of any
          liens, encumbrances, rights of first

     

  21

	          	refusal or other adverse claims, as
          shall be equal to the result obtained by dividing such Total Exercise
          Price by 50% of the Current Per Share Market Price of the shares of
          Common Stock of such Principal Party on the date of consummation of
          such Section 13 Event; provided, however,
          that the Exercise Price and the number of shares of Common Stock of
          such Principal Party so receivable upon exercise of a Right shall be
          subject to further adjustment as appropriate in accordance with Section
          11(e) hereof;

                 (b)
          such Principal Party shall thereafter be liable for, and shall assume,
          by virtue of such Section 13 Event, all the obligations and duties
          of the Company pursuant to this Agreement; 

                 (c)
          the term “Company” shall thereafter be deemed to refer to
          such Principal Party, it being specifically intended that the provisions
          of Section 11 hereof shall apply only to such Principal Party following
          the first occurrence of a Section 13 Event; 

                 (d)
          such Principal Party shall take such steps (including, but not limited
          to, the reservation of a sufficient number of its Common Stock) in
          connection with the consummation of any such transaction as may be
          necessary to ensure that the provisions hereof shall thereafter be
          applicable, as nearly as reasonably may be, in relation to its shares
          of Common Stock thereafter deliverable upon the exercise of the Rights;
          and

                 (e)
          upon the subsequent occurrence of any consolidation, merger, sale or
          transfer of assets or other extraordinary transaction in respect of
          such Principal Party, each holder of a Right shall thereupon be entitled
          to receive, upon exercise of a Right and payment of the Total Exercise
          Price as provided in this Section 13(a), such cash, shares, rights,
          warrants and other property which such holder would have been entitled
          to receive had such holder, at the time of such transaction, owned
          the shares of Common Stock of the Principal Party receivable upon the
          exercise of such Right pursuant to this Section 13(a), and such Principal
          Party shall take such steps (including, but not limited to, reservation
          of shares of stock) as may be necessary to permit the subsequent exercise
          of the Rights in accordance with the terms hereof for such cash, shares,
          rights, warrants and other property. 

                 (f)
          For purposes hereof, the “earning power” of the Company and
          its Subsidiaries shall be determined in good faith by the Company’s
          Board of Directors on the basis of the operating earnings of each business
          operated by the Company and its Subsidiaries during the three fiscal
          years preceding the date of such determination (or, in the case of
          any business not operated by the Company or any Subsidiary during three
          full fiscal years preceding such date, during the period such business
          was operated by the Company or any Subsidiary). 

                 (b)
          For purposes of this Agreement, the term “Principal
          Party” shall mean: 

                 (i)     in
          the case of any transaction described in clause (i) or (ii) of Section
          13(a) hereof: (A) the Person that is the issuer of the securities into
          which the shares of Common Stock are converted in such merger or consolidation,
          or, if there is more than one such issuer, the issuer the shares of
    Common Stock of which have the greatest aggregate

 

22

	          	
market value of shares outstanding, or (B) if no securities are so issued, (x) the Person that is the other party to the merger, if such Person survives said merger, or, if there is more than one such Person, the Person the shares
of Common Stock of which have the greatest aggregate market value of shares outstanding or (y) if the Person that is the other party to the merger does not survive the merger, the Person that does survive the merger (including the Company if it
survives) or (z) the Person resulting from the consolidation; and 

          (ii)     in the case of any transaction described in clause (iii) of Section 13(a) hereof, the Person that is the party receiving the greatest
portion of the assets or earning power transferred pursuant to such transaction or transactions, or, if more than one Person that is a party to such transaction or transactions receives the same portion of the assets or earning power so transferred
and each such portion would, were it not for the other equal portions, constitute the greatest portion of the assets or earning power so transferred, or if the Person receiving the greatest portion of the assets or earning power cannot be
determined, whichever of such Persons is the issuer of shares of Common Stock having the greatest aggregate market value of shares outstanding; provided, however, that in any such case described in the foregoing clause (b)(i) or (b)(ii), if the shares of Common Stock of such Person are not at such time or have not been continuously over the preceding
12-month period registered under Section 12 of the Exchange Act, then (1) if such Person is a direct or indirect Subsidiary of another Person the shares of Common Stock of which are and have been so registered, the term “Principal Party”
shall refer to such other Person, or (2) if such Person is a Subsidiary, directly or indirectly, of more than one Person, the Common Stock of which are and have been so registered, the term “Principal Party” shall refer to whichever of
such Persons is the issuer of shares of Common Stock having the greatest aggregate market value of shares outstanding, or (3) if such Person is owned, directly or indirectly, by a joint venture formed by two or more Persons that are not owned,
directly or indirectly by the same Person, the rules set forth in clauses (1) and (2) above shall apply to each of the owners having an interest in the venture as if the Person owned by the joint venture was a Subsidiary of both or all of such joint
venturers, and the Principal Party in each such case shall bear the obligations set forth in this Section 13 in the same ratio as its interest in such Person bears to the total of such interests. 

                    (c) The Company shall not consummate any Section 13 Event unless the Principal Party shall have a sufficient number of authorized shares of Common Stock that have not been issued or reserved for
issuance to permit the exercise in full of the Rights in accordance with this Section 13 and unless prior thereto the Company and such issuer shall have executed and delivered to the Rights Agent a supplemental agreement confirming that such
Principal Party shall, upon consummation of such Section 13 Event, assume this Agreement in accordance with Sections 13(a) and 13(b) hereof, that all rights of first refusal or preemptive rights in respect of the issuance of shares of Common Stock
of such Principal Party upon exercise of outstanding Rights have been waived, that there are no rights, warrants, instruments or securities outstanding or any agreements or arrangements which, as a result of the consummation of such transaction,
would eliminate or substantially diminish the benefits intended to be afforded by the Rights and that such transaction shall not result in a default by such Principal Party under this Agreement,

23

and further providing that, as soon as practicable after the date of such Section 13 Event, such Principal Party will: 

	          	          (i)     prepare
          and file a registration statement under the Securities Act with respect
          to the Rights and the securities purchasable upon exercise of the Rights
          on an appropriate form, use its best efforts to cause such registration
          statement to become effective as soon as practicable after such filing
          and use its best efforts to cause such registration statement to remain
          effective (with a prospectus at all times meeting the requirements
          of the Securities Act) until the Expiration Date, and similarly comply
          with applicable state securities laws; 

                 (ii)     use
          its best efforts to list (or continue the listing of) the Rights and
          the securities purchasable upon exercise of the Rights on a national
          securities exchange or to meet the eligibility requirements for quotation
          on Nasdaq and list (or continue the listing of) the Rights and the
          securities purchasable upon exercise of the Rights on Nasdaq; and

                 (iii)     deliver
          to holders of the Rights historical financial statements for such Principal
          Party which comply in all respects with the requirements for registration
    on Form F-1 (or any successor form) under the Securities Act. 

In the event that at any time after the occurrence of a Triggering Event some or all of the Rights shall not have been exercised at the time of a transaction described in this Section 13, the Rights which have not theretofore been
exercised shall thereafter be exercisable in the manner described in Section 13(a) (without taking into account any prior adjustment required by Section 11(a)(ii)). 

                    (d) In case the “Principal Party” for purposes of Section 13(b) hereof has provision in any of its authorized securities or in its certificate of incorporation or by-laws or other instrument
governing its corporate affairs, which provision would have the effect of (i) causing such Principal Party to issue (other than to holders of Rights pursuant to Section 13 hereof), in connection with, or as a consequence of, the consummation of a
Section 13 Event, shares of Common Stock or Equivalent Shares of such Principal Party at less than the then Current Per Share Market Price thereof or securities exercisable for, or convertible into, shares of Common Stock or Equivalent Shares of
such Principal Party at less than such then Current Per Share Market Price, or (ii) providing for any special payment, tax or similar provision in connection with the issuance of the shares of Common Stock of such Principal Party pursuant to the
provisions of Section 13 hereof, then, in such event, the Company hereby agrees with each holder of Rights that it shall not consummate any such transaction unless prior thereto the Company and such Principal Party shall have executed and delivered
to the Rights Agent a supplemental agreement providing that the provision in question of such Principal Party shall have been canceled, waived or amended, or that the authorized securities shall be redeemed, so that the applicable provision will
have no effect in connection with or as a consequence of, the consummation of the proposed transaction. 

                    (e) The Company covenants and agrees that it shall not, at any time after the Distribution Date, effect or permit to occur any Section 13 Event, if (i) at the time or immediately after such Section 13
Event there are any rights, warrants or other instruments or securities outstanding or agreements in effect which would substantially diminish or otherwise 

24

eliminate the benefits intended to be afforded by the Rights, (ii) prior to, simultaneously with or immediately after such Section 13 Event, the stockholders of the Person who constitutes, or would constitute, the “Principal
Party” for purposes of Section 13(b) hereof shall have received a distribution of Rights previously owned by such Person or any of its Affiliates or Associates or (iii) the form or nature of organization of the Principal Party would preclude or
limit the exercisability of the Rights. 

                    (f) The provisions of this Section 13 shall similarly apply to successive mergers or consolidations or sales or other transfers.

                    Section 14. Fractional Rights and Fractional Shares.

                    (a) The Company shall not be required to issue fractions of Rights or to distribute Rights Certificates which evidence fractional Rights. In lieu of such fractional Rights, there shall be paid to the
registered holders of the Rights Certificates with regard to which such fractional Rights would otherwise be issuable, an amount in cash equal to the same fraction of the current market value of a whole Right. For the purposes of this Section 14(a),
the current market value of a whole Right shall be the closing price of the Rights for the Trading Day immediately prior to the date on which such fractional Rights would have been otherwise issuable, as determined pursuant to this
Agreement.

