Document:

Exhibit 10.25

[Letterhead of HVB]

To: Pemer Shipping Ltd 

       32 Karamanli Avenue

       166 05 Voula 

       Greece 

14 May 2008

Dear Sirs

Supplemental Letter

	
1     	
We refer to the loan agreement dated 7 March 2007 (the “Loan Agreement”) made between (1) Pemer Shipping Ltd as borrower (the
“Borrower”) and (2) Bayerische Hypo- und Vereinsbank Aktiengesellschaft as lender (the “Bank”), pursuant to which the Bank agreed (inter alia) to make available (and has made available) to the Borrower a multicurrency loan of Thirty six million
Dollars ($36,000,000) upon the terms and conditions contained therein.
	 
	
2     	
Words and expressions defined in the Loan Agreement shall, unless the context otherwise requires, have the same meaning where used in this Letter.
	 
	
3     	
The Borrower and the Bank hereby acknowledge as of 7 March 2008 the Equivalent Amount in Dollars of the Loan then outstanding (less any amount standing to the credit of the Multicurrency Cash Collateral Account) exceeded
the Dollar Amount of the Loan by Four million one hundred and sixty seven thousand six hundred and fifteen Dollars and one cent ($4,167,515.01) (the “excess amount”).
	 
	
4     	
At the Borrower’s request, the Bank agreed to waive the requirement of additional cash collateral to be deposited in the Multicurrency Cash Collateral Account pursuant to clause 4.6 of the Loan Agreement as a result of
such excess amount.
	 
	 	
Such waiver was granted without prejudice to any of the rights or powers conferred upon the Bank under the Loan Agreement and the other Security Documents or the right of the Bank thereafter to act strictly in accordance
with the terms thereof.
	 
	
5     	
At the Borrower’s further request, the Bank further agreed that, with effect from 7 March 2008 (the “Crystallisation Date”), the entire
amount of the Loan is converted into Dollars (and it was then so converted) and the Borrower further requested that the Loan remains outstanding at all times in Dollars. The Bank and the Borrower hereby agree that, notwithstanding any provisions to
the contrary in the Loan Agreement (which provisions shall be of no effect any longer), neither the Loan nor any part thereof may be converted into an Optional Currency and that the Loan will remain outstanding in Dollars at all times and hence the
multicurrency option contained in the Loan Agreement is hereby cancelled.
	 

	
6     	
At the Borrower’s request, the Bank and the Borrower hereby further agree that, in lieu of payment by the Borrower of the excess amount, and with effect from the Crystallisation Date, the Bank hereby increases the
Commitment by the amount of $4,167,615.01 and such amount is hereby deemed drawn down under the Loan Agreement, so that such excess amount be deemed to constitute part of the Loan.
	 
	
7     	
The Bank and the Borrower hereby further agree that the Borrower shall repay the outstanding amount of the Loan as of the date of this Letter (being the amount of 38,167,615.01, comprising (a) the balance of $34,000,000
prior to the increase of the Commitment referred to above and (b) the additional amount of $4,167,615.01 which is deemed drawn down under clause 7 above) by twenty two (22) consecutive repayment instalments, one such instalment to be repaid on each
of the Repayment Dates falling after the date of this Letter. Subject to the provisions of the Loan Agreement, the amount of each such instalment other than the last instalment shall be $1,100,000 and the amount of the last such instalment shall be
$15,067,015.01 (comprising a repayment instalment of $1,100,000 and a balloon payment of $13,967,615.01).
	 
	
8     	
The Bank and the Borrower agree that clause 7 of this
Letter shall replace clause 5.1.1 of the Loan Agreement.
	 
	
9     	
The Bank hereby confirms its consent to the amendment of the Management Agreement, effective as of 1 January 2008, pursuant to the terms described in the letters and mails of 4 February 2008 and 4 March 2008 sent by or on
behalf of the Borrower and addressed to the Bank.
	 