                    (b)
The Company shall not be required to issue fractions of Preferred Shares (other
than fractions that are integral multiples of one one-thousandth of a Preferred
Share) upon exercise of the Rights or to distribute certificates which evidence
fractional Preferred Shares (other than fractions that are integral multiples
of one one-thousandth of a Preferred Share). Interests in fractions of Preferred
Shares in integral multiples of one one-thousandth of a Preferred Share may,
at the election of the Company, be evidenced by depositary receipts, pursuant
to an appropriate agreement between the Company and a depositary selected by
it; provided, that such agreement shall provide that the holders of such depositary
receipts shall have all the rights, privileges and preferences to which they
are entitled as beneficial owners of the Preferred Shares represented by such
depositary receipts. In lieu of fractional Preferred Shares that are not integral
multiples of one one-thousandth of a Preferred Share, the Company shall pay to
the registered holders of Rights Certificates at the time such Rights are exercised
as herein provided an amount in cash equal to the same fraction of the current
market value of a Preferred Share. For purposes of this Section 14(b), the current
market value of a Preferred Share shall be one thousand times the closing price
of a share of Common Stock (as determined pursuant to the terms hereof) for the
Trading Day immediately prior to the date of such exercise.

                    (c) The Company shall not be required to issue fractions of shares of Common Stock or to distribute certificates which evidence fractional shares of Common Stock upon the exercise or exchange of
Rights. In lieu of such fractional shares of Common Stock, the Company shall pay to the registered holders of Rights Certificates at the time such Rights are exercised as herein provided an amount in cash equal to the same fraction of the current
market value of a share of Common Stock. For purposes of this Section 14(c), the current market value of a share of Common Stock shall be the closing price of a share of Common Stock (as determined pursuant to the terms hereof) for the Trading Day
immediately prior to the date of such exercise.

25

                    (d) The holder of a Right by the acceptance of the Right expressly waives his or her right to receive any fractional Rights or any fractional shares (other than fractions that are integral multiples
of one one-thousandth of a Preferred Share) upon exercise of a Right. 

                    Section 15. Rights of Action. All rights of action in respect of this Agreement, excepting the rights of action given to the Rights Agent
under Section 18 hereof, are vested in the respective registered holders of the Rights Certificates (and, prior to the Distribution Date, the registered holders of the shares of Common Stock); and any registered holder of any Rights Certificate (or,
prior to the Distribution Date, of the shares of Common Stock), without the consent of the Rights Agent or of the holder of any other Rights Certificate (or, prior to the Distribution Date, of the shares of Common Stock), may, in his or her own
behalf and for his or her own benefit, enforce, and may institute and maintain any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, his or her right to exercise the Rights evidenced by such Rights
Certificate in the manner provided in such Rights Certificate and in this Agreement. Without limiting the foregoing or any remedies available to the holders of Rights, it is specifically acknowledged that the holders of Rights would not have an
adequate remedy at law for any breach of this Agreement and will be entitled to specific performance of the obligations under, and injunctive relief against actual or threatened violations of, the obligations of any Person subject to this
Agreement.

                    Section 16. Agreement of Rights Holders. Every holder of a Right, by accepting the same, consents and agrees with the Company and the Rights
Agent and with every other holder of a Right that:

	          	          (a)
          prior to the Distribution Date, the Rights will be transferable only
          in connection with the transfer of the shares of Common Stock; 

                 (b)
          after the Distribution Date, the Rights Certificates are transferable
          only on the registry books of the Rights Agent if surrendered at the
          principal office or offices of the Rights Agent designated for such
          purposes, duly endorsed or accompanied by a proper instrument of transfer
          and with the appropriate forms and certificates fully executed; and

                 (c)
          subject to Sections 6(a) and 7(f) hereof, the Company and the Rights
          Agent may deem and treat the person in whose name the Rights Certificate
          (or, prior to the Distribution Date, the associated Common Stock certificate)
          is registered as the absolute owner thereof and of the Rights evidenced
          thereby (notwithstanding any notations of ownership or writing on the
          Rights Certificates or the associated Common Stock certificate made
          by anyone other than the Company or the Rights Agent) for all purposes
          whatsoever, and neither the Company nor the Rights Agent shall be affected
    by any notice to the contrary.

                    Section 17. Rights Certificate Holder Not Deemed a Stockholder. No holder, as such, of any Rights Certificate shall be entitled to vote,
receive dividends or be deemed for any purpose to be the holder of the Preferred Shares or any other securities of the Company which may at any time be issuable on the exercise of the Rights represented thereby, nor shall anything contained herein
or in any Rights Certificate be construed to confer upon the holder of any Rights Certificate, as such, any of the rights of a stockholder of the Company or any right to vote

26

for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders
(except as provided in Section 25 hereof), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by such Rights Certificate shall have been exercised in accordance with the provisions hereof.

                    Section 18. The Rights Agent.

                    (a) The Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder and, from time to time, on demand of the Rights Agent, its reasonable expenses and
counsel fees and other disbursements incurred in the administration and execution of this Agreement and the exercise and performance of its duties hereunder. The Company also agrees to indemnify the Rights Agent for, and to hold it harmless against,
any loss, liability or expense, incurred without negligence, bad faith or willful misconduct on the part of the Rights Agent, for anything done or omitted by the Rights Agent in connection with the acceptance and administration of this Agreement,
including the costs and expenses of defending against any claim of liability in the premises. In no event will the Rights Agent be liable for special, indirect, incidental or consequential loss or damage of any kind whatsoever, even if the Rights
Agent has been advised of the possibility of such loss or damage.

                    (b) The Rights Agent shall be protected and shall incur no liability for, or in respect of any action taken, suffered or omitted by it in connection with, its administration of this Agreement in
reliance upon any Rights Certificate or certificate for the Preferred Shares or shares of Common Stock or for other securities of the Company, instrument of assignment or transfer, power of attorney, endorsement, affidavit, letter, notice,
direction, consent, certificate, statement or other paper or document reasonably believed by it to be genuine and to be signed, executed and, where necessary, verified or acknowledged, by the proper Person or Persons, or otherwise upon the advice of
counsel as set forth in Section 20 hereof.

                    Section 19. Merger or Consolidation or Change of Name of Rights Agent. Any corporation into which the Rights Agent or any successor Rights
Agent may be merged or with which it may be consolidated, or any corporation resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any corporation succeeding to the corporate trust
business of the Rights Agent or any successor Rights Agent, shall be the successor to the Rights Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto; provided, however, that such corporation would be eligible for appointment as a successor Rights Agent under the provisions of Section 21 hereof.
In case at the time such successor Rights Agent shall succeed to the agency created by this Agreement, any of the Rights Certificates shall have been countersigned but not delivered, any such successor Rights Agent may adopt the countersignature of
the predecessor Rights Agent and deliver such Rights Certificates so countersigned; and in case at that time any of the Rights Certificates shall not have been countersigned, any successor Rights Agent may countersign such Rights Certificates either
in the name of the predecessor Rights Agent or in the name of the successor Rights Agent; and in all such cases such Rights Certificates shall have the full force provided in the Rights Certificates and in this Agreement. In case at any time the
name of the Rights Agent shall be changed and at such time any of the Rights Certificates shall have been countersigned but not delivered, the 

27

Rights Agent may adopt the countersignature under its prior name and deliver Rights Certificates so countersigned; and in case at that time any of the Rights Certificates shall not have been countersigned, the Rights Agent may
countersign such Rights Certificates either in its prior name or in its changed name; and in all such cases such Rights Certificates shall have the full force provided in the Rights Certificates and in this Agreement.

                    Section 20. Duties of Rights Agent. The Rights Agent undertakes the duties and obligations imposed by this Agreement upon the following terms
and conditions, by all of which the Company and the holders of Rights Certificates, by their acceptance thereof, shall be bound:

                    (a) The Rights Agent may consult with legal counsel (who may be legal counsel for the Company), and the written advice or opinion of such counsel shall be full and complete authorization and
protection to the Rights Agent as to any action taken or omitted by it in good faith and in accordance with such written advice or opinion. 

                    (b) Whenever in the performance of its duties under this Agreement the Rights Agent shall deem it necessary or desirable that any fact or matter (including, without limitation, the identity of any
Acquiring Person and the determination of Current Per Share Market Price) be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically
prescribed) may be deemed to be conclusively proved and established by a certificate signed by any one of the Chairman of the Board, the Chief Executive Officer, the President, any Vice President, the Chief Financial Officer, the Secretary or any
Assistant Secretary of the Company and delivered to the Rights Agent; and such certificate shall be full authorization to the Rights Agent for any action taken or suffered in good faith by it under the provisions of this Agreement in reliance upon
such certificate. 

                    (c) The Rights Agent shall be liable hereunder to the Company and any other Person only for its own negligence, bad faith or willful misconduct.

                    (d) The Rights Agent shall not be liable for or by reason of any of the statements of fact or recitals contained in this Agreement or in the Rights Certificates (except its countersignature thereof)
or be required to verify the same, but all such statements and recitals are and shall be deemed to have been made by the Company only.

                    (e) The Rights Agent shall not be under any responsibility in respect of the validity of this Agreement or the execution and delivery hereof (except the due execution hereof by the Rights Agent) or in
respect of the validity or execution of any Rights Certificate (except its countersignature thereof); nor shall it be responsible for any breach by the Company of any covenant or condition contained in this Agreement or in any Rights Certificate;
nor shall it be responsible for any change in the exercisability of the Rights or any adjustment in the terms of the Rights (including the manner, method or amount thereof) provided for in Sections 3, 11, 13, 23 or 24, or the ascertaining of the
existence of facts that would require any such change or adjustment (except with respect to the exercise of Rights evidenced by Rights Certificates after receipt by the Rights Agent of a certificate furnished pursuant to Section 12 describing such
change or adjustment); nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any Preferred Shares to be issued pursuant to

28

this Agreement or any Rights Certificate or as to whether any Preferred Shares will, when issued, be validly authorized and issued, fully paid and nonassessable.