	
10     	
The Bank and the Borrower hereby agree that the Loan Agreement shall, with effect on and from the Effective Date (as defined below), be (and it is hereby) amended in accordance with the following provisions (and the Loan
Agreement (as so amended) will continue to be binding upon each of the parties thereto upon such terms as so amended):
	 
	 	(a)	 by deleting the definition of “Cash
        Collateral Account” in clause
    1.2 and
    by inserting in its place the following new definition of “Cash Collateral Account”:
	 
	 	 	
““Cash Collateral Account” means an interest bearing Dollar account of the Borrower opened by the Borrower with the Bank designated
“Cash Collateral Account” and with account number 122181USD281102 and includes any other account designated in writing by the Bank to be a Cash Collateral Account for the purposes of this Agreement;”;
	 
	 	(b) 	by deleting the definition of “Cash
    Collateral Account Pledgee” in
    clause 1.2 and by inserting in its place the following new definition of
    “Cash Collateral Account Pledge”:
	 

2

	 	 	
““Cash Collateral Account Pledge” means the pledge executed on 9 April 2006 by the Borrower in favour of the Bank in respect of the
Cash Collateral Account;”;
	 
	 	
(c)     	
by deleting the definition of “Management Agreement” in clause 1.2 and by inserting in its place the following new definition of
“Management Agreement”:
	 
	 	 	
““Management Agreement”means
the agreement or agreements entered or (as the context may require) to be entered
into (in a form previously approved by the Bank in its sole discretion) between
or on behalf of the Borrower, the Manager and/or any other party (including any
holding company of the Borrower) providing (inter alia) for the Manager to manage
the Ship as amended and supplemented from time to time;”;
	 
	 	
(d)     	
by deleting the words “the Manager” in clause 5.8 and by inserting
the words “the Borrower” in its place;
	 
	 	
(e)     	
by deleting clause 9.4 in its entirety and by inserting in its place the following new clause 9.4:
	 
	  	 	“9.4  	Cash Collateral Account Balance
	 	 	 
	 	 	 	
The Borrower undertakes to maintain in the Cash Collateral Account the Cash Collateral Deposit at all times until the Third Anniversary, following which the Borrower, only once per calendar year and only on an Interest
Payment Date, shall be entitled to withdraw from the Cash Collateral Account such amount which, following the relevant withdrawal, would cause the balance of the Cash Collateral Account to be equal to the applicable fraction of the Cash Collateral
Deposit (and, for the purposes of this clause the expression “applicable fraction” means a fraction having as numerator the outstanding amount of the Loan prior to
such withdrawal and as denominator the amount of $38,167,615.01).”; and
	 
	 	
(f)     	
by deleting clause 15 in its entirety and by inserting in its place the following new clause 15:
	 
	 	 	“15 	Accounts
	 	 	 	 
	 	 	15.1	General
	 	 	 	 
	 	 	 	
The Borrower undertakes with the Bank that it will:
	 
	 	 	 	15.1.1	 maintain with the Bank the Cash Collateral Account;
    and
	 	 	 	 

3

	 	 	 	15.1.2 procure that all moneys payable to the
      Borrower in respect of the Earnings (as defined in the General Assignment)
      of the Ship shall, unless and until the Bank directs to the contrary pursuant
    to clause 2.1 of the General Assignment, be paid to the Operating Account.
	 	 	 	 
	 	 	
15.2      		
Account terms
	 
	 	 	 	
Amounts standing to the credit of the Cash Collateral Account shall (unless otherwise agreed between the Bank and the Borrower) bear interest at the rates from time to time offered by the Bank to its customers for Dollar
deposits in comparable amounts for comparable periods. Interest shall accrue on the Cash Collateral Account from day to day and be calculated on the basis of actual days elapsed and a 360 day year and shall be credited to the Cash Collateral Account
at such times as the Bank and the Borrower shall agree.
	 
	 	 	
15.3      		
Application of accounts
	 
	 	 	 	
At any time after the occurrence of an Event of Default, the Bank may, without notice to the Borrower, apply all moneys then standing to the credit of the Cash Collateral Account (together with interest from time to time
accruing or accrued thereon) in or towards satisfaction of any sums due to the Bank under the Security Documents in the manner specified in clause 14.1.
	 
	 	 	
15.4      		
Charging of accounts
	 
	 	 	 	
The Accounts and all amounts from time to time standing to the credit thereof shall be subject to the security constituted and the rights conferred by the Account Pledges.”.
	 
	
11     	
The Bank and the Borrower hereby agree that the agreement and arrangements set out in paragraphs 4 to 8 (inclusive) of this Letter shall become effective immediately upon execution of this Letter by the Borrower and the
Manager and, where expressly stated therein, with effect from any such date as stated therein.
	 