                    (f) The Company agrees that it will perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such further and other acts, instruments and assurances
as may reasonably be required by the Rights Agent for the carrying out or performing by the Rights Agent of the provisions of this Agreement. 

                    (g) The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from any one of the Chairman of the Board, the Chief Executive
Officer, the President, any Vice President, the Chief Financial Officer, the Secretary or any Assistant Secretary of the Company, and to apply to such officers for advice or instructions in connection with its duties, and it shall not be liable for
any action taken or suffered by it in good faith in accordance with instructions of any such officer or for any delay in acting while waiting for those instructions. Any application by the Rights Agent for written instructions from the Company may,
at the option of the Rights Agent, set forth in writing any action proposed to be taken or omitted by the Rights Agent under this Rights Agreement and the date on and/or after which such action shall be taken or such omission shall be effective. The
Rights Agent shall not be liable for any action taken by, or omission of, the Rights Agent in accordance with a proposal included in any such application on or after the date specified in such application (which date shall not be less than five (5)
Business Days after the date any officer of the Company actually receives such application, unless any such officer shall have consented in writing to an earlier date) unless, prior to taking any such action (or the effective date in the case of an
omission), the Rights Agent shall have received written instructions in response to such application specifying the action to be taken or omitted.

                    (h) The Rights Agent and any stockholder, director, officer or employee of the Rights Agent may buy, sell or deal in any of the Rights or other securities of the Company or become pecuniarily
interested in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and freely as though it were not Rights Agent under this Agreement. Nothing herein shall preclude the
Rights Agent from acting in any other capacity for the Company or for any other legal entity.

                    (i) The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself or by or through its attorneys or agents, and the Rights Agent
shall not be answerable or accountable for any act, default, neglect or misconduct of any such attorneys or agents or for any loss to the Company resulting from any such act, default, neglect or misconduct, provided reasonable care was exercised in
the selection and continued employment thereof. 

                    (j) No provision of this Agreement shall require the Rights Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the
exercise of its rights if there shall be reasonable grounds for believing that repayment of such funds or adequate indemnification against such risk or liability is not reasonably assured to it.

29

                    (k) If, with respect to any Rights Certificate surrendered to the Rights Agent for exercise or transfer, the certificate attached to the form of assignment or form of election to purchase, as the case
may be, has either not been completed or indicates an affirmative response to clause 1 and/or 2 thereof, the Rights Agent shall not take any further action with respect to such requested exercise or transfer without first consulting with the
Company. 

                    Section 21. Change of Rights Agent. The Rights Agent or any successor Rights Agent may resign and be discharged from its duties under this
Agreement upon thirty (30) days’ written notice mailed to the Company and to each transfer agent of the Preferred Shares and the Common Stock by registered or certified mail, and to the holders of the Rights Certificates by first-class mail.
The Company may remove the Rights Agent or any successor Rights Agent upon thirty (30) days’ written
notice, mailed to the Rights Agent or successor Rights Agent, as the case may
be, and to each transfer agent of the Preferred Shares and the Common Stock by
registered or certified mail, and to the holders of the Rights Certificates by
first-class mail. If the Rights Agent shall resign or be removed or shall otherwise
become incapable of acting, the Company shall appoint a successor to the Rights
Agent. If the Company shall fail to make such appointment within a period of
thirty (30) days after giving notice of such removal or after receiving written
notice of such resignation or incapacity by the resigning or incapacitated Rights
Agent or by the holder of a Rights Certificate (who shall, with such notice,
submit his or her Rights Certificate for inspection by the Company), then the
registered holder of any Rights Certificate may apply to any court of competent
jurisdiction for the appointment of a new Rights Agent. Any successor Rights
Agent, whether appointed by the Company or by such a court, shall be a corporation
organized and doing business under the laws of the United States or of any state
of the United States, in good standing, which is authorized under such laws to
exercise corporate trust or stockholder services powers and is subject to supervision
or examination by federal or state authority and which has at the time of its
appointment as Rights Agent a combined capital and surplus of at least U.S.$100 million. After appointment, the successor Rights Agent shall be vested with the same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent without
further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property at the time held by it hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the
purpose. Not later than the effective date of any such appointment, the Company shall file notice thereof in writing with the predecessor Rights Agent and each transfer agent of the Preferred Shares and the Common Stock, and mail a written notice
thereof to the registered holders of the Rights Certificates. Failure to give any notice provided for in this Section 21, however, or any defect therein, shall not affect the legality or validity of the resignation or removal of the Rights Agent or
the appointment of the successor Rights Agent, as the case may be. 

                    Section 22. Issuance of New Rights Certificates. Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary,
the Company may, at its option, issue new Rights Certificates evidencing Rights in such form as may be approved by its Board of Directors to reflect any adjustment or change in the Exercise Price and the number or kind or class of shares or other
securities or property purchasable under the Rights Certificates made in accordance with the provisions of this Agreement. In addition, in connection with the issuance or sale of shares of Common Stock following the Distribution Date and prior to
the redemption or expiration of the Rights, the Company (a) shall, with respect to shares of Common Stock so 

30

issued or sold pursuant to the exercise of stock options or under any employee plan or arrangement or upon the exercise, conversion or exchange of other securities of the Company outstanding at the date hereof or upon the
exercise, conversion or exchange of securities hereinafter issued by the Company and (b) may, in any other case, if deemed necessary or appropriate by the Board of Directors of the Company, issue Rights Certificates representing the appropriate
number of Rights in connection with such issuance or sale; provided, however, that (i) no such Rights Certificate shall be issued
and this sentence shall be null and void ab initio if, and to the extent that, such issuance or this sentence would create a significant risk of or result in material adverse tax consequences to the Company or the Person to whom such Rights
Certificate would be issued or would create a significant risk of or result in such options’ or employee plans’ or arrangements’ failing to qualify for otherwise available special tax treatment and (ii) no such Rights Certificate
shall be issued if, and to the extent that, appropriate adjustment shall otherwise have been made in lieu of the issuance thereof. 

                    Section 23. Redemption. 

                    (a) The Company may, at its option and with the approval of the Board of Directors, at any time prior to the Close of Business on the earlier of (i) the close of business on the tenth day following
the Shares Acquisition Date and (ii) the Final Expiration Date, redeem all but not less than all the then outstanding Rights at a redemption price of U.S. $0.01 per Right, appropriately adjusted to reflect any stock split, stock dividend or
similar transaction occurring after the date hereof (such redemption price being herein referred to as the “Redemption Price”) and the Company may, at its option, pay the
Redemption Price either in shares of Common Stock (based on the Current Per Share Market Price thereof at the time of redemption) or cash. Such redemption of the Rights by the Company may be made effective at such time, on such basis and with such
conditions as the Board of Directors in its sole discretion may establish. The date on which the Board of Directors elects to make the redemption effective shall be referred to as the “Redemption
Date”. 

                    (b) Immediately upon the action of the Board of Directors of the Company ordering the redemption of the Rights, evidence of which shall have been filed with the Rights Agent, and without any further
action and without any notice, the right to exercise the Rights will terminate and the only right thereafter of the holders of Rights shall be to receive the Redemption Price. The Company shall promptly give public notice of any such redemption;
provided, however, that the failure to give or any defect in, any such notice shall not affect the validity of such redemption.
Within ten (10) days after the action of the Board of Directors ordering the redemption of the Rights, the Company shall give notice of such redemption to the Rights Agent and the holders of the then outstanding Rights by mailing such notice to all
such holders at their last addresses as they appear upon the registry books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent for the Common Stock. Any notice which is mailed in the manner herein
provided shall be deemed given, whether or not the holder receives the notice. Each such notice of redemption will state the method by which the payment of the Redemption Price will be made. Neither the Company nor any of its Affiliates or
Associates may redeem, acquire or purchase for value any Rights at any time in any manner other than that specifically set forth in this Section 23 or in Section 24 hereof, and other than in connection with the purchase of shares of Common Stock
prior to the Distribution Date.

31

                    Section 24. Exchange. 

                    (a) Subject to applicable laws, rules and regulations, and subject to subsection 24(c) below, the Company may, at its option, by action of the Board of Directors, at any time after the occurrence of a
Triggering Event, exchange all or part of the then outstanding and exercisable Rights (which shall not include Rights that have become void pursuant to the provisions of Section 7(e) hereof) for shares of Common Stock at an exchange ratio of one
share of Common Stock per Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof (such exchange ratio being hereinafter referred to as the “Exchange Ratio”). Notwithstanding the foregoing, the Board of Directors shall not be empowered to effect such exchange at any time after any Person (other than the Company, any Subsidiary of the
Company, any employee benefit plan of the Company or any such Subsidiary, or any entity holding Common Stock for or pursuant to the terms of any such plan or an Exempted Person), together with all Affiliates and Associates of such Person, becomes
the Beneficial Owner of 50% or more of the Common Stock then outstanding. 

                    (b) Immediately upon the action of the Board of Directors ordering the exchange of any Rights pursuant to Section 24(a) and without any further action and without any notice, the right to exercise
such Rights shall terminate and the only right thereafter of a holder of such Rights shall be to receive that number of shares of Common Stock equal to the number of such Rights held by such holder multiplied by the Exchange Ratio. The Company shall
give public notice of any such exchange; provided, however, that the failure to give, or any defect in, such notice shall not
affect the validity of such exchange. The Company shall mail a notice of any such exchange to all of the holders of such Rights at their last addresses as they appear upon the registry books of the Rights Agent. Any notice which is mailed in the
manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of exchange will state the method by which the exchange of the shares of Common Stock for Rights will be effected and, in the event of any
partial exchange, the number of Rights which will be exchanged. Any partial exchange shall be effected pro rata based on the number of Rights (other than Rights which have become void pursuant to the provisions of Section 7(e) hereof) held by each
holder of Rights.