	
12     	
The Bank and the Borrower hereby agree that the agreement of the Bank contained in paragraph 9 above and the amendments to the Loan Agreement set out in paragraph 10 above shall become effective on the date (the “Effective Date”) when:
	 
	 	
(a)     	
the Borrower and the Manager have executed this Letter; and
	 
	 	
(b)     	
the Borrower has executed in favour of the Bank an account pledge over its bank account held with the Bank with account number
	 

4

	 	 	122181US0281102, in form and substance satisfactory
    to the Bank in its discretion; and
	 
	 	
(c)     	
the Borrower has delivered to the Bank such documents and evidence of the type referred to in schedule 2 to the Agreement (including legal opinions) as required by the Bank in its discretion, in respect of this Letter, the
documents referred to in paragraph (b) above and the transactions contemplated herein and therein.
	 
	
13     	
Save as amended by this Letter, the provisions of the Loan Agreement shall continue in full force and effect and the Loan Agreement and this Letter shall be read and construed as one instrument.
	 
	
14     	
Each of the other Security Documents and the obligations of the Security Parties thereunder shall remain and continue in full force and effect notwithstanding the amendments to the Loan Agreement contained in this
Letter.
	 
	
15     	
References to the “Agreement” or the “Loan Agreement’ in any of the Security Documents shall henceforth be references to the Loan Agreement as amended by this Letter and as from time to time hereafter
amended and shall also be deemed to include this Letter and the obligations of the Security Parties hereunder.
	 
	
16     	
This Letter is governed by, and shall be construed in accordance with, the laws of England and any dispute hereunder shall be resolved in the same courts as provided for in clause 18.2 of the Loan Agreement.
	 

Yours faithfully

5

	
EXECUTED as a DEED	
)	 		 	
	
by	
)	 		 	
	
and by	
)	 		  

	
for and on behalf of	
)	 		 	
	BAYERISCHE HYPO- UND VEREINSBANK )	)	 	 
	
AKTIENGESELLSCHAFT	
)	 		  

	
In the presence of:	
)	 		 	
	 	
	 	
	
/s/
 
	 	 		 		 	
	
Witness	 		 		 	
	
Name: Christos Batagiannis	 		 		 	
	
Address: 62 Notara Str, Piraeus	 		 		 	
	
Occupation: HVB-Credit Analyst	 		 		 	
	 	
	
We acknowledge receipt of this letter and agree in full to the terms and conditions set out
	
above and the amendments of the Loan Agreement contained therein.
	 	
	
EXECUTED as a DEED	
)	 		 	
	
by	
)	 		 	
	
for and on behalf of	
)	 		  

	
PEMER SHIPPING LTD	
)	 		
Attorney-in-fact
	
In the presence of:	
)	 		 	
	 	
	 	
	  
	 	 	 	 
	
Witness	 		 		 	
	
Name:	 		 		 	
	
Address:	 		 		 	
	
Occupation:	 		 		 	
	 	
	 	
	
EXECUTED as a DEED	
)	 		 	
	
by	
)	 		 	
	
for and on behalf of	
)	 		  

	
SAFETY MANAGEMENT OVERSEAS S.A.	
)	 		
Attorney-in-fact
	
In the presence of:	
)	 		 	
	 	
	 	
	  
	 	 	 	 
	
Witness	 		 		 	
	
Name:	 		 		 	
	
Address:	 		 		 	
	
Occupation:	 		 		 	

6Exhibit 10.26

To: Pemer Shipping Ltd 

       32 Karamanli Avenue

       166 05 Voula 

       Greece 

15 May 2008

Dear Sirs

Supplemental Letter

	
1     	
We refer to the loan agreement dated 7 March 2007 as amended by a supplemental letter dated 14 May 2008 (together the “Loan Agreement”) made
between (1) Pemer Shipping Ltd as borrower (the “Borrower”) and (2) Bayerische Hypo- and Vereinsbank Aktiengesellschaft as lender (the “Bank”), pursuant to which the Bank agreed (inter alia) to make available (and has made available) to the Borrower a
multicurrency loan of Thirty six million Dollars ($36,000,000) upon the terms and conditions contained therein.	
	 
	
2     	
Words and expressions defined in the Loan Agreement shall, unless the context otherwise requires, have the same meaning where used in this Letter.	
	 
	
3     	
The Bank hereby confirms its consent to the entry by the Borrower and the Manager into a new management agreement in respect of the Ship, pursuant to the terms described in the letters and emails of 4 February 2008 and 4
March 2008 sent by or on behalf of the Borrower and addressed to the Bank. The Bank, the Borrower and the Manager hereby agree and acknowledge that references in the Manager’s Undertaking and the other Security Documents to the “Management
Agreement” shall be deemed to be references to such new management agreement referred to above, in substitution of the Management Agreement currently referred to therein.	
	 