                    (c) In the event that there shall not be sufficient shares of Common Stock issued but not outstanding or authorized but unissued to permit any exchange of Rights as contemplated in accordance with
Section 24(a), the Company shall either take such action as may be necessary to authorize additional shares of Common Stock for issuance upon exchange of the Rights or alternatively, at the option of a majority of the Board of Directors, with
respect to each Right (i) pay cash in an amount equal to the Current Value (as hereinafter defined), in lieu of issuing shares of Common Stock in exchange therefor, or (ii) issue debt or equity securities or a combination thereof, having a value
equal to the Current Value, in lieu of issuing shares of Common Stock in exchange for each such Right, where the value of such securities shall be determined by a nationally recognized investment banking firm selected by majority vote of the Board
of Directors, or (iii) deliver any combination of cash, property, shares of Common Stock and/or other securities having a value equal to the Current Value in exchange for each Right. For purposes of this Section 24(c) only, the Current Value shall
mean the product of the Current Per Share Market Price of shares of Common Stock on the date of the occurrence of the event described above in subparagraph (a), multiplied by the number of shares of Common Stock for 

32

which the Right otherwise would be exchangeable if there were sufficient shares available. To the extent that the Company determines that some action need be taken pursuant to clauses (i), (ii) or (iii) of this Section 24(c), the
Board of Directors may temporarily suspend the exercisability of the Rights for a period of up to sixty (60) days following the date on which the event described in Section 24(a) shall have occurred, in order to seek any authorization of additional
shares of Common Stock and/or to decide the appropriate form of distribution to be made pursuant to the above provision and to determine the value thereof. In the event of any such suspension, the Company shall issue a public announcement stating
that the exercisability of the Rights has been temporarily suspended.

                    (d) The Company shall not be required to issue fractions of shares of Common Stock or to distribute certificates which evidence fractional shares of Common Stock. In lieu of such fractional shares of
Common Stock, there shall be paid to the registered holders of the Rights Certificates with regard to which such fractional shares of Common Stock would otherwise be issuable, an amount in cash equal to the same fraction of the current market value
of a whole share of Common Stock (as determined pursuant to the terms hereof). 

                    (e) The Company may, at its option, by majority vote of the Board of Directors, at any time before any Person has become an Acquiring Person, exchange all or part of the then outstanding Rights for
rights of substantially equivalent value, as determined reasonably and with good faith by the Board of Directors, based upon the advice of one or more nationally recognized investment banking firms.

                    (f) Immediately upon the action of the Board of Directors ordering the exchange of any Rights pursuant to subsection 24(e) of this Section 24 and without any further action and without any notice, the
right to exercise such Rights shall terminate and the only right thereafter of a holder of such Rights shall be to receive that number of rights in exchange therefor as has been determined by the Board of Directors in accordance with subsection
24(e) above. The Company shall give public notice of any such exchange; provided, however, that the failure to give, or any defect
in, such notice shall not affect the validity of such exchange. The Company shall mail a notice of any such exchange to all of the holders of such Rights at their last addresses as they appear upon the registry books of the transfer agent for the
shares of Common Stock of the Company. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of exchange will state the method by which the exchange of the
Rights will be effected.

                    Section 25. Notice of Certain Events.

                    (a) In case the Company shall propose to effect or permit to occur any Triggering Event or Section 13 Event, the Company shall give notice thereof to each holder of Rights in accordance with Section
26 hereof at least twenty (20) days prior to occurrence of such Triggering Event or such Section 13 Event.

                    (b) In case any Triggering Event or Section 13 Event shall occur, then, in any such case, the Company shall as soon as practicable thereafter give to each holder of a Rights Certificate, in accordance
with Section 26 hereof, a notice of the occurrence of such event, which 

33

shall specify the event and the consequences of the event to holders of Rights under Sections 11(a)(ii) and 13 hereof.

                    Section 26. Notices. Notices or demands authorized by this Agreement to be given or made by the Rights Agent or by the holder of any Rights
Certificate to or on the Company shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until another address is filed in writing with the Rights Agent) as follows:

	                    	Safe Bulkers, Inc. 

          32 Avenue Karamanli 

          P.O. Box 70837 

          16673 Voula 

          Athens, Greece 

          

          Attention: Chief Executive Officer

          

          with a copy to:

          

          Cravath, Swaine & Moore LLP

          Worldwide Plaza 

          825 Eighth Avenue

          New York, New York 10019

          

          Attention: William P. Rogers, Jr. 

    

Subject to the provisions of Section 21 hereof, any notice or demand authorized by this Agreement to be given or made by the Company or by the holder of any Rights Certificate to or on the Rights Agent shall be sufficiently given
or made if sent by first-class mail, postage prepaid, addressed (until another address is filed in writing with the Company) as follows:

	                    	American Stock Transfer & Trust
          Company

          59 Maiden Lane

          New York, New York 10038

          

          Attention: General Counsel 

     

Notices or demands authorized by this Agreement to be given or made by the Company or the Rights Agent to the holder of any Rights Certificate shall be sufficiently given or made if sent by first class mail, postage prepaid,
addressed to such holder at the address of such holder as shown on the registry books of the Company. 

                    Section 27. Supplements and Amendments. Prior to the occurrence of a Distribution Date, the Company may supplement or amend this Agreement in
any respect without the approval of any holders of Rights and the Rights Agent shall, if the Company so directs, execute such supplement or amendment. From and after the occurrence of a Distribution Date, the Company and the Rights Agent may from
time to time supplement or amend this Agreement without the approval of any holders of Rights in order to (i) cure any ambiguity or omission, (ii) correct or supplement any provision contained herein which may be defective or

34

inconsistent with any other provisions herein, (iii) shorten or lengthen any time period hereunder or (iv) to change or supplement the provisions hereunder in any manner that the Company may deem necessary or desirable and that
shall not adversely affect the interests of the holders of Rights (other than an Acquiring Person or an Affiliate or Associate of an Acquiring Person); provided, this Agreement may not be supplemented or amended to lengthen, pursuant to clause (iii)
of this sentence, (A) a time period relating to when the Rights may be redeemed at such time as the Rights are not then redeemable or (B) any other time period unless such lengthening is for the purpose of protecting, enhancing or clarifying the
rights of, and/or the benefits to, the holders of Rights (other than an Acquiring Person or an Affiliate or Associate of an Acquiring Person). Upon the delivery of a certificate from an appropriate officer of the Company that states that the
proposed supplement or amendment is in compliance with the terms of this Section 27, the Rights Agent shall execute such supplement or amendment. Prior to the Distribution Date, the interests of the holders of Rights shall be deemed coincident with
the interests of the holders of shares of Common Stock. 

                    Section 28. Successors. All the covenants and provisions of this Agreement by or for the benefit of the Company or the Rights Agent shall
bind and inure to the benefit of their respective successors and assigns hereunder.

                    Section 29. Determinations and Actions by the Board of Directors, etc. For all purposes of this Agreement, any calculation of the number of
shares of Common Stock outstanding at any particular time, including for purposes of determining the particular percentage of such outstanding shares of Common Stock of which any Person is the Beneficial Owner, shall be made in accordance with the
last sentence of Rule 13d-3(d)(1)(i) of the General Rules and Regulations under the Exchange Act. The Board of Directors of the Company shall have the exclusive power and authority to administer this Agreement and to exercise all rights and powers
specifically granted to the Board, or the Company, or as may be necessary or advisable in the administration of this Agreement, including, without limitation, the right and power to (i) interpret the provisions of this Agreement and (ii) make all
determinations deemed necessary or advisable for the administration of this Agreement (including a determination to redeem or not redeem the Rights or to amend the Agreement). All such actions, calculations, interpretations and determinations
(including, for purposes of clause (y) below, all omissions with respect to the foregoing) which are done or made by the Board in good faith, shall (x) be final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights
Certificates and all other parties and (y) not subject the Board to any liability to the holders of the Rights. 

                    Section 30. Benefits of this Agreement. Nothing in this Agreement shall be construed to give to any Person other than the Company, the Rights
Agent and the registered holders of the Rights Certificates (and, prior to the Distribution Date, the shares of Common Stock) any legal or equitable right, remedy or claim under this Agreement; but this Agreement shall be for the sole and exclusive
benefit of the Company, the Rights Agent and the registered holders of the Rights Certificates (and, prior to the Distribution Date, the shares of Common Stock). 

                    Section 31. Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or
other authority to be invalid, void or 

35

unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated; provided, however, that notwithstanding anything in this Agreement to the contrary, if any such term, provision, covenant or restriction is held by
such court or authority to be invalid, void or unenforceable and the Board of Directors of the Company determines in its good faith judgment that severing the invalid language from this Agreement would adversely affect the purpose or effect of this
Agreement, the right of redemption set forth in Section 23 hereof shall be reinstated and shall not expire until the Close of Business on the tenth day following the date of such determination by the Board of Directors. 

                    Section 32. Governing Law. This Agreement and each Right and each Rights Certificate issued hereunder shall be deemed to be a contract made
under the laws of New York and for all purposes shall be governed by and construed in accordance with the laws of such jurisdiction applicable to contracts to be made and performed entirely within such jurisdiction.

                    Section 33. Counterparts. This Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes
be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

                    Section 34. Descriptive Headings. Descriptive headings of the several Sections of this Agreement are inserted for convenience only and shall
not control or affect the meaning or construction of any of the provisions hereof. 

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36

                    IN WITNESS WHEREOF, the parties have executed this Stockholders Rights Agreement as of the date first written above. 