	
4     	
At the Borrower’s request, the Bank and the Borrower hereby agree that the Loan Agreement shall, with effect on and from the Effective Date (as defined below), be (and it is hereby) amended in accordance with the
following provisions (and the Loan Agreement (as so amended) will continue to be binding upon each of the parties thereto upon such terms as so amended):	
	 	 
	 	(a)   	By inserting the following new definition of “HoldCo” in
    the correct alphabetical order in clause 1.2; 

1

	  	 	
““HoldCo” means Safe Bulkers, Inc. of the Marshall Islands and it includes its successors in title;”;	
	 
	 	
(b)     	
by deleting the definition of “Management Agreement” in clause 1.2 and by inserting in its place the following new definition of
“Management Agreement”:
	 
	 	 	““Management
        Agreement” means, together,
        the agreement made or (as the context may require) to be made between
        HoldCo and the Manager and the agreement made, or (as the context may
        require) to be made between the Borrower and the Manager, providing (inter
        alia) for the Manager to manage the Ship, as amended and supplemented
    from time to time;”; 
	 
	 	
(c)     	
by deleting the definition of “Operating Account” in clause 1.2 and by inserting in its place the following new definition of
“Operating Account”:	
	 
	 	 	
““Operating Account” means an interest bearing Dollar account of the Borrower opened by the Borrower with the Bank designated
“Operating Account” and with account number 122181 USD 281120 and includes any other account designated in writing by the Bank to be an Operating Account for the purposes of this Agreement;”;	
	 
	 	
(d)     	
by deleting the definition of “Operating Account Pledge” in clause 1.2 and by inserting in its place the following new definition of
“Operating Account Pledge”:	
	 
	 	 	
“Operating Account Pledge” means the pledge executed or (as the context may require) to be executed by the Borrower in favour of the Bank in
respect of the Operating Account in such form as the Bank may in its absolute discretion require;”;	
	 
	 	
(f)     	
by deleting clause 11.1.27 in its entirety and by inserting in its place the following new clause 11.1.27:	
	 
	 	 	
“11.1.27 Ownership: at any time (a) the Borrower ceases to be a wholly-owned direct Subsidiary of HoldCo and/or (b) Mr Polys V. Hadjioannou and
Mr Nicolaos V. Hadjioannou are or become the ultimate beneficial owners of less than 51% of the total issued share capital of HoldCo; or”; and	
	 
	 	
(g)     	
by deleting clause 15 in its entirety and by inserting in its place the following new clause 15:	
	 
	 	 	“15 	Accounts
	 	 	 	 
	 	 	15.1	General

2

	  	  	 	
The Borrower undertakes with the Bank that it will:	
	 
	 	 	
15.1.1     	
maintain with the Bank the Cash Collateral Account and the Operating Account; and	
	 
	 	 	
15.1.2     	
procure that all moneys payable to the Borrower in respect of the Earnings (as defined in the General Assignment) of the Ship shall, unless and until the Bank directs to the contrary pursuant to clause 2.1 of the General
Assignment, be paid to the Operating Account Provided however that if any of the moneys paid to the Operating Account are payable in a currency other than Dollars, the Bank shall convert such moneys into Dollars at the Bank’s spot rate of
exchange at the relevant time for the purchase of Dollars with such currency and the term “spot rate of exchange” shall include any premium and costs of exchange
payable in connection with the purchase of Dollars with such currency.	
	 
	 	 	
15.2      		
Account terms	
	 
	 	 	 	
Amounts standing to the credit of the Accounts shall (unless otherwise agreed between the Bank and the Borrower) bear interest at the rates from time to time offered by the Bank to its customers for Dollar deposits in
comparable amounts for comparable periods. Interest shall accrue on the Accounts from day to day and be calculated on the basis of actual days elapsed and a 360 day year and shall be credited to the Accounts at such times as the Bank and the
Borrower shall agree.	
	 
	 	 	
15.3      		
Operating Account: withdrawals	
	 
	 	 	 	
Unless and until a Default shall occur and the Bank shall direct to the contrary, the Borrower shall be entitled to withdraw any moneys from the Operating Account at any time.	
	 
	 	 	
15.4      		
Application of accounts	
	 
	 	 	 	
At any time after the occurrence of an Event of Default, the Bank may, without notice to the Borrower, apply all moneys then standing to the credit of the Accounts (together with interest from time to time accruing or
accrued thereon) in or towards satisfaction of any sums due to the Bank under the Security Documents in the manner specified in clause 14.1.	
	 