	 	
SAFE BULKERS, INC.,  
	 	
    by  	/s/
    Polys Hajioannou
	 	
          Name: Polys Hajioannou  
	 	
          Title: Chief Executive Officer  
	 	   
	 	
AMERICAN STOCK TRANSFER & TRUST  
	 	
COMPANY,  
	 	   by 	/s/ Herbert J.
    Lemmer
	 	
          Name: Herbert J. Lemmer  
	 	
          Title: Vice President  

[Signature Page to Stockholders Rights Agreement]

Exhibit A

STATEMENT OF DESIGNATION OF RIGHTS, PREFERENCES AND PRIVILEGES
OF

SERIES A PARTICIPATING PREFERRED STOCK OF SAFE BULKERS, INC. 

The undersigned, [                               ] and [                               ] do hereby certify:

                    1.     That they are the duly elected and acting President and Secretary, respectively, of Safe Bulkers, Inc., a Marshall Islands corporation (the
“Company”). 

                    2.     That pursuant to the authority conferred by the Company’s Amended and Restated Articles of Incorporation, the Company’s Board of
Directors on [Month] [$], 2008 adopted the following resolution designating and prescribing the relative rights, preferences and limitations of the Company’s Series A
Participating Preferred Stock:

                    RESOLVED, that pursuant to the authority vested in the Board of Directors (the “Board”) of the Company by the Articles of
Incorporation, the Board hereby establishes a series of preferred stock, par value U.S. $0.01 per share, and fixes the designation and certain powers, preferences and other special rights of the shares of such series, and certain qualifications,
limitations and restrictions thereon, as follows: 

                    Section 1. Designation and Amount. The shares of such series shall be designated as “Series A Participating
Preferred Stock”. The Series A Participating Preferred Stock shall have a par value of U.S. $0.01 per share, and the number of shares constituting such series shall initially be 1,000,000, which number the
Board may from time to time increase or decrease (but not below the number then outstanding). 

                    Section 2. Proportional Adjustment. In the event the Company shall at any time after the issuance of any share or shares of Series A
Participating Preferred Stock (i) declare any dividend on the common stock of the Company, par value U.S. $0.001 per share (the “Common Stock”), payable in shares of Common
Stock, (ii) subdivide the outstanding Common Stock or (iii) combine the outstanding Common Stock into a smaller number of shares, then in each such case the Company shall simultaneously effect a proportional adjustment to the number of outstanding
shares of Series A Participating Preferred Stock.

                    Section 3. Dividends and Distributions. 

                    (a)     Subject to the prior and superior right of the holders of any shares of any series of preferred stock ranking prior and superior to the
shares of Series A Participating Preferred Stock with respect to dividends, the holders of shares of Series A Participating Preferred Stock shall be entitled to receive when, as and if declared by the Board out of funds legally available for the
purpose, quarterly dividends payable in cash on the last day of March, June, September and December in each year (each such date being referred to herein as a “Quarterly Dividend Payment Date”), commencing on the first Quarterly Dividend Payment Date after the first issuance of a share or fraction of a share of Series A Participating Preferred Stock, in an amount per share (rounded to the nearest cent) equal to 1,000
times the aggregate per share amount of all cash dividends, and 1,000 times the aggregate per share amount (payable in kind) of all non cash dividends or other distributions other than a dividend payable in shares of Common Stock or a subdivision of
the outstanding shares of Common Stock (by

A-1

reclassification or otherwise), declared on the Common Stock since the immediately preceding Quarterly Dividend Payment Date, or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of any share or
fraction of a share of Series A Participating Preferred Stock. 

                    (b)     The Company shall declare a dividend or distribution on the Series A Participating Preferred Stock as provided in paragraph (a) above
immediately after it declares a dividend or distribution on the Common Stock (other than a dividend payable in shares of Common Stock). 

                    (c)     Dividends shall begin to accrue on outstanding shares of Series A Participating Preferred Stock from the Quarterly Dividend Payment Date
immediately preceding the date of issue of such shares of Series A Participating Preferred Stock, unless the date of issue of such shares is prior to the record date for the first Quarterly Dividend Payment Date, in which case dividends on such
shares shall begin to accrue from the date of issue of such shares, or unless the date of issue is a Quarterly Dividend Payment Date or is a date after the record date for the determination of holders of shares of Series A Participating Preferred
Stock entitled to receive a quarterly dividend and before such Quarterly Dividend Payment Date, in either of which events such dividends shall begin to accrue from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear
interest. Dividends paid on the shares of Series A Participating Preferred Stock in an amount less than the total amount of such dividends at the time accrued and payable on such shares shall be allocated pro rata on a share by share basis among all
such shares at the time outstanding. The Board may fix a record date for the determination of holders of shares of Series A Participating Preferred Stock entitled to receive payment of a dividend or distribution declared thereon, which record date
shall be no more than 30 days prior to the date fixed for the payment thereof.

                    Section 4. Voting Rights. The holders of shares of Series A Participating Preferred Stock shall have the following voting rights:

                    (a)     Each share of Series A Participating Preferred Stock shall entitle the holder thereof to 1,000 votes on all matters submitted to a vote of
the stockholders of the Company. 

                    (b)     Except as otherwise provided herein or required by law, the holders of shares of Series A Participating Preferred Stock and the holders of
shares of Common Stock shall vote together as one class on all matters submitted to a vote of stockholders of the Company. 

                    (c)     Except as otherwise provided herein or required by law, holders of Series A Participating Preferred Stock shall have no special voting
rights and their consent shall not be required (except to the extent they are entitled to vote with holders of Common Stock as set forth herein) for taking any corporate action.

                    Section 5. Certain Restrictions. 

                    (a)     The Company shall not declare any dividend on, make any distribution on, or redeem or purchase or otherwise acquire for consideration any
shares of Common Stock after 

A-2

the first issuance of a share or fraction of a share of Series A Participating Preferred Stock unless concurrently therewith it shall declare a dividend on, make a distribution on, or redeem or purchase or otherwise acquire for
consideration the Series A Participating Preferred Stock as required by Section 3 hereof.

                    (b)     Whenever quarterly dividends or other dividends or distributions payable on the Series A Participating Preferred Stock as provided in
Section 3 are in arrears, thereafter and until all accrued and unpaid dividends and distributions, whether or not declared, on shares of Series A Participating Preferred Stock outstanding shall have been paid in full, the Company shall not (i)
declare or pay dividends on, make any other distributions on, or redeem or purchase or otherwise acquire for consideration any shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A
Participating Preferred Stock; (ii) declare or pay dividends on, make any other distributions on any shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with Series A Participating Preferred
Stock, except dividends paid ratably on the Series A Participating Preferred Stock and all such parity stock on which dividends are payable or in arrears in proportion to the total amounts to which the holders of all such shares are then entitled;
(iii) redeem or purchase or otherwise acquire for consideration shares of any stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with the Series A Participating Preferred Stock, provided that the
Company may at any time redeem, purchase or otherwise acquire shares of any such parity stock in exchange for shares of any stock of the Company ranking junior (either as to dividends or upon dissolution, liquidation or winding up) to the Series A
Participating Preferred Stock; (iv) purchase or otherwise acquire for consideration any shares of Series A Participating Preferred Stock, or any shares of stock ranking on a parity with the Series A Participating Preferred Stock, except in
accordance with a purchase offer made in writing or by publication (as determined by the Board) to all holders of such shares upon such terms as the Board, after consideration of the respective annual dividend rates and other relative rights and
preferences of the respective series and classes, shall determine in good faith will result in fair and equitable treatment among the respective series or classes. 

                    (c)     The Company shall not permit any subsidiary of the Company to purchase or otherwise acquire for consideration any shares of stock of the
Company unless the Company could, under paragraph (a) of this Section 5, purchase or otherwise acquire such shares at such time and in such manner. 

                    Section 6. Reacquired Shares. Any shares of Series A Participating Preferred Stock purchased or otherwise acquired by the Company in any
manner whatsoever shall be retired and canceled promptly after the acquisition thereof. All such shares shall upon their cancellation become authorized but unissued shares of preferred stock and may be reissued as part of a new series of preferred
stock to be created by resolution or resolutions of the Board, subject to the conditions and restrictions on issuance set forth herein and, in the Articles of Incorporation, as then amended.

                    Section 7. Liquidation, Dissolution or Winding Up. Upon any liquidation, dissolution or winding up of the Company, the holders of shares of
Series A Participating Preferred Stock shall be entitled to receive an aggregate amount per share equal to 1,000 times the aggregate amount to be distributed per share to holders of shares of Common Stock plus an 

A-3

amount equal to any accrued and unpaid dividends on such shares of Series A Participating Preferred Stock. 

                    Section 8. Consolidation, Merger, etc. In case the Company shall enter into any consolidation, merger, combination or other transaction in
which the shares of Common Stock are exchanged for or changed into other stock or securities, cash and/or any other property, then in any such case the shares of Series A Participating Preferred Stock shall at the same time be similarly exchanged or
changed in an amount per share equal to 1,000 times the aggregate amount of stock, securities, cash and/or any other property (payable in kind), as the case may be, into which or for which each share of Common Stock is changed or
exchanged.

                    Section 9. No Redemption. The shares of Series A Participating Preferred Stock shall not be redeemable.

                    Section 10. Ranking. The Series A Participating Preferred Stock shall rank junior to all other series of the Company’s preferred stock
as to the payment of dividends and the distribution of assets, unless the terms of any such series shall provide otherwise. 

                    Section 11. Amendment. The Articles of Incorporation of the Company shall not be further amended in any manner which would materially alter
or change the powers, preference or special rights of the Series A Participating Preferred Stock so as to affect them adversely without the affirmative vote of the holders of a majority of the outstanding shares of Series A Participating Preferred
Stock, voting separately as a class.

                    Section 12. Fractional Shares. Series A Participating Preferred Stock may be issued in fractions of a share which shall entitle the holder,
in proportion to such holder’s fractional shares, to exercise voting rights, receive dividends, participate in distributions and to have the benefit of all other rights of holders of Series A Participating Preferred Stock.

                    RESOLVED FURTHER, that the Board hereby authorizes and directs the President or any Vice President and the Secretary or any Assistant Secretary of this Company to prepare and file a Statement of
Designation of Rights, Preferences and Privileges in accordance with the foregoing resolution and the provisions of Marshall Islands law and to take such actions as they may deem necessary or appropriate to carry out the intent of the foregoing
resolution.

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A-4

                    We further declare, under penalty of perjury, that the foregoing Statement of Designation is the act and deed of the Company and that the facts stated therein are true and correct. 

                    Executed at [                               ] on [Month] [      ], 2008.

	 	

    

    

    

	 	
President  

	 	
Secretary  

A-5

Exhibit B

[FORM OF RIGHTS CERTIFICATE]

B-1

Exhibit C 

SUMMARY OF RIGHTS

	Distribution and Transfer of Rights: 	  	  
	  
	Distribution Date: 	  	The rights will separate from the common stock and 
	  	  	become exercisable after (1) the tenth day after a 
	  	  	person or group acquires ownership of 15% or more 
	  	  	of the company’s common stock or (2) the 10th 
	  	  	business day (or such later date as determined by the 
	  	  	company’s board of directors) after a person or group 
	  	  	announces a tender or exchange offer which would 
	  	  	result in that person or group holding 15% or more of 
	  	  	the company’s common stock 
	  
	Preferred Stock Purchaseable Upon 	  	On the Distribution Date, each holder of a right will 
	Exercise of Rights: 	  	be entitled to purchase for U.S.$25.00 (the “Exercise 
	  	  	Price”) a fraction (1/1000th) of one share of the 
	  	  	company’s preferred stock which has similar 
	  	  	economic terms as one share of common stock. 
	  
	  
	Flip-in: 	  	If an acquiring person (an “Acquiring Person”) 
	  	  	acquires more than 15% of the company’s common 
	  	  	stock then each holder of a right (except that 
	  	  	acquiring person) will be entitled to buy at the 
	  	  	Exercise Price, a number of shares of the company’s 
	  	  	common stock which has a then current market value 
	  	  	of twice the Exercise Price. 
	  
	Flip-over: 	  	If after an Acquiring Person acquires more than 15% 
	  	  	of the company’s common stock, the company 
	  	  	merges into another company (either as the surviving 
	  	  	corporation or as the disappearing entity) or the 
	  	  	company sells more than 50% of its assets or earning 
	  	  	power, then each holder of a right (except for those 
	  	  	owned by the Acquiring Person) will be entitled to 
	  	  	purchase at the Exercise Price, a number of shares of 
	  	  	common stock of the surviving entity which has a 
	  	  	then current market value of twice the Exercise Price. 
	  
	Exchange Provision: 	  	Any time after the date an Acquiring Person obtains 
	  	  	more than 15% of the company’s common stock and 
	  	  	before that Acquiring Person acquires more than 50% 
	  	  	of the company’s outstanding common stock, the 
	  	  	company may exchange each right owned by all 
	  	  	other rights holders, in whole or in part, for one share 

C-1 

	   	   	
of the company’s common stock.  
	 

  
	
Redemption of Rights:  	   	
The company can redeem the rights at any time prior  
	   	   	
to a public announcement that a person has acquired  
	   	   	
ownership of 15% or more of the company’s  
	   	   	
common stock.  
	 

  
	
Expiration of Rights:  	   	
The rights expire on the earliest of (1) May 14, 2018  
	   	   	
or (2) the exchange or redemption of the rights as  
	   	   	
described above.  
	 

  
	
Amendment of Terms of Rights:  	   	
The terms of the rights and the Stockholder Rights  
	   	   	
Plan may be amended without the consent of the  
	   	   	
rights holders at any time on or prior to the  
	   	   	
Distribution Date. After the Distribution Date, the  
	   	   	
terms of the rights and the Stockholder Rights Plan  
	   	   	
may be amended to make changes, which do not  
	   	   	
adversely affect the rights of the rights holders (other  
	   	   	
than the Acquiring Person).  
	 

  
	
Voting Rights:  	   	
The rights will not have any voting rights.  
	 

  
	
Anti-dilution Provisions:  	   	
The rights will have the benefit of certain customary  
	   	   	
anti-dilution protection.  

C-2-- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

EXHIBIT 10.6

CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT

AMONG 

     SAFE BULKERS, INC.,

 VORINI HOLDINGS INC., 

POLYS
  HAJIOANNOU AND 

NICOLAOS HADJIOANNOU 

 

			
	
Table of Contents     	  	  
	  	  	
Page  
	
ARTICLE I    	  	  
	 	 	 
	
Definitions  	  	  
	 	 	 
	
SECTION 1.01. Definitions    	  	
2      
	
ARTICLE II   	  	  
	 	 	 
	
The Initial Contribution     	  	  
	 	 	 
	
SECTION 2.01. Transfer by the Shareholders of the Subsidiary Shares  	  	
3      
	
SECTION 2.02. Issuance of shares of Vorini Common Stock      	  	
3      
	
SECTION 2.03. Acknowledgement of the Shareholders’ receipt of shares of Vorini
Common Stock	  	  3
	
SECTION 2.04. Conversion of Subsidiary Shares        	  	
4      
	
ARTICLE III  	  	  
	 	 	 
	
The Company Contribution     	  	  
	 	 	 
	
SECTION 3.01. Transfer by Vorini of Subsidiary Shares        	  	
4      
	
SECTION 3.02. Issuance of shares of Company Common Stock     	  	
4      
	
SECTION 3.03. Acknowledgement of Vorini’s receipt of Company Common     Stock	  	  4
	
ARTICLE IV   	  	  
	 	 	 
	
Representations and Warranties       	  	  
	 	 	 
	
SECTION 4.01. Representations and Warranties of the Shareholders and Vorini	  	  4
	
SECTION 4.02. DISCLAIMER OF WARRANTIES       	  	
5      
	ARTICLE V 

  
	 	 
	 	 	 
	Further Assurances
	 	 
	 	 	 
	SECTION 5.01. Further Assurances
    	 	6

i

			
	  	  	
Page  
	  
	
ARTICLE VI   	  	  
	  
	
ARBITRATION  	  	  
	  
	
SECTION 6.01. Disputes       	  	
7      
	
SECTION 6.02. Designation of Arbitrator      	  	
7      
	
SECTION 6.03. Further Disputes       	  	
7      
	
SECTION 6.04. Relief and Awards      	  	
7      
	  
	  
	
ARTICLE VII  	  	  
	  
	
Miscellaneous        	  	  
	  
	
SECTION 7.01. Survival of Representations and Warranties     	  	
7      
	
SECTION 7.02. Costs  	  	
8      
	
SECTION 7.03. Agreement Relating to Aggregate Retained Earnings      	  	
8      
	
SECTION 7.04. Headings; References; Interpretation   	  	
8      
	
SECTION 7.05. Successors and Assigns 	  	
8      
	
SECTION 7.06. No Third Party Rights  	  	
8      
	
SECTION 7.07. Counterparts   	  	
9      
	
SECTION 7.08. Governing Law  	  	
9      
	
SECTION 7.09. Severability   	  	
9      
	
SECTION 7.10. Deed; Bill of Sale; Assignment 	  	
9      
	
SECTION 7.11. Amendment or Modification      	  	
9      
	
SECTION 7.12. Entire Agreement       	  	
9      

ii  

     CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT (this “Agreement”) dated as of [•], 2008 (the “Effective Date”), among Safe Bulkers, Inc., a corporation formed under the laws of the Republic of the Marshall Islands (the “Company”), Vorini Holdings Inc., a corporation formed under the laws of the Republic of the Marshall Islands (“Vorini”), Polys Hajioannou, an individual
(“P. Hajioannou”), and Nicolaos Hadjioannou, an individual (“N. Hadjioannou” and, together with P. Hajioannou,
the “Shareholders”). 

RECITALS

                     WHEREAS, the Company was formed on December 11, 2007, pursuant to the Marshall Islands Business Corporations Act (the “BCA”) for
the purpose of, among other things, acquiring and owning all of the outstanding common shares of the Subsidiaries (as defined below), each of which is directly or indirectly owned by the Shareholders; 

                     WHEREAS, in order to accomplish the objectives and purposes in the preceding recital and in connection with the Closing (as defined below), the parties hereto desire that each of the following shall
occur in the order set forth below following the execution of the Underwriting Agreement (as defined below) and prior to the Closing: 

	 	1.   	The Shareholders shall transfer to Vorini
        all of the outstanding shares of each Subsidiary (all such shares collectively,
        the “Subsidiary Shares”). As consideration
        therefore, Vorini shall issue an aggregate total of 100 shares of common
        stock of Vorini, par value $0.01 per share (the “Vorini Common
        Stock”) to the Shareholders in the
        following allocation: 90 shares of Vorini Common Stock to P. Hadjioannou
        and 10 shares of Vorini Common Stock to N. Hadjioannou, which shall represent
        all of the outstanding shares of Vorini Common Stock (such transaction,
    the “Initial Contribution”); 
	 	 	 
	 	2.	Immediately subsequent to the Initial Contribution,
        Vorini shall convert, or cause to be converted, each Subsidiary Share
        that is held in bearer form into a registered Subsidiary Share (the “Conversion”);
    and 
	 	 	 
	 	3.	Immediately subsequent to the Conversion,
        Vorini, on behalf of itself and the Shareholders, shall transfer to the
        Company the Subsidiary Shares. As consideration therefor, the Company
        shall issue to Vorini, 54,500,000 shares of common stock of the Company,
        par value $0.001 per share (the “Company
        Common Stock”), which shall represent
        all of the outstanding shares of Company Common Stock (such transaction,
    the “Company Contribution”). 