	 	 	
15.5      		
Charging of accounts	
	 
	 	 	 	
The Accounts and all amounts from time to time standing to the credit thereof shall be subject to the security constituted and the rights conferred by the Account Pledges.”.	
	 

3 

	
5     	
The Bank and the Borrower hereby agree that the agreement of the Bank contained in paragraph 3 above and the amendments to the Loan Agreement set out in paragraph 4 above shall become effective on the date (the
“Effective Date”) when:	
	 
	 	
(a)     	
the Borrower and the Manager have executed this Letter; and	
	 
	 	
(b)     	
Safe Bulkers, Inc. has successfully completed the public offering of its shares and such shares have been accepted for trading on the New York Stock Exchange.	
	 
	 	
  Provided that following the Effective Date the Borrower will:	
	 
	 	
(i)     	
execute in favour of the Bank an account pledge over its bank account held with the Bank with account number 122181 USD 281102, in form and substance satisfactory to the Bank in its discretion; and	
	 
	 	
(ii)     	
deliver to the Bank such documents and evidence of the type referred to in schedule 2 to the Agreement (including legal opinions) as required by the Bank in its discretion, in respect of this Letter, the documents referred
to in paragraph (i) above and the transactions contemplated herein and therein.	
	 
	
6     	
The Bank and the Borrower shall promptly execute such further documentation and take all such other actions as may be reasonably required to reflect the Bank’s consent (evidenced by this Letter) to the various changes
of ownership involved in the Reorganization and the Offering (as such capitalized terms are defined in the Borrower’s letter to the Bank of 4 February 2008), as well as any exchange of, and corporate actions in connection with the exchange of,
bearer shares for registered shares (together, the “Consent”), but only to the extent that the parties have not already done all things reasonably necessary to effect
the Consent.	
	 
	
7     	
Save as amended by this Letter, the provisions of the Loan Agreement shall continue in full force and effect and the Loan Agreement and this Letter shall be read and construed as one instrument.	
	 
	
8     	
Each of the other Security Documents and the obligations of the Security Parties thereunder shall remain and continue in full force and effect notwithstanding the amendments to the Loan Agreement contained in this
Letter.	
	 
	
9     	
References to the “Agreement” or the “Loan Agreement” in any of the Security Documents shall henceforth be references to the Loan Agreement as amended by this Letter and as from time to time hereafter
amended and shall also be deemed to include this Letter and the obligations of the Security Parties hereunder.	
	 
	
10     	
This Letter is governed by, and shall be construed in accordance with, the laws of England and any dispute hereunder shall be resolved in the same courts as provided for in clause 18.2 of the Loan Agreement.	
	 

4

	
Yours faithfully		 		 		 	
	 	
	
EXECUTED as a DEED		
)		 		 	
	
by		
)		 		 	
	
and by		
)		 		  

	
for and on behalf of		) 	 		 	
	
BAYERISCHE HYPO- UND VEREINSBANK )		) 	 		 	
	
AKTIENGESELLSCHAFT		
)		 		  

	
In the presence of:		
)		 		 	
	 	
	 	
	  
	 	 	 	 
	
Witness		 		 		 	
	
Name:		 		 		 	
	
Address:		 		 		 	
	
Occupation:		 		 		 	
	 	
	
We acknowledge receipt of this letter and agree in full to the terms and conditions set out	
	
above and the amendments of the Loan Agreement contained therein.	
	 	
	
EXECUTED as a DEED		
)		 		 	
	
by		
)		 		 	
	
for and on behalf of		
)		 		  

	
PEMER SHIPPING LTD		
)		 		
Attorney-in-fact	
	
In the presence of:		
)		 		 	
	 	
	 	
	  
	 	 	 	 
	
Witness		 		 		 	
	
Name:		 		 		 	
	
Address:		 		 		 	
	
Occupation:		 		 		 	
	 	
	 	
	
EXECUTED as a DEED		
)		 		 	
	
by		
)		 		 	
	
for and on behalf of		
)		 		  

	
SAFETY MANAGEMENT OVERSEAS S.A.		
)		 		
Attorney-in-fact	
	
In the presence of:		
)		 		 	
	 	
	 	
	 	
	
Witness		 		 		 	
	
Name:		 		 		 	
	
Address:		 		 		 	
	
Occupation:		 		 		 	

5

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