 

                     WHEREAS, upon the Closing,
Vorini, through the underwriters of the Offering (as defined below) (the “Underwriters”) and pursuant to
the Underwriting Agreement (as defined below), intends to sell up to 10,000,000 shares (or such other amount of shares set forth in the Underwriting Agreement) of Company Common Stock, subject to the Underwriters’ overallotment
option under the Underwriting Agreement, to the public, 

                       NOW, THEREFORE, in consideration of the foregoing and the respective covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties hereto hereby agree as follows: 

ARTICLE I

Definitions

                     SECTION
  1.01. Definitions. For
    the purposes of this Agreement:

                       “Agreement” has
the meaning set forth in the preamble. 

                       “Assets” has
the meaning set forth in Section 4.02. 

                       “BCA” has
the meaning set forth in the recitals. 

                       “Closing” shall
mean the closing of the Offering. 

                       “Closing Date” shall
mean the date of the Closing. 

                       “Company” has
the meaning set forth in the preamble. 

                       “Company Common Stock” has
  the meaning set forth in the recitals. “Company Contribution” has
  the meaning set forth in the recitals. “Conversion” has
the meaning set forth in the recitals. 

                       “Effective Date” has
the meaning set forth in the preamble. 

                       “Initial Contribution” has
the meaning set forth in the recitals. 

                       “Laws” or “Law” means
  any and all laws, statutes, ordinances, rules or regulations promulgated by
  a governmental authority, orders of a governmental authority, judicial decisions,
  decisions of arbitrators or determinations of any governmental authority or
court. 

                       “Manager” shall
  mean Safety Management Overseas S.A., a corporation formed under the laws of
Panama and the manager of the Vessels. 

2  

                     “Offering” means
the initial public offering contemplated by the Registration Statement. 

                       “Parties” means
the parties to this Agreement and their successors and permitted assigns. 

                       “Registration Statement” means
  the registration statement on Form F-1 filed by the Company on or about May
16, 2008 for the Offering, as may be amended.

                       “Shareholders” has
the meaning set forth in the preamble. 

                       “Subsidiaries” means
the Liberian companies set forth on Exhibit A hereto.

                       “Subsidiary Shares” has
the meaning set forth in the recitals. 

                       “Underwriters” has
the meaning set forth in the recitals. 

                       “Underwriting Agreement” means
  the Underwriting Agreement to be entered into by and among the Company, Vorini,
  the Underwriters and the other parties thereto, as contemplated by the Registration
Statement. 

                       “Vessels” means
  the vessels owned or operated by the Subsidiaries and newbuild vessels that
are, as of the date hereof, contracted to be acquired by the Subsidiaries. 

                       “Vorini” has
the meaning set forth in the preamble. 

                       “Vorini Common Stock” has
the meaning set forth in the recitals.

 ARTICLE II

 The Initial Contribution

                     SECTION 2.01. Transfer by the Shareholders of the Subsidiary Shares. Effective immediately following execution of the Underwriting Agreement,
the Shareholders hereby contribute, assign, convey, transfer and deliver to Vorini all of their right, title and interest in and to the Subsidiary Shares, and Vorini hereby acquires and accepts from the Shareholders all the right, title and interest
of the Shareholders in and to the Subsidiary Shares. 

                       SECTION 2.02. Issuance of shares of Vorini Common Stock. Effective immediately following execution of the Underwriting Agreement, Vorini
hereby issues to P. Hajioannou 90 shares of Vorini Common Stock and to N. Hadjioannou 10 shares of Vorini Common Stock. 

                       SECTION 2.03. Acknowledgement
  of the Shareholders’ receipt of shares of Vorini Common Stock.
As consideration for the Subsidiary Shares, P. Hajioannou

3
  
  

  hereby acknowledges receipt of 90 shares of Vorini Common Stock and N. Hadjioannou hereby acknowledges receipt of 10 shares of Vorini Common Stock. 

                       SECTION 2.04. Conversion of Subsidiary Shares. Each of the Parties hereto acknowledge and agree that, following the Initial Contribution and
prior to the Company Contribution, Vorini shall take all steps necessary to convert, or cause to be converted, each Subsidiary Share held by Vorini in bearer form into a registered Subsidiary Share. 

ARTICLE III

 The Company Contribution 

                       SECTION 3.01. Transfer by Vorini of Subsidiary Shares. Effective immediately following the Conversion, Vorini, hereby assigns, conveys,
transfers and delivers to the Company all of its right, title and interest in and to the Subsidiary Shares, and the Company hereby acquires and accepts from Vorini all the right, title and interest of Vorini in and to the Subsidiary Shares.

                       SECTION 3.02. Issuance of shares of Company Common Stock. Effective immediately following the Conversion, the Company hereby issues to
Vorini, 54,500,000 shares of Company Common Stock. 

                       SECTION 3.03. Acknowledgement
of Vorini’s receipt of Company Common Stock. Effective immediately following the Conversion, as consideration for the Subsidiary Shares, Vorini hereby acknowledges receipt of 54,500,000 shares of Company Common Stock. 

 ARTICLE IV

 Representations and Warranties

                     SECTION 4.01. Representations and Warranties of the Shareholders and Vorini. The
Shareholders and Vorini hereby, jointly and severally, represent and warrant to the Company as follows: 

                       (a) Organization, Standing and Power. Each of the Subsidiaries is a corporation duly formed, validly existing and in good standing under
Liberian law and has the power to own, lease, charter, operate or otherwise hold its assets and to conduct its businesses as presently conducted. 

                       (b) Authority; Execution and Delivery; Enforceability. Each of the Shareholders and Vorini has full power and authority to execute this
Agreement and to consummate the transactions contemplated hereby. The execution and delivery by each of the Shareholders and Vorini of this Agreement and the consummation by each of the Shareholders and Vorini of the transactions contemplated hereby
have been duly 

4

  authorized by all necessary corporate action. Each
  of the Shareholders and Vorini has duly executed and delivered this Agreement,
  and this Agreement constitutes its legal, valid and binding obligation, enforceable
  against it in accordance with its terms, subject to applicable bankruptcy,
  insolvency, reorganization, moratorium or other laws affecting creditors’ rights
  generally and subject to general principles of equity, regardless of whether
considered in a proceeding in equity at law. 

                       (c) No Conflicts; Consents. The
  execution, delivery and performance by the Shareholders and Vorini of this
  Agreement will not conflict with, or result in any violation of or default
  (with or without notice or lapse of time, or both) under any provision of (i)
  their or any Subsidiary’s certificate of formation or certificate of incorporation or limited liability company agreement,
bylaws or other organizational documents, (ii) any lien, encumbrance, security interest, pledge, mortgage, charge, other claim, contract, lease, license, indenture, agreement, commitment or other legally binding arrangement to which they or any
Subsidiary is a party or by which any of their or any Subsidiary’s assets
may be bound or (iii) any applicable Law. Except as already obtained, no material
consent, approval, license, permit, order or authorization of, or registration,
declaration or filing with, any federal, state, local or foreign governmental
authority is required in connection with the execution, delivery and performance
of this Agreement or the consummation of the transactions contemplated hereby. 

                       (d) The Subsidiary Shares. The Subsidiary Shares have been duly and validly issued, are fully paid and non-assessable and free of preemptive
rights. Vorini has, and will convey to the Company, good and valid title to the Subsidiary Shares which comprise all of the issued and outstanding shares in the Subsidiaries, free and clear of all mortgages, liens, security interests, covenants,
options, claims, restrictions, or encumbrances of any kind. There are no outstanding options, warrants or other rights to acquire any shares of capital stock or securities convertible into or exercisable for the capital stock of any Subsidiary. With
respect to the Subsidiary Shares, there is no further obligation to make any capital contribution to the applicable Subsidiary. 

                      SECTION 4.02. DISCLAIMER OF WARRANTIES. (a)
  EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN
  CONNECTION WITH THIS AGREEMENT OR THE OFFERING, THE PARTIES HEREBY ACKNOWLEDGE
  AND AGREE THAT NONE OF THE PARTIES HAS MADE, OR MAKES AND EACH SUCH PARTY SPECIFICALLY
  NEGATES, DISCLAIMS AND DENIES ANY REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS,
  AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS,
  IMPLIED OR STATUTORY, ORAL OR WRITTEN, PAST OR PRESENT, REGARDING (i) THE VALUE,
  NATURE, QUALITY OR CONDITION OF THE SUBSIDIARIES AND THE ASSETS OWNED BY THE
  SUBSIDIARIES (INCLUDING THE VESSELS) (THE “ASSETS”), INCLUDING THE
  ENVIRONMENTAL CONDITION OF SUCH ASSETS GENERALLY, INCLUDING, THE PRESENCE OR
  ABSENCE OF HAZARDOUS SUBSTANCES OR OTHER MATTERS IN, ON OR ABOUT SUCH ASSETS,
  (ii) THE INCOME TO BE DERIVED FROM SUCH ASSETS, (iii) THE SUITABILITY OF SUCH
ASSETS FOR ANY AND ALL ACTIVITIES AND USES THAT MAY BE 

5

  CONDUCTED THEREON, THEREBY OR THEREWITH, (iv) THE COMPLIANCE OF OR BY SUCH ASSETS OR THEIR OPERATION WITH ANY LAWS (INCLUDING ENVIRONMENTAL PROTECTION OR POLLUTION LAWS, RULES, REGULATIONS, ORDERS OR REQUIREMENTS), OR (v) THE
SEAWORTHINESS, HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF SUCH ASSETS. EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE
OFFERING, EACH PARTY ACKNOWLEDGES AND AGREES THAT IT HAS HAD THE OPPORTUNITY TO INSPECT THE RESPECTIVE ASSETS OF THE SUBSIDIARIES AND IS RELYING SOLELY ON ITS OWN INVESTIGATION OF THE RESPECTIVE ASSETS OF THE SUBSIDIARIES AND NOT ON ANY INFORMATION
PROVIDED OR TO BE PROVIDED BY ANY OF THE OTHER PARTIES. EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE OFFERING, NONE OF THE PARTIES IS LIABLE OR BOUND IN ANY MANNER BY ANY VERBAL
OR WRITTEN STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING
TO THE ASSETS OF THE SUBSIDIARIES FURNISHED BY ANY AGENT, EMPLOYEE, SERVANT OR
THIRD PARTY. EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR
DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE OFFERING, EACH OF THE PARTIES
HEREBY ACKNOWLEDGES THAT, TO THE MAXIMUM EXTENT PERMITTED BY LAW, THE ASSETS
OWNED BY THE SUBSIDIARIES, AS PROVIDED FOR HEREIN, ARE CONVEYED ON AN “AS IS,” “WHERE IS” CONDITION
  WITH ALL FAULTS, AND THE ASSETS OF THE SUBSIDIARIES ARE CONVEYED SUBJECT TO
  ALL OF THE MATTERS CONTAINED IN THIS SECTION. THIS SECTION 4.02 SHALL SURVIVE SUCH CONVEYANCE OR THE TERMINATION
OF THIS AGREEMENT. THE PROVISIONS OF THIS SECTION 4.02 HAVE BEEN NEGOTIATED BY THE PARTIES AFTER DUE CONSIDERATION AND ARE INTENDED TO BE A COMPLETE EXCLUSION, NEGATION AND DENIAL OF ANY REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, WITH RESPECT TO THE ASSETS OF THE OPERATING SUBSIDIARIES
THAT MAY ARISE PURSUANT TO ANY LAW NOW OR HEREAFTER IN EFFECT, OR OTHERWISE, EXCEPT AS SET FORTH IN THIS AGREEMENT OR ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE OFFERING. 

ARTICLE V 

    

    Further Assurances

                    SECTION 5.01. Further Assurances. From time to time, and without any further consideration,
as and when requested by any Party, each Party shall execute and deliver, or cause to be executed and delivered, all such documents and instruments and shall take, or cause to be taken, all such further or other actions as such other Party may

6

  reasonably deem necessary to consummate the transactions contemplated by this Agreement including, in the case of the Shareholders and Vorini, executing and delivering to the Company such assignments, deeds, bills of sale,
consents and other instruments as the Company may reasonably request as necessary for such purpose. 

ARTICLE VI 

    

    ARBITRATION

                    SECTION 6.01. Disputes. All disputes arising out of this Agreement shall be arbitrated in London in the following manner. One arbitrator is
to be appointed by the Company, a second by Vorini and the Shareholders (acting together) relevant to such arbitration and a third by the two so chosen. Their decision or that of any two of the arbitrators shall be final and, for the purpose of
enforcing any award, this Agreement may be made a rule of the court. The arbitrators shall be commercial persons, conversant with shipping matters. Such arbitration is to be conducted in accordance with the Arbitration Act of 1996 or any statutory
modification or re-enactment thereof. 

                      SECTION 6.02. Designation of Arbitrator. In the event that the Company or Vorini and the Shareholders (acting together) shall state a dispute
and designate an arbitrator, in writing, the other party shall have twenty (20) Business Days to designate its own arbitrator. Upon failure to do so, the arbitrator appointed by the other party can conduct the arbitration and render an award
hereunder. 

                      SECTION 6.03. Further Disputes. Until such time as the arbitrators finally close the hearings, either of the Company or Vorini and the
Shareholders (acting together) shall have the right by written notice served on the arbitrators and on the other party to specify further disputes or differences under this Agreement for hearing and determination. 

                      SECTION 6.04. Relief and Awards. The
  arbitrators may grant any relief, and render an award, which they or a majority
  of them deem just and equitable and within the scope of the Agreement of the
  parties, including but not limited to the posting of security. Awards pursuant
  to this Article VI may include costs, including a reasonable allowance for
  attorneys’ fees, and judgments may
be entered upon any award made herein in any court having jurisdiction. 

ARTICLE VII

    

    Miscellaneous

                    SECTION
      7.01. Survival of Representations and Warranties. The representations
      and warranties of the Shareholders and Vorini in this Agreement  and in
      or under any documents, instruments and agreements delivered pursuant to
      this Agreement, will survive the completion of the transactions contemplated
      hereby regardless of any independent investigations that the Company may
      make or cause to be  made, or

7
  

  knowledge it may have, prior to the date of this Agreement and will continue in full force and effect for a period of one year from the date of this Agreement. At the end of such period, such representations and warranties will
terminate, and no claim may be brought by the Company against the Shareholders or Vorini thereafter based upon such representations and warranties. 

                      SECTION 7.02. Costs. The Company shall pay any and all sales, use and similar taxes arising out of the conveyances and deliveries to be made
hereunder and shall pay all documentary, filing, recording, transfer, deed and conveyance taxes and fees required in connection therewith. 

                      SECTION 7.03. Agreement Relating to Aggregate Retained Earnings. In the event that the aggregate retained earnings of the Subsidiaries for
the period prior to the Company Contribution should be reduced from the aggregate amount used for purposes of the determination of the aggregate amount available for the payment of dividends to the Shareholders prior to the Offering, whether as a
result of the existence of material facts or actual or contingent liabilities that are later discovered or for any other reason, Vorini shall make a payment to the Company in an amount equal to the excess, if any, of the amount of such aggregate
dividends over the amount that should have been available as aggregate retained earnings. 

                      SECTION 7.04. Headings; References; Interpretation. All
  Article and Section headings in this Agreement are for convenience only and
  shall not be deemed to control or affect the meaning or construction of any
  of the provisions hereof. The words “hereof,” “herein” and “hereunder” and words of similar import, when used in this Agreement, refer to this Agreement
as a whole and not to any particular provision of this Agreement. All references herein to Articles and Sections shall, unless the context requires a different construction, be deemed to be references to the Articles and Sections of this Agreement,
respectively. All personal pronouns used in this Agreement, whether used in the masculine, feminine or neuter gender, shall include all other genders, and the singular shall include the plural and vice versa. The use herein of the word
“including” following any general statement, term or matter shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, but
rather shall be deemed to refer to all other items or matters that could reasonably fall within the broadest possible scope of such general statement, term or matter, and whenever the words “include”, “includes” or
“including” are used in this Agreement, they shall be deemed to be followed by the words “without
limitation.” 

                      SECTION 7.05. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective
successors and permitted assigns. 

                      SECTION 7.06. No Third Party Rights. The provisions of this Agreement are intended to bind the Parties as to each other and are not intended
to and do not create rights in any other person or confer upon any other person any benefits, rights 

8  

  or remedies and no person is or is intended to be a third party beneficiary of any of the provisions of this Agreement. 

                      SECTION 7.07. Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same
agreement, and shall become effective when one or more such counterparts have been signed by each of the Parties and delivered to the other Parties. Delivery of an executed page to this Agreement by facsimile transmission or email transmission in
PDF document format, shall be effective as delivery of an original executed counterpart hereof. 

                      SECTION 7.08. Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of England. 

                      SECTION 7.09. Severability. If any provision of this Agreement (or any portion thereof) or the application of any such provision (or any
portion thereof) to any person or circumstance shall be held invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision hereof (or the
remaining portion thereof) or the application of such provision to any other persons or circumstances. 

                      SECTION 7.10. Deed; Bill of Sale; Assignment. To
  the extent required and permitted by applicable Law, this Agreement shall also
  constitute a
“deed,” “bill of sale” or “assignment” of the Subsidiary
Shares, the Vorini Shares, the Company Common Stock and the Vorini Shares described
in Articles II, III and IV. 

                      SECTION 7.11. Amendment or Modification. This Agreement may be amended or modified from time to time only by the written agreement of all the
Parties hereto.

                      SECTION 7.12. Entire Agreement. This Agreement constitutes the entire agreement of the Parties relating to the matters contained herein,
superseding all prior contracts or agreements, whether oral or written, relating to the matters contained herein. 

 [Signature
        Page Follows]

9
  
  

                       IN WITNESS WHEREOF, this Agreement has been duly executed by the parties set forth below. 

	 	SAFE BULKERS, INC.,	 
	 	 	 
	 	by:
	 
	 	 	Name:

        Title: 
	 	 	 
	 	VORINI HOLDINGS INC.,	 
	 	 	 
	 	by:
	 
	 	 	Name:

        Title: 
	 	 	 
	 	POLYS HAJIOANNOU	 
	 	 	 
	 	 
	 	 	 
	 	NICOLAOS HADJIOANNOU	 
	 	 	 
	 	 

  [SIGNATURE PAGE TO CONTRIBUTION, CONVEYANCE
AND ASSUMPTION AGREEMENT]

 EXHIBIT A

  
Subsidiaries
      
  

  

	
  Maxdekatria Shipping Corporation (Liberia)

  

  Eniadefhi Shipping Corporation (Liberia) 

  

  Eniaprohi Shipping Corporation (Liberia) 

  

  Eptaprohi Shipping Corporation (Liberia) 

  

  Efragel Shipping Corporation (Liberia) 

  

  Marindou Shipping Corporation (Liberia) 

  

  Avstes Shipping Corporation (Liberia) 

  

  Kerasies Shipping Corporation (Liberia) 

  

  Marathassa Shipping Corporation (Liberia) 

  

  Staloudi Shipping Corporation (Liberia) 

  

  Maxdeka Shipping Corporation (Liberia) 

  

  Pemer Shipping Ltd. (Liberia) 

  

  Petra Shipping Ltd. (Liberia) 

  

  Marinouki Shipping Corporation (Liberia) 

  

  Pelea Shipping Ltd. (Liberia) 

  

  Soffive Shipping Corporation (Liberia) 

  

  Maxpente Shipping Corporation (Liberia) 

  

  Maxenteka Shipping Corporation (Liberia) 

  

  Maxdodeka Shipping Corporation (Liberia)

